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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2021

LOANS AND ALLOWANCE FOR CREDIT LOSSES


	June 30,			December 31,
	2021			2020

	(In Thousands)
One- to four-family residential construction	$	46,943		$	42,793
Subdivision construction		7,771			30,894
Land development		52,907			54,010
Commercial construction		1,192,342			1,212,837
Owner occupied one- to four-family residential		547,503			470,436
Non-owner occupied one- to four-family residential		133,197			114,569
Commercial real estate		1,605,663			1,553,677
Other residential		1,045,647			1,021,145
Commercial business		307,539			370,898
Industrial revenue bonds		14,439			14,003
Consumer auto		63,625			86,173
Consumer other		39,073			40,762
Home equity lines of credit		114,616			114,689
Loans acquired and accounted for under ASC 310-30, net of discounts (1)		—			98,643
		5,171,265			5,225,529
Undisbursed portion of loans in process		(879,617)			(863,722)
Allowance for credit losses		(66,602)			(55,743)
Deferred loan fees and gains, net		(10,779)			(9,260)
	$	4,214,267		$	4,296,804

Weighted average interest rate		4.34	%		4.29	%

(1)	Loans acquired and accounted for under ASC 310-30 of $84.4 million have been included in the totals by loan class as of June 30, 2021. At the date of CECL adoption, the Company did not reassess whether PCI loans met the criteria of PCD loans.

Schedule of loans classified by aging analysis


	June 30, 2021
													Total Loans
					Over 90						Total		> 90 Days Past
	30-59 Days		60-89 Days		Days		Total Past				Loans		Due and
	Past Due		Past Due		Past Due		Due		Current		Receivable		Still Accruing

	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—	$	—	$	46,943	$	46,943	$	—
Subdivision construction		—		—		—		—		7,771		7,771		—
Land development		—		—		468		468		52,439		52,907		—
Commercial construction		—		—		—		—		1,192,342		1,192,342		—
Owner occupied one- to four-family residential		229		203		2,979		3,411		544,092		547,503		—
Non-owner occupied one- to four-family residential		—		—		102		102		133,095		133,197		—
Commercial real estate		—		—		3,308		3,308		1,602,355		1,605,663		—
Other residential		—		—		—		—		1,045,647		1,045,647		—
Commercial business		—		—		99		99		307,440		307,539		—
Industrial revenue bonds		—		—		—		—		14,439		14,439		—
Consumer auto		232		54		81		367		63,258		63,625		—
Consumer other		184		43		81		308		38,765		39,073		—
Home equity lines of credit		284		22		707		1,013		113,603		114,616		—

		929		322		7,825		9,076		5,162,189		5,171,265		—
Less: FDIC-acquired loans		150		75		2,439		2,664		81,718		84,382		—
Total	$	779	$	247	$	5,386	$	6,412	$	5,080,471	$	5,086,883	$	—


	December 31, 2020
													Total Loans
					Over 90						Total		> 90 Days Past
	30-59 Days		60-89 Days		Days		Total Past				Loans		Due and
	Past Due		Past Due		Past Due		Due		Current		Receivable		Still Accruing

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

		5,386		1,070		6,886		13,342		5,212,187		5,225,529		—
Less: Loans acquired and accounted for under ASC 310-30, net of discounts		1,662		641		3,843		6,146		92,497		98,643		—

Total	$	3,724	$	429	$	3,043	$	7,196	$	5,119,690	$	5,126,886	$	—

Schedule of Financing Receivable, Nonaccrual


	June 30,		December 31,
	2021		2020

	(In Thousands)

One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		468		—
Commercial construction		—		—
Owner occupied one- to four-family residential		2,979		1,502
Non-owner occupied one- to four-family residential		102		69
Commercial real estate		3,308		587
Other residential		—		—
Commercial business		99		114
Industrial revenue bonds		—		—
Consumer auto		81		169
Consumer other		81		94
Home equity lines of credit		707		508
Total non-accruing loans		7,825

Less: FDIC-acquired loans		2,439

Total non-accruing loans net of FDIC-acquired loans	$	5,386	$	3,043

Financing Receivable, Allowance for Credit Loss


	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total

	(In Thousands)
Allowance for credit losses
Balance, 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, 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


	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, 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

Schedule of Loans and Leases Receivable Allowance for Loan Losses


	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total

	(In Thousands)
Allowance for loan losses
Balance, April 1, 2020	$	4,739	$	6,146	$	25,923	$	2,221	$	1,579	$	3,320	$	43,928
Provision (benefit) charged to expense		(250)		2,866		2,982		563		200		(361)		6,000
Losses charged off		(11)		—		—		—		—		(746)		(757)
Recoveries		14		52		—		9		38		517		630
Balance, June 30, 2020	$	4,492	$	9,064	$	28,905	$	2,793	$	1,817	$	2,730	$	49,801

