LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of classes of loans

	June 30,			December 31,
	2022			2021
	(In Thousands)
One- to four-family residential construction	$	24,582		$	28,302
Subdivision construction		28,309			26,694
Land development		43,951			47,827
Commercial construction		453,183			617,505
Owner occupied one- to four-family residential		712,454			561,958
Non-owner occupied one- to four-family residential		121,405			119,635
Commercial real estate		1,623,115			1,476,230
Other residential		918,009			697,903
Commercial business		295,266			280,513
Industrial revenue bonds		13,140			14,203
Consumer auto		42,623			48,915
Consumer other		35,936			37,902
Home equity lines of credit		120,941			119,965
		4,432,914			4,077,552
Allowance for credit losses		(61,058)			(60,754)
Deferred loan fees and gains, net		(10,297)			(9,298)
	$	4,361,559		$	4,007,500
Weighted average interest rate		4.37	%		4.26	%

Schedule of loans classified by aging analysis

	June 30, 2022
													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	$	—	$	—	$	—	$	—	$	24,582	$	24,582	$	—
Subdivision construction		—		—		—		—		28,309		28,309		—
Land development		2		—		468		470		43,481		43,951		—
Commercial construction		—		—		—		—		453,183		453,183		—
Owner occupied one- to four-family residential		144		229		1,502		1,875		710,579		712,454		—
Non-owner occupied one- to four-family residential		—		—		—		—		121,405		121,405		—
Commercial real estate		—		—		1,832		1,832		1,621,283		1,623,115		—
Other residential		—		—		—		—		918,009		918,009		—
Commercial business		—		—		—		—		295,266		295,266		—
Industrial revenue bonds		—		—		—		—		13,140		13,140		—
Consumer auto		99		24		15		138		42,485		42,623		—
Consumer other		224		111		89		424		35,512		35,936		—
Home equity lines of credit		—		—		314		314		120,627		120,941		—
Total	$	469	$	364	$	4,220	$	5,053	$	4,427,861	$	4,432,914	$	—

	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	$	—

Schedule of Financing Receivable, Nonaccrual

	June 30,		December 31,
	2022		2021
	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		468		468
Commercial construction		—		—
Owner occupied one- to four-family residential		1,502		2,216
Non-owner occupied one- to four-family residential		—		—
Commercial real estate		1,832		2,006
Other residential		—		—
Commercial business		—		—
Industrial revenue bonds		—		—
Consumer auto		15		34
Consumer other		89		63
Home equity lines of credit		314		636
Total non-accruing loans	$	4,220	$	5,423

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 credit losses
Balance, March 31, 2021	$	9,101	$	15,299	$	31,500	$	2,366	$	3,936	$	5,500	$	67,702
Provision charged to expense		—		—		(1,000)		—		—		—		(1,000)
Losses charged off		(136)		—		—		(154)		(57)		(552)		(899)
Recoveries		244		—		7		3		53		492		799
Balance, June 30, 2021	$	9,209	$	15,299	$	30,507	$	2,215	$	3,932	$	5,440	$	66,602
Allowance for credit losses
Balance, March 31, 2022	$	9,382	$	10,502	$	28,604	$	2,797	$	4,162	$	5,350	$	60,797
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		(2)		—		—		—		—		(431)		(433)
Recoveries		54		110		—		—		203		327		694
Balance, June 30, 2022	$	9,434	$	10,612	$	28,604	$	2,797	$	4,365	$	5,246	$	61,058

	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 charged to expense		—		—		(700)		—		—		—		(700)
Losses charged off		(142)		—		—		(154)		(57)		(1,201)		(1,554)
Recoveries		282		92		31		13		100		1,000		1,518
Balance, June 30, 2021	$	9,209	$	15,299	$	30,507	$	2,215	$	3,932	$	5,440	$	66,602
Allowance for credit losses
Balance, January 1, 2022	$	9,364	$	10,502	$	28,604	$	2,797	$	4,142	$	5,345	$	60,754
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		(38)		—		—		—		—		(832)		(870)
Recoveries		108		110		—		—		223		733		1,174
Balance, June 30, 2022	$	9,434	$	10,612	$	28,604	$	2,797	$	4,365	$	5,246	$	61,058

	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, March 31, 2021	$	957	$	4,814	$	457	$	510	$	956	$	322	$	8,016
Provision (benefit) charged to expense		(197)		158		(40)		(156)		(135)		63		(307)
Balance, June 30, 2021	$	760	$	4,972	$	417	$	354	$	821	$	385	$	7,709
Allowance for unfunded commitments
Balance, March 31, 2022	$	1,199	$	4,700	$	423	$	1,069	$	1,618	$	427	$	9,436
Provision (credit) charged to expense		(61)		2,719		78		(374)		(212)		73		2,223
Balance, June 30, 2022	$	1,138	$	7,419	$	501	$	695	$	1,406	$	500	$	11,659

	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 (benefit) charged to expense		(157)		(255)		63		(556)		(114)		38		(981)
Balance, June 30, 2021	$	760	$	4,972	$	417	$	354	$	821	$	385	$	7,709
Allowance for unfunded commitments
Balance, January 1, 2022	$	687	$	5,703	$	367	$	908	$	1,582	$	382	$	9,629
Provision (credit) charged to expense		451		1,716		134		(213)		(176)		118		2,030
Balance, June 30, 2022	$	1,138	$	7,419	$	501	$	695	$	1,406	$	500	$	11,659

