	December 31, 2014
							Total Loans
						Total	> 90 Days Past
	30-59 Days	60-89 Days	Over 90	Total Past		Loans	Due and
	Past Due	Past Due	Days	Due	Current	Receivable	Still Accruing
(In Thousands)
One- to four-family
residential construction	$--	$--	$--	$--	$40,361	$40,361	$--
Subdivision construction	109	--	--	109	28,484	28,593	--
Land development	110	--	255	365	51,731	52,096	--
Commercial construction	--	--	--	--	392,929	392,929	--
Owner occupied one- to four-
family residential	2,037	441	1,029	3,507	84,042	87,549	170
Non-owner occupied one- to
four-family residential	583	--	296	879	142,172	143,051	--
Commercial real estate	6,887	--	4,699	11,586	934,290	945,876	187
Other residential	--	--	--	--	392,414	392,414	--
Commercial business	59	--	411	470	353,542	354,012	--
Industrial revenue bonds	--	--	--	--	41,061	41,061	--
Consumer auto	1,801	244	316	2,361	320,992	323,353	--
Consumer other	1,301	260	801	2,362	75,667	78,029	397
Home equity lines of credit	89	--	340	429	65,843	66,272	22
Acquired FDIC-covered loans, net of discounts	6,236	1,062	16,419	23,717	262,891	286,608	194
Acquired loans no longer covered by FDIC loss sharing agreements,
net of discounts	754	46	243	1,043	48,902	49,945	--
Acquired non-covered loans, net of discounts	2,638	640	11,248	14,526	107,456	121,982	--
	22,604	2,693	36,057	61,354	3,342,777	3,404,131	970
Less FDIC-supported loans,
and acquired non-covered loans, net of discounts	9,628	1,748	27,910	39,286	419,249	458,535	194

Total	$12,976	$945	$8,147	$22,068	$2,923,528	$2,945,596	$776

	December 31, 2013
							Total Loans
						Total	> 90 Days Past
	30-59 Days	60-89 Days	Over 90	Total Past		Loans	Due and
	Past Due	Past Due	Days	Due	Current	Receivable	Still Accruing
(In Thousands)
One- to four-family
residential construction	$--	$--	$--	$--	$34,662	$34,662	$--
Subdivision construction	--	--	871	871	39,538	40,409	--
Land development	145	38	338	521	57,320	57,841	--
Commercial construction	--	--	--	--	184,019	184,019	--
Owner occupied one- to four-
family residential	1,233	344	3,014	4,591	84,542	89,133	211
Non-owner occupied one- to
four-family residential	1,562	171	843	2,576	143,332	145,908	140
Commercial real estate	2,856	131	6,205	9,192	771,498	780,690	--
Other residential	--	--	--	--	325,599	325,599	--
Commercial business	17	19	5,208	5,244	310,025	315,269	--
Industrial revenue bonds	--	--	2,023	2,023	40,207	42,230	--
Consumer auto	955	127	168	1,250	133,467	134,717	--
Consumer other	1,258	333	732	2,323	79,937	82,260	257
Home equity lines of credit	168	16	504	688	57,595	58,283	--
Acquired FDIC-covered
loans, net of discounts	7,623	1,849	24,761	34,233	351,931	386,164	215
Acquired loans no longer
covered by FDIC loss
sharing agreements, net
of discounts	--	--	--	--	--	--	--
Acquired non-covered loans
net of discounts
(Sun Security Bank)	--	--	--	--	--	--	--
FDIC-supported loans, net of
	15,817	3,028	44,667	63,512	2,613,672	2,677,184	823
Less FDIC-supported loans,
net of discounts	7,623	1,849	24,761	34,233	351,931	386,164	215

Total legacy loans	$8,194	$1,179	$19,906	$29,279	$2,261,741	$2,291,020	$608

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2014. Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014:

	One- to Four-
	Family
	Residential
	and	Other	Commercial	Commercial	Commercial
	Construction	Residential	Real Estate	Construction	Business	Consumer	Total
(In Thousands)
Allowance for Loan Losses
Balance, January 1, 2014	$6,235	$2,678	$16,939	$4,464	$6,451	$3,349	$40,116
Provision charged to expense	(1,025)	227	1,855	(957)	409	3,642	4,151
Losses charged off	(2,251)	(1)	(2,160)	(126)	(3,286)	(4,005)	(11,829)
Recoveries	496	37	3,139	181	105	2,039	5,997

Balance,
December 31, 2014	$3,455	$2,941	$19,773	$3,562	$3,679	$5,025	$38,435

Ending balance:
Individually evaluated
for impairment	$829	$--	$1,751	$1,507	$823	$232	$5,142
Collectively evaluated
for impairment	$2,532	$2,923	$16,671	$1,905	$2,805	$4,321	$31,157
Loans acquired and
accounted for under
ASC 310-30	$94	$18	$1,351	$150	$51	$472	$2,136

Loans
Individually evaluated
for impairment	$11,488	$9,804	$28,641	$7,601	$2,725	$1,480	$61,739
Collectively evaluated
for impairment	$288,066	$382,610	$917,235	$437,424	$392,348	$466,174	$2,883,857
Loans acquired and
accounted for under
ASC 310-30	$234,158	$48,470	$107,278	$1,937	$17,789	$48,903	$458,535

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2013. Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2013:

	One- to Four-
	Family
	Residential
	and	Other	Commercial	Commercial	Commercial
	Construction	Residential	Real Estate	Construction	Business	Consumer	Total
(In Thousands)
Allowance for Loan Losses
Balance, January 1, 2013	$6,822	$4,327	$17,441	$3,938	$5,096	$3,025	$40,649
Provision charged to expense	1,496	1,556	6,922	1,142	4,404	1,866	17,386
Losses charged off	(2,196)	(3,248)	(9,836)	(788)	(4,072)	(3,312)	(23,452)
Recoveries	113	43	2,412	172	1,023	1,770	5,533

Balance,
December 31, 2013	$6,235	$2,678	$16,939	$4,464	$6,451	$3,349	$40,116

Ending balance:
Individually evaluated
for impairment	$2,501	$--	$90	$473	$4,162	$218	$7,444
Collectively evaluated
for impairment	$3,734	$2,678	$16,845	$3,991	$2,287	$3,131	$32,666
Loans acquired and
accounted for under
ASC 310-30	$--	$--	$4	$--	$2	$--	$6

Loans
Individually evaluated
for impairment	$13,055	$10,983	$31,591	$12,628	$8,755	$1,389	$78,401
Collectively evaluated
for impairment	$297,057	$314,616	$791,329	$229,232	$306,514	$273,871	$2,212,619
Loans acquired and
accounted for under
ASC 310-30	$206,964	$35,095	$84,591	$6,989	$4,883	$47,642	$386,164

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2012. Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2012:

	One- to Four-
	Family
	Residential
	and	Other	Commercial	Commercial	Commercial
	Construction	Residential	Real Estate	Construction	Business	Consumer	Total
(In Thousands)
Allowance for Loan Losses
Balance, January 1, 2012	$11,424	$3,088	$18,390	$2,982	$2,974	$2,374	$41,232
Provision charged to expense	(1,626)	4,471	16,360	18,101	4,897	1,660	43,863
Losses charged off	(3,203)	(3,579)	(18,010)	(18,027)	(3,082)	(2,390)	(48,291)
Recoveries	227	347	701	882	307	1,381	3,845

Balance,
December 31, 2012	$6,822	$4,327	$17,441	$3,938	$5,096	$3,025	$40,649

Ending balance:
Individually evaluated
for impairment	$2,288	$1,089	$4,990	$96	$2,778	$156	$11,397
Collectively evaluated
for impairment	$4,533	$3,238	$12,442	$3,842	$2,314	$2,866	$29,235
Loans acquired and
accounted for under
ASC 310-30	$1	$--	$9	$--	$4	$3	$17