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		144		3,738		4,538		(304)		369		1,386		9,871
Losses charged off		(40)		—		—		(1)		(9)		(1,852)		(1,902)
Recoveries		49		173		33		22		102		1,159		1,538
Balance, June 30, 2020	$	4,492	$	9,064	$	28,905	$	2,793	$	1,817	$	2,730	$	49,801

Schedule of impaired financing receivables


	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total

	(In Thousands)
Allowance for loan losses
Individually evaluated for impairment	$	90	$	—	$	445	$	—	$	14	$	164	$	713
Collectively evaluated for impairment	$	4,382	$	9,282	$	32,937	$	3,378	$	2,331	$	2,040	$	54,350
Loans acquired and accounted for under ASC 310-30	$	64	$	93	$	325	$	143	$	45	$	10	$	680

Loans
Individually evaluated for impairment	$	3,546	$	—	$	3,438	$	—	$	167	$	1,897	$	9,048
Collectively evaluated for impairment	$	655,146	$	1,021,145	$	1,550,239	$	1,266,847	$	384,734	$	239,727	$	5,117,838
Loans acquired and accounted for under ASC 310-30	$	57,113	$	6,150	$	24,613	$	2,551	$	2,549	$	5,667	$	98,643

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


	June 30, 2021
	Principal		Specific
	Balance		Allowance

	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		468		—
Commercial construction		—		—
Owner occupied one- to four- family residential		3,045		22
Non-owner occupied one- to four-family residential		—		—
Commercial real estate		5,721		1,586
Other residential		—		—
Commercial business		—		—
Industrial revenue bonds		—		—
Consumer auto		—		—
Consumer other		—		—
Home equity lines of credit		387		—

Total	$	9,621	$	1,608

Schedule of Financing Receivable, Troubled Debt Restructuring


	At or for the Year Ended December 31, 2020
							Average
			Unpaid				Investment		Interest
	Recorded		Principal		Specific		in Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized

	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—	$	—	$	—
Subdivision construction		20		20		—		115		3
Land development		—		—		—		—		—
Commercial construction		—		—		—		—		—
Owner occupied one- to four- family residential		3,457		3,776		90		2,999		169
Non-owner occupied one- to four-family residential		69		106		—		309		18
Commercial real estate		3,438		3,472		445		3,736		135
Other residential		—		—		—		—		—
Commercial business		166		551		14		800		34
Industrial revenue bonds		—		—		—		—		—
Consumer auto		865		964		140		932		91
Consumer other		403		552		19		298		47
Home equity lines of credit		630		668		5		550		36

Total	$	9,048	$	10,109	$	713	$	9,739	$	533


	June 30, 2020

			Unpaid
	Recorded		Principal		Specific
	Balance		Balance		Allowance

	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—
Subdivision construction		24		24		—
Land development		—		—		—
Commercial construction		—		—		—
Owner occupied one- to four- family residential		2,751		3,034		78
Non-owner occupied one- to four-family residential		279		471		—
Commercial real estate		3,674		3,711		486
Other residential		—		—		—
Commercial business		1,220		1,726		9
Industrial revenue bonds		—		—		—
Consumer auto		753		959		122
Consumer other		246		374		12
Home equity lines of credit		527		557		4

Total	$	9,474	$	10,856	$	711


	Three Months Ended				Six Months Ended
	June 30, 2020				June 30, 2020
	Average				Average
	Investment		Interest		Investment		Interest
	in Impaired		Income		in Impaired		Income
	Loans		Recognized		Loans		Recognized

	(In Thousands)

One- to four-family residential construction	$	—	$	—	$	—	$	—
Subdivision construction		170		1		209		3
Land development		—		—		—		—
Commercial construction		—		—		—		—
Owner occupied one- to four-family residential		2,882		34		2,702		80
Non-owner occupied one- to four-family residential		418		5		425		11
Commercial real estate		3,885		37		4,004		67
Other residential		—		—		—		—
Commercial business		1,223		9		1,243		25
Industrial revenue bonds		—		—		—		—
Consumer auto		868		14		973		40
Consumer other		265		6		276		16
Home equity lines of credit		500		7		538		19
Total	$	10,211	$	113	$	10,370	$	261

