LOANS AND ALLOWANCE FOR CREDIT LOSSES

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


	September 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	$	—	$	12	$	—	$	12	$	29,371	$	29,383	$	—
Subdivision construction		—		—		—		—		26,412		26,412		—
Land development		—		—		384		384		54,249		54,633		—
Commercial construction		—		—		—		—		750,818		750,818		—
Owner occupied one- to four-family residential		122		69		242		433		772,649		773,082		—
Non-owner occupied one- to four-family residential		—		—		—		—		123,750		123,750		—
Commercial real estate		—		191		10,131		10,322		1,493,593		1,503,915		—
Other residential		—		—		—		—		845,373		845,373		—
Commercial business		—		—		—		—		343,648		343,648		—
Industrial revenue bonds		—		—		—		—		12,292		12,292		—
Consumer auto		45		3		9		57		29,272		29,329		—
Consumer other		206		11		33		250		32,691		32,941		—
Home equity lines of credit		123		54		32		209		111,456		111,665		—

Total	$	496	$	340	$	10,831	$	11,667	$	4,625,574	$	4,637,241	$	—


	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, June 30, 2023	$	11,818	$	13,189	$	25,508	$	2,502	$	7,827	$	4,008	$	64,852
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		—		—		—		—		—		(498)		(498)
Recoveries		41		—		—		—		28		330		399
Balance, September 30, 2023	$	11,859	$	13,189	$	25,508	$	2,502	$	7,855	$	3,840	$	64,753

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, 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)		—		—		—		—		(1,409)		(1,440)
Recoveries		72		—		2		—		182		957		1,213
Balance, September 30, 2023	$	11,859	$	13,189	$	25,508	$	2,502	$	7,855	$	3,840	$	64,753

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, 2023	$	758	$	6,791	$	464	$	871	$	987	$	500	$	10,371
Provision (credit) charged to expense		146		(1,412)		33		108		(34)		(36)		(1,195)
Balance, September 30, 2023	$	904	$	5,379	$	497	$	979	$	953	$	464	$	9,176

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, January 1, 2023	$	736	$	8,624	$	416	$	802	$	1,734	$	504	$	12,816
Provision (credit) charged to expense		168		(3,245)		81		177		(781)		(40)		(3,640)
Balance, September 30, 2023	$	904	$	5,379	$	497	$	979	$	953	$	464	$	9,176

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


	Three Months Ended September 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		—		—		—		—
Commercial business		—		—		—		—
Consumer		—		8		—		8
	$	—	$	8	$	—	$	8


	Nine Months Ended September 30, 2023
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modifications

		(In Thousands)
Construction and land development	$	—	$	—	$	1,673	$	1,673
One- to four-family residential		—		—		—		—
Other residential		—		—		—		—
Commercial real estate		—		77		20,895		20,972
Commercial business		—		—		—		—
Consumer		6		8		—		14
	$	6	$	85	$	22,568	$	22,659

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

Schedule 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 September 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)	$	13,022	$	10,877	$	835	$	—	$	—	$	—	$	4,649	$	29,383
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		13,022		10,877		835		—		—		—		4,649		29,383

Subdivision construction
Satisfactory (1-4)		363		1,097		24,424		50		65		413		—		26,412
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		363		1,097		24,424		50		65		413		—		26,412

Construction and land development
Satisfactory (1-4)		16,283		15,588		5,649		3,693		7,389		4,788		859		54,249
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		384		384
Total		16,283		15,588		5,649		3,693		7,389		4,788		1,243		54,633

Other construction
Satisfactory (1-4)		35,953		368,118		319,605		27,142		—		—		—		750,818
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		35,953		368,118		319,605		27,142		—		—		—		750,818

One- to four-family residential
Satisfactory (1-4)		55,875		335,152		208,093		110,425		62,448		122,613		476		895,082
Watch (5)		—		—		—		—		173		1,050		49		1,272
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		150		—		328		—		478
Total		55,875		335,152		208,093		110,575		62,621		123,991		525		896,832

Other residential
Satisfactory (1-4)		13,533		72,663		276,593		218,514		109,017		141,056		3,574		834,950
Watch (5)		—		—		—		—		—		10,423		—		10,423
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		13,533		72,663		276,593		218,514		109,017		151,479		3,574		845,373

Commercial real estate
Satisfactory (1-4)		27,510		253,867		226,811		106,019		162,782		669,086		37,931		1,484,006
Watch (5)		—		—		—		—		—		5,377		—		5,377
Special Mention (6)		—		—		—		—		—		4,400		—		4,400
Classified (7-9)		—		—		—		—		—		10,132		—		10,132
Total		27,510		253,867		226,811		106,019		162,782		688,995		37,931		1,503,915

Commercial business
Satisfactory (1-4)		54,327		85,991		41,400		30,971		10,636		61,420		52,548		337,293
Watch (5)		—		—		—		—		—		1,376		—		1,376
Special Mention (6)		—		1,230		4,841		—		—		—		11,200		17,271
Classified (7-9)		—		—		—		—		—		—		—		—
Total		54,327		87,221		46,241		30,971		10,636		62,796		63,748		355,940

Consumer
Satisfactory (1-4)		14,008		13,726		7,170		3,374		1,161		13,268		120,640		173,347
Watch (5)		—		—		23		—		4		160		227		414
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		1		12		—		129		32		174
Total		14,008		13,726		7,194		3,386		1,165		13,557		120,899		173,935

Combined
Satisfactory (1-4)		230,874		1,157,079		1,110,580		500,188		353,498		1,012,644		220,677		4,585,540
Watch (5)		—		—		23		—		177		18,386		276		18,862
Special Mention (6)		—		1,230		4,841		—		—		4,400		11,200		21,671
Classified (7-9)		—		—		1		162		—		10,589		416		11,168
Total	$	230,874	$	1,158,309	$	1,115,445	$	500,350	$	353,675	$	1,046,019	$	232,569	$	4,637,241

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