Loans
Individually evaluated
for impairment	$14,691	$16,405	$48,476	$12,009	$10,064	$980	$102,625
Collectively evaluated
for impairment	$279,502	$251,113	$687,663	$201,065	$254,567	$219,670	$1,893,580
Loans acquired and
accounted for under
ASC 310-30	$278,889	$53,280	$129,128	$7,997	$14,939	$39,616	$523,849

The portfolio segments used in the preceding three tables correspond to the loan classes used in all other tables in Note 3 as follows:

· The one- to four-family residential and construction segment includes the one- to four-family residential construction, subdivision construction, owner occupied one- to four-family residential and non-owner occupied one- to four-family residential classes.

· The commercial real estate segment includes the commercial real estate and industrial revenue bonds classes.

· The commercial construction segment includes the land development and commercial construction classes.

· The commercial business segment corresponds to the commercial business class.

· The consumer segment includes the consumer auto, consumer other and home equity lines of credit classes.

The weighted average interest rate on loans receivable at December 31, 2014 and 2013, was 4.66% and 5.10%, respectively.

Loans serviced for others are not included in the accompanying consolidated statements of financial condition. The unpaid principal balances of loans serviced for others were $266.4 million and $166.2 million at December 31, 2014 and 2013, respectively. In addition, available lines of credit on these loans were $33.0 million and $15.7 million at December 31, 2014 and 2013, respectively.

A loan is considered impaired, in accordance with the impairment accounting guidance (FASB ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include not only nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties.

The following summarizes information regarding impaired loans at and during the years ended December 31, 2014, 2013 and 2012:

				Year Ended
	December 31, 2014			December 31, 2014
				Average
		Unpaid		Investment	Interest
	Recorded	Principal	Specific	in Impaired	Income
	Balance	Balance	Allowance	Loans	Recognized
(In Thousands)
One- to four-family residential construction	$1,312	$1,312	$--	$173	$76
Subdivision construction	4,540	4,540	344	2,593	226
Land development	7,601	8,044	1,507	9,691	292
Commercial construction	--	--	--	--	--
Owner occupied one- to four-family
residential	3,747	4,094	407	4,808	212
Non-owner occupied one- to four-family
residential	1,889	2,113	78	4,010	94
Commercial real estate	28,641	30,781	1,751	29,808	1,253
Other residential	9,804	9,804	--	10,469	407
Commercial business	2,725	2,750	823	2,579	158
Industrial revenue bonds	--	--	--	2,644	--
Consumer auto	420	507	63	219	37
Consumer other	629	765	94	676	71
Home equity lines of credit	431	476	75	461	25

Total	$61,739	$65,186	$5,142	$68,131	$2,851

				Year Ended
	December 31, 2013			December 31, 2013
				Average
		Unpaid		Investment	Interest
	Recorded	Principal	Specific	in Impaired	Income
	Balance	Balance	Allowance	Loans	Recognized
(In Thousands)
One- to four-family residential construction	$--	$--	$--	$36	$--
Subdivision construction	3,502	3,531	1,659	3,315	163
Land development	12,628	13,042	473	13,389	560
Commercial construction	--	--	--	--	--
Owner occupied one- to four-family
residential	5,802	6,117	593	5,101	251
Non-owner occupied one- to four-family
residential	3,751	4,003	249	4,797	195
Commercial real estate	31,591	34,032	90	42,242	1,632
Other residential	10,983	10,983	--	13,837	434
Commercial business	6,057	6,077	4,162	6,821	179
Industrial revenue bonds	2,698	2,778	--	2,700	27
Consumer auto	216	231	32	145	16
Consumer other	604	700	91	630	63
Home equity lines of credit	569	706	95	391	38

