LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of classes of loans

	September 30,			December 31,
	2021			2020
	(In Thousands)
One- to four-family residential construction	$	47,317		$	42,793
Subdivision construction		9,532			30,894
Land development		47,857			54,010
Commercial construction		1,371,227			1,212,837
Owner occupied one- to four-family residential		554,886			470,436
Non-owner occupied one- to four-family residential		120,275			114,569
Commercial real estate		1,528,425			1,553,677
Other residential		794,572			1,021,145
Commercial business		295,696			370,898
Industrial revenue bonds		14,369			14,003
Consumer auto		55,294			86,173
Consumer other		39,012			40,762
Home equity lines of credit		117,977			114,689
Loans acquired and accounted for under ASC 310-30, net of discounts (1)		—			98,643
		4,996,439			5,225,529
Undisbursed portion of loans in process		(898,005)			(863,722)
Allowance for credit losses		(63,629)			(55,743)
Deferred loan fees and gains, net		(9,119)			(9,260)
	$	4,025,686		$	4,296,804
Weighted average interest rate		4.30	%		4.29	%

(1) Loans acquired and accounted for under ASC 310-30 of $79.5 million have been included in the totals by loan class as of September 30, 2021. At the date of CECL adoption, the Company did not reassess whether PCI loans met the criteria of PCD loans.
​

Schedule of loans classified by aging analysis

	September 30, 2021
													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	$	1	$	—	$	—	$	1	$	47,316	$	47,317	$	—
Subdivision construction		—		—		—		—		9,532		9,532		—
Land development		16		—		468		484		47,373		47,857		—
Commercial construction		—		—		—		—		1,371,227		1,371,227		—
Owner occupied one- to four-family residential		223		49		2,946		3,218		551,668		554,886		—
Non-owner occupied one- to four-family residential		—		—		59		59		120,216		120,275		—
Commercial real estate		—		—		2,598		2,598		1,525,827		1,528,425		—
Other residential		—		—		—		—		794,572		794,572		—
Commercial business		114		—		111		225		295,471		295,696		—
Industrial revenue bonds		—		—		—		—		14,369		14,369		—
Consumer auto		306		45		58		409		54,885		55,294		—
Consumer other		188		19		72		279		38,733		39,012		—
Home equity lines of credit		—		39		669		708		117,269		117,977		—
		848		152		6,981		7,981		4,988,458		4,996,439		—
Less: FDIC-assisted acquired loans		218		41		1,938		2,197		77,336		79,533		—
Total	$	630	$	111	$	5,043	$	5,784	$	4,911,122	$	4,916,906	$	—

	December 31, 2020
													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	$	1,365	$	—	$	—	$	1,365	$	41,428	$	42,793	$	—
Subdivision construction		—		—		—		—		30,894		30,894		—
Land development		20		—		—		20		53,990		54,010		—
Commercial construction		—		—		—		—		1,212,837		1,212,837		—
Owner occupied one- to four-family residential		1,379		113		1,502		2,994		467,442		470,436		—
Non-owner occupied one- to four-family residential		—		—		69		69		114,500		114,569		—
Commercial real estate		—		79		587		666		1,553,011		1,553,677		—
Other residential		—		—		—		—		1,021,145		1,021,145		—
Commercial business		—		—		114		114		370,784		370,898		—
Industrial revenue bonds		—		—		—		—		14,003		14,003		—
Consumer auto		364		119		169		652		85,521		86,173		—
Consumer other		443		7		94		544		40,218		40,762		—
Home equity lines of credit		153		111		508		772		113,917		114,689		—
Loans acquired and accounted for under ASC 310-30, net of discounts		1,662		641		3,843		6,146		92,497		98,643		—
		5,386		1,070		6,886		13,342		5,212,187		5,225,529		—
Less: Loans acquired and accounted for under ASC 310-30, net of discounts		1,662		641		3,843		6,146		92,497		98,643		—
Total	$	3,724	$	429	$	3,043	$	7,196	$	5,119,690	$	5,126,886	$	—

Schedule of Financing Receivable, Nonaccrual

	September 30,		December 31,
	2021		2020
	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		468		—
Commercial construction		—		—
Owner occupied one- to four-family residential		2,946		1,502
Non-owner occupied one- to four-family residential		59		69
Commercial real estate		2,598		587
Other residential		—		—
Commercial business		111		114
Industrial revenue bonds		—		—
Consumer auto		58		169
Consumer other		72		94
Home equity lines of credit		669		508
Total non-accruing loans		6,981
Less: FDIC-assisted acquired loans		1,938
Total non-accruing loans net of FDIC-assisted acquired loans	$	5,043	$	3,043

