	December 31, 2018
							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	$ —	$ —	$ —	$ —	$ 26,177	$ 26,177	$ —
Subdivision construction	—	—	—	—	13,844	13,844	—
Land development	13	—	49	62	44,430	44,492	—
Commercial construction	—	—	—	—	1,417,166	1,417,166	—
Owner occupied one- to four-
family residential	1,431	806	1,206	3,443	273,423	276,866	—
Non-owner occupied one- to
four-family residential	1,142	144	1,458	2,744	119,694	122,438	—
Commercial real estate	3,940	53	334	4,327	1,367,108	1,371,435	—
Other residential	—	—	—	—	784,894	784,894	—
Commercial business	72	54	1,437	1,563	320,555	322,118	—
Industrial revenue bonds	3	—	—	3	13,937	13,940	—
Consumer auto	2,596	722	1,490	4,808	248,720	253,528	—
Consumer other	691	181	240	1,112	56,238	57,350	—
Home equity lines of credit	229	—	86	315	121,037	121,352	—
Loans acquired and accounted for under ASC 310-30, net of discounts	2,195	1,416	6,827	10,438	157,213	167,651	—

Total	$ 10,117	$ 1,960	$ 6,300	$ 18,377	$ 4,807,223	$ 4,825,600	$ —

	December 31, 2017
							Total Loans
						Total	> 90 Days
	30-59 Days	60-89 Days	Over 90	Total Past		Loans	Past Due and
	Past Due	Past Due	Days	Due	Current	Receivable	Still Accruing
	(In Thousands)

One- to four-family
residential construction	$ 250	$ —	$ —	$ 250	$ 20,543	$ 20,793	$ —
Subdivision construction	—	—	98	98	17,964	18,062	—
Land development	54	37	—	91	43,880	43,971	—
Commercial construction	—	—	—	—	1,068,352	1,068,352	—
Owner occupied one- to four-
family residential	1,927	71	904	2,902	187,613	190,515	—
Non-owner occupied one- to
four-family residential	947	190	1,816	2,953	116,515	119,468	58
Commercial real estate	8,346	993	1,226	10,565	1,224,764	1,235,329	—
Other residential	540	353	1,877	2,770	742,875	745,645	—
Commercial business	2,623	1,282	2,063	5,968	347,383	353,351	—
Industrial revenue bonds	—	—	—	—	21,859	21,859	—
Consumer auto	5,196	1,230	2,284	8,710	348,432	357,142	12
Consumer other	464	64	557	1,085	62,283	63,368	—
Home equity lines of credit	58	—	430	488	114,951	115,439	26
Loans acquired and accounted for under
ASC 310-30,
net of discounts	4,449	1,951	10,675	17,075	192,594	209,669	272

Total	$ 20,405	$ 4,220	$ 11,255	$ 35,880	$ 4,317,414	$ 4,353,294	$ 96

	December 31,
	2018	2017
	(In Thousands)

One- to four-family residential construction	$ —	$ —
Subdivision construction	49	98
Land development	—	—
Commercial construction	—	—
Owner occupied one- to four-family residential	1,206	904
Non-owner occupied one- to four-family
residential	1,458	1,758
Commercial real estate	334	1,226
Other residential	—	1,877
Commercial business	1,437	2,063
Industrial revenue bonds	—	—
Consumer auto	1,490	2,272
Consumer other	240	557
Home equity lines of credit	86	404

Total	$ 6,300	$ 11,159

The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2018, 2017 and 2016, respectively. 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 the years ended December 31, 2018, 2017, and 2016, respectively:

	December 31, 2018
	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, 2018	$ 2,108	$ 2,839	$ 18,639	$ 1,767	$ 3,581	$ 7,558	$ 36,492
Provision (benefit) charged to expense	742	1,982	1,094	1,031	(1,613)	3,914	7,150
Losses charged off	(62)	(525)	(102)	(87)	(1,155)	(9,425)	(11,356)
Recoveries	334	417	172	394	755	4,051	6,123

Balance,December 31, 2018	$ 3,122	$ 4,713	$ 19,803	$ 3,105	$ 1,568	$ 6,098	$ 38,409

Ending balance:
Individually evaluated for impairment	$ 694	$ —	$ 613	$ —	$ 309	$ 425	$ 2,041
Collectively evaluated for impairment	$ 2,392	$ 4,681	$ 18,958	$ 3,029	$ 1,247	$ 5,640	$ 35,947
Loans acquired and
accounted for under
ASC 310-30	$ 36	$ 32	$ 232	$ 76	$ 12	$ 33	$ 421

Loans
Individually evaluated for impairment	$ 6,116	$ —	$ 3,501	$ 14	$ 1,844	$ 2,464	$ 13,939
Collectively evaluated for impairment	$ 433,209	$ 784,894	$ 1,367,934	$ 1,461,644	$ 334,214	$ 429,766	$ 4,811,661
Loans acquired and
accounted for under
ASC 310-30	$ 93,841	$ 12,790	$ 33,620	$ 4,093	$ 4,347	$ 18,960	$ 167,651

	December 31, 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, January 1, 2017	$ 2,322	$ 5,486	$ 15,938	$ 2,284	$ 3,015	$ 8,355	$ 37,400
Provision (benefit) charged to expense	(158)	(2,356)	4,234	(643)	1,475	6,548	9,100
Losses charged off	(165)	(488)	(1,656)	(420)	(1,489)	(11,859)	(16,077)
Recoveries	109	197	123	546	580	4,514	6,069

Balance, December 31, 2017	$ 2,108	$ 2,839	$ 18,639	$ 1,767	$ 3,581	$ 7,558	$ 36,492

Ending balance:
Individually evaluated for impairment	$ 513	$ —	$ 599	$ —	$ 2,140	$ 699	$ 3,951
Collectively evaluated for impairment	$ 1,564	$ 2,813	$ 17,843	$ 1,690	$ 1,369	$ 6,802	$ 32,081
Loans acquired and
accounted for under
ASC 310-30	$ 31	$ 26	$ 197	$ 77	$ 72	$ 57	$ 460

Loans
Individually evaluated for impairment	$ 6,950	$ 2,907	$ 8,315	$ 15	$ 3,018	$ 4,129	$ 25,334

Collectively evaluated for impairment	$ 341,888	$ 742,738	$ 1,227,014	$ 1,112,308	$ 372,192	$ 531,820	$ 4,327,960
Loans acquired and
accounted for under
ASC 310-30	$ 120,295	$ 14,877	$ 39,210	$ 3,806	$ 5,275	$ 26,206	$ 209,669

	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
Balance, January 1, 2016	$ 4,900	$ 3,190	$ 14,738	$ 3,019	$ 4,203	$ 8,099	$ 38,149
Provision (benefit) charged to expense	(2,407)	2,260	5,632	(827)	(926)	5,549	9,281
Losses charged off	(229)	(16)	(5,653)	(31)	(589)	(8,751)	(15,269)
Recoveries	58	52	1,221	123	327	3,458	5,239

Balance, December 31, 2016	$ 2,322	$ 5,486	$ 15,938	$ 2,284	$ 3,015	$ 8,355	$ 37,400

Ending balance:
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 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, 2018 and 2017, was 5.16% and 4.74%, respectively.

Loans serviced for others are not included in the accompanying consolidated statements of financial condition. The unpaid principal balance of loans serviced for others at December 31, 2018, was $260.2 million, consisting of $181.5 million of commercial loan participations sold to other financial institutions and $78.7 million of residential mortgage loans sold. The unpaid principal balance of loans serviced for others at December 31, 2017, was $254.0 million, consisting of $164.8 million of commercial loan participations sold to other financial institutions and $89.2 million of residential mortgage loans sold. In addition, available lines of credit on these loans were $121.0 million and $37.8 million at December 31, 2018 and 2017, 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 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, 2018, 2017 and 2016:

				Year Ended
	December 31, 2018			December 31, 2018
				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	318	318	105	321	17
Land development	14	18	—	14	1
Commercial construction	—	—	—	—	—
Owner occupied one- to four-family
residential	3,576	3,926	285	3,406	197
Non-owner occupied one- to four-family
residential	2,222	2,519	304	2,870	158
Commercial real estate	3,501	3,665	613	6,216	337
Other residential	—	—	—	1,026	20
Commercial business	1,844	2,207	309	2,932	362
Industrial revenue bonds	—	—	—	—	—
Consumer auto	1,874	2,114	336	2,069	167
Consumer other	479	684	72	738	59
Home equity lines of credit	111	128	17	412	28

Total	$ 13,939	$ 15,579	$ 2,041	$ 20,004	$ 1,346

				Year Ended
	December 31, 2017			December 31, 2017
				Average
		Unpaid		Investment	Interest
	Recorded	Principal	Specific	in Impaired	Income
	Balance	Balance	Allowance	Loans	Recognized
	(In Thousands)

One- to four-family residential construction	$ —	$ —	$ —	$ 193	$ —
Subdivision construction	349	367	114	584	22
Land development	15	18	—	1,793	24
Commercial construction	—	—	—	—	—
Owner occupied one- to four-family
residential	3,405	3,723	331	3,405	166
Non-owner occupied one- to four-family
residential	3,196	3,465	68	2,419	165
Commercial real estate	8,315	8,490	599	9,075	567
Other residential	2,907	2,907	—	3,553	147
Commercial business	3,018	4,222	2,140	5,384	173
Industrial revenue bonds	—	—	—	—	—
Consumer auto	2,713	2,898	484	2,383	222
Consumer other	825	917	124	906	69
Home equity lines of credit	591	648	91	498	33

Total	$ 25,334	$ 27,655	$ 3,951	$ 30,193	$ 1,588

				Year Ended
	December 31, 2016			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

At December 31, 2018, $8.4 million of impaired loans had specific valuation allowances totaling $2.0 million. At December 31, 2017, $12.7 million of impaired loans had specific valuation allowances totaling $4.0 million. At December 31, 2016, $18.1 million of impaired loans had specific valuation allowances totaling $6.4 million. For impaired loans which were nonaccruing, interest of approximately $1.0 million, $1.2 million and $1.5 million would have been recognized on an accrual basis during the years ended December 31, 2018, 2017 and 2016, 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 2018 and 2017 by type of modification:

At December 31, 2018, the Company had $6.9 million of loans that were modified in troubled debt restructurings and impaired, as follows: $283,000 of construction and land development loans, $3.9 million of single family residential mortgage loans, $1.3 million of commercial real estate loans, $548,000 of commercial business loans and $803,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2018, $4.7 million were accruing interest and $2.5 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 year ended December 31, 2018. 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, 2017, the Company had $15.0 million of loans that were modified in troubled debt restructurings and impaired, as follows: $266,000 of construction and land development loans, $6.2 million of single family and multi-family residential mortgage loans, $7.1 million of commercial real estate loans, $867,000 of commercial business loans and $617,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2017, $12.3 million were accruing interest and $8.8 million were classified as substandard using the Company’s internal grading system. During the year ended December 31, 2018, borrowers with loans designated as troubled debt restructurings totaling $87,000, all of which consisted of consumer loans, met the criteria for placement back on accrual status. This criteria is generally a minimum of six months of consistent and timely payment performance under original 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.” 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. 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. 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. 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 December 31, 2018 and 2017, respectively. See Note 4 for further discussion of the acquired loan pools and 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. 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 loans, 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 significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the past year.

	December 31, 2018
			Special
	Satisfactory	Watch	Mention	Substandard	Doubtful	Total
	(In Thousands)

One- to four-family residential
construction	$ 25,803	$ 374	$ —	$ —	$ —	$ 26,177
Subdivision construction	12,077	1,718	—	49	—	13,844
Land development	39,892	4,600	—	—	—	44,492
Commercial construction	1,417,166	—	—	—	—	1,417,166
Owner occupied one- to-four-
family residential	274,661	43	—	2,162	—	276,866
Non-owner occupied one- to-
four-family residential	119,951	941	—	1,546	—	122,438
Commercial real estate	1,357,987	11,061	—	2,387	—	1,371,435
Other residential	784,393	501	—	—	—	784,894
Commercial business	315,518	5,163	—	1,437	—	322,118
Industrial revenue bonds	13,940	—	—	—	—	13,940
Consumer auto	251,824	116	—	1,588	—	253,528
Consumer other	56,859	157	—	334	—	57,350
Home equity lines of credit	121,134	118	—	100	—	121,352
Loans acquired and accounted
for under ASC 310-30,
net of discounts	167,632	—	—	19	—	167,651

Total	$ 4,958,837	$ 24,792	$ —	$ 9,622	$ —	$ 4,993,251

	December 31, 2017
			Special
	Satisfactory	Watch	Mention	Substandard	Doubtful	Total
	(In Thousands)

One- to four-family residential
construction	$ 20,275	$ 518	$ —	$ —	$ —	$ 20,793
Subdivision construction	15,602	2,362	—	98	—	18,062
Land development	39,171	4,800	—	—	—	43,971
Commercial construction	1,068,352	—	—	—	—	1,068,352
Owner occupied one- to-four-
family residential	188,706	—	—	1,809	—	190,515
Non-owner occupied one- to-
four-family residential	117,103	389	—	1,976	—	119,468
Commercial real estate	1,218,431	9,909	—	6,989	—	1,235,329
Other residential	742,237	1,532	—	1,876	—	745,645
Commercial business	344,479	6,306	—	2,066	500	353,351
Industrial revenue bonds	21,859	—	—	—	—	21,859
Consumer auto	354,588	—	—	2,554	—	357,142
Consumer other	62,682	—	—	686	—	63,368
Home equity lines of credit	114,860	—	—	579	—	115,439
Loans acquired and accounted
for under ASC 310-30,
net of discounts	209,657	—	—	12	—	209,669

Total	$ 4,518,002	$ 25,816	$ —	$ 18,645	$ 500	$ 4,562,963

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, 2018 and 2017, loans outstanding to these directors and executive officers are summarized as follows: