LOANS AND ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

LOANS AND ALLOWANCE FOR CREDIT LOSSES

NOTE 6: LOANS AND ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses is measured using an average historical loss model that incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics, including borrower type, collateral and repayment types and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily classified loans with a balance greater than or equal to $100,000, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given economic forecasts of key macroeconomic variables including, but not limited to, unemployment rate, gross domestic product (“GDP”), commercial real estate price index, consumer sentiment and construction spending. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting to historical averages. The forecast-adjusted loss rate is applied to the principal balance over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals and modifications. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecasts such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.

In addition, the Company is required to record an allowance for off balance sheet credit exposures: unfunded lines of credit, undisbursed portions of loans, written residential and commercial commitments, and letters of credit. To determine the amount needed for allowance purposes, a utilization rate is determined either by the model or internally for each pool. Our loss model calculates the reserve on unfunded commitments based upon the utilization rate multiplied by the average loss rate factors in each pool with unfunded and committed balances. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans; however, the liability for unfunded lending commitments incorporates assumptions for the portion of unfunded commitments that are expected to be funded.

Classes of loans at March 31, 2024 and December 31, 2023 were as follows:

	March 31,			December 31,
	2024			2023
	(In Thousands)
One- to four-family residential construction	$	33,984		$	29,628
Subdivision construction		20,252			23,359
Land development		45,878			48,015
Commercial construction		692,550			703,407
Owner occupied one- to four-family residential		757,975			769,260
Non-owner occupied one- to four-family residential		122,383			121,275
Commercial real estate		1,502,625			1,521,032
Other residential (multi-family)		1,040,306			942,071
Commercial business		259,476			318,050
Industrial revenue bonds		11,812			12,047
Consumer auto		26,953			28,343
Consumer other		28,524			28,978
Home equity lines of credit		115,399			115,883
		4,658,117			4,661,348
Allowance for credit losses		(65,087)			(64,670)
Deferred loan fees and gains, net		(6,777)			(7,058)
	$	4,586,253		$	4,589,620
Weighted average interest rate		6.26	%		6.25	%

Classes of loans by aging were as follows as of the dates indicated:

	March 31, 2024
													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	$	—	$	—	$	—	$	—	$	33,984	$	33,984	$	—
Subdivision construction		—		—		—		—		20,252		20,252		—
Land development		—		—		384		384		45,494		45,878		—
Commercial construction		—		—		—		—		692,550		692,550		—
Owner occupied one- to four-family residential		2,385		—		626		3,011		754,964		757,975		—
Non-owner occupied one- to four-family residential		503		—		—		503		121,880		122,383		—
Commercial real estate		13,545		—		10,612		24,157		1,478,468		1,502,625		—
Other residential (multi-family)		—		—		9,572		9,572		1,030,734		1,040,306		—
Commercial business		823		—		—		823		258,653		259,476		—
Industrial revenue bonds		—		—		—		—		11,812		11,812		—
Consumer auto		56		20		9		85		26,868		26,953		—
Consumer other		107		8		27		142		28,382		28,524		—
Home equity lines of credit		57		—		41		98		115,301		115,399		—
Total	$	17,476	$	28	$	21,271	$	38,775	$	4,619,342	$	4,658,117	$	—

	December 31, 2023
													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	$	—	$	—	$	—	$	—	$	29,628	$	29,628	$	—
Subdivision construction		—		—		—		—		23,359		23,359		—
Land development		—		—		384		384		47,631		48,015		—
Commercial construction		—		—		—		—		703,407		703,407		—
Owner occupied one- to four-family residential		2,778		125		722		3,625		765,635		769,260		—
Non-owner occupied one- to four-family residential		—		—		—		—		121,275		121,275		—
Commercial real estate		187		92		10,552		10,831		1,510,201		1,521,032		—
Other residential (multi-family)		9,572		—		—		9,572		932,499		942,071		—
Commercial business		—		—		31		31		318,019		318,050		—
Industrial revenue bonds		—		—		—		—		12,047		12,047		—
Consumer auto		116		65		8		189		28,154		28,343		—
Consumer other		137		—		42		179		28,799		28,978		—
Home equity lines of credit		335		26		9		370		115,513		115,883		—
Total	$	13,125	$	308	$	11,748	$	25,181	$	4,636,167	$	4,661,348	$	—

Loans are placed on nonaccrual status at 90 days past due and interest is considered a loss unless the loan is well secured and in the process of collection. Payments received on nonaccrual loans are applied to principal until the loans are returned to accrual status. Loans are returned to accrual status when all payments contractually due are brought current, payment performance is sustained for a period of time, generally six months, and future payments are reasonably assured. With the exception of consumer loans, charge-offs on loans are recorded when available information indicates a loan is not fully collectible and the loss is reasonably quantifiable. Consumer loans are charged-off at specified delinquency dates consistent with regulatory guidelines.

