LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of classes of loans by aging as of the dates indicated


	June 30, 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	$	—	$	—	$	—	$	—	$	31,531	$	31,531	$	—
Subdivision construction		—		—		—		—		26,513		26,513		—
Land development		—		—		384		384		52,819		53,203		—
Commercial construction		—		—		—		—		705,457		705,457		—
Owner occupied one- to four-family residential		568		—		359		927		777,051		777,978		—
Non-owner occupied one- to four-family residential		23		—		—		23		123,215		123,238		—
Commercial real estate		165		—		10,192		10,357		1,487,302		1,497,659		—
Other residential		—		—		—		—		885,394		885,394		—
Commercial business		—		—		16		16		294,584		294,600		—
Industrial revenue bonds		—		—		—		—		12,355		12,355		—
Consumer auto		39		4		35		78		32,930		33,008		—
Consumer other		359		5		136		500		34,163		34,663		—
Home equity lines of credit		44		32		27		103		114,798		114,901		—

Total	$	1,198	$	41	$	11,149	$	12,388	$	4,578,112	$	4,590,500	$	—


	December 31, 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	$	—	$	—	$	—	$	—	$	33,849	$	33,849	$	—
Subdivision construction		—		—		—		—		32,067		32,067		—
Land development		—		—		384		384		41,229		41,613		—
Commercial construction		—		—		—		—		757,690		757,690		—
Owner occupied one- to four-family residential		2,568		462		722		3,752		774,781		778,533		—
Non-owner occupied one- to four-family residential		—		63		—		63		124,807		124,870		—
Commercial real estate		196		—		1,579		1,775		1,528,888		1,530,663		—
Other residential		—		—		—		—		781,761		781,761		—
Commercial business		8		—		586		594		292,634		293,228		—
Industrial revenue bonds		—		—		—		—		12,852		12,852		—
Consumer auto		100		34		14		148		37,133		37,281		—
Consumer other		288		114		111		513		33,219		33,732		—
Home equity lines of credit		234		38		274		546		122,696		123,242		—

Total	$	3,394	$	711	$	3,670	$	7,775	$	4,573,606	$	4,581,381	$	—

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, March 31, 2022	$	9,382	$	10,502	$	28,604	$	2,797	$	4,162	$	5,350	$	60,797
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		(2)		—		—		—		—		(431)		(433)
Recoveries		54		110		—		—		203		327		694
Balance, June 30, 2022	$	9,434	$	10,612	$	28,604	$	2,797	$	4,365	$	5,246	$	61,058

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


	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, 2022	$	9,364	$	10,502	$	28,604	$	2,797	$	4,142	$	5,345	$	60,754
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		(38)		—		—		—		—		(832)		(870)
Recoveries		108		110		—		—		223		733		1,174
Balance, June 30, 2022	$	9,434	$	10,612	$	28,604	$	2,797	$	4,365	$	5,246	$	61,058

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


	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, 2022	$	1,199	$	4,700	$	423	$	1,069	$	1,618	$	427	$	9,436
Provision (credit) charged to expense		(61)		2,719		78		(374)		(212)		73		2,223
Balance, June 30, 2022	$	1,138	$	7,419	$	501	$	695	$	1,406	$	500	$	11,659

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


	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, 2022	$	687	$	5,703	$	367	$	908	$	1,582	$	382	$	9,629
Provision (credit) charged to expense		451		1,716		134		(213)		(176)		118		2,030
Balance, June 30, 2022	$	1,138	$	7,419	$	501	$	695	$	1,406	$	500	$	11,659

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

Schedule of loan modifications made to borrowers experiencing financial difficulty by the loan portfolio and type of concessions granted


	Three Months Ended June 30, 2023
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modifications

		(In Thousands)
Construction and land development	$	—	$	—	$	—	$	—
One- to four-family residential		—		—		—		—
Other residential		—		—		—		—
Commercial real estate		—		77		—		77
Commercial business		—		16		—		16
Consumer		—		—		—		—
	$	—	$	93	$	—	$	93


	Six Months Ended June 30, 2023
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modifications

		(In Thousands)
Construction and land development	$	—	$	—	$	1,208	$	1,208
One- to four-family residential		—		143		—		143
Other residential		—		—		—		—
Commercial real estate		—		77		21,030		21,107
Commercial business		—		16		—		16
Consumer		6		—		—		6
	$	6	$	236	$	22,238	$	22,480

Schedule of TDRs by class


	December 31, 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	13		1,028	3		98	16		1,126
Other residential	—		—	—		—	—		—
Commercial real estate	—		—	2		1,571	2		1,571
Commercial business	—		—	—		—	—		—
Consumer	13		210	5		42	18		252
	26	$	1,238	10	$	1,711	36	$	2,949

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

The following table presents a summary of loans by category and risk rating separated by origination and loan class as of June 30, 2023.


	Term Loans by Origination Year
													Revolving
	2023 YTD		2022		2021		2020		2019		Prior		Loans		Total

	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	6,411	$	17,787	$	1,390	$	—	$	—	$	—	$	5,943	$	31,531
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		6,411		17,787		1,390		—		—		—		5,943		31,531

Subdivision construction
Satisfactory (1-4)		115		1,066		24,457		101		199		555		20		26,513
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		115		1,066		24,457		101		199		555		20		26,513

Construction and land development
Satisfactory (1-4)		12,644		15,581		5,638		5,190		7,381		5,628		757		52,819
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		384		384
Total		12,644		15,581		5,638		5,190		7,381		5,628		1,141		53,203

Other construction
Satisfactory (1-4)		23,349		256,939		398,835		23,248		3,086		—		—		705,457
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		23,349		256,939		398,835		23,248		3,086		—		—		705,457

One- to four-family residential
Satisfactory (1-4)		37,116		337,293		212,612		115,931		67,085		128,615		519		899,171
Watch (5)		—		—		—		—		176		1,076		51		1,303
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		154		—		588		—		742
Total		37,116		337,293		212,612		116,085		67,261		130,279		570		901,216

Other residential
Satisfactory (1-4)		13,077		90,893		203,313		278,920		141,891		150,278		3,746		882,118
Watch (5)		—		—		—		—		—		3,276		—		3,276
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		13,077		90,893		203,313		278,920		141,891		153,554		3,746		885,394

Commercial real estate
Satisfactory (1-4)		18,547		265,927		189,508		106,759		171,934		700,933		28,636		1,482,244
Watch (5)		—		—		—		—		—		5,223		—		5,223
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		10,192		—		10,192
Total		18,547		265,927		189,508		106,759		171,934		716,348		28,636		1,497,659

Commercial business
Satisfactory (1-4)		10,056		72,163		51,025		32,683		11,011		64,957		65,026		306,921
Watch (5)		—		—		—		—		—		18		—		18
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		16		—		—		—		—		—		16
Total		10,056		72,179		51,025		32,683		11,011		64,975		65,026		306,955

Consumer
Satisfactory (1-4)		9,881		15,808		8,350		4,117		1,551		17,678		124,617		182,002
Watch (5)		—		—		25		—		5		160		74		264
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		21		4		6		—		242		33		306
Total		9,881		15,829		8,379		4,123		1,556		18,080		124,724		182,572

Combined
Satisfactory (1-4)		131,196		1,073,457		1,095,128		566,949		404,138		1,068,644		229,264		4,568,776
Watch (5)		—		—		25		—		181		9,753		125		10,084
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		37		4		160		—		11,022		417		11,640
Total	$	131,196	$	1,073,494	$	1,095,157	$	567,109	$	404,319	$	1,089,419	$	229,806	$	4,590,500

The following table presents a summary of loans by category and risk rating separated by origination and loan class as of December 31, 2022.


	Term Loans by Origination Year
													Revolving
	2022		2021		2020		2019		2018		Prior		Loans		Total

	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	21,885	$	7,265	$	1,391	$	—	$	—	$	—	$	3,308	$	33,849
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		21,885		7,265		1,391		—		—		—		3,308		33,849

Subdivision construction
Satisfactory (1-4)		4,478		25,864		800		203		134		588		—		32,067
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		4,478		25,864		800		203		134		588		—		32,067

Construction and land development
Satisfactory (1-4)		16,746		6,914		4,866		7,338		762		3,990		613		41,229
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		384		384
Total		16,746		6,914		4,866		7,338		762		3,990		997		41,613

Other construction
Satisfactory (1-4)		113,512		446,125		176,340		21,713		—		—		—		757,690
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		113,512		446,125		176,340		21,713		—		—		—		757,690

One- to four-family residential
Satisfactory (1-4)		340,886		219,504		128,509		73,162		39,685		97,236		687		899,669
Watch (5)		—		—		—		179		88		1,341		57		1,665
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		158		—		—		1,832		79		2,069
Total		340,886		219,504		128,667		73,341		39,773		100,409		823		903,403

Other residential
Satisfactory (1-4)		83,822		133,648		168,232		142,630		122,614		123,538		3,939		778,423
Watch (5)		—		—		—		—		—		3,338		—		3,338
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		83,822		133,648		168,232		142,630		122,614		126,876		3,939		781,761

Commercial real estate
Satisfactory (1-4)		221,341		171,484		109,939		203,426		185,682		577,216		36,658		1,505,746
Watch (5)		—		—		—		—		—		23,338		—		23,338
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		1,579		—		1,579
Total		221,341		171,484		109,939		203,426		185,682		602,133		36,658		1,530,663

Commercial business
Satisfactory (1-4)		45,349		66,258		39,645		15,505		9,309		65,307		64,088		305,461
Watch (5)		—		—		—		—		—		34		—		34
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		394		191		585
Total		45,349		66,258		39,645		15,505		9,309		65,735		64,279		306,080

Consumer
Satisfactory (1-4)		21,309		11,168		5,711		2,708		3,263		16,380		132,792		193,331
Watch (5)		—		28		—		7		—		160		100		295
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		11		9		—		2		248		359		629
Total		21,309		11,207		5,720		2,715		3,265		16,788		133,251		194,255

Combined
Satisfactory (1-4)		869,328		1,088,230		635,433		466,685		361,449		884,255		242,085		4,547,465
Watch (5)		—		28		—		186		88		28,211		157		28,670
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		11		167		—		2		4,053		1,013		5,246
Total		869,328	$	1,088,269	$	635,600	$	466,871	$	361,539	$	916,519	$	243,255	$	4,581,381