Schedule of troubled debt restructuring current period


	June 30, 2021
	Accruing TDR Loans			Non-accruing TDR Loans			Total TDR Loans
	Number	Balance		Number	Balance		Number	Balance

	(In Thousands)
Construction and land development	1	$	17	—	$	—	1	$	17
One- to four-family residential	7		571	13		1,175	20		1,746
Other residential	—		—	—		—	—		—
Commercial real estate	2		1,829	—		—	2		1,829
Commercial business	—		—	1		60	1		60
Consumer	32		293	19		102	51		395
	42	$	2,710	33	$	1,337	75	$	4,047


	December 31, 2020
	Restructured
	Troubled Debt		Accruing		Restructured
	Non-accruing		Interest		Troubled Debt

	(In Thousands)
Commercial real estate	$	—	$	646	$	646
One- to four-family residential		778		1,121		1,899
Other residential		—		—		—
Construction		—		20		20
Commercial		75		52		127
Consumer		118		511		629
	$	971	$	2,350	$	3,321

Schedule of troubled debt restructuring subsequent period

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


	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


	Three Months Ended June 30, 2020
							Total
	Interest Only		Term		Combination		Modification

	(In Thousands)

Consumer	$	—	$	16	$	28	$	44
	$	—	$	16	$	28	$	44


	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


	Six Months Ended June 30, 2020
							Total
	Interest Only		Term		Combination		Modification

	(In Thousands)
Consumer	$	—	$	—	$	130	$	130
One- to four-family residential		—		16		76		92
	$	—	$	16	$	206	$	222

Schedule of financing receivable credit quality indicators


	Term Loans by Origination Year
													Revolving
	2021 YTD		2020		2019		2018		2017		Prior		Loans		Total

	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	8,535	$	12,159	$	693	$	—	$	—	$	6	$	—	$	21,393
Watch (5)		—		—		1,363		—		—		—		—		1,363
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		8,535		12,159		2,056		—		—		6		—		22,756

Subdivision construction
Satisfactory (1-4)		973		1,014		326		270		840		1,057		—		4,480
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		17		—		17
Total		973		1,014		326		270		840		1,074		—		4,497

Land development construction
Satisfactory (1-4)		2,002		23,261		10,848		5,044		3,643		6,201		1,444		52,443
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		468		468
Total		2,002		23,261		10,848		5,044		3,643		6,201		1,912		52,911

Other Construction
Satisfactory (1-4)		44,958		198,667		142,842		55,563		334		—		—		442,364
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		44,958		198,667		142,842		55,563		334		—		—		442,364

One- to four-family residential
Satisfactory (1-4)		143,129		196,803		112,076		73,041		16,278		135,781		1,500		678,608
Watch (5)		—		—		—		133		—		227		75		435
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		138		—		198		1,532		102		1,970
Total		143,129		196,803		112,214		73,174		16,476		137,540		1,677		681,013

Other residential
Satisfactory (1-4)		28,141		89,923		240,430		360,323		207,131		86,679		3,127		1,015,754
Watch (5)		—		—		—		—		—		3,479		—		3,479
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		28,141		89,923		240,430		360,323		207,131		90,158		3,127		1,019,233

Commercial real estate
Satisfactory (1-4)		32,360		131,690		244,807		236,814		241,697		623,701		29,979		1,541,048
Watch (5)		—		—		—		—		11,555		21,319		—		32,874
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		5,310		—		5,310
Total		32,360		131,690		244,807		236,814		253,252		650,330		29,979		1,579,232

Commercial business
Satisfactory (1-4)		71,817		26,803		25,128		16,292		24,258		57,442		46,021		267,761
Watch (5)		—		—		—		2,554		—		2,638		—		5,192
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		60		39		99
Total		71,817		26,803		25,128		18,846		24,258		60,140		46,060		273,052

Consumer
Satisfactory (1-4)		11,989		15,621		10,753		14,127		6,844		33,042		124,129		216,505
Watch (5)		—		—		—		23		6		42		30		101
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		16		40		21		41		350		401		869
Total		11,989		15,637		10,793		14,171		6,891		33,434		124,560		217,475

Combined
Satisfactory (1-4)		343,904		695,941		787,903		761,474		501,025		943,909		206,200		4,240,356
Watch (5)		—		—		1,363		2,710		11,561		27,705		105		43,444
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		16		178		21		239		7,269		1,010		8,733
Total	$	343,904	$	695,957	$	789,444	$	764,205	$	512,825	$	978,883	$	207,315	$	4,292,533


	December 31, 2020
					Special
	Satisfactory		Watch		Mention		Substandard		Doubtful		Total

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