Loans Receivable, Allowance for Credit Losses and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2024

Loans Receivable, Allowance for Credit Losses and Credit Quality

Schedule of Loans

Loans consist of the following as of the dates stated:

	March 31, 2024				December 31, 2023
	Amount		Percent		Amount		Percent
	(Dollars in thousands)
One-to-four-family residential	$	1,102,919	27.85	%	$	1,097,486	28.18	%
Home equity		99,208	2.51	%		97,270	2.50	%
Residential real estate		1,202,127	30.36	%		1,194,756	30.68	%
Commercial real estate		1,195,390	30.19	%		1,169,859	30.04	%
Multi-family residential		321,124	8.11	%		209,982	5.39	%
Commercial real estate		1,516,514	38.30	%		1,379,841	35.43	%
Construction and land development		535,391	13.52	%		622,823	15.99	%
Commercial and industrial		498,990	12.60	%		491,918	12.63	%
Commercial		2,550,895	64.42	%		2,494,582	64.06	%
Consumer, net of premium/discount		206,792	5.22	%		204,871	5.26	%
Total loans		3,959,814	100.00	%		3,894,209	100.00	%
Deferred fees, net		(5,191)				(4,930)
Allowance for credit losses		(34,306)				(32,222)
Net loans	$	3,920,317			$	3,857,057

Schedule of outstanding balances of consumer loan pools, shown net of premium (discount)

The outstanding balances of these consumer purchased loan pools, shown net of premium (discount) are as follows as of the dates stated:

	March 31, 2024
	Gross Loan		Premium (Discount)		Net Loan
	(in thousands)
Student loans	$	8,373	$	47	$	8,420
Boat and RV loans		55,575		1,353		56,928
Automobile loans		18,824		—		18,824
Solar panel loans		60,092		(5,360)		54,732
Home improvement loans		50,585		(23)		50,562
Total	$	193,449	$	(3,983)	$	189,466

	December 31, 2023
	Gross Loan		Premium (Discount)		Net Loan
	(in thousands)
Student loans	$	8,989	$	49	$	9,038
Boat and RV loans		58,483		1,422		59,905
Automobile loans		14,662		—		14,662
Solar panel loans		61,430		(5,443)		55,987
Home improvement loans		53,220		(26)		53,194
Total	$	196,784	$	(3,998)	$	192,786

Schedule of aging of the amortized cost of loans receivable by loan category

The following table presents the aging of the amortized cost of loans receivable by loan category as of the date stated:

	March 31, 2024
			30-59		60-89		90 Days or
	Current		Days		Days		More Past Due				Total
	Loans		Past Due		Past Due		Still Accruing		Nonaccrual		Loans
	(in thousands)
Real estate loans:
One-to-four-family residential	$	1,096,745	$	1,618	$	275	$	—	$	4,281	$	1,102,919
Home equity		96,335		2,287		—		—		586		99,208
Commercial real estate		1,190,344		4,144		480		—		422		1,195,390
Multi-family residential		321,124		—		—		—		—		321,124
Construction and land development		535,381		—		—		—		10		535,391
Commercial and industrial		489,522		5,343		—		—		4,125		498,990
Consumer		201,529		2,192		1,689		—		1,382		206,792
Total	$	3,930,980	$	15,584	$	2,444	$	—	$	10,806	$	3,959,814

	December 31, 2023
			30-59		60-89		90 Days or
	Current		Days		Days		More Past Due				Total
	Loans		Past Due		Past Due		Still Accruing		Nonaccrual		Loans
	(in thousands)
Real estate loans:
One-to-four-family residential	$	1,091,483	$	1,903	$	—	$	—	$	4,100	$	1,097,486
Home equity		96,327		288		65		—		590		97,270
Commercial real estate		1,166,702		2,735		—		—		422		1,169,859
Multi-family residential		209,982		—		—		—		—		209,982
Construction and land development		622,813		—		—		—		10		622,823
Commercial and industrial		487,777		2		1		—		4,138		491,918
Consumer		198,450		3,928		955		—		1,538		204,871
Total	$	3,873,534	$	8,856	$	1,021	$	—	$	10,798	$	3,894,209

Schedule of amortized cost of nonaccrual loans receivable by loan category

The following table presents the amortized cost of nonaccrual loans receivable by loan category as of the dates stated:

