LOANS (Tables)

12 Months Ended

Dec. 31, 2020

Summary of balances of loans

	December 31,
	2020		2019
	(in thousands)
Residential real estate:
One- to four-family	$	928,934	$	937,305
Second mortgages and equity lines of credit		145,672		155,716
Residential real estate construction		31,217		14,055
		1,105,823		1,107,076
Commercial:
Commercial real estate		1,551,265		1,168,412
Commercial construction		99,331		153,907
Commercial and industrial		464,393		306,282
Total commercial loans		2,114,989		1,628,601
Consumer loans:
Auto		265,266		424,592
Personal		8,564		11,289
Total consumer loans		273,830		435,881
Total loans		3,494,642		3,171,558
Allowance for loan losses		(55,395)		(24,060)
Loans, net	$	3,439,247	$	3,147,498

Schedule of activity in allowance for loan losses and allocation of allowance to loan segments

The following is the activity in the allowance for loan losses for the years ended December 31, 2020, 2019 and 2018 follows:

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2017	$	4,000	$	7,835	$	1,810	$	2,254	$	1,000	$	1,590	$	18,489
Provision (credit) for loan losses		(761)		2,318		897		1,008		746		(380)		3,828
Charge-offs		(50)		(94)		—		(990)		(847)		—		(1,981)
Recoveries		50		—		—		14		255		—		319
Balance at December 31, 2018	$	3,239	$	10,059	$	2,707	$	2,286	$	1,154	$	1,210	$	20,655
Provision (credit) for loan losses		(407)		2,810		(181)		1,744		497		284		4,747
Charge-offs		(136)		—		—		(1,075)		(891)		—		(2,102)
Recoveries		482		6		—		22		250		—		760
Balance at December 31, 2019	$	3,178	$	12,875	$	2,526	$	2,977	$	1,010	$	1,494	$	24,060
Provision (credit) for loan losses		3,961		23,129		366		3,552		1,831		1,976		34,815
Charge-offs		(60)		(1,240)		(937)		(1,471)		(599)		—		(4,307)
Recoveries		340		1		—		253		233		—		827
Balance at December 31, 2020	$	7,419	$	34,765	$	1,955	$	5,311	$	2,475	$	3,470	$	55,395

Allocation of the allowance to loan segments at December 31, 2020 and 2019 follows:

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
December 31, 2020:
Loans:
Impaired loans	$	24,384	$	12,513	$	—	$	9,359	$	—			$	46,256
Non-impaired loans		1,081,439		1,538,752		99,331		455,034		273,830				3,448,386
Total loans	$	1,105,823	$	1,551,265	$	99,331	$	464,393	$	273,830			$	3,494,642
Allowance for loan losses:
Impaired loans	$	802	$	1,845	$	—	$	31	$	—	$	—	$	2,678
Non-impaired loans		6,617		32,920		1,955		5,280		2,475		3,470		52,717
Total allowance for loan losses	$	7,419	$	34,765	$	1,955	$	5,311	$	2,475	$	3,470	$	55,395
December 31, 2019:
Loans:
Impaired loans	$	27,275	$	530	$	11,244	$	5,831	$	—			$	44,880
Non-impaired loans		1,079,801		1,167,882		142,663		300,451		435,881				3,126,678
Total loans	$	1,107,076	$	1,168,412	$	153,907	$	306,282	$	435,881			$	3,171,558
Allowance for loan losses:
Impaired loans	$	985	$	—	$	—	$	176	$	—	$	—	$	1,161
Non-impaired loans		2,193		12,875		2,526		2,801		1,010		1,494		22,899
Total allowance for loan losses	$	3,178	$	12,875	$	2,526	$	2,977	$	1,010	$	1,494	$	24,060