Financing Receivable, Allowance for Credit Loss

	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total
	(In Thousands)
Allowance for credit losses
Balance, June 30, 2021	$	9,209	$	15,299	$	30,507	$	2,215	$	3,932	$	5,440	$	66,602
Provision (credit) charged to expense		—		—		(3,000)		—		—		—		(3,000)
Losses charged off		(37)		—		—		—		(3)		(446)		(486)
Recoveries		45		—		6		6		52		404		513
Balance, September 30, 2021	$	9,217	$	15,299	$	27,513	$	2,221	$	3,981	$	5,398	$	63,629
Allowance for credit losses
Balance, December 31, 2020	$	4,536	$	9,375	$	33,707	$	3,521	$	2,390	$	2,214	$	55,743
CECL adoption		4,533		5,832		(2,531)		(1,165)		1,499		3,427		11,595
Balance, January 1, 2021		9,069		15,207		31,176		2,356		3,889		5,641		67,338
Provision (credit) charged to expense		—		—		(3,700)		—		—		—		(3,700)
Losses charged off		(179)		—		—		(154)		(60)		(1,647)		(2,040)
Recoveries		327		92		37		19		152		1,404		2,031
Balance, September 30, 2021	$	9,217	$	15,299	$	27,513	$	2,221	$	3,981	$	5,398	$	63,629

	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total
	(In Thousands)
Allowance for unfunded commitments
Balance, June 30, 2021	$	760	$	4,972	$	417	$	354	$	821	$	385	$	7,709
Provision (credit) charged to expense		5		188		(79)		—		534		(5)		643
Balance, September 30, 2021	$	765	$	5,160	$	338	$	354	$	1,355	$	380	$	8,352
Allowance for unfunded commitments
Balance, December 31, 2020	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CECL adoption		917		5,227		354		910		935		347		8,690
Balance, January 1, 2021		917		5,227		354		910		935		347		8,690
Provision (credit) charged to expense		(152)		(67)		(16)		(556)		420		33		(338)
Balance, September 30, 2021	$	765	$	5,160	$	338	$	354	$	1,355	$	380	$	8,352

Schedule of Loans and Leases Receivable Allowance for Loan Losses

	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, July 1, 2020	$	4,492	$	9,064	$	28,905	$	2,793	$	1,817	$	2,730	$	49,801
Provision (credit) charged to expense		(127)		(344)		3,686		1,222		55		8		4,500
Losses charged off		—		—		—		—		(1)		(685)		(686)
Recoveries		67		11		2		12		35		496		623
Balance, September 30, 2020	$	4,432	$	8,731	$	32,593	$	4,027	$	1,906	$	2,549	$	54,238
Allowance for loan losses
Balance, January 1, 2020	$	4,339	$	5,153	$	24,334	$	3,076	$	1,355	$	2,037	$	40,294
Provision charged to expense		17		3,401		8,217		918		424		1,394		14,371
Losses charged off		(40)		—		—		(1)		(10)		(2,538)		(2,589)
Recoveries		116		177		42		34		137		1,656		2,162
Balance, September 30, 2020	$	4,432	$	8,731	$	32,593	$	4,027	$	1,906	$	2,549	$	54,238

Schedule of impaired financing receivables

	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	$	90	$	—	$	445	$	—	$	14	$	164	$	713
Collectively evaluated for impairment	$	4,382	$	9,282	$	32,937	$	3,378	$	2,331	$	2,040	$	54,350
Loans acquired and accounted for under ASC 310-30	$	64	$	93	$	325	$	143	$	45	$	10	$	680
Loans
Individually evaluated for impairment	$	3,546	$	—	$	3,438	$	—	$	167	$	1,897	$	9,048
Collectively evaluated for impairment	$	655,146	$	1,021,145	$	1,550,239	$	1,266,847	$	384,734	$	239,727	$	5,117,838
Loans acquired and accounted for under ASC 310-30	$	57,113	$	6,150	$	24,613	$	2,551	$	2,549	$	5,667	$	98,643

