Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Loans and Allowance for Credit Losses

Schedule of classes of loans

Classes of loans at December 31, 2021 and 2020, included:

	December 31,		December 31,
	2021		2020
	(In Thousands)
One- to four-family residential construction	$	28,302	$	20,718
Subdivision construction		26,694		4,917
Land development		47,827		54,010
Commercial construction		617,505		484,372
Owner occupied one- to four-family residential		561,958		470,310
Non-owner occupied one- to four-family residential		119,635		114,498
Commercial real estate		1,476,230		1,541,242
Other residential		697,903		999,447
Commercial business		280,513		318,023
Industrial revenue bonds		14,203		14,003
Consumer auto		48,915		86,173
Consumer other		37,902		40,762
Home equity lines of credit		119,965		114,689
Loans acquired and accounted for under ASC 310-30, net of discounts(1)		—		98,643
		4,077,552		4,361,807
Allowance for credit losses		(60,754)		(55,743)
Deferred loan fees and gains, net		(9,298)		(9,260)
	$	4,007,500	$	4,296,804

(1) Loans acquired and accounted for under ASC 310-30 of $74.2 million have been included in the totals by loan class as of December 31, 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

	December 31, 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	$	—	$	—	$	—	$	—	$	28,302	$	28,302	$	—
Subdivision construction		—		—		—		—		26,694		26,694		—
Land development		29		15		468		512		47,315		47,827		—
Commercial construction		—		—		—		—		617,505		617,505		—
Owner occupied one- to four- family residential		843		2		2,216		3,061		558,897		561,958		—
Non-owner occupied one- to four-family residential		—		—		—		—		119,635		119,635		—
Commercial real estate		—		—		2,006		2,006		1,474,224		1,476,230		—
Other residential		—		—		—		—		697,903		697,903		—
Commercial business		1,404		—		—		1,404		279,109		280,513		—
Industrial revenue bonds		—		—		—		—		14,203		14,203		—
Consumer auto		229		31		34		294		48,621		48,915		—
Consumer other		126		28		63		217		37,685		37,902		—
Home equity lines of credit		—		—		636		636		119,329		119,965		—
Total	$	2,631	$	76	$	5,423	$	8,130	$	4,069,422	$	4,077,552	$	—
FDIC-assisted acquired loans included above	$	433	$	—	$	1,736	$	2,169	$	72,001	$	74,170	$	—

	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	$	19,353	$	20,718	$	—
Subdivision construction		—		—		—		—		4,917		4,917		—
Land development		20		—		—		20		53,990		54,010		—
Commercial construction		—		—		—		—		484,372		484,372		—
Owner occupied one- to four- family residential		1,379		113		1,502		2,994		467,316		470,310		—
Non-owner occupied one- to four-family residential		—		—		69		69		114,429		114,498		—
Commercial real estate		—		79		587		666		1,540,576		1,541,242		—
Other residential		—		—		—		—		999,447		999,447		—
Commercial business		—		—		114		114		317,909		318,023		—
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		4,348,465		4,361,807		—
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	$	4,255,968	$	4,263,164	$	—

Schedule of Financing Receivable, Nonaccrual

	December 31,		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		2,216		1,502
Non-owner occupied one- to four-family residential		—		69
Commercial real estate		2,006		587
Other residential		—		—
Commercial business		—		114
Industrial revenue bonds		—		—
Consumer auto		34		169
Consumer other		63		94
Home equity lines of credit		636		508
Total non-accruing loans	$	5,423	$	3,043
FDIC-assisted acquired loans included above	$	1,736

Schedule of Loans and Leases Receivable Allowance for Loan Losses

	December 31, 2021
	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, 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		—		(4,797)		(2,478)		575		—		—		(6,700)
Losses charged off		(190)		—		(142)		(154)		(81)		(2,054)		(2,621)
Recoveries		485		92		48		20		334		1,758		2,737
Balance, December 31, 2021	$	9,364	$	10,502	$	28,604	$	2,797	$	4,142	$	5,345	$	60,754

The following table presents the activity in the allowance for unfunded commitments by portfolio segment for the year ended December 31, 2021. On January 1, 2021, the Company adopted the CECL methodology, which created an $8.7 million allowance for unfunded commitments.

	December 31, 2021
	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, 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		(230)		476		13		(2)		647		35		939
Balance, December 31, 2021	$	687	$	5,703	$	367	$	908	$	1,582	$	382	$	9,629

	December 31, 2020
	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, 2020	$	4,339	$	5,153	$	24,334	$	3,076	$	1,355	$	2,037	$	40,294
Provision (benefit) charged to expense		84		4,042		9,343		242		914		1,246		15,871
Losses charged off		(70)		—		(43)		(1)		(28)		(3,152)		(3,294)
Recoveries		183		180		73		204		149		2,083		2,872
Balance, December 31, 2020	$	4,536	$	9,375	$	33,707	$	3,521	$	2,390	$	2,214	$	55,743
Ending balance:
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

	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

Schedule Of Amortized Cost Basis Of Collateral Dependent Loans By Class Of Loans [Table Text Block]

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2021:

	December 31, 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		1,980		18
Non-owner occupied one- to four-family residential		—		—
Commercial real estate		2,217		397
Other residential		—		—
Commercial business		—		—
Industrial revenue bonds		—		—
Consumer auto		—		—
Consumer other		160		80
Home equity lines of credit		377		—
Total	$	5,202	$	495

