LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2022

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Summary of balances of loans

	September 30,		December 31,
	2022		2021
	(in thousands)
Residential real estate:
One- to four-family	$	1,326,645	$	1,047,819
Second mortgages and equity lines of credit		157,518		136,853
Residential real estate construction		36,646		33,308
Total residential real estate loans		1,520,809		1,217,980
Commercial:
Commercial real estate		2,041,905		1,699,877
Commercial construction		185,062		136,563
Commercial and industrial		397,112		421,608
Total commercial loans		2,624,079		2,258,048
Consumer loans:
Auto		44,685		124,354
Personal		7,781		7,351
Total consumer loans		52,466		131,705
Total loans		4,197,354		3,607,733
Allowance for loan losses		(44,621)		(45,377)
Loans, net	$	4,152,733	$	3,562,356

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

			Second Mortgages		Residential
	One- to Four-		and Equity		Real Estate		Commercial		Commercial		Commercial
	Family		Lines of Credit		Construction		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at June 30, 2022	$	10,082	$	849	$	327	$	20,431	$	4,370	$	7,174	$	327	$	—	$	43,560
Charge-offs		—		—		—		(24)		—		(205)		(24)		—		(253)
Recoveries		2		15		—		7		—		1,021		7		—		1,052
Provision		834		(16)		(33)		741		99		(1,300)		(63)		—		262
Balance at September 30, 2022	$	10,918	$	848	$	294	$	21,155	$	4,469	$	6,690	$	247	$	—	$	44,621

			Second Mortgages		Residential
	One- to Four-		and Equity		Real Estate		Commercial		Commercial		Commercial
	Family		Lines of Credit		Construction		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2021	$	3,631	$	420	$	69	$	33,242	$	2,010	$	4,638	$	367	$	1,000	$	45,377
Adoption of Topic 326		5,198		391		185		(10,194)		1,698		2,288		123		(1,000)		(1,311)
Charge-offs		—		—		—		(2,810)		—		(246)		(55)		—		(3,111)
Recoveries		2		108		—		13		—		1,495		67		—		1,685
Provision		2,087		(71)		40		904		761		(1,485)		(255)		—		1,981
Balance at September 30, 2022	$	10,918	$	848	$	294	$	21,155	$	4,469	$	6,690	$	247	$	—	$	44,621

			Second Mortgages		Residential
	One- to Four-		and Equity		Real Estate		Commercial		Commercial		Commercial
	Family		Lines of Credit		Construction		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at June 30, 2021	$	4,708	$	603	$	123	$	32,991	$	1,937	$	8,059	$	853	$	1,999	$	51,273
Provision for loan losses		(1,667)		(270)		(72)		2,059		615		(815)		(478)		(999)		(1,627)
Charge-offs		—		—		—		(381)		—		(1,277)		(61)		—		(1,719)
Recoveries		1		7		—		1		—		18		34		—		61
Balance at September 30, 2021	$	3,042	$	340	$	51	$	34,670	$	2,552	$	5,985	$	348	$	1,000	$	47,988

			Second Mortgages		Residential
	One- to Four-		and Equity		Real Estate		Commercial		Commercial		Commercial
	Family		Lines of Credit		Construction		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
Balance at December 31, 2020	$	6,168	$	1,054	$	197	$	34,765	$	1,955	$	5,311	$	2,475	$	3,470	$	55,395
Provision for loan losses		(3,270)		(797)		(146)		293		597		2,101		(2,129)		(2,470)		(5,821)
Charge-offs		—		—		—		(393)		—		(1,463)		(147)		—		(2,003)
Recoveries		144		83		—		5		—		36		149		—		417
Balance at September 30, 2021	$	3,042	$	340	$	51	$	34,670	$	2,552	$	5,985	$	348	$	1,000	$	47,988

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Unallocated		Total
	(in thousands)
December 31, 2021:
Loans:
Impaired loans	$	23,110	$	20,203	$	—	$	4,182	$	—			$	47,495
Non-impaired loans		1,194,870		1,679,674		136,563		417,426		131,705				3,560,238
Total loans	$	1,217,980	$	1,699,877	$	136,563	$	421,608	$	131,705			$	3,607,733
Allowance for loan losses:
Impaired loans	$	650	$	7,275	$	—	$	21	$	—	$	—	$	7,946
Non-impaired loans		3,470		25,967		2,010		4,617		367		1,000		37,431
Total allowance for loan losses	$	4,120	$	33,242	$	2,010	$	4,638	$	367	$	1,000	$	45,377

Schedule of carrying value of collateral dependent individually

			Related
	Carrying Value		Allowance
	(in thousands)
Commercial:
Commercial real estate	$	10,576	$	3,034
Commercial and industrial		3,384		63
Commercial construction		—		—
Total Commercial		13,960		3,097
Residential real estate		9,135		356
Total	$	23,095	$	3,453

Schedule of information pertaining to impaired loans

The following information pertains to impaired loans:

	December 31, 2021
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(in thousands)
Impaired loans without a specific reserve:
Residential real estate	$	14,115	$	15,335	$	—
Commercial real estate		2,641		2,692		—
Commercial construction		—		—		—
Commercial and industrial		1,389		3,396		—
Total		18,145		21,423		—
Impaired loans with a specific reserve:
Residential real estate		8,995		9,791		650
Commercial real estate		17,562		24,847		7,275
Commercial construction		—		—		—
Commercial and industrial		2,793		3,596		21
Total		29,350		38,234		7,946
Total impaired loans	$	47,495	$	59,657	$	7,946

	Three Months Ended September 30, 2021
					Interest
	Average		Interest		Income
	Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis
	(in thousands)
Residential real estate	$	22,268	$	279	$	121
Commercial real estate		12,455		60		60
Commercial construction		—		—		—
Commercial and industrial		7,834		13		13
Total	$	42,557	$	352	$	194

	Nine Months Ended September 30, 2021
					Interest
	Average		Interest		Income
	Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis
	(in thousands)
Residential real estate	$	23,973	$	822	$	280
Commercial real estate		13,894		125		125
Commercial construction		—		—		—
Commercial and industrial		7,802		149		149
Total	$	45,669	$	1,096	$	554

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)
September 30, 2022
Residential real estate:
One- to four-family	$	—	$	2,163	$	5,990	$	8,153	$	8,921
Second mortgages and equity lines of credit		98		—		222		320		415
Commercial real estate		—		—		288		288		10,576
Commercial construction		—		—		—		—		—
Commercial and industrial		275		434		2,841		3,550		3,287
Consumer:
Auto		345		51		53		449		82
Personal		18		42		12		72		12
Total	$	736	$	2,690	$	9,406	$	12,832	$	23,293
December 31, 2021
Residential real estate:
One- to four-family	$	5,578	$	2,901	$	3,777	$	12,256	$	11,210
Second mortgages and equity lines of credit		202		—		336		538		600
Commercial real estate		149		—		11,334		11,483		20,053
Commercial construction		—		—		—		—		—
Commercial and industrial		616		1		3,277		3,894		4,114
Consumer:
Auto		747		162		140		1,049		144
Personal		67		—		12		79		12
Total	$	7,359	$	3,064	$	18,876	$	29,299	$	36,133

Schedule of loans by risk rating

													Revolving		Revolving Loans
	Term Loans at Amortized Cost by Origination Year												Loans		Converted to
	2022		2021		2020		2019		2018		Prior		Amortized Cost		Term Loans		Total
	(in thousands)
As of September 30, 2022
Commercial real estate
Pass	$	575,951	$	422,759	$	244,248	$	268,148	$	143,176	$	354,200	$	—	$	—	$	2,008,482
Special mention		—		—		—		—		22,516		331		—		—		22,847
Substandard		—		—		—		—		—		10,576		—		—		10,576
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial real estate		575,951		422,759		244,248		268,148		165,692		365,107		—		—		2,041,905
Commercial and industrial
Pass		33,935		93,811		82,504		27,521		38,314		54,254		64,726		—		395,065
Special mention		—		—		2		—		53		14		5		—		74
Substandard		47		—		—		—		—		365		50		—		462
Doubtful		—		—		—		—		—		1,461		50		—		1,511
Total commercial and industrial		33,982		93,811		82,506		27,521		38,367		56,094		64,831		—		397,112
Commercial construction
Pass		53,088		98,047		11,761		10,073		195		1,497		868		—		175,529
Special mention		—		—		—		9,533		—		—		—		—		9,533
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction		53,088		98,047		11,761		19,606		195		1,497		868		—		185,062
Residential real estate
Accrual		320,255		512,357		216,914		42,236		25,831		247,332		145,042		1,506		1,511,473
Non-accrual		—		203		140		206		1,067		7,591		91		38		9,336
Total residential real estate		320,255		512,560		217,054		42,442		26,898		254,923		145,133		1,544		1,520,809
Consumer
Accrual		7,917		3,920		2,324		25,916		8,222		2,994		1,079		—		52,372
Non-accrual		—		4		7		55		—		27		1		—		94
Total Consumer		7,917		3,924		2,331		25,971		8,222		3,021		1,080		—		52,466
Total Loans	$	991,193	$	1,131,101	$	557,900	$	383,688	$	239,374	$	680,642	$	211,912	$	1,544	$	4,197,354

	December 31, 2021
	Commercial		Commercial		Commercial
	Real Estate		Construction		and Industrial
	(in thousands)
Loans rated 1 - 6	$	1,645,871	$	136,563	$	417,408
Loans rated 7		33,953		—		85
Loans rated 8		20,053		—		694
Loans rated 9		—		—		3,421
Loans rated 10		—		—		—
	$	1,699,877	$	136,563	$	421,608

Summary of activity in accretable yield for purchased credit impaired loans

	Three Months Ended		Nine Months Ended
	September 30, 2021		September 30, 2021
	(in thousands)
Balance at beginning of period	$	136	$	141
Additions		—		—
Accretion		(1)		(6)
Reclassification from nonaccretable difference		—		—
Balance at end of period	$	135	$	135