Total	$78,401	$82,200	$7,444	$93,404	$3,558

				Year Ended
	December 31, 2012			December 31, 2012
				Average
		Unpaid		Investment	Interest
	Recorded	Principal	Specific	in Impaired	Income
	Balance	Balance	Allowance	Loans	Recognized
(In Thousands)
One- to four-family residential construction	$410	$410	$239	$679	$22
Subdivision construction	2,577	2,580	688	8,399	143
Land development	12,009	13,204	96	12,614	656
Commercial construction	--	--	--	383	--
Owner occupied one- to four-family
residential	5,627	6,037	550	5,174	295
Non-owner occupied one- to four-family
residential	6,077	6,290	811	10,045	330
Commercial real estate	48,476	49,779	4,990	45,181	2,176
Other residential	16,405	16,405	1,089	16,951	836
Commercial business	7,279	8,615	2,778	4,851	329
Industrial revenue bonds	2,785	2,865	--	3,034	5
Consumer auto	143	170	22	157	17
Consumer other	602	682	89	654	65
Home equity lines of credit	235	248	45	162	15

Total	$102,625	$107,285	$11,397	$108,284	$4,889

At December 31, 2014, $20.0 million of impaired loans had specific valuation allowances totaling $5.1 million. At December 31, 2013, $18.0 million of impaired loans had specific valuation allowances totaling $7.4 million. At December 31, 2012, $43.4 million of impaired loans had specific valuation allowances totaling $11.4 million. For impaired loans which were nonaccruing, interest of approximately $1.1 million, $1.6 million and $1.8 million would have been recognized on an accrual basis during the years ended December 31, 2014, 2013 and 2012, respectively.

Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. Troubled debt restructurings are loans that are modified by granting concessions to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The types of concessions made are factored into the estimation of the allowance for loan losses for troubled debt restructurings primarily using a discounted cash flows or collateral adequacy approach.

The following table presents newly restructured loans during 2014 and 2013 by type of modification:

At December 31, 2014, the Company had $47.6 million of loans that were modified in troubled debt restructurings and impaired, as follows: $8.3 million of construction and land development loans, $13.8 million of single family and multi-family residential mortgage loans, $23.3 million of commercial real estate loans, $1.9 million of commercial business loans and $324,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2014, $39.2 million were accruing interest and $18.3 million were classified as substandard using the Company’s internal grading system which is described below. The Company had troubled debt restructurings which were modified in the previous 12 months and subsequently defaulted during the year ended December 31, 2014, of approximately $62,000, one owner occupied residential mortgage loan totaling $56,000 and two consumer loans totaling $6,000. When loans modified as troubled debt restructuring have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowances reflect amounts considered uncollectible. At December 31, 2013, the Company had $54.1 million of loans that were modified in troubled debt restructurings and impaired, as follows: $10.9 million of construction and land development loans, $16.6 million of single family and multi-family residential mortgage loans, $24.8 million of commercial real estate loans, $1.5 million of commercial business loans and $310,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2013, $49.6 million were accruing interest and $22.1 million were classified as substandard using the Company’s internal grading system.

During the year ended December 31, 2014, borrowers with loans designated as troubled debt restructurings totaling $2.3 million met the criteria for placement back on accrual status. The $2.3 million was made up of $1.6 million of commercial real estate loans, $696,000 of residential mortgage loans and $6,000 of consumer loans. This criteria is a minimum of six months of payment performance under existing or modified terms.

The Company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” “Special Mention,” “Substandard” and “Doubtful.” Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if certain deficiencies are not corrected. Doubtful loans are those having all the weaknesses inherent to those classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Special mention loans possess potential weaknesses that deserve management’s close attention but do not expose the Bank to a degree of risk that warrants substandard classification. Loans classified as watch are being monitored because of indications of potential weaknesses or deficiencies that may require future classification as special mention or substandard. Loans not meeting any of the criteria previously described are considered satisfactory. The FDIC-covered loans are evaluated using this internal grading system. These loans are accounted for in pools and are currently substantially covered through loss sharing agreements with the FDIC. Minimal adverse classification in the loan pools was identified as of December 31, 2014 and 2013, respectively. The acquired non-covered loans are also evaluated using this internal grading system. These loans are accounted for in pools and minimal adverse classification in the loan pools was identified as of December 31, 2014. See Note 4 for further discussion of the acquired loan pools and loss sharing agreements.