Schedule of impaired financing receivables

							Year Ended
	December 31, 2020						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

							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

Schedule of troubled debt restructuring current period

	December 31, 2021
	Accruing TDR Loans			Non-accruing TDR Loans			Total TDR Loans
	Number	Balance		Number	Balance		Number	Balance
	(In Thousands)
Construction and land development	1	$	15	—	$	—	1	$	15
One- to four-family residential	10		579	12		1,059	22		1,638
Other residential	—		—	—		—	—		—
Commercial real estate	1		85	1		1,726	2		1,811
Commercial business	—		—	—		—	—		—
Consumer	26		323	13		64	39		387
	38	$	1,002	26	$	2,849	64	$	3,851

	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 Financing Receivable, Troubled Debt Restructuring

	2021
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
Residential one-to-four family	$	31	$	202	$	134	$	367
Commercial real estate		1,768		—		—		1,768
Commercial business		—		—		—		—
Consumer		—		259		11		270
	$	1,799	$	461	$	145	$	2,405

	2020
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
Residential one-to-four family	$	—	$	—	$	1,030	$	1,030
Commercial real estate		—		—		559		559
Commercial business		—		—		22		22
Consumer		—		16		1,951		1,967
	$	—	$	16	$	3,562	$	3,578

	2019
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
Consumer	$	—	$	136	$	—	$	136
	$	—	$	136	$	—	$	136

Schedule of financing receivable credit quality indicators

	Term Loans by Origination Year
													Revolving
	2021		2020		2019		2018		2017		Prior		Loans		Total
					(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	23,081	$	4,453	$	763	$	—	$	—	$	5	$	—	$	28,302
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		23,081		4,453		763		—		—		5		—		28,302
Subdivision construction
Satisfactory (1-4)		24,129		949		224		160		252		965		—		26,679
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		15		—		15
Total		24,129		949		224		160		252		980		—		26,694
Land development construction
Satisfactory (1-4)		9,968		15,965		11,115		2,591		3,013		4,184		527		47,363
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		468		468
Total		9,968		15,965		11,115		2,591		3,013		4,184		995		47,831
Other Construction
Satisfactory (1-4)		145,991		298,710		130,502		42,302		—		—		—		617,505
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		145,991		298,710		130,502		42,302		—		—		—		617,505
One- to four-family residential
Satisfactory (1-4)		237,498		169,765		93,648		49,618		14,707		113,059		1,662		679,957
Watch (5)		—		—		—		132		—		267		69		468
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		144		—		50		1,223		83		1,500
Total		237,498		169,765		93,792		49,750		14,757		114,549		1,814		681,925
Other residential
Satisfactory (1-4)		117,029		96,551		115,418		179,441		104,053		70,438		11,605		694,535
Watch (5)		—		—		—		—		—		3,417		—		3,417
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		117,029		96,551		115,418		179,441		104,053		73,855		11,605		697,952
Commercial real estate
Satisfactory (1-4)		141,868		113,226		220,580		231,321		196,166		521,545		22,785		1,447,491
Watch (5)		—		410		582		—		—		25,742		—		26,734
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		2,006		—		2,006
Total		141,868		113,636		221,162		231,321		196,166		549,293		22,785		1,476,231
Commercial business
Satisfactory (1-4)		67,049		28,743		23,947		16,513		24,126		58,116		76,187		294,681
Watch (5)		—		—		—		—		—		58		—		58
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		67,049		28,743		23,947		16,513		24,126		58,174		76,187		294,739
Consumer
Satisfactory (1-4)		20,140		11,138		7,154		9,065		4,175		24,280		130,111		206,063
Watch (5)		—		—		—		20		4		10		29		63
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		2		—		16		32		280		347		677
Total		20,140		11,140		7,154		9,101		4,211		24,570		130,487		206,803
Combined
Satisfactory (1-4)		786,753		739,500		603,351		531,011		346,492		792,592		242,877		4,042,576
Watch (5)		—		410		582		152		4		29,494		98		30,740
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		2		144		16		82		3,524		898		4,666
Total	$	786,753	$	739,912	$	604,077	$	531,179	$	346,578	$	825,610	$	243,873	$	4,077,982

	December 31, 2020
					Special
	Satisfactory		Watch		Mention		Substandard		Doubtful		Total
	(In Thousands)
One- to four-family residential construction	$	19,353	$	1,365	$	—	$	—	$	—	$	20,718
Subdivision construction		4,897		—		—		20		—		4,917
Land development		54,010		—		—		—		—		54,010
Commercial construction		484,372		—		—		—		—		484,372
Owner occupied one- to-four-family residential		467,729		216		—		2,365		—		470,310
Non-owner occupied one-to-four-family residential		114,105		324		—		69		—		114,498
Commercial real estate		1,485,596		52,208		—		3,438		—		1,541,242
Other residential		995,950		3,497		—		—		—		999,447
Commercial business		310,806		7,102		—		115		—		318,023
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	$	4,289,674	$	64,758	$	—	$	7,375	$	—	$	4,361,807

Schedule of related party transactions

	2021		2020
	(In Thousands)
Balance, beginning of year	$	13,468	$	15,240
New loans		629		901
Payments		(4,000)		(2,673)
Balance, end of year	$	10,097	$	13,468