	March 31, 2024						December 31, 2023
	Nonaccrual		Nonaccrual		Total		Nonaccrual		Nonaccrual		Total
	Loans with		Loans with		Nonaccrual		Loans with		Loans with		Nonaccrual
	No ACL		an ACL		Loans		No ACL		an ACL		Loans
	(In thousands)
Real estate loans:
One-to-four-family residential	$	4,281	$	—	$	4,281	$	4,100	$	—	$	4,100
Home equity		586		—		586		590		—		590
Commercial real estate		422		—		422		422		—		422
Multi-family residential		—		—		—		—		—		—
Construction and land development		10		—		10		10		—		10
Commercial and industrial		363		3,762		4,125		376		3,762		4,138
Consumer		1,382		—		1,382		1,538		—		1,538
Total	$	7,044	$	3,762	$	10,806	$	7,036	$	3,762	$	10,798

Schedule of amortized cost of loans receivable by internal risk grade by year of origination

The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of March 31, 2024. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended March 31, 2024:

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
One-to-Four-Family Residential
Grade:
Pass	1-5	$	29,286	$	151,762	$	268,073	$	253,804	$	125,399	$	246,986	$	25,953	$	1,101,263
Special Mention	6		—		—		—		686		—		—		—		686
Substandard	7		—		—		—		—		—		891		79		970
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	29,286	$	151,762	$	268,073	$	254,490	$	125,399	$	247,877	$	26,032	$	1,102,919
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	67	$	99,141	$	99,208
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	—	$	—	$	—	$	—	$	—	$	67	$	99,141	$	99,208
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate
Grade:
Pass	1-5	$	8,600	$	391,464	$	328,546	$	59,452	$	102,632	$	261,893	$	30,951	$	1,183,538
Special Mention	6		—		—		—		—		—		11,852		—		11,852
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	8,600	$	391,464	$	328,546	$	59,452	$	102,632	$	273,745	$	30,951	$	1,195,390
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-Family
Grade:
Pass	1-5	$	—	$	7,579	$	148,419	$	71,952	$	36,502	$	56,672	$	—	$	321,124
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	—	$	7,579	$	148,419	$	71,952	$	36,502	$	56,672	$	—	$	321,124
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Construction and Land Development
Grade:
Pass	1-5	$	21,579	$	174,959	$	244,017	$	50,137	$	6,594	$	8,314	$	26,816	$	532,416
Special Mention	6		—		—		2,965		—		—		—		—		2,965
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	21,579	$	174,959	$	246,982	$	50,137	$	6,594	$	8,324	$	26,816	$	535,391
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial
Grade:
Pass	1-5	$	13,110	$	63,607	$	85,288	$	44,504	$	8,944	$	16,433	$	258,288	$	490,174
Special Mention	6		—		—		—		—		—		468		—		468
Substandard	7		—		—		—		—		—		3,762		4,586		8,348
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	13,110	$	63,607	$	85,288	$	44,504	$	8,944	$	20,663	$	262,874	$	498,990
Current period gross charge-offs		$	—	$	—	$	—	$	250	$	—	$	119	$	—	$	369
Consumer
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			6,019		35,385		78,783		54,792		10,198		19,688		1,927		206,792
Total		$	6,019	$	35,385	$	78,783	$	54,792	$	10,198	$	19,688	$	1,927	$	206,792
Current period gross charge-offs		$	—	$	19	$	888	$	520	$	23	$	115	$	8	$	1,573
Total Loans
Grade:
Pass	1-5	$	72,575	$	789,371	$	1,074,343	$	479,849	$	280,071	$	590,365	$	441,149	$	3,727,723
Special Mention	6		—		—		2,965		686		—		12,320		—		15,971
Substandard	7		—		—		—		—		—		4,653		4,665		9,318
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			6,019		35,385		78,783		54,792		10,198		19,688		1,927		206,792
Total		$	78,594	$	824,756	$	1,156,091	$	535,327	$	290,269	$	627,036	$	447,741	$	3,959,814
Current period gross charge-offs		$	—	$	19	$	888	$	770	$	23	$	234	$	8	$	1,942

(1) Consumer loans are not formally risk rated and included $1.4 million of loans on non-accrual as of March 31, 2024.

