LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of loans classified by aging analysis


	September 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	$	—	$	—	$	—	$	—	$	31,982	$	31,982	$	—
Subdivision construction		—		—		—		—		32,977		32,977		—
Land development		—		—		468		468		42,403		42,871		—
Commercial construction		—		—		—		—		583,074		583,074		—
Owner occupied one- to four-family residential		281		292		821		1,394		764,117		765,511		—
Non-owner occupied one- to four-family residential		—		—		—		—		117,713		117,713		—
Commercial real estate		—		—		1,618		1,618		1,574,911		1,576,529		—
Other residential		—		—		—		—		914,693		914,693		—
Commercial business		52		—		—		52		295,424		295,476		—
Industrial revenue bonds		—		—		—		—		13,036		13,036		—
Consumer auto		96		17		13		126		39,786		39,912		—
Consumer other		278		12		65		355		35,187		35,542		—
Home equity lines of credit		—		—		308		308		121,475		121,783		—

Total	$	707	$	321	$	3,293	$	4,321	$	4,566,778	$	4,571,099	$	—


	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 activity in the allowance for credit losses and unfunded commitments by portfolio segment


	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, June 30, 2021	$	9,209	$	15,299	$	30,507	$	2,215	$	3,932	$	5,440	$	66,602
Provision (credit) charged to expense		—		—		(3,000)		—		—		—		(3,000)
Losses charged off		(37)		—		—		—		(3)		(446)		(486)
Recoveries		45		—		6		6		52		404		513
Balance, September 30, 2021	$	9,217	$	15,299	$	27,513	$	2,221	$	3,981	$	5,398	$	63,629

Allowance for credit losses
Balance, June 30, 2022	$	9,434	$	10,612	$	28,604	$	2,797	$	4,365	$	5,246	$	61,058
Provision (credit) charged to expense		1,076		881		(1,105)		265		1,302		(419)		2,000
Losses charged off		—		—		—		—		(50)		(571)		(621)
Recoveries		20		—		1		—		15		288		324
Balance, September 30, 2022	$	10,530	$	11,493	$	27,500	$	3,062	$	5,632	$	4,544	$	62,761


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

	(In Thousands)
Allowance for credit losses
Balance, December 31, 2020	$	4,536	$	9,375	$	33,707	$	3,521	$	2,390	$	2,214	$	55,743
CECL adoption		4,533		5,832		(2,531)		(1,165)		1,499		3,427		11,595
Balance, January 1, 2021		9,069		15,207		31,176		2,356		3,889		5,641		67,338
Provision (credit) charged to expense		—		—		(3,700)		—		—		—		(3,700)
Losses charged off		(179)		—		—		(154)		(60)		(1,647)		(2,040)
Recoveries		327		92		37		19		152		1,404		2,031
Balance, September 30, 2021	$	9,217	$	15,299	$	27,513	$	2,221	$	3,981	$	5,398	$	63,629

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		1,076		881		(1,105)		265		1,302		(419)		2,000
Losses charged off		(38)		—		—		—		(50)		(1,403)		(1,491)
Recoveries		128		110		1		—		238		1,021		1,498
Balance, September 30, 2022	$	10,530	$	11,493	$	27,500	$	3,062	$	5,632	$	4,544	$	62,761


	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, June 30, 2021	$	760	$	4,972	$	417	$	354	$	821	$	385	$	7,709
Provision (credit) charged to expense		5		188		(79)		—		534		(5)		643
Balance, September 30, 2021	$	765	$	5,160	$	338	$	354	$	1,355	$	380	$	8,352

Allowance for unfunded commitments
Balance, June 30, 2022	$	1,138	$	7,419	$	501	$	695	$	1,406	$	500	$	11,659
Provision (credit) charged to expense		(401)		967		17		553		146		33		1,315
Balance, September 30, 2022	$	737	$	8,386	$	518	$	1,248	$	1,552	$	533	$	12,974


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

	(In Thousands)
Allowance for unfunded commitments
Balance, December 31, 2020	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CECL adoption		917		5,227		354		910		935		347		8,690
Balance, January 1, 2021		917		5,227		354		910		935		347		8,690
Provision (credit) charged to expense		(152)		(67)		(16)		(556)		420		33		(338)
Balance, September 30, 2021	$	765	$	5,160	$	338	$	354	$	1,355	$	380	$	8,352

Allowance for unfunded commitments
Balance, January 1, 2022	$	687	$	5,703	$	367	$	908	$	1,582	$	382	$	9,629
Provision (credit) charged to expense		50		2,683		151		340		(30)		151		3,345
Balance, September 30, 2022	$	737	$	8,386	$	518	$	1,248	$	1,552	$	533	$	12,974

Schedule of TDRs by class


	September 30, 2022
	Accruing TDR Loans			Non-accruing TDR Loans			Total TDR Loans
	Number	Balance		Number	Balance		Number	Balance

	(In Thousands)
Construction and land development	—	$	—	—	$	—	—	$	—
One- to four-family residential	12		1,005	3		103	15		1,108
Other residential	—		—	—		—	—		—
Commercial real estate	—		—	2		1,609	2		1,609
Commercial business	—		—	—		—	—		—
Consumer	14		220	7		49	21		269
	26	$	1,225	12	$	1,761	38	$	2,986


	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

Summary of loans by category and risk rating separated by origination and loan class


	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)	$	18,381	$	10,834	$	2,551	$	—	$	—	$	216	$	—	$	31,982
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		18,381		10,834		2,551		—		—		216		—		31,982

Subdivision construction
Satisfactory (1-4)		4,240		26,362		757		204		142		608		664		32,977
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		4,240		26,362		757		204		142		608		664		32,977

Construction and land development
Satisfactory (1-4)		15,441		6,579		5,451		8,280		771		5,285		596		42,403
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		468		468
Total		15,441		6,579		5,451		8,280		771		5,285		1,064		42,871

Other construction
Satisfactory (1-4)		83,318		318,197		161,223		20,336		—		—		—		583,074
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		83,318		318,197		161,223		20,336		—		—		—		583,074

One- to four-family residential
Satisfactory (1-4)		309,787		220,044		131,304		74,776		41,077		101,610		803		879,401
Watch (5)		—		—		—		181		89		1,301		60		1,631
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		2,108		84		2,192
Total		309,787		220,044		131,304		74,957		41,166		105,019		947		883,224

Other residential
Satisfactory (1-4)		77,919		137,890		236,600		171,455		134,426		127,677		25,366		911,333
Watch (5)		—		—		—		—		—		3,360		—		3,360
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		77,919		137,890		236,600		171,455		134,426		131,037		25,366		914,693

Commercial real estate
Satisfactory (1-4)		204,359		174,769		112,680		214,892		201,908		610,957		31,602		1,551,167
Watch (5)		—		—		—		—		—		23,548		—		23,548
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		1,814		—		1,814
Total		204,359		174,769		112,680		214,892		201,908		636,319		31,602		1,576,529

Commercial business
Satisfactory (1-4)		30,491		66,722		40,232		15,906		9,853		65,411		79,849		308,464
Watch (5)		—		—		—		—		—		48		—		48
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		30,491		66,722		40,232		15,906		9,853		65,459		79,849		308,512

Consumer
Satisfactory (1-4)		18,712		12,761		6,700		3,526		4,146		18,424		132,025		196,294
Watch (5)		—		30		—		8		—		161		100		299
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		5		13		—		5		233		388		644
Total		18,712		12,796		6,713		3,534		4,151		18,818		132,513		197,237

Combined
Satisfactory (1-4)		762,648		974,158		697,498		509,375		392,323		930,188		270,905		4,537,095
Watch (5)		—		30		—		189		89		28,418		160		28,886
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		5		13		—		5		4,155		940		5,118
Total	$	762,648	$	974,193	$	697,511	$	509,564	$	392,417	$	962,761	$	272,005	$	4,571,099

The following table presents a summary of loans by category and risk rating 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