	June 30, 2017
							Total Loans
			Past Due				> 90 Days
	30-59 Days	60-89 Days	90 Days	Total Past		Total Loans	Past Due and
	Past Due	Past Due	or More	Due	Current	Receivable	Still Accruing
	(In Thousands)

One- to four-family
residential construction	$ —	$ —	$ 379	$ 379	$ 20,913	$ 21,292	$ —
Subdivision construction	—	—	105	105	18,925	19,030	—
Land development	—	547	139	686	48,418	49,104	—
Commercial construction	—	—	—	—	949,034	949,034	—
Owner occupied one- to four-
family residential	215	244	986	1,445	185,186	186,631	—
Non-owner occupied one- to
four-family residential	—	250	516	766	126,258	127,024	—
Commercial real estate	—	4,025	2,554	6,579	1,212,803	1,219,382	—
Other residential	425	—	162	587	684,226	684,813	—
Commercial business	293	—	5,388	5,681	342,612	348,293	—
Industrial revenue bonds	—	—	—	—	23,193	23,193	—
Consumer auto	4,701	1,522	2,092	8,315	421,031	429,346	18
Consumer other	488	211	729	1,428	64,485	65,913	—
Home equity lines of credit	30	318	214	562	107,665	108,227	16
Acquired loans no longer
covered by loss sharing
agreements, net of
discounts	1,226	1,356	7,740	10,322	167,464	177,786	—
Acquired non-covered loans,
net of discounts	669	5	1,719	2,393	63,034	65,427	—
	8,047	8,478	22,723	39,248	4,435,247	4,474,495	34
Less FDIC-assisted acquired
loans, net of discounts	1,895	1,361	9,459	12,715	230,498	243,213	—

Total	$ 6,152	$ 7,117	$ 13,264	$ 26,533	$ 4,204,749	$ 4,231,282	$ 34

	December 31, 2016
							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	$ —	$ —	$ —	$ —	$ 21,737	$ 21,737	$ —
Subdivision construction	—	—	109	109	17,077	17,186	—
Land development	413	584	1,718	2,715	47,909	50,624	—
Commercial construction	—	—	—	—	780,614	780,614	—
Owner occupied one- to four-
family residential	1,760	388	1,125	3,273	197,067	200,340	—
Non-owner occupied one- to
four-family residential	309	278	404	991	135,933	136,924	—
Commercial real estate	1,969	1,988	4,404	8,361	1,178,545	1,186,906	—
Other residential	4,632	—	162	4,794	658,584	663,378	—
Commercial business	1,741	24	3,088	4,853	343,775	348,628	—
Industrial revenue bonds	—	—	—	—	25,065	25,065	—
Consumer auto	8,252	2,451	1,989	12,692	481,541	494,233	—
Consumer other	1,103	278	649	2,030	67,971	70,001	—
Home equity lines of credit	136	158	433	727	108,026	108,753	—
Acquired FDIC-covered loans, net of discounts	4,476	1,201	8,226	13,903	120,453	134,356	301
Acquired loans no longer covered by FDIC loss sharing agreements,
net of discounts	1,356	552	1,401	3,309	69,260	72,569	222
Acquired non-covered loans, net of discounts	851	173	2,854	3,878	72,356	76,234	—
	26,998	8,075	26,562	61,635	4,325,913	4,387,548	523
Less FDIC-supported loans,
and acquired non-covered loans, net of discounts	6,683	1,926	12,481	21,090	262,069	283,159	523

Total	$ 20,315	$ 6,149	$ 14,081	$ 40,545	$ 4,063,844	$ 4,104,389	$ —

Nonaccruing loans (excluding FDIC-assisted acquired loans, net of discount) are summarized as follows:

	June 30,	December 31,
	2017	2016
	(In Thousands)

One- to four-family residential construction	$ 379	$ —
Subdivision construction	105	109
Land development	139	1,718
Commercial construction	—	—
Owner occupied one- to four-family residential	986	1,125
Non-owner occupied one- to four-family residential	516	404
Commercial real estate	2,554	4,404
Other residential	162	162
Commercial business	5,388	3,088
Industrial revenue bonds	—	—
Consumer auto	2,074	1,989
Consumer other	729	649
Home equity lines of credit	198	433

Total	$ 13,230	$ 14,081

The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2017. 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 June 30, 2017:

	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 April 1, 2017	$ 2,857	$ 3,790	$ 15,487	$ 2,497	$ 4,671	$ 7,691	$ 36,993
Provision (benefit) charged to expense	(427)	(147)	1,246	(724)	(661)	2,663	1,950
Losses charged off	(41)	(2)	(1,291)	(92)	—	(2,565)	(3,991)
Recoveries	24	14	—	30	355	1,158	1,581
Balance June 30, 2017	$ 2,413	$ 3,655	$ 15,442	$ 1,711	$ 4,365	$ 8,947	$ 36,533

