LOANS (Tables)

6 Months Ended

Jun. 30, 2021

Summary of balances of loans

	June 30,		December 31,
	2021		2020
	(in thousands)
Residential real estate:
One- to four-family	$	927,782	$	928,934
Second mortgages and equity lines of credit		134,688		145,672
Residential real estate construction		33,900		31,217
		1,096,370		1,105,823
Commercial:
Commercial real estate		1,561,873		1,551,265
Commercial construction		107,585		99,331
Commercial and industrial		467,479		464,393
Total commercial loans		2,136,937		2,114,989
Consumer loans:
Auto		179,135		265,266
Personal		7,295		8,564
Total consumer loans		186,430		273,830
Total loans		3,419,737		3,494,642
Allowance for loan losses		(51,273)		(55,395)
Loans, net	$	3,368,464	$	3,439,247

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 three and six months ended June 30, 2021 and 2020:

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at March 31, 2020	$	3,177	$	14,642	$	2,522	$	2,740	$	1,484	$	1,824	$	26,389
Provision (credit) for loan losses		2,598		3,747		693		1,102		808		1,056		10,004
Charge-offs		(52)		—		—		(280)		(126)		—		(458)
Recoveries		134		—		—		—		38		—		172
Balance at June 30, 2020	$	5,857	$	18,389	$	3,215	$	3,562	$	2,204	$	2,880	$	36,107
Balance at March 31, 2021	$	7,269	$	34,987	$	2,237	$	6,627	$	2,064	$	2,200	$	55,384
Provision (credit) for loan losses		(1,984)		(1,984)		(300)		1,422		(1,239)		(201)		(4,286)
Charge-offs		—		(12)		—		—		(31)		—		(43)
Recoveries		149		—		—		10		59		—		218
Balance at June 30, 2021	$	5,434	$	32,991	$	1,937	$	8,059	$	853	$	1,999	$	51,273

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2019	$	3,178	$	12,875	$	2,526	$	2,977	$	1,010	$	1,494	$	24,060
Provision (credit) for loan losses		2,549		6,687		689		943		1,499		1,386		13,753
Charge-offs		(52)		(1,174)		—		(577)		(379)		—		(2,182)
Recoveries		182		1		—		219		74		—		476
Balance at June 30, 2020	$	5,857	$	18,389	$	3,215	$	3,562	$	2,204	$	2,880	$	36,107
Balance at December 31, 2020	$	7,419	$	34,765	$	1,955	$	5,311	$	2,475	$	3,470	$	55,395
Provision (credit) for loan losses		(2,205)		(1,766)		(18)		2,916		(1,651)		(1,471)		(4,195)
Charge-offs		—		(12)		—		(186)		(86)		—		(284)
Recoveries		220		4		—		18		115		—		357
Balance at June 30, 2021	$	5,434	$	32,991	$	1,937	$	8,059	$	853	$	1,999	$	51,273

Allocation of the allowance to loan segments at June 30, 2021 and December 31, 2020 follows:

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
June 30, 2021:
Loans:
Impaired loans	$	22,503	$	12,408	$	—	$	7,595	$	—			$	42,506
Non-impaired loans		1,073,867		1,549,465		107,585		459,884		186,430				3,377,231
Total loans	$	1,096,370	$	1,561,873	$	107,585	$	467,479	$	186,430			$	3,419,737
Allowance for loan losses:
Impaired loans	$	683	$	1,887	$	—	$	2,848	$	—	$	—	$	5,418
Non-impaired loans		4,751		31,104		1,937		5,211		853		1,999		45,855
Total allowance for loan losses	$	5,434	$	32,991	$	1,937	$	8,059	$	853	$	1,999	$	51,273
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

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)
June 30, 2021
Residential real estate:
One- to four-family	$	192	$	2,170	$	4,808	$	7,170	$	11,172
Second mortgages and equity lines of credit		518		1		486		1,005		668
Commercial real estate		—		—		3,369		3,369		12,405
Commercial construction		—		—		—		—		—
Commercial and industrial		7		3,796		1,456		5,259		7,957
Consumer:
Auto		615		368		199		1,182		215
Personal		53		—		17		70		17
Total	$	1,385	$	6,335	$	10,335	$	18,055	$	32,434
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

Schedule of information pertaining to impaired loans

The following information pertains to impaired loans:

	June 30, 2021						December 31, 2020
			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	$	12,612	$	13,151	$	—	$	12,284	$	13,039	$	—
Commercial real estate		3,530		4,724		—		3,552		4,741		—
Commercial construction		—		—		—		—		—		—
Commercial and industrial		1,163		1,507		—		9,243		11,604		—
Total		17,305		19,382		—		25,079		29,384		—
Impaired loans with a specific reserve:
Residential real estate		9,891		10,157		683		12,100		12,355		802
Commercial real estate		8,878		8,962		1,887		8,961		8,961		1,845
Commercial construction		—		—		—		—		—		—
Commercial and industrial		6,432		7,485		2,848		116		181		31
Total		25,201		26,604		5,418		21,177		21,497		2,678
Total impaired loans	$	42,506	$	45,986	$	5,418	$	46,256	$	50,881	$	2,678

	Three Months Ended June 30,
	2021						2020
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Residential real estate	$	22,268	$	247	$	54	$	25,241	$	253	$	196
Commercial real estate		12,455		63		63		3,668		1		1
Commercial construction		—		—		—		10,971		—		—
Commercial and industrial		7,834		16		16		7,765		—		—
Total	$	42,557	$	326	$	133	$	47,645	$	254	$	197

	Six Months Ended June 30,
	2021						2020
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Residential real estate	$	22,973	$	543	$	159	$	25,919	$	575	$	518
Commercial real estate		12,474		65		65		2,622		1		1
Commercial construction		—		—		—		11,062		—		—
Commercial and industrial		8,342		136		136		7,120		7		7
Total	$	43,789	$	744	$	360	$	46,723	$	583	$	526

Schedule of loans by risk rating

	June 30, 2021						December 31, 2020
	Commercial		Commercial		Commercial		Commercial		Commercial		Commercial
	Real Estate		Construction		and Industrial		Real Estate		Construction		and Industrial
	(in thousands)
Loans rated 1 - 6	$	1,534,866	$	107,585	$	456,880	$	1,524,105	$	99,331	$	452,665
Loans rated 7		14,602		—		2,642		14,674		—		3,122
Loans rated 8		9,374		—		485		9,455		—		7,080
Loans rated 9		3,031		—		7,472		3,031		—		1,526
Loans rated 10		—		—		—		—		—		—
	$	1,561,873	$	107,585	$	467,479	$	1,551,265	$	99,331	$	464,393

PCI

Schedule of information pertaining to impaired loans

	June 30,		December 31,
	2021		2020
	(in thousands)
Outstanding balance	$	3,982	$	4,307
Carrying amount	$	3,768	$	4,079

Summary of activity in accretable yield for purchased credit impaired loans

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Balance at beginning of period	$	138	$	147	$	141	$	149
Additions		—		—		—		—
Accretion		(2)		(2)		(5)		(4)
Reclassification from nonaccretable difference		—		—		—		—
Balance at end of period	$	136	$	145	$	136	$	145