Schedule of amortized cost basis of collateral-dependent loans by lass of loans

	September 30, 2021
	Principal		Specific
	Balance		Allowance
	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		468		—
Commercial construction		—		—
Owner occupied one- to four- family residential		2,732		21
Non-owner occupied one- to four-family residential		—		—
Commercial real estate		4,481		1,440
Other residential		—		—
Commercial business		—		—
Industrial revenue bonds		—		—
Consumer auto		—		—
Consumer other		—		—
Home equity lines of credit		381		—
Total	$	8,062	$	1,461

Schedule of Financing Receivable, Troubled Debt Restructuring

	At or for the Year Ended December 31, 2020
							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		20		20		—		115		3
Land development		—		—		—		—		—
Commercial construction		—		—		—		—		—
Owner occupied one- to four- family residential		3,457		3,776		90		2,999		169
Non-owner occupied one- to four-family residential		69		106		—		309		18
Commercial real estate		3,438		3,472		445		3,736		135
Other residential		—		—		—		—		—
Commercial business		166		551		14		800		34
Industrial revenue bonds		—		—		—		—		—
Consumer auto		865		964		140		932		91
Consumer other		403		552		19		298		47
Home equity lines of credit		630		668		5		550		36
Total	$	9,048	$	10,109	$	713	$	9,739	$	533

	September 30, 2020
			Unpaid
	Recorded		Principal		Specific
	Balance		Balance		Allowance
	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—
Subdivision construction		22		22		—
Land development		—		—		—
Commercial construction		—		—		—
Owner occupied one- to four- family residential		3,342		3,460		78
Non-owner occupied one- to four-family residential		238		238		—
Commercial real estate		3,056		3,056		466
Other residential		—		—		—
Commercial business		197		210		15
Industrial revenue bonds		—		—		—
Consumer auto		1,024		1,040		166
Consumer other		333		355		17
Home equity lines of credit		553		558		4
Total	$	8,765	$	8,939	$	746

	Three Months Ended				Nine Months Ended
	September 30, 2020				September 30, 2020
	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		22		—		147		3
Land development		—		—		—		—
Commercial construction		—		—		—		—
Owner occupied one- to four-family residential		3,146		44		2,850		124
Non-owner occupied one- to four-family residential		267		—		372		11
Commercial real estate		3,829		30		3,946		97
Other residential		—		—		—		—
Commercial business		538		5		1,008		30
Industrial revenue bonds		—		—		—		—
Consumer auto		889		37		945		77
Consumer other		293		17		281		33
Home equity lines of credit		528		7		535		26
Total	$	9,512	$	140	$	10,084	$	401

Schedule of troubled debt restructuring current period

	September 30, 2021
	Accruing TDR Loans			Non-accruing TDR Loans			Total TDR Loans
	Number	Balance		Number	Balance		Number	Balance
	(In Thousands)
Construction and land development	1	$	16	—	$	—	1	$	16
One- to four-family residential	8		546	10		1,052	18		1,598
Other residential	—		—	—		—	—		—
Commercial real estate	2		1,813	—		—	2		1,813
Commercial business	—		—	1		52	1		52
Consumer	29		212	15		78	44		290
	40	$	2,587	26	$	1,182	66	$	3,769

	December 31, 2020
	Restructured
	Troubled Debt		Accruing		Restructured
	Non-accruing		Interest		Troubled Debt
	(In Thousands)
Commercial real estate	$	—	$	646	$	646
One- to four-family residential		778		1,121		1,899
Other residential		—		—		—
Construction		—		20		20
Commercial		75		52		127
Consumer		118		511		629
	$	971	$	2,350	$	3,321

Schedule of troubled debt restructuring subsequent period

The following tables present newly restructured loans, which were considered TDRs, during the three and nine months ended September 30, 2021 and 2020, respectively, by type of modification:

	Three Months Ended September 30, 2021
							Total
	Interest Only		Term		Combination		Modification
		(In Thousands)
One- to four-family residential	$	—	$	—	$	134	$	134
Consumer		—		—		10		10
	$	—	$	—	$	144	$	144

	Three Months Ended September 30, 2020
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
One- to four-family residential	$	—	$	—	$	647	$	647
Commercial real estate		—		—		559		559
Commercial business		—		—		22		22
Consumer		—		—		1,771		1,771
	$	—	$	—	$	2,999	$	2,999

	Nine Months Ended September 30, 2021
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
Commercial real estate	$	1,768	$	—	$	—	$	1,768
One- to four-family residential		—		157		134		291
Consumer		—		100		10		110
	$	1,768	$	257	$	144	$	2,169