Balance January 1, 2017	$ 2,322	$ 5,486	$ 15,938	$ 2,284	$ 3,015	$ 8,355	$ 37,400
Provision (benefit) charged to expense	122	(1,898)	770	(223)	1,224	4,205	4,200
Losses charged off	(76)	(2)	(1,292)	(387)	(275)	(5,968)	(8,000)
Recoveries	45	69	26	37	401	2,355	2,933
Balance June 30, 2017	$ 2,413	$ 3,655	$ 15,442	$ 1,711	$ 4,365	$ 8,947	$ 36,533

Ending balance:
Individually evaluated for
impairment	$ 565	$ —	$ 67	$ —	$ 3,189	$ 603	$ 4,424
Collectively evaluated for
impairment	$ 1,794	$ 3,614	$ 15,147	$ 1,630	$ 1,142	$ 8,272	$ 31,599
Loans acquired and
accounted for under ASC
310-30	$ 54	$ 41	$ 228	$ 81	$ 34	$ 72	$ 510

Loans
Individually evaluated for
impairment	$ 6,542	$ 3,582	$ 5,946	$ 457	$ 6,973	$ 3,515	$ 27,015
Collectively evaluated for
impairment	$ 347,435	$ 681,231	$ 1,213,436	$ 997,681	$ 364,513	$ 599,971	$ 4,204,267
Loans acquired and
accounted for under ASC
310-30	$ 136,159	$ 23,505	$ 43,772	$ 4,030	$ 5,394	$ 30,353	$ 243,213

The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2016:

	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 April 1, 2016	$ 4,883	$ 2,621	$ 13,728	$ 3,126	$ 3,677	$ 8,991	$ 37,026
Provision (benefit) charged to expense	(700)	1,066	2,696	(143)	(114)	(505)	2,300
Losses charged off	(7)	—	(1,422)	—	(173)	(1,762)	(3,364)
Recoveries	8	11	1,155	30	141	826	2,171
Balance June 30, 2016	$ 4,184	$ 3,698	$ 16,157	$ 3,013	$ 3,531	$ 7,550	$ 38,133

Balance January 1, 2016	$ 4,900	$ 3,190	$ 14,738	$ 3,019	$ 4,203	$ 8,099	$ 38,149
Provision (benefit) charged to expense	(649)	484	3,984	(14)	(668)	1,264	4,401
Losses charged off	(91)	—	(3,731)	(30)	(192)	(3,499)	(7,543)
Recoveries	24	24	1,166	38	188	1,686	3,126
Balance June 30, 2016	$ 4,184	$ 3,698	$ 16,157	$ 3,013	$ 3,531	$ 7,550	$ 38,133

The following table presents 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, 2016:

	One- to Four-
	Family
	Residential and	Other	Commercial	Commercial	Commercial
	Construction	Residential	Real Estate	Construction	Business	Consumer	Total
	(In Thousands)

Allowance for loan losses
Individually evaluated for
impairment	$ 570	$ —	$ 2,209	$ 1,291	$ 1,295	$ 997	$ 6,362
Collectively evaluated for
impairment	$ 1,628	$ 5,396	$ 13,507	$ 953	$ 1,681	$ 7,248	$ 30,413
Loans acquired and
accounted for under ASC
310-30	$ 124	$ 90	$ 222	$ 40	$ 39	$ 110	$ 625

Loans
Individually evaluated for
impairment	$ 6,015	$ 3,812	$ 10,507	$ 6,023	$ 4,539	$ 3,385	$ 34,281
Collectively evaluated for
impairment	$ 370,172	$ 659,566	$ 1,176,399	$ 825,215	$ 369,154	$ 669,602	$ 4,070,108
Loans acquired and
accounted for under ASC
310-30	$ 155,378	$ 29,600	$ 54,208	$ 2,191	$ 6,429	$ 35,353	$ 283,159

The portfolio segments used in the preceding three tables correspond to the loan classes used in all other tables in Note 6 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 consumer segment includes the consumer auto, consumer other and home equity lines of credit classes

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.

Impaired loans (excluding FDIC-assisted loans, net of discount), are summarized as follows:

	June 30, 2017
		Unpaid
	Recorded	Principal	Specific
	Balance	Balance	Allowance
	(In Thousands)

One- to four-family residential construction	$ 380	$ 380	$ —
Subdivision construction	498	512	120
Land development	457	545	—
Commercial construction	—	—	—
Owner occupied one- to four-family residential	3,475	3,766	357
Non-owner occupied one- to four-family residential	2,189	2,446	88
Commercial real estate	5,945	6,303	67
Other residential	3,582	3,600	—
Commercial business	6,973	7,827	3,189
Industrial revenue bonds	—	—	—
Consumer auto	2,272	2,462	412
Consumer other	885	998	133
Home equity lines of credit	359	431	58