Non-accruing loans are summarized as follows:

	March 31,		December 31,
	2024		2023
	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		384		384
Commercial construction		—		—
Owner occupied one- to four-family residential		626		722
Non-owner occupied one- to four-family residential		—		—
Commercial real estate		10,612		10,552
Other residential (multi-family)		9,572		—
Commercial business		—		31
Industrial revenue bonds		—		—
Consumer auto		9		8
Consumer other		27		42
Home equity lines of credit		41		9
Total non-accruing loans	$	21,271	$	11,748

No interest income was recorded on nonaccrual loans for the three months ended March 31, 2024 and 2023, respectively.

Nonaccrual loans for which there is no related allowance for credit losses as of March 31, 2024 and December 31, 2023, had an amortized cost of $2.6 million and $792,000, respectively. These loans are individually assessed and do not require an allowance due to being adequately collateralized under the collateral-dependent valuation method. A collateral-dependent loan is a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company’s assessment as of the reporting date. Collateral-dependent loans are identified primarily by a classified risk rating with a loan balance equal to or greater than $100,000, including, but not limited to, any loan in process of foreclosure or repossession.

The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2024 and 2023. During the three months ended March 31, 2024, the Company recorded provision expense of $500,000 on its portfolio of outstanding loans. During the three months ended March 31, 2023, the Company recorded provision expense of $1.5 million on its portfolio of outstanding loans.

	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, January 1, 2023	$	11,171	$	12,110	$	27,096	$	2,865	$	5,822	$	4,416	$	63,480
Provision (credit) charged to expense		647		1,079		(1,590)		(363)		1,851		(124)		1,500
Losses charged off		(31)		—		—		—		—		(434)		(465)
Recoveries		10		—		—		—		148		314		472
Balance, March 31, 2023	$	11,797	$	13,189	$	25,506	$	2,502	$	7,821	$	4,172	$	64,987
Allowance for credit losses
Balance, January 1, 2024	$	9,820	$	13,370	$	28,171	$	2,844	$	6,935	$	3,530	$	64,670
Provision (credit) charged to expense		(107)		516		1,298		(96)		(1,596)		485		500
Losses charged off		(56)		—		—		—		(31)		(340)		(427)
Recoveries		3		—		—		—		88		253		344
Balance, March 31, 2024	$	9,660	$	13,886	$	29,469	$	2,748	$	5,396	$	3,928	$	65,087

The following table presents the activity in the allowance for unfunded commitments by portfolio segment for the three months ended March 31, 2024 and 2023. The provision for losses on unfunded commitments for the three months ended March 31, 2024 was a provision expense of $130,000, compared to a credit (negative expense) of $826,000 for the three months ended March 31, 2023.

	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, January 1, 2023	$	736	$	8,624	$	416	$	802	$	1,734	$	504	$	12,816
Provision (credit) charged to expense		96		(566)		29		89		(471)		(3)		(826)
Balance, March 31, 2023	$	832	$	8,058	$	445	$	891	$	1,263	$	501	$	11,990
Allowance for unfunded commitments
Balance, January 1, 2024	$	706	$	4,006	$	619	$	741	$	959	$	456	$	7,487
Provision (credit) charged to expense		(27)		(28)		(5)		(232)		394		28		130
Balance, March 31, 2024	$	679	$	3,978	$	614	$	509	$	1,353	$	484	$	7,617

The portfolio segments used in the preceding tables correspond to the loan classes used in all other tables in Note 6 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 other residential (multi-family) segment corresponds to the other residential (multi-family) class.

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

	March 31, 2024				December 31, 2023
	Principal		Specific		Principal		Specific
	Balance		Allowance		Balance		Allowance
	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—	$	—
Subdivision construction		—		—		—		—
Land development		384		13		384		—
Commercial construction		—		—		—		—
Owner occupied one- to four- family residential		529		15		691		29
Non-owner occupied one- to four-family residential		—		—		—		—
Commercial real estate		10,523		1,200		10,548		1,200
Other residential (multi-family)		16,734		126		7,162		—
Commercial business		—		—		—		—
Industrial revenue bonds		—		—		—		—
Consumer auto		—		—		—		—
Consumer other		—		—		—		—
Home equity lines of credit		—		—		—		—
Total	$	28,170	$	1,354	$	18,785	$	1,229

Modified Loans. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the troubled debt restructuring (TDR) recognition and measurement guidance and, instead, requires that an entity evaluate whether the loan modification represents a new loan or a continuation of an existing loan. It also enhances existing disclosure requirements and introduces new disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Adoption of this ASU on January 1, 2023 did not have a material impact on the Company’s results of operations, financial position or liquidity, but resulted in additional disclosure requirements related to gross charge offs by vintage year and the removal of TDR disclosures, replaced by additional disclosures on the types of modifications of loans to borrowers experiencing financial difficulties. The Company has adopted this update

prospectively. Loan modifications are reported if concessions have been granted to borrowers that are experiencing financial difficulty.

The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical loss on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a charge to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are adversely classified, the Company determines the allowance for credit losses on an individual basis, using the same process that it utilizes for other adversely classified loans. If collection efforts have begun and the modified loan is subsequently deemed collateral-dependent, the loan is placed on non-accrual status and the allowance for credit losses is determined based on an individual evaluation. If necessary, the loan is charged down to fair market value less estimated sales costs.

The following tables show the composition of loan modifications made to borrowers experiencing financial difficulty by the loan portfolio and type of concessions granted as of the dates and for the periods indicated. Each of the types of concessions granted comprised 2.0% or less of their respective classes of loan portfolios. No new loan modifications were made to borrowers experiencing financial difficulty during the three months ending March 31, 2024. During the three months ended March 31, 2024, principal forgiveness of $14,000 was completed on consumer loans. During the three months ended March 31, 2023, principal forgiveness of $4,000 was completed on consumer loans.

	Amortized Cost Basis at March 31, 2024
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modification
		(In Thousands)
Construction and land development	$	—	$	—	$	1,516	$	1,516
One- to four-family residential		—		—		—		—
Other residential (multi-family)		—		2,744		—		2,744
Commercial real estate		—		75		20,185		20,260
Commercial business		—		—		—		—
Consumer		5		7		—		12
	$	5	$	2,826	$	21,701	$	24,532

	Amortized Cost Basis at December 31, 2023
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modifications
		(In Thousands)
Construction and land development	$	—	$	—	$	1,553	$	1,553
One- to four-family residential		—		—		—		—
Other residential (multi-family)		—		2,750		—		2,750
Commercial real estate		—		77		20,365		20,442
Commercial business		—		—		—		—
Consumer		5		7		—		12
	$	5	$	2,834	$	21,918	$	24,757

The Company closely monitors the performance of loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of its modification efforts. The following tables depict the performance (under modified terms) at March 31, 2024 and at December 31, 2023 of loans that were modified at March 31, 2024 and December 31, 2023, respectively:

	March 31, 2024
			30-89 Days		Over 90 Days
	Current		Past Due		Past Due		Total
		(In Thousands)
Construction and land development	$	1,516	$	—	$	—	$	1,516
One- to four-family residential		—		—		—		—
Other residential (multi-family)		2,744		—		—		2,744
Commercial real estate		12,333		—		7,927		20,260
Commercial business		—		—		—		—
Consumer		12		—		—		12
	$	16,605	$	—	$	7,927	$	24,532

	December 31, 2023
			30-89 Days		Over 90 Days
	Current		Past Due		Past Due		Total
	(In Thousands)
Construction and land development	$	1,553	$	—	$	—	$	1,553
One- to four-family residential		—		—		—		—
Other residential (multi-family)		2,750		—		—		2,750
Commercial real estate		12,384		—		8,058		20,442
Commercial business		—		—		—		—
Consumer		12		—		—		12
	$	16,699	$	—	$	8,058	$	24,757

Loan Risk Ratings. The nature and extent of impairments of modified loans, including those that have experienced a subsequent payment default, are considered in the determination of an appropriate level of the allowance for credit losses. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment. The analysis of the borrower’s ability to repay considers specific information, including but not limited to current financial information, historical payment experience, industry information and collateral levels and types. A risk rating is assigned at loan origination and then monitored throughout the contractual term for possible risk rating changes.

Satisfactory loans range from Excellent to Moderate Risk, but generally are loans supported by strong recent financial statements. The character and capacity of the borrower are solid, including reasonable project performance, good industry experience, liquidity and/or net worth. The probability of financial deterioration seems unlikely. Repayment is expected from approved sources over a reasonable period of time.

Watch loans are identified when the borrower has capacity to perform according to terms; however, elements of uncertainty exist. Margins of debt service coverage may be narrow, historical patterns of financial performance may be erratic, collateral margins may be diminished and the borrower may be a new and/or thinly capitalized company. Some management weakness may also exist, the borrower may have somewhat limited access to other financial institutions, and that access may diminish in difficult economic times.

Special Mention loans have weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects or the Bank’s credit position at some future date. This is a transitional grade closely monitored for improvement or deterioration.

The Substandard rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.

Doubtful loans have all the weaknesses inherent to those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

The Loss category is used when loans are considered uncollectable and no longer included as an asset.

All loans are analyzed for risk rating updates regularly. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Watch, Special Mention, Substandard or Doubtful are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by the credit review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The following tables present a summary of loans by category and risk rating separated by origination and loan class as of March 31, 2024 and December 31, 2023.

	Term Loans by Origination Year
													Revolving
March 31, 2024	2024 YTD		2023		2022		2021		2020		Prior		Loans		Total
	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	1,514	$	16,483	$	8,388	$	40	$	—	$	—	$	7,559	$	33,984
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		1,514		16,483		8,388		40		—		—		7,559		33,984
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Subdivision construction
Satisfactory (1-4)		—		288		910		18,629		40		385		—		20,252
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		—		288		910		18,629		40		385		—		20,252
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Construction and land development
Satisfactory (1-4)		4,310		14,900		8,549		5,609		3,663		7,863		600		45,494
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		384		384
Total		4,310		14,900		8,549		5,609		3,663		7,863		984		45,878
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Other construction
Satisfactory (1-4)		4,182		80,004		445,698		144,609		18,057		—		—		692,550
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		4,182		80,004		445,698		144,609		18,057		—		—		692,550
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
One- to four-family residential
Satisfactory (1-4)		8,672		66,264		326,568		196,149		105,903		174,438		410		878,404
Watch (5)		—		—		—		—		147		1,016		43		1,206
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		529		—		196		23		748
Total		8,672		66,264		326,568		196,678		106,050		175,650		476		880,358
Current Period Gross Charge Offs		—		49		—		—		—		7		—		56
Other residential (multi-family)
Satisfactory (1-4)		275		48,301		167,404		449,119		182,031		170,103		3,595		1,020,828
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		2,744		—		2,744
Classified (7-9)		—		—		—		—		—		16,734		—		16,734
Total		275		48,301		167,404		449,119		182,031		189,581		3,595		1,040,306
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Commercial real estate
Satisfactory (1-4)		5,112		54,577		322,082		219,937		98,783		748,883		33,060		1,482,434
Watch (5)		—		—		104		—		—		5,097		—		5,201
Special Mention (6)		—		—		—		—		—		4,377		—		4,377
Classified (7-9)		—		—		—		87		—		10,526		—		10,613
Total		5,112		54,577		322,186		220,024		98,783		768,883		33,060		1,502,625
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Commercial business
Satisfactory (1-4)		4,734		31,850		69,825		24,769		10,338		59,852		54,255		255,623
Watch (5)		—		—		—		—		—		13		—		13
Special Mention (6)		—		—		1,142		3,755		43		—		10,700		15,640
Classified (7-9)		—		—		—		—		12		—		—		12
Total		4,734		31,850		70,967		28,524		10,393		59,865		64,955		271,288
Current Period Gross Charge Offs		—		—		—		4		27		—		—		31
Consumer
Satisfactory (1-4)		5,038		14,466		10,141		4,940		2,224		11,830		121,293		169,932
Watch (5)		—		—		3		19		5		202		152		381
Special Mention (6)		—		—		—		—		—		—		393		393
Classified (7-9)		2		20		28		10		—		67		43		170
Total		5,040		14,486		10,172		4,969		2,229		12,099		121,881		170,876
Current Period Gross Charge Offs		—		2		80		1		3		246		8		340
Combined
Satisfactory (1-4)		33,837		327,133		1,359,565		1,063,801		421,039		1,173,354		220,772		4,599,501
Watch (5)		—		—		107		19		152		6,328		195		6,801
Special Mention (6)		—		—		1,142		3,755		43		7,121		11,093		23,154
Classified (7-9)		2		20		28		626		12		27,523		450		28,661
Total	$	33,839	$	327,153	$	1,360,842	$	1,068,201	$	421,246	$	1,214,326	$	232,510	$	4,658,117
Current Period Gross Charge Offs	$	—	$	51	$	80	$	5	$	30	$	253	$	8	$	427

