LOANS (Tables)

12 Months Ended

Dec. 31, 2019

Summary of balances of loans

	December 31,
	2019		2018
	(in thousands)
Residential real estate:
One- to four-family	$	931,846	$	942,659
Second mortgages and equity lines of credit		154,523		158,138
Residential real estate construction		14,055		14,659
Total residential real estate loans		1,100,424		1,115,456
Commercial:
Commercial real estate		1,172,351		934,420
Commercial construction		153,907		161,660
Commercial		306,282		277,271
Total commercial loans		1,632,540		1,373,351
Consumer loans:
Auto		421,513		478,863
Personal		11,256		12,582
Total consumer loans		432,769		491,445
Total loans		3,165,733		2,980,252
Net deferred loan costs		5,825		5,255
Allowance for loan losses		(24,060)		(20,655)
Loans, net	$	3,147,498	$	2,964,852

Schedule of activity in allowance for loan losses and allocation of allowance to loan segments

The following is the activity in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 follows:

	Mortgage Loans
			Commercial		Commercial
	Residential		Real Estate		Construction		Commercial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2016	$	4,963	$	7,150	$	924	$	1,920	$	780	$	1,231	$	16,968
Provision (credit) for loan losses		(985)		685		886		452		1,019		359		2,416
Charge-offs		(144)		—		—		(134)		(1,039)		—		(1,317)
Recoveries		166		—		—		16		240		—		422
Balance at December 31, 2017		4,000		7,835		1,810		2,254		1,000		1,590		18,489
Provision (credit) for loan losses		(761)		2,318		897		1,008		746		(380)		3,828
Charge-offs		(50)		(94)		—		(990)		(847)		—		(1,981)
Recoveries		50		—		—		14		255		—		319
Balance at December 31, 2018		3,239		10,059		2,707		2,286		1,154		1,210		20,655
Provision (credit) for loan losses		(407)		2,810		(181)		1,744		497		284		4,747
Charge-offs		(136)		—		—		(1,075)		(891)		—		(2,102)
Recoveries		482		6		—		22		250		—		760
Balance at December 31, 2019	$	3,178	$	12,875	$	2,526	$	2,977	$	1,010	$	1,494	$	24,060

Allocation of the allowance to loan segments at December 31, 2019 and 2018 follows:

	Mortgage Loans
			Commercial		Commercial
	Residential		Real Estate		Construction		Commercial		Consumer		Unallocated		Total
	(in thousands)
December 31, 2019:
Loans:
Impaired loans	$	27,275	$	530	$	11,244	$	5,831	$	—			$	44,880
Non-impaired loans		1,073,149		1,171,821		142,663		300,451		432,769				3,120,853
Total loans	$	1,100,424	$	1,172,351	$	153,907	$	306,282	$	432,769			$	3,165,733
Allowance for loan losses:
Impaired loans	$	985	$	—	$	—	$	176	$	—	$	—	$	1,161
Non-impaired loans		2,193		12,875		2,526		2,801		1,010		1,494		22,899
Total allowance for loan losses	$	3,178	$	12,875	$	2,526	$	2,977	$	1,010	$	1,494	$	24,060
December 31, 2018:
Loans:
Impaired loans	$	30,720	$	2,502	$	-	$	3,826	$	—			$	37,048
Non-impaired loans		1,084,736		931,918		161,660		273,445		491,445				2,943,204
Total loans	$	1,115,456	$	934,420	$	161,660	$	277,271	$	491,445			$	2,980,252
Allowance for loan losses:
Impaired loans	$	1,205	$	—	$	—	$	53	$	—	$	—	$	1,258
Non-impaired loans		2,034		10,059		2,707		2,233		1,154		1,210		19,397
Total allowance for loan losses	$	3,239	$	10,059	$	2,707	$	2,286	$	1,154	$	1,210	$	20,655

Summary of past due and non-accrual loans

					90 Days
	30-59 Days		60-89 Days		or More		Total		Loans on
	Past Due		Past Due		Past Due		Past Due		Non-accrual
	(in thousands)
December 31, 2019
Residential real estate:
One- to four-family	$	9,364	$	5,622	$	5,668	$	20,654	$	10,610
Second mortgages and equity lines of credit		418		77		760		1,255		1,561
Commercial real estate		261		4,730		191		5,182		530
Commercial construction		—		—		1,960		1,960		11,244
Commercial		2,000		722		3,133		5,855		5,831
Consumer:
Auto		3,180		456		457		4,093		529
Personal		69		16		13		98		16
Total	$	15,292	$	11,623	$	12,182	$	39,097	$	30,321
December 31, 2018
Residential real estate:
One- to four-family	$	1,283	$	4,554	$	6,516	$	12,353	$	12,120
Second mortgages and equity lines of credit		846		237		754		1,837		1,649
Commercial real estate		—		—		298		298		298
Commercial		34		550		2,575		3,159		3,087
Consumer:
Auto		2,099		446		452		2,997		541
Personal		41		56		5		102		16
Total	$	4,303	$	5,843	$	10,600	$	20,746	$	17,711

Schedule of information pertaining to impaired loans

	December 31,
	2019						2018
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(in thousands)
Impaired loans without a valuation allowance:
Residential	$	11,610	$	12,140	$	—	$	11,518	$	12,054	$	—
Commercial real estate		530		530		—		2,502		2,596		—
Commercial construction		11,244		11,244		—		—		—		—
Commercial		5,505		6,901		—		3,761		4,672		—
Total		28,889		30,815		—		17,781		19,322		—
Impaired loans with a valuation allowance:
Residential		15,665		16,218		985		19,202		19,634		1,205
Commercial		326		326		176		65		65		53
Total		15,991		16,544		1,161		19,267		19,699		1,258
Total impaired loans	$	44,880	$	47,359	$	1,161	$	37,048	$	39,021	$	1,258

	Year Ended December 31,
	2019						2018						2017
					Interest						Interest						Interest
	Average		Interest		Income		Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Residential	$	29,708	$	1,694	$	1,335	$	32,186	$	1,764	$	1,379	$	38,931	$	2,146	$	1,699
Commercial real estate		643		10		10		744		—		—		78		—		—
Commercial construction		5,622		237		237		26		—		—		132		13		13
Commercial		5,564		54		54		2,729		35		32		3,629		122		121
Total	$	41,537	$	1,995	$	1,636	$	35,685	$	1,799	$	1,411	$	42,770	$	2,281	$	1,833

Schedule of loans by risk rating

	December 31,
	2019						2018
	Commercial					Commercial	Commercial					Commercial
	Real Estate		Commercial			Construction	Real Estate		Commercial			Construction
	(in thousands)
Loans rated 1 - 6	$	1,165,770	$	294,507	$	127,962	$	919,305	$	268,280	$	147,124
Loans rated 7		4,539		6,117		14,701		10,595		5,165		14,536
Loans rated 8		530		3,223		11,244		2,502		1,896		—
Loans rated 9		—		2,435		—		—		1,930		—
Loans rated 10		—		—		—		—		—		—
Loans not rated		1,512		—		—		2,018		—		—
	$	1,172,351	$	306,282	$	153,907	$	934,420	$	277,271	$	161,660

PCI

Schedule of information pertaining to impaired loans

	December 31,
	2019		2018
	(in thousands)
Outstanding balance	$	4,609	$	4,751
Carrying amount	$	4,378	$	4,599

Summary of activity in accretable yield for purchased credit impaired loans

	December 31,
	2019		2018
	(in thousands)
Balance at beginning of year	$	185	$	—
Additions		—		186
Accretion		(8)		(1)
Reclassification from nonaccretable difference		(28)		—
Balance at end of year	$	149	$	185