The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of December 31, 2023. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended December 31, 2023:

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
One-to-Four-Family Residential
Grade:
Pass	1-5	$	152,802	$	272,447	$	256,666	$	128,181	$	78,739	$	174,586	$	33,088	$	1,096,509
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		898		79		977
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	152,802	$	272,447	$	256,666	$	128,181	$	78,739	$	175,484	$	33,167	$	1,097,486
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	69	$	97,201	$	97,270
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	—	$	—	$	—	$	—	$	—	$	69	$	97,201	$	97,270
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate
Grade:
Pass	1-5	$	380,858	$	319,868	$	59,555	$	102,791	$	99,316	$	165,670	$	29,904	$	1,157,962
Special Mention	6		—		—		—		—		6,183		5,714		—		11,897
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	380,858	$	319,868	$	59,555	$	102,791	$	105,499	$	171,384	$	29,904	$	1,169,859
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-Family
Grade:
Pass	1-5	$	7,583	$	101,550	$	22,358	$	21,671	$	42,776	$	14,044	$	—	$	209,982
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	7,583	$	101,550	$	22,358	$	21,671	$	42,776	$	14,044	$	—	$	209,982
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and Land Development
Grade:
Pass	1-5	$	157,380	$	305,558	$	127,720	$	20,929	$	10,333	$	—	$	893	$	622,813
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	157,380	$	305,558	$	127,720	$	20,929	$	10,333	$	10	$	893	$	622,823
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial
Grade:
Pass	1-5	$	58,678	$	88,286	$	45,960	$	8,080	$	3,038	$	16,178	$	262,506	$	482,726
Special Mention	6		—		—		250		—		—		475		—		725
Substandard	7		—		—		—		—		119		3,762		4,586		8,467
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	58,678	$	88,286	$	46,210	$	8,080	$	3,157	$	20,415	$	267,092	$	491,918
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Consumer
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			36,453		83,720		53,404		9,826		10,896		8,700		1,872		204,871
Total		$	36,453	$	83,720	$	53,404	$	9,826	$	10,896	$	8,700	$	1,872	$	204,871
Current period gross charge-offs		$	42	$	572	$	585	$	228	$	72	$	18	$	1	$	1,518
Total Loans
Grade:
Pass	1-5	$	757,301	$	1,087,709	$	512,259	$	281,652	$	234,202	$	370,547	$	423,592	$	3,667,262
Special Mention	6		—		—		250		—		6,183		6,189		—		12,622
Substandard	7		—		—		—		—		119		4,660		4,665		9,444
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			36,453		83,720		53,404		9,826		10,896		8,700		1,872		204,871
Total		$	793,754	$	1,171,429	$	565,913	$	291,478	$	251,400	$	390,106	$	430,129	$	3,894,209
Current period gross charge-offs		$	42	$	572	$	585	$	228	$	72	$	18	$	1	$	1,518

(1) Consumer loans are not formally risk rated and included $1.5 million of loans on non-accrual as of December 31, 2023.

Schedule of the change in the ACL by major loan segment

	For the Three Months Ended March 31, 2024
	One-to-Four								Construction
	Family				Commercial				and Land		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Development		Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2023	$	1,835	$	117	$	5,698	$	378	$	7,630	$	10,878	$	5,686	$	—	$	32,222
Provision (benefit) for credit losses		102		12		347		200		(1,896)		434		4,691				3,890
Charge-offs		—		—		—		—		—		(369)		(1,573)		—		(1,942)
Recoveries of loans previously charged-off		—		—		—		—		—		36		100		—		136
Balance at March 31, 2024	$	1,937	$	129	$	6,045	$	578	$	5,734	$	10,979	$	8,904	$	—	$	34,306
	For the Three Months Ended March 31, 2023
	One to Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2022	$	3,485	$	258	$	5,785	$	753	$	3,846	$	8,255	$	1,403	$	1,243	$	25,028
Adjustment to allowance for adoption of ASU 2016-13		266		13		822		—		(246)		932		615		(1,243)		1,159
Provision (benefit) for credit losses		(373)		24		839		90		(53)		1,294		251		—		2,072
Charge offs		—		—		—		—		—		—		(637)		—		(637)
Recoveries of loans previously charged off		—		—		12		—		—		—		297		—		309
Balance at March 31, 2023	$	3,378	$	295	$	7,458	$	843	$	3,547	$	10,481	$	1,929	$	—	$	27,931

Schedule of amortized cost of collateral-dependent loans

The following table presents the amortized cost of collateral-dependent loans of March 31, 2024 and December 31, 2023:

	As of
	March 31, 2024		December 31, 2023
	(in thousands)
One-to-four-family residential	$	970	$	977
Construction and land development		10		10
Commercial and industrial		8,348		8,443
Total	$	9,328	$	9,430