	Nine Months Ended September 30, 2020
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
One- to four-family residential	$	—	$	—	$	777	$	777
Commercial real estate		—		—		559		559
Commercial business		—		—		22		22
Consumer		—		16		1,847		1,863
	$	—	$	16	$	3,205	$	3,221

Schedule of financing receivable credit quality indicators

	Term Loans by Origination Year
													Revolving
	2021 YTD		2020		2019		2018		2017		Prior		Loans		Total
	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	16,340	$	6,655	$	724	$	—	$	—	$	5	$	—	$	23,724
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		16,340		6,655		724		—		—		5		—		23,724
Subdivision construction
Satisfactory (1-4)		4,928		1,005		237		193		791		1,018		—		8,172
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		16		—		16
Total		4,928		1,005		237		193		791		1,034		—		8,188
Land development construction
Satisfactory (1-4)		4,139		19,792		11,203		2,609		3,025		6,069		555		47,392
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		468		468
Total		4,139		19,792		11,203		2,609		3,025		6,069		1,023		47,860
Other Construction
Satisfactory (1-4)		74,248		304,277		161,445		41,036		—		—		—		581,006
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		74,248		304,277		161,445		41,036		—		—		—		581,006
One- to four-family residential
Satisfactory (1-4)		186,774		183,093		104,687		56,016		15,203		123,625		1,745		671,143
Watch (5)		—		—		1,364		132		—		270		72		1,838
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		136		—		195		1,740		89		2,160
Total		186,774		183,093		106,187		56,148		15,398		125,635		1,906		675,141
Other residential
Satisfactory (1-4)		30,316		59,009		174,613		289,348		137,820		80,015		8,707		779,828
Watch (5)		—		—		—		—		—		3,457		—		3,457
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		30,316		59,009		174,613		289,348		137,820		83,472		8,707		783,285
Commercial real estate
Satisfactory (1-4)		48,732		136,508		229,604		233,465		216,067		573,099		27,692		1,465,167
Watch (5)		—		379		582		—		11,555		25,666		—		38,182
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		4,266		—		4,266
Total		48,732		136,887		230,186		233,465		227,622		603,031		27,692		1,507,615
Commercial business
Satisfactory (1-4)		58,592		26,976		27,366		16,937		25,110		58,475		46,223		259,679
Watch (5)		—		—		—		—		—		77		—		77
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		52		59		111
Total		58,592		26,976		27,366		16,937		25,110		58,604		46,282		259,867
Consumer
Satisfactory (1-4)		16,323		13,106		8,724		11,403		5,349		28,451		128,133		211,489
Watch (5)		—		—		—		22		6		15		29		72
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		17		—		14		59		327		377		794
Total		16,323		13,123		8,724		11,439		5,414		28,793		128,539		212,355
Combined
Satisfactory (1-4)		440,392		750,421		718,603		651,007		403,365		870,757		213,055		4,047,600
Watch (5)		—		379		1,946		154		11,561		29,485		101		43,626
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		17		136		14		254		6,401		993		7,815
Total	$	440,392	$	750,817	$	720,685	$	651,175	$	415,180	$	906,643	$	214,149	$	4,099,041

	December 31, 2020
					Special
	Satisfactory		Watch		Mention		Substandard		Doubtful		Total
	(In Thousands)
One- to four-family residential construction	$	41,428	$	1,365	$	—	$	—	$	—	$	42,793
Subdivision construction		30,874		—		—		20		—		30,894
Land development		54,010		—		—		—		—		54,010
Commercial construction		1,212,837		—		—		—		—		1,212,837
Owner occupied one- to-four-family residential		467,855		216		—		2,365		—		470,436
Non-owner occupied one- to-four-family residential		114,176		324		—		69		—		114,569
Commercial real estate		1,498,031		52,208		—		3,438		—		1,553,677
Other residential		1,017,648		3,497		—		—		—		1,021,145
Commercial business		363,681		7,102		—		115		—		370,898
Industrial revenue bonds		14,003		—		—		—		—		14,003
Consumer auto		85,657		5		—		511		—		86,173
Consumer other		40,514		2		—		246		—		40,762
Home equity lines of credit		114,049		39		—		601		—		114,689
Loans acquired and accounted for under ASC 310‑30, net of discounts		98,633		—		—		10		—		98,643
Total	$	5,153,396	$	64,758	$	—	$	7,375	$	—	$	5,225,529