LOANS AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 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 balances 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 reflect 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, including unfunded lines of credit, undisbursed portions of loans, written residential and commercial loan 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 June 30, 2024 and December 31, 2023 were as follows:

	June 30,			December 31,
	2024			2023
	(In Thousands)
One- to four-family residential construction	$	29,718		$	29,628
Subdivision construction		19,427			23,359
Land development		43,191			48,015
Commercial construction		550,231			703,407
Owner occupied one- to four-family residential		740,955			769,260
Non-owner occupied one- to four-family residential		123,168			121,275
Commercial real estate		1,511,672			1,521,032
Other residential (multi-family)		1,250,976			942,071
Commercial business		255,917			318,050
Industrial revenue bonds		11,699			12,047
Consumer auto		26,200			28,343
Consumer other		28,471			28,978
Home equity lines of credit		113,483			115,883
		4,705,108			4,661,348
Allowance for credit losses		(65,255)			(64,670)
Deferred loan fees and gains, net		(6,225)			(7,058)
	$	4,633,628		$	4,589,620
Weighted average interest rate		6.35	%		6.25	%

The following tables present the classes of loans by aging as of the dates indicated.

	June 30, 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	$	—	$	—	$	—	$	—	$	29,718	$	29,718	$	—
Subdivision construction		—		—		—		—		19,427		19,427		—
Land development		553		—		—		553		42,638		43,191		—
Commercial construction		—		—		—		—		550,231		550,231		—
Owner occupied one- to four-family residential		140		34		554		728		740,227		740,955		—
Non-owner occupied one- to four-family residential		—		—		593		593		122,575		123,168		—
Commercial real estate		88		—		9,764		9,852		1,501,820		1,511,672		—
Other residential (multi-family)		—		—		—		—		1,250,976		1,250,976		—
Commercial business		—		—		—		—		255,917		255,917		—
Industrial revenue bonds		—		—		—		—		11,699		11,699		—
Consumer auto		28		19		2		49		26,151		26,200		—
Consumer other		107		16		39		162		28,309		28,471		—
Home equity lines of credit		93		—		32		125		113,358		113,483		—
Total	$	1,009	$	69	$	10,984	$	12,062	$	4,693,046	$	4,705,108	$	—

	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:

	June 30,		December 31,
	2024		2023
	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		—		384
Commercial construction		—		—
Owner occupied one- to four-family residential		554		722
Non-owner occupied one- to four-family residential		593		—
Commercial real estate		9,764		10,552
Other residential (multi-family)		—		—
Commercial business		—		31
Industrial revenue bonds		—		—
Consumer auto		2		8
Consumer other		39		42
Home equity lines of credit		32		9
Total non-accruing loans	$	10,984	$	11,748

No interest income was recorded on nonaccrual loans for the three or six months ended June 30, 2024 and 2023, respectively.

Nonaccrual loans for which there is no related allowance for credit losses as of June 30, 2024 and December 31, 2023, had an amortized cost of $2.4 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 tables present the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2024 and 2023. During the three months ended June 30, 2024, the Company did not record a provision expense on its portfolio of outstanding loans and during the six months ended June 30, 2024, recorded provision expense of $500,000 on its portfolio of outstanding loans. During the three months ended June 30, 2023, the Company did not record a provision expense on its portfolio of outstanding loans and during the six months ended June 30, 2023, 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, March 31, 2023	$	11,797	$	13,189	$	25,506	$	2,502	$	7,821	$	4,172	$	64,987
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		—		—		—		—		—		(477)		(477)
Recoveries		21		—		2		—		6		313		342
Balance, June 30, 2023	$	11,818	$	13,189	$	25,508	$	2,502	$	7,827	$	4,008	$	64,852
Allowance for credit losses
Balance, March 31, 2024	$	9,660	$	13,886	$	29,469	$	2,748	$	5,396	$	3,928	$	65,087
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		(9)		—		—		(101)		—		(439)		(549)
Recoveries		27		—		—		194		281		215		717
Balance, June 30, 2024	$	9,678	$	13,886	$	29,469	$	2,841	$	5,677	$	3,704	$	65,255

	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)		—		—		—		—			(911)		(942)
Recoveries		31		—		2		—		154			627		814
Balance, June 30, 2023	$	11,818	$	13,189	$	25,508	$	2,502	$	7,827		$	4,008	$	64,852
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		(65)		—		—		(101)		(31)			(779)		(976)
Recoveries		30		—		—		194		369			468		1,061
Balance, June 30, 2024	$	9,678	$	13,886	$	29,469	$	2,841	$	5,677		$	3,704	$	65,255

The following tables present the activity in the allowance for unfunded commitments by portfolio segment for the three and six months ended June 30, 2024 and 2023. The provision for losses on unfunded commitments for the three months ended June 30, 2024 was a credit (negative expense) of $607,000, compared to a credit (negative expense) of $1.6 million for the three months ended June 30, 2023. The provision for losses on unfunded commitments for the six months ended June 30, 2024 was a credit (negative expense) of $477,000, compared to a credit (negative expense) of $2.4 million for the six months ended June 30, 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, March 31, 2023	$	832	$	8,058	$	445	$	891	$	1,263	$	501	$	11,990
Provision (credit) charged to expense		(74)		(1,267)		19		(20)		(276)		(1)		(1,619)
Balance, June 30, 2023	$	758	$	6,791	$	464	$	871	$	987	$	500	$	10,371
Allowance for unfunded commitments
Balance, March 31, 2024	$	679	$	3,978	$	614	$	509	$	1,353	$	484	$	7,617
Provision (credit) charged to expense		(6)		(632)		32		41		(10)		(32)		(607)
Balance, June 30, 2024	$	673	$	3,346	$	646	$	550	$	1,343	$	452	$	7,010

	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		22		(1,833)		48		69		(747)		(4)		(2,445)
Balance, June 30, 2023	$	758	$	6,791	$	464	$	871	$	987	$	500	$	10,371
Allowance for unfunded commitments
Balance, January 1, 2024	$	706	$	4,006	$	619	$	741	$	959	$	456	$	7,487
Provision (credit) charged to expense		(33)		(660)		27		(191)		384		(4)		(477)
Balance, June 30, 2024	$	673	$	3,346	$	646	$	550	$	1,343	$	452	$	7,010

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:

	June 30, 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		—
Commercial construction		—		—		—		—
Owner occupied one- to four- family residential		525		10		691		29
Non-owner occupied one- to four-family residential		593		333		—		—
Commercial real estate		13,948		293		10,548		1,200
Other residential (multi-family)		—		—		7,162		—
Commercial business		200		200		—		—
Industrial revenue bonds		—		—		—		—
Consumer auto		—		—		—		—
Consumer other		—		—		—		—
Home equity lines of credit		498		—		—		—
Total	$	15,764	$	836	$	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 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, as of the dates indicated, the composition of modifications made to loans to borrowers experiencing financial difficulty, by loan class and type of concession granted. Each of the types of concessions granted comprised 1.0% or less of their respective loan classes at June 30, 2024. During the three and six months ended June 30, 2024, principal forgiveness of $241,000 and $255,000, respectively, was completed on consumer loans and a land development loan. During the three and six months ended June 30, 2023, principal forgiveness of $6,000 and $39,000, respectively, was completed on consumer loans.

	Amortized Cost Basis at June 30, 2024
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modifications
		(In Thousands)
Construction and land development	$	—	$	—	$	—	$	—
One- to four-family residential		—		—		—		—
Other residential (multi-family)		—		2,732		—		2,732
Commercial real estate		—		75		7,174		7,249
Commercial business		—		—		—		—
Consumer		—		6		—		6
	$	—	$	2,813	$	7,174	$	9,987

	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 of loans (under modified terms) at June 30, 2024 and at December 31, 2023, respectively:

	June 30, 2024
			30-89 Days		Over 90 Days
	Current		Past Due		Past Due		Total
		(In Thousands)
Construction and land development	$	—	$	—	$	—	$	—
One- to four-family residential		—		—		—		—
Other residential (multi-family)		2,732		—		—		2,732
Commercial real estate		75		7,174		—		7,249
Commercial business		—		—		—		—
Consumer		6		—		—		6
	$	2,813	$	7,174	$	—	$	9,987

	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 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 or 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 formal quarterly review and continuous 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 June 30, 2024 and December 31, 2023.