Total	$ 27,015	$ 29,270	$ 4,424

	Three Months Ended		Six Months Ended
	June 30, 2017		June 30, 2017
	Average		Average
	Investment	Interest	Investment	Interest
	in Impaired	Income	in Impaired	Income
	Loans	Recognized	Loans	Recognized
	(In Thousands)

One- to four-family residential construction	$ 382	$ —	$ 386	$ —
Subdivision construction	701	5	756	12
Land development	3,069	5	3,267	21
Commercial construction	—	—	—	—
Owner occupied one- to four-family residential	3,302	43	3,356	80
Non-owner occupied one- to four-family residential	2,066	26	1,999	48
Commercial real estate	9,056	101	10,193	159
Other residential	3,719	37	3,761	75
Commercial business	6,979	40	6,432	126
Industrial revenue bonds	—	—	—	—
Consumer auto	2,029	48	2,211	77
Consumer other	857	24	827	39
Home equity lines of credit	339	8	367	18

Total	$ 32,499	$ 337	$ 33,555	$ 655

		At or for the Year Ended December 31, 2016
					Average
			Unpaid		Investment	Interest
	Recorded		Principal	Specific	in Impaired	Income
	Balance		Balance	Allowance	Loans	Recognized
	(In Thousands)

One- to four-family residential construction	$ —		$ —	$ —	$ —	$ —
Subdivision construction	818		829	131	948	46
Land development	6,023		6,120	1,291	8,020	304
Commercial construction	—		—	—	—	—
Owner occupied one- to four-family
residential	3,290		3,555	374	3,267	182
Non-owner occupied one- to four-family
residential	1,907		2,177	65	1,886	113
Commercial real estate	10,507		12,121	2,209	23,928	984
Other residential	3,812		3,812	—	6,813	258
Commercial business	4,539		4,652	1,295	2,542	185
Industrial revenue bonds	—		—	—	—	—
Consumer auto	2,097		2,178	629	1,307	141
Consumer other	812		887	244	884	70
Home equity lines of credit	476		492	124	417	32

Total	$ 34,281		$ 36,823	$ 6,362	$ 50,012	$ 2,315

	June 30, 2016
		Unpaid
	Recorded	Principal	Specific
	Balance	Balance	Allowance
	(In Thousands)

One- to four-family residential construction	$ —	$ —	$ —
Subdivision construction	964	975	205
Land development	7,464	7,557	1,442
Commercial construction	—	—	—
Owner occupied one- to four-family residential	3,240	3,524	394
Non-owner occupied one- to four-family residential	1,979	2,225	97
Commercial real estate	26,776	28,692	3,080
Other residential	7,511	7,511	—
Commercial business	1,989	2,056	947
Industrial revenue bonds	—	—	—
Consumer auto	1,176	1,223	176
Consumer other	768	822	115
Home equity lines of credit	387	402	65

Total	$ 52,254	$ 54,987	$ 6,521

	Three Months Ended		Six Months Ended
	June 30, 2016		June 30, 2016
	Average		Average
	Investment	Interest	Investment	Interest
	in Impaired	Income	in Impaired	Income
	Loans	Recognized	Loans	Recognized
	(In Thousands)

One- to four-family residential construction	$ —	$ —	$ —	$ —
Subdivision construction	990	23	1,019	30
Land development	7,474	77	7,490	146
Commercial construction	—	—	—	—
Owner occupied one- to four-family residential	3,245	22	3,288	79
Non-owner occupied one- to four-family residential	1,891	52	1,841	52
Commercial real estate	28,987	400	31,037	624
Other residential	7,521	77	8,509	175
Commercial business	2,102	24	2,166	48
Industrial revenue bonds	—	—	—	—
Consumer auto	1,005	21	967	38
Consumer other	867	10	883	29
Home equity lines of credit	410	7	435	19

Total	$ 54,492	$ 713	$ 57,635	$ 1,240

At June 30, 2017, $10.6 million of impaired loans had specific valuation allowances totaling $4.4 million. At December 31, 2016, $18.1 million of impaired loans had specific valuation allowances totaling $6.4 million.

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 tables present newly restructured loans during the three and six months ended June 30, 2017 and 2016, respectively, by type of modification:

At June 30, 2017, the Company had $13.6 million of loans that were modified in troubled debt restructurings and impaired, as follows: $850,000 of construction and land development loans, $7.0 million of single family and multi-family residential mortgage loans, $3.8 million of commercial real estate loans, $1.5 million of commercial business loans and $428,000 of consumer loans. Of the total troubled debt restructurings at June 30, 2017, $11.9 million were accruing interest and $2.0 million were classified as substandard using the Company’s internal grading system, which is described below. The Company had no troubled debt restructurings which were modified in the previous 12 months and subsequently defaulted during the six months ended June 30, 2017. When loans modified as troubled debt restructurings 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, 2016, the Company had $21.1 million of loans that were modified in troubled debt restructurings and impaired, as follows: $5.0 million of construction and land development loans, $7.4 million of single family and multi-family residential mortgage loans, $7.1 million of commercial real estate loans, $1.3 million of commercial business loans and $296,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2016, $18.9 million were accruing interest and $7.9 million were classified as substandard using the Company’s internal grading system.

During the three and six months ended June 30, 2017, $111,000 and »$345,000 of loans, respectively, all of which consisted of one- to four- family residential loans, designated as troubled debt restructurings met the criteria for placement back on accrual status. The criteria is generally a minimum of six months of payment performance under original or modified terms. During the three months ended June 30, 2016, loans designated as troubled debt restructurings totaling $404,000 met the criteria for placement back on accrual status. The $404,000 consisted of $235,000 of one- to four- family residential loans, $100,000 of commercial real estate loans and $69,000 of consumer loans. During the six months ended June 30, 2016, loans designated as troubled debt restructurings totaling $424,000 met the criteria for placement back on accrual status. The $424,000 consisted of $235,000 of one- to four- family residential loans, $100,000 of commercial real estate loans and $89,000 of consumer loans.

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-assisted acquired loans are evaluated using this internal grading system. These loans are accounted for in pools. Minimal adverse classification in these acquired loan pools was identified as of June 30, 2017 and December 31, 2016, respectively. See Note 7 for further discussion of the acquired loan pools and the termination of the 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. For interim periods, the Company uses three full years plus the interim period’s annualized average losses for the general component of the allowance for loan loss calculation. 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. This change did not materially affect the level of the allowance for loan losses. The general component of the allowance for loan losses is affected by several factors, including, but not limited to, average historical losses, average life of the loan, the current composition of the loan portfolio, current and expected economic conditions, collateral values and internal risk ratings. Management considers all these factors in determining the adequacy of the Company’s allowance for loan losses. No other significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the past year.

		June 30, 2017
			Special
	Satisfactory	Watch	Mention	Substandard	Doubtful	Total
	(In Thousands)

One- to four-family residential
construction	$ 20,325	$ 587	$ —	$ 380	$ —	$ 21,292
Subdivision construction	16,413	2,512	—	105	—	19,030
Land development	44,066	4,900	—	138	—	49,104
Commercial construction	949,034	—	—	—	—	949,034
Owner occupied one- to four-
family residential	184,983	—	—	1,648	—	186,631
Non-owner occupied one- to four-
family residential	125,678	456	—	890	—	127,024
Commercial real estate	1,198,014	18,064	—	3,304	—	1,219,382
Other residential	680,511	4,140	—	162	—	684,813
Commercial business	340,162	2,634	—	5,497	—	348,293
Industrial revenue bonds	23,193	—	—	—	—	23,193
Consumer auto	427,145	—	—	2,201	—	429,346
Consumer other	65,171	—	—	742	—	65,913
Home equity lines of credit	107,881	—	—	346	—	108,227
Acquired loans no longer covered
by FDIC loss sharing
agreements, net of discounts	177,771	—	—	15	—	177,786
Acquired non-covered loans,
net of discounts	65,427	—	—	—	—	65,427

Total	$ 4,425,774	$ 33,293	$ —	$ 15,428	$ —	$ 4,474,495

	December 31, 2016
			Special
	Satisfactory	Watch	Mention	Substandard	Doubtful	Total
	(In Thousands)

One- to four-family residential
construction	$ 20,771	$ 966	$ —	$ —	$ —	$ 21,737
Subdivision construction	14,059	2,729	—	398	—	17,186
Land development	39,925	5,140	—	5,559	—	50,624
Commercial construction	780,614	—	—	—	—	780,614
Owner occupied one- to-four-
family residential	198,835	67	—	1,438	—	200,340
Non-owner occupied one- to-
four-family residential	135,930	465	—	529	—	136,924
Commercial real estate	1,160,280	20,154	—	6,472	—	1,186,906
Other residential	658,846	4,370	—	162	—	663,378
Commercial business	342,685	2,651	—	3,292	—	348,628
Industrial revenue bonds	25,065	—	—	—	—	25,065
Consumer auto	492,165	—	—	2,068	—	494,233
Consumer other	69,338	—	—	663	—	70,001
Home equity lines of credit	108,290	—	—	463	—	108,753
Acquired FDIC-covered loans,
net of discounts	134,356	—	—	—	—	134,356
Acquired loans no longer covered
by FDIC loss sharing
agreements, net of discounts	72,552	—	—	17	—	72,569
Acquired non-covered loans,
net of discounts	76,234	—	—	—	—	76,234

Total	$ 4,329,945	$ 36,542	$ —	$ 21,061	$ —	$ 4,387,548