	Term Loans by Origination Year
													Revolving
December 31, 2023	2023		2022		2021		2020		2019		Prior		Loans		Total
	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	12,528	$	9,878	$	41	$	—	$	—	$	—	$	7,181	$	29,628
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		12,528		9,878		41		—		—		—		7,181		29,628
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Subdivision construction
Satisfactory (1-4)		532		1,022		21,333		43		64		365		—		23,359
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		532		1,022		21,333		43		64		365		—		23,359
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Construction and land development
Satisfactory (1-4)		14,860		12,564		5,658		3,682		5,458		4,531		878		47,631
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		384		384
Total		14,860		12,564		5,658		3,682		5,458		4,531		1,262		48,015
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Other construction
Satisfactory (1-4)		60,895		422,727		203,918		15,867		—		—		—		703,407
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		60,895		422,727		203,918		15,867		—		—		—		703,407
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
One- to four-family residential
Satisfactory (1-4)		66,733		330,489		203,781		108,232		60,288		118,570		483		888,576
Watch (5)		—		—		—		—		171		862		46		1,079
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		543		148		—		189		—		880
Total		66,733		330,489		204,324		108,380		60,459		119,621		529		890,535
Current Period Gross Charge Offs		—		—		—		—		—		11		20		31
Other residential (multi-family)
Satisfactory (1-4)		18,795		108,389		391,516		180,916		108,173		111,462		3,335		922,586
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		12,322		—		12,322
Classified (7-9)		—		—		—		—		—		7,163		—		7,163
Total		18,795		108,389		391,516		180,916		108,173		130,947		3,335		942,071
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Commercial real estate
Satisfactory (1-4)		53,158		284,738		237,822		103,393		161,680		624,515		35,276		1,500,582
Watch (5)		—		—		—		—		154		5,348		—		5,502
Special Mention (6)		—		—		—		—		—		4,396		—		4,396
Classified (7-9)		—		—		—		—		—		10,552		—		10,552
Total		53,158		284,738		237,822		103,393		161,834		644,811		35,276		1,521,032
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Commercial business
Satisfactory (1-4)		58,551		92,224		30,361		15,371		10,043		55,044		57,177		318,771
Watch (5)		—		—		—		—		—		1,369		—		1,369
Special Mention (6)		—		1,186		3,840		—		—		—		4,900		9,926
Classified (7-9)		—		—		4		27		—		—		—		31
Total		58,551		93,410		34,205		15,398		10,043		56,413		62,077		330,097
Current Period Gross Charge Offs		—		7		—		—		—		1,030		—		1,037
Consumer
Satisfactory (1-4)		16,629		12,010		6,163		2,811		828		12,089		122,166		172,696
Watch (5)		—		3		21		6		3		201		154		388
Special Mention (6)		—		—		—		—		—		—		8		8
Classified (7-9)		—		42		12		—		—		49		9		112
Total		16,629		12,055		6,196		2,817		831		12,339		122,337		173,204
Current Period Gross Charge Offs		4		135		24		3		18		1,493		77		1,754
Combined
Satisfactory (1-4)		302,681		1,274,041		1,100,593		430,315		346,534		926,576		226,496		4,607,236
Watch (5)		—		3		21		6		328		7,780		200		8,338
Special Mention (6)		—		1,186		3,840		—		—		16,718		4,908		26,652
Classified (7-9)		—		42		559		175		—		17,953		393		19,122
Total	$	302,681	$	1,275,272	$	1,105,013	$	430,496	$	346,862	$	969,027	$	231,997	$	4,661,348
Current Period Gross Charge Offs	$	4	$	142	$	24	$	3	$	18	$	2,534	$	97	$	2,822