	Term Loans by Origination Year
													Revolving
June 30, 2024	2024 YTD		2023		2022		2021		2020		Prior		Loans		Total
	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	3,519	$	16,346	$	3,704	$	40	$	—	$	—	$	6,109	$	29,718
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		3,519		16,346		3,704		40		—		—		6,109		29,718
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Subdivision construction
Satisfactory (1-4)		—		284		703		17,681		31		269		459		19,427
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		—		284		703		17,681		31		269		459		19,427
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Construction and land development
Satisfactory (1-4)		6,524		12,766		7,068		5,191		3,651		7,286		705		43,191
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		6,524		12,766		7,068		5,191		3,651		7,286		705		43,191
Current Period Gross Charge Offs		—		—		—		—		—		101		—		101
Other construction
Satisfactory (1-4)		22,655		68,085		353,154		87,020		19,317		—		—		550,231
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		22,655		68,085		353,154		87,020		19,317		—		—		550,231
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
One- to four-family residential
Satisfactory (1-4)		22,252		64,870		320,685		185,819		101,946		165,704		533		861,809
Watch (5)		—		—		—		—		146		694		—		840
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		524		—		950		—		1,474
Total		22,252		64,870		320,685		186,343		102,092		167,348		533		864,123
Current Period Gross Charge Offs		—		49		—		—		—		15		—		64
Other residential (multi-family)
Satisfactory (1-4)		6,542		66,124		310,672		511,679		181,521		168,425		3,282		1,248,245
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		2,731		—		2,731
Classified (7-9)		—		—		—		—		—		—		—		—
Total		6,542		66,124		310,672		511,679		181,521		171,156		3,282		1,250,976
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Commercial real estate
Satisfactory (1-4)		21,138		70,090		319,641		225,881		97,191		730,152		28,379		1,492,472
Watch (5)		—		—		—		—		—		5,078		—		5,078
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		111		87		—		13,924		—		14,122
Total		21,138		70,090		319,752		225,968		97,191		749,154		28,379		1,511,672
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—
Commercial business
Satisfactory (1-4)		9,439		35,741		69,722		23,728		9,820		50,642		51,301		250,393
Watch (5)		—		—		994		—		—		11		—		1,005
Special Mention (6)		—		—		1,098		3,670		43		—		11,200		16,011
Classified (7-9)		200		—		—		—		7		—		—		207
Total		9,639		35,741		71,814		27,398		9,870		50,653		62,501		267,616
Current Period Gross Charge Offs		—		—		—		4		27		—		—		31
Consumer
Satisfactory (1-4)		10,524		12,545		8,584		3,921		1,745		10,821		118,894		167,034
Watch (5)		—		—		2		18		4		199		111		334
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		2		3		25		37		—		76		643		786
Total		10,526		12,548		8,611		3,976		1,749		11,096		119,648		168,154
Current Period Gross Charge Offs		5		67		93		23		3		548		41		780
Combined
Satisfactory (1-4)		102,593		346,851		1,393,933		1,060,960		415,222		1,133,299		209,662		4,662,520
Watch (5)		—		—		996		18		150		5,982		111		7,257
Special Mention (6)		—		—		1,098		3,670		43		2,731		11,200		18,742
Classified (7-9)		202		3		136		648		7		14,950		643		16,589
Total	$	102,795	$	346,854	$	1,396,163	$	1,065,296	$	415,422	$	1,156,962	$	221,616	$	4,705,108
Current Period Gross Charge Offs	$	5	$	116	$	93	$	27	$	30	$	664	$	41	$	976

	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