Summary of past due and non-accrual loans

					90 Days
	30-59 Days		60-89 Days		or More		Total		Loans on
	Past Due		Past Due		Past Due		Past Due		Non-accrual
	(in thousands)
December 31, 2020
Residential real estate:
One- to four-family	$	12,148	$	2,223	$	6,418	$	20,789	$	11,611
Second mortgages and equity lines of credit		460		46		433		939		834
Residential real estate construction		471		—		—		471		—
Commercial real estate		416		—		3,369		3,785		12,486
Commercial construction		—		—		—		—		—
Commercial and industrial		444		191		1,243		1,878		8,606
Consumer:
Auto		1,657		397		488		2,542		557
Personal		88		11		2		101		7
Total	$	15,684	$	2,868	$	11,953	$	30,505	$	34,101
December 31, 2019
Residential real estate:
One- to four-family	$	9,364	$	5,622	$	5,668	$	20,654	$	10,610
Second mortgages and equity lines of credit		418		77		760		1,255		1,561
Commercial real estate		261		4,730		191		5,182		530
Commercial construction		—		—		1,960		1,960		11,244
Commercial and industrial		2,000		722		3,133		5,855		5,831
Consumer:
Auto		3,180		456		457		4,093		529
Personal		69		16		13		98		16
Total	$	15,292	$	11,623	$	12,182	$	39,097	$	30,321

Schedule of information pertaining to impaired loans

	December 31,
	2020						2019
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(in thousands)
Impaired loans without a specific reserve:
Residential real estate	$	12,284	$	13,039	$	—	$	11,610	$	12,140	$	—
Commercial real estate		3,552		4,741		—		530		530		—
Commercial construction		—		—		—		11,244		11,244		—
Commercial and industrial		9,243		11,604		—		5,505		6,901		—
Total		25,079		29,384		—		28,889		30,815		—
Impaired loans with a specific reserve:
Residential real estate		12,100		12,355		802		15,665		16,218		985
Commercial real estate		8,961		8,961		1,845		—		—		—
Commercial and industrial		116		181		31		326		326		176
Total		21,177		21,497		2,678		15,991		16,544		1,161
Total impaired loans	$	46,256	$	50,881	$	2,678	$	44,880	$	47,359	$	1,161

	Year Ended December 31,
	2020						2019						2018
					Interest						Interest						Interest
	Average		Interest		Income		Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Residential real estate	$	26,040	$	1,115	$	1,054	$	29,708	$	1,694	$	1,335	$	32,186	$	1,764	$	1,379
Commercial real estate		5,064		2		2		643		10		10		744		—		—
Commercial construction		8,831		—		—		5,622		237		237		26		—		—
Commercial and industrial		8,162		80		80		5,564		54		54		2,729		35		32
Total	$	48,097	$	1,197	$	1,136	$	41,537	$	1,995	$	1,636	$	35,685	$	1,799	$	1,411

Schedule of loans by risk rating

	December 31,
	2020						2019
	Commercial		Commercial		Commercial		Commercial		Commercial		Commercial
	Real Estate		Construction		and Industrial		Real Estate		Construction		and Industrial
	(in thousands)
Loans rated 1 - 6	$	1,524,105	$	99,331	$	452,665	$	1,163,343	$	127,962	$	294,507
Loans rated 7		14,674				3,122		4,539		14,701		6,117
Loans rated 8		9,455		—		7,080		530		11,244		3,223
Loans rated 9		3,031		—		1,526		—		—		2,435
Loans rated 10		—		—		—		—		—		—
	$	1,551,265	$	99,331	$	464,393	$	1,168,412	$	153,907	$	306,282

PCI

Schedule of information pertaining to impaired loans

	December 31,
	2020		2019
	(in thousands)
Outstanding balance	$	4,307	$	4,609
Carrying amount	$	4,079	$	4,378

Summary of activity in accretable yield for purchased credit impaired loans

	December 31,
	2020		2019
	(in thousands)
Balance at beginning of period	$	149	$	185
Additions		—		—
Accretion		(8)		(8)
Reclassification from nonaccretable difference		—		(28)
Balance at end of period	$	141	$	149