The Company evaluates the loan risk internal grading system definitions and allowance for loan loss methodology on an ongoing basis. In the fourth quarter of 2014, the Company began using a three-year average of historical losses for the general component of the allowance for loan loss calculation. The Company had previously used a five-year average. The Company believes that the three-year average provides a better representation of the current risks in the loan portfolio. This change was made after consultation with our regulators and other third-party consultants, as well as a review of the practices used by the Company’s peers. No other significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the past year.

	December 31, 2014
			Special
	Satisfactory	Watch	Mention	Substandard	Doubtful	Total
(In Thousands)
One- to four-family residential
construction	$39,049	$--	$--	$1,312	$--	$40,361
Subdivision construction	24,269	21	--	4,303	--	28,593
Land development	41,035	5,000	--	6,061	--	52,096
Commercial construction	392,929	--	--	--	--	392,929
Owner occupied one- to-four-
family residential	85,041	745	--	1,763	--	87,549
Non-owner occupied one- to-
four-family residential	141,198	580	--	1,273	--	143,051
Commercial real estate	901,167	32,155	--	12,554	--	945,876
Other residential	380,811	9,647	--	1,956	--	392,414
Commercial business	351,744	423	--	1,845	--	354,012
Industrial revenue bonds	40,037	1,024	--	--	--	41,061
Consumer auto	323,002	--	--	351	--	323,353
Consumer other	77,507	3	--	519	--	78,029
Home equity lines of credit	65,841	--	--	431	--	66,272
Acquired FDIC-covered loans,
net of discounts	286,049	--	--	559	--	286,608
Acquired loans no longer covered
by FDIC loss sharing
agreements, net of discounts	48,592	--	--	1,353	--	49,945
Acquired non-covered loans,
net of discounts	121,982	--	--	--	--	121,982

Total	$3,320,253	$49,598	$--	$34,280	$--	$3,404,131

	December 31, 2013
			Special
	Satisfactory	Watch	Mention	Substandard	Doubtful	Total
(In Thousands)
One- to four-family residential
construction	$34,364	$298	$--	$--	$--	$34,662
Subdivision construction	36,524	706	--	3,179	--	40,409
Land development	45,606	1,148	--	11,087	--	57,841
Commercial construction	184,019	--	--	--	--	184,019
Owner occupied one- to-four-
family residential	84,931	503	--	3,699	--	89,133
Non-owner occupied one- to-
four-family residential	137,003	6,718	--	2,187	--	145,908
Commercial real estate	727,668	37,937	--	15,085	--	780,690
Other residential	311,320	12,323	--	1,956	--	325,599
Commercial business	307,540	1,803	--	3,528	2,398	315,269
Industrial revenue bonds	39,532	675	--	2,023	--	42,230
Consumer auto	134,516	--	--	201	--	134,717
Consumer other	81,769	6	--	485	--	82,260
Home equity lines of credit	57,713	--	--	570	--	58,283
Acquired FDIC-covered loans,
net of discounts	383,891	--	--	2,273	--	386,164
Acquired loans no longer covered
by FDIC loss sharing
agreements, net of discounts	--	--	--	--	--	--
Acquired non-covered loans,
net of discounts	--	--	--	--	--	--

Total	$2,566,396	$62,117	$--	$46,273	$2,398	$2,677,184

Certain of the Bank’s real estate loans are pledged as collateral for borrowings as set forth in Notes 9 and 11.

Certain directors and executive officers of the Company and the Bank are customers of and had transactions with the Bank in the ordinary course of business. Except for the interest rates on loans secured by personal residences, in the opinion of management, all loans included in such transactions were made on substantially the same terms as those prevailing at the time for comparable transactions with unrelated parties. Generally, residential first mortgage loans and home equity lines of credit to all employees and directors have been granted at interest rates equal to the Bank’s cost of funds, subject to annual adjustments in the case of residential first mortgage loans and monthly adjustments in the case of home equity lines of credit. At December 31, 2014 and 2013, loans outstanding to these directors and executive officers are summarized as follows: