	December 31, 2019
													Total Loans
					Over 90						Total		> 90 Days Past
	30-59 Days		60-89 Days		Days		Total Past				Loans		Due and
	Past Due		Past Due		Past Due		Due		Current		Receivable		Still Accruing
	(In Thousands)

One- to four-family
residential construction	$	—	$	—	$	—	$	—	$	33,963	$	33,963	$	—
Subdivision construction		—		—		—		—		16,088		16,088		—
Land development		—		27		—		27		40,404		40,431		—
Commercial construction		15,085		—		—		15,085		1,307,776		1,322,861		—
Owner occupied one- to four-
family residential		1,453		1,631		1,198		4,282		382,734		387,016		—
Non-owner occupied one- to
four-family residential		152		—		181		333		120,010		120,343		—
Commercial real estate		549		119		632		1,300		1,492,872		1,494,172		—
Other residential		376		—		—		376		865,630		866,006		—
Commercial business		60		—		1,235		1,295		311,914		313,209		—
Industrial revenue bonds		—		—		—		—		13,189		13,189		—
Consumer auto		1,101		259		558		1,918		149,936		151,854		—
Consumer other		278		233		198		709		46,011		46,720		—
Home equity lines of credit		296		—		517		813		118,175		118,988		—
Loans acquired and accounted for under ASC 310-30, net of discounts		2,177		709		6,191		9,077		118,129		127,206		—

		21,527		2,978		10,710		35,215		5,016,831		5,052,046		—
Less: Loans acquired and accounted for under ASC 310-30, net of discounts		2,177		709		6,191		9,077		118,129		127,206		—

Total	$	19,350	$	2,269	$	4,519	$	26,138	$	4,898,702	$	4,924,840	$	—

	December 31, 2018
													Total Loans
					Over 90						Total		> 90 Days Past
	30-59 Days		60-89 Days		Days		Total Past				Loans		Due and
	Past Due		Past Due		Past Due		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		—

		12,312		3,376		13,127		28,815		4,964,436		4,993,251		—
Less: 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	$	—

The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2019, 2018 and 2017, 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, 2019, 2018, and 2017, respectively:

		December 31, 2019
		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, 2019	$	3,122	$	4,713	$	19,803	$	3,105	$	1,568	$	6,098	$	38,409
Provision (benefit) charged to expense		1,625		603		4,651		22		(309)		(442)		6,150
Losses charged off		(534)		(189)		(144)		(101)		(371)		(6,723)		(8,062)
Recoveries		126		26		24		50		467		3,104		3,797

Balance, December 31, 2019	$	4,339	$	5,153	$	24,334	$	3,076	$	1,355	$	2,037	$	40,294

Ending balance:
Individually evaluated for impairment	$	198	$	—	$	517	$	—	$	13	$	201	$	929
Collectively evaluated for impairment	$	3,973	$	5,101	$	23,570	$	2,940	$	1,306	$	1,814	$	38,704
Loans acquired and accounted
for under ASC 310-30	$	168	$	52	$	247	$	136	$	36	$	22	$	661

Loans
Individually evaluated for impairment	$	2,960	$	—	$	4,020	$	—	$	1,286	$	2,001	$	10,267
Collectively evaluated for impairment	$	554,450	$	866,006	$	1,490,152	$	1,363,292	$	325,112	$	315,561	$	4,914,573
Loans acquired and accounted
for under ASC 310-30	$	74,562	$	5,334	$	29,158	$	3,606	$	3,356	$	11,190	$	127,206

		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

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, 2019 and 2018, was 4.97% and 5.16%, 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, 2019, was $349.9 million, consisting of $283.0 million of commercial loan participations sold to other financial institutions and $66.9 million of residential mortgage loans sold. 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. In addition, available lines of credit on these loans were $102.1 million and $121.0 million at December 31, 2019 and 2018, 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, 2019, 2018 and 2017:

								Year Ended
		December 31, 2019						December 31, 2019
								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		251		251		96		277		9
Land development		—		—		—		328		101
Commercial construction		—		—		—		—		—
Owner occupied one- to four-family
residential		2,300		2,423		82		2,598		131
Non-owner occupied one- to four-family
residential		409		574		20		954		43
Commercial real estate		4,020		4,049		517		4,940		264
Other residential		—		—		—		—		—
Commercial business		1,286		1,771		13		1,517		81
Industrial revenue bonds		—		—		—		—		—
Consumer auto		1,117		1,334		181		1,128		125
Consumer other		356		485		16		383		48
Home equity lines of credit		528		548		4		362		37

Total	$	10,267	$	11,435	$	929	$	12,487	$	839

								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

At December 31, 2019, $5.2 million of impaired loans had specific valuation allowances totaling $929,000. 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. For impaired loans which were non-accruing, interest of approximately $761,000, $1.0 million and $1.2 million would have been recognized on an accrual basis during the years ended December 31, 2019, 2018 and 2017, 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 the years ended December 31, 2019, 2018 and 2017 by type of modification:

At December 31, 2019, the Company had $1.9 million of loans that were modified in troubled debt restructurings and impaired, as follows: $251,000 of construction and land development loans, $768,000 of single family residential mortgage loans, $412,000 of commercial real estate loans, $156,000 of commercial business loans and $343,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2019, $1.4 million were accruing interest and $562,000 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, 2019. 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, 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. During the year ended December 31, 2019, borrowers with loans designated as troubled debt restructurings totaling $63,000, 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, 2019 and 2018 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, 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, 2019
						Special
		Satisfactory		Watch		Mention		Substandard		Doubtful		Total
		(In Thousands)

One- to four-family residential
construction	$	33,963	$	—	$	—	$	—	$	—	$	33,963
Subdivision construction		16,061		27		—		—		—		16,088
Land development		40,431		—		—		—		—		40,431
Commercial construction		1,322,861		—		—		—		—		1,322,861
Owner occupied one- to-four-
family residential		385,001		26		—		1,989		—		387,016
Non-owner occupied one- to-
four-family residential		119,743		419		—		181		—		120,343
Commercial real estate		1,458,400		32,063		—		3,709		—		1,494,172
Other residential		866,006		—		—		—		—		866,006
Commercial business		307,322		4,651		—		1,236		—		313,209
Industrial revenue bonds		13,189		—		—		—		—		13,189
Consumer auto		150,874		47		—		933		—		151,854
Consumer other		46,294		92		—		334		—		46,720
Home equity lines of credit		118,428		43		—		517		—		118,988
Loans acquired and accounted for
under ASC 310-30, net of discounts		127,192		—		—		14		—		127,206

Total	$	5,005,765	$	37,368	$	—	$	8,913	$	—	$	5,052,046

		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

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, and their related interests, 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, 2019 and 2018, loans outstanding to these directors and executive officers, and their related interests, are summarized as follows: