LOANS (Tables)

3 Months Ended

Mar. 31, 2020

Summary of balances of loans

	March 31,		December 31,
	2020		2019
	(in thousands)
Residential real estate:
One- to four-family	$	925,969	$	935,794
Second mortgages and equity lines of credit		158,190		155,716
Residential real estate construction		17,381		14,055
		1,101,540		1,105,565
Commercial:
Commercial real estate		1,212,534		1,169,923
Commercial construction		160,993		153,907
Commercial and industrial		317,559		306,282
Total commercial loans		1,691,086		1,630,112
Consumer loans:
Auto		380,730		424,592
Personal		10,514		11,289
Total consumer loans		391,244		435,881
Total loans		3,183,870		3,171,558
Allowance for loan losses		(26,389)		(24,060)
Loans, net	$	3,157,481	$	3,147,498

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 three months ended March 31, 2020 and 2019:

			Commercial		Commercial		Commercial
	Residential		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2018	$	3,239	$	10,059	$	2,707	$	2,286	$	1,154	$	1,210	$	20,655
Provision (credit) for loan losses		(113)		287		(37)		560		157		3		857
Charge-offs		(20)		—		—		(40)		(266)		—		(326)
Recoveries		14		5		—		13		64		—		96
Balance at March 31, 2019	$	3,120	$	10,351	$	2,670	$	2,819	$	1,109	$	1,213	$	21,282
Balance at December 31, 2019	$	3,178	$	12,875	$	2,526	$	2,977	$	1,010	$	1,494	$	24,060
Provision (credit) for loan losses		(49)		2,940		(4)		(159)		691		330		3,749
Charge-offs		—		(1,174)		—		(297)		(253)		—		(1,724)
Recoveries		48		1		—		219		36		—		304
Balance at March 31, 2020	$	3,177	$	14,642	$	2,522	$	2,740	$	1,484	$	1,824	$	26,389

Allocation of the allowance to loan segments at March 31, 2020 and December 31, 2019 follows:

			Commercial		Commercial		Commercial
	Residential		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
March 31, 2020:
Loans:
Impaired loans	$	25,459	$	3,705	$	10,971	$	4,952	$	—			$	45,087
Non-impaired loans		1,076,081		1,208,829		150,022		312,607		391,244				3,138,783
Total loans	$	1,101,540	$	1,212,534	$	160,993	$	317,559	$	391,244			$	3,183,870
Allowance for loan losses:
Impaired loans	$	973	$	—	$	—	$	8	$	—	$	—	$	981
Non-impaired loans		2,204		14,642		2,522		2,732		1,484		1,824		25,408
Total allowance for loan losses	$	3,177	$	14,642	$	2,522	$	2,740	$	1,484	$	1,824	$	26,389
December 31, 2019:
Loans:
Impaired loans	$	27,275	$	530	$	11,244	$	5,831	$	—			$	44,880
Non-impaired loans		1,078,290		1,169,393		142,663		300,451		435,881				3,126,678
Total loans	$	1,105,565	$	1,169,923	$	153,907	$	306,282	$	435,881			$	3,171,558
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

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)
March 31, 2020
Residential real estate:
One- to four-family	$	14,030	$	596	$	6,781	$	21,407	$	9,596
Second mortgages and equity lines of credit		389		103		662		1,154		1,484
Commercial real estate		753		—		3,731		4,484		3,732
Commercial construction		—		—		1,895		1,895		10,939
Commercial and industrial		2,548		120		2,389		5,057		5,237
Consumer:
Auto		2,858		490		444		3,792		597
Personal		70		25		4		99		11
Total	$	20,648	$	1,334	$	15,906	$	37,888	$	31,596
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 and industrial		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

Schedule of information pertaining to impaired loans

The following information pertains to impaired loans:

	March 31, 2020						December 31, 2019
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(in thousands)
Impaired loans without a specific reserve:
Residential	$	10,300	$	10,819	$	—	$	11,610	$	12,140	$	—
Commercial real estate		3,705		4,794		—		530		530		—
Commercial construction		10,971		10,971		—		11,244		11,244		—
Commercial and industrial		4,944		6,342		—		5,505		6,901		—
Total		29,920		32,926		—		28,889		30,815		—
Impaired loans with a specific reserve:
Residential		15,159		15,846		973		15,665		16,218		985
Commercial and industrial		8		8		8		326		326		176
Total		15,167		15,854		981		15,991		16,544		1,161
Total impaired loans	$	45,087	$	48,780	$	981	$	44,880	$	47,359	$	1,161

	Three Months Ended March 31,
	2020						2019
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(in thousands)
Residential	$	26,367	$	322	$	245	$	31,258	$	539	$	444
Commercial real estate		2,118		—		—		1,343		—		—
Commercial construction		11,108		—		—		—		—		—
Commercial and industrial		5,392		7		7		5,528		13		13
Total	$	44,985	$	329	$	252	$	38,129	$	552	$	457

Schedule of loans by risk rating

	March 31, 2020						December 31, 2019
	Commercial		Commercial		Commercial		Commercial		Commercial		Commercial
	Real Estate		and Industrial		Construction		Real Estate		and Industrial		Construction
	(in thousands)
Loans rated 1 - 6	$	1,207,443	$	306,142	$	135,422	$	1,163,342	$	294,507	$	127,962
Loans rated 7		259		6,460		14,632		4,539		6,117		14,701
Loans rated 8		524		2,699		10,939		530		3,223		11,244
Loans rated 9		3,208		2,258		—		—		2,435		—
Loans rated 10		—		—		—		—		—		—
Loans not rated		1,100		—		—		1,512		—		—
	$	1,212,534	$	317,559	$	160,993	$	1,169,923	$	306,282	$	153,907

PCI

Schedule of information pertaining to impaired loans

		March 31,		December 31,
	2020		2019
	(in thousands)
Outstanding balance	$	4,649	$	4,609
Carrying amount	$	4,422	$	4,378

Summary of activity in accretable yield for purchased credit impaired loans

	Three Months Ended March 31,
	2020		2019
	(in thousands)
Balance at beginning of year	$	149	$	185
Additions		—		—
Accretion		(2)		(1)
Reclassification from nonaccretable difference		—		—
Balance at end of year	$	147	$	184