Schedule Of Amortized Cost Basis Of Collateral Dependent Loans By Class Of Loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans:

	June 30, 2022				December 31, 2021
	Principal		Specific		Principal		Specific
	Balance		Allowance		Balance		Allowance
	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—	$	—
Subdivision construction		—		—		—		—
Land development		468		—		468		—
Commercial construction		—		—		—		—
Owner occupied one- to four- family residential		1,746		15		1,980		18
Non-owner occupied one- to four-family residential		—		—		—		—
Commercial real estate		2,021		116		2,217		397
Other residential		—		—		—		—
Commercial business		—		—		—		—
Industrial revenue bonds		—		—		—		—
Consumer auto		—		—		—		—
Consumer other		160		80		160		80
Home equity lines of credit		140		—		377		—
Total	$	4,535	$	211	$	5,202	$	495

Schedule of troubled debt restructuring current period

	June 30, 2022
	Accruing TDR Loans			Non-accruing TDR Loans			Total TDR Loans
	Number	Balance		Number	Balance		Number	Balance
	(In Thousands)
Construction and land development	1	$	11	—	$	—	1	$	11
One- to four-family residential	11		899	6		589	17		1,488
Other residential	—		—	—		—	—		—
Commercial real estate	—		—	2		1,821	2		1,821
Commercial business	—		—	—		—	—		—
Consumer	15		242	9		43	24		285
	27	$	1,152	17	$	2,453	44	$	3,605

	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

Schedule of Financing Receivable, Troubled Debt Restructuring

The following tables present newly restructured loans, which were considered TDRs, during the three and six months ended June 30, 2022 and 2021, respectively, by type of modification:

	Three Months Ended June 30, 2022
							Total
	Interest Only		Term		Combination		Modification
		(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Consumer		—		—		—		—
	$	—	$	—	$	—	$	—

	Three Months Ended June 30, 2021
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
One- to four-family residential	$	—	$	157	$	—	$	157
Consumer		—		79		—		79
	$	—	$	236	$	—	$	236

	Six Months Ended June 30, 2022
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
Commercial real estate	$	—	$	—	$	247	$	247
Consumer		—		4		3		7
	$	—	$	4	$	250	$	254

	Six Months Ended June 30, 2021
							Total
	Interest Only		Term		Combination		Modification
	(In Thousands)
Commercial Real Estate	$	1,768	$	—	$	—	$	1,768
One- to four-family residential		—		157		—		157
Consumer		—		100		—		100
	$	1,768	$	257	$	—	$	2,025

Schedule of financing receivable credit quality indicators

	Term Loans by Origination Year
													Revolving
	2022 YTD		2021		2020		2019		2018		Prior		Loans		Total
	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	8,603	$	11,816	$	3,477	$	675	$	—	$	—	$	11	$	24,582
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		8,603		11,816		3,477		675		—		—		11		24,582
Subdivision construction
Satisfactory (1-4)		2,658		23,518		871		207		143		901		—		28,298
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		11		—		11
Total		2,658		23,518		871		207		143		912		—		28,309
Construction and land development
Satisfactory (1-4)		13,041		6,578		8,614		8,336		780		5,546		588		43,483
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		468		468
Total		13,041		6,578		8,614		8,336		780		5,546		1,056		43,951
Other construction
Satisfactory (1-4)		32,878		244,211		157,869		18,225		—		—		—		453,183
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		32,878		244,211		157,869		18,225		—		—		—		453,183
One- to four-family residential
Satisfactory (1-4)		227,799		228,513		138,024		77,961		42,544		113,750		923		829,514
Watch (5)		—		—		—		—		90		1,065		63		1,218
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		127		—		2,908		92		3,127
Total		227,799		228,513		138,024		78,088		42,634		117,723		1,078		833,859
Other residential
Satisfactory (1-4)		41,509		124,652		266,168		189,100		135,061		135,420		22,718		914,628
Watch (5)		—		—		—		—		—		3,381		—		3,381
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		41,509		124,652		266,168		189,100		135,061		138,801		22,718		918,009
Commercial real estate
Satisfactory (1-4)		197,954		163,891		113,057		215,620		206,914		675,346		33,079		1,605,861
Watch (5)		—		—		—		—		—		15,221		—		15,221
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		2,033		—		2,033
Total		197,954		163,891		113,057		215,620		206,914		692,600		33,079		1,623,115
Commercial business
Satisfactory (1-4)		19,687		64,796		38,024		16,262		10,177		71,143		88,255		308,344
Watch (5)		—		—		—		—		—		62		—		62
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		19,687		64,796		38,024		16,262		10,177		71,205		88,255		308,406
Consumer
Satisfactory (1-4)		14,109		14,699		7,894		4,490		5,558		20,856		130,951		198,557
Watch (5)		—		—		—		—		18		165		27		210
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		2		3		—		5		275		448		733
Total		14,109		14,701		7,897		4,490		5,581		21,296		131,426		199,500
Combined
Satisfactory (1-4)		558,238		882,674		733,998		530,876		401,177		1,022,962		276,525		4,406,450
Watch (5)		—		—		—		—		108		19,894		90		20,092
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		2		3		127		5		5,227		1,008		6,372
Total	$	558,238	$	882,676	$	734,001	$	531,003	$	401,290	$	1,048,083	$	277,623	$	4,432,914

The following tables present a summary of loans by risk category separated by origination and loan class as of December 31, 2021. The remaining accretable discount of $429,000 has not been included in this table.

	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
Construction and land development
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