LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Summary of balances of loans

	March 31,		December 31,
	2024		2023
	(in thousands)
Residential real estate:
One- to four-family	$	1,507,959	$	1,513,554
Second mortgages and equity lines of credit		173,613		177,135
Residential real estate construction		14,650		18,132
Total residential real estate loans		1,696,222		1,708,821
Commercial:
Commercial real estate		2,355,672		2,343,675
Commercial construction		234,811		208,443
Commercial and industrial		471,215		466,443
Total commercial loans		3,061,698		3,018,561
Consumer loans:
Auto		11,888		13,603
Personal		7,413		8,433
Total consumer loans		19,301		22,036
Total loans before basis adjustment		4,777,221		4,749,418
Basis adjustment associated with fair value hedge (1)		(536)		893
Total loans		4,776,685		4,750,311
Allowance for credit losses on loans		(48,185)		(47,972)
Loans, net	$	4,728,500	$	4,702,339
(1) Represents the basis adjustment associated with the application of hedge accounting on certain loans. Refer to Note 10 - Derivatives.

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		Total
	(in thousands)
Balance at December 31, 2023	$	12,101	$	964	$	418	$	21,288	$	4,824	$	8,107	$	270	$	47,972
Charge-offs		—		—		—		—		—		(228)		(49)		(277)
Recoveries		—		3		—		100		—		46		3		152
Provision		(66)		(25)		(87)		(125)		498		138		5		338
Balance at March 31, 2024	$	12,035	$	942	$	331	$	21,263	$	5,322	$	8,063	$	229	$	48,185

			Second Mortgages		Residential
	One- to Four-		and Equity		Real Estate		Commercial		Commercial		Commercial
	Family		Lines of Credit		Construction		Real Estate		Construction		and Industrial		Consumer		Total
	(in thousands)
Balance at December 31, 2022	$	11,532	$	924	$	280	$	20,357	$	4,645	$	7,236	$	262	$	45,236
Charge-offs		—		—		—		—		—		(7)		(7)		(14)
Recoveries		1		7		—		1		—		—		16		25
Provision		(25)		36		475		584		412		255		10		1,747
Balance at March 31, 2023	$	11,508	$	967	$	755	$	20,942	$	5,057	$	7,484	$	281	$	46,994

Schedule of carrying value of collateral dependent individually analyzed loans

	March 31, 2024				December 31, 2023
			Related				Related
	Carrying Value		Allowance		Carrying Value		Allowance
	(in thousands)
Commercial:
Commercial real estate	$	1,496	$	5	$	7,416	$	5
Commercial and industrial		1,744		67		1,793		101
Commercial construction		—		—		—		—
Total Commercial		3,240		72		9,209		106
Residential real estate		8,866		—		8,054		—
Total	$	12,106	$	72	$	17,263	$	106

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, 2024
Residential real estate:
One- to four-family	$	2,596	$	682	$	5,209	$	8,487	$	8,158
Second mortgages and equity lines of credit		10		608		316		934		708
Commercial real estate		850		641		5		1,496		1,496
Commercial construction		—		—		—		—		—
Commercial and industrial		66		603		1,301		1,970		1,744
Consumer:
Auto		66		—		2		68		27
Personal		53		25		18		96		27
Total	$	3,641	$	2,559	$	6,851	$	13,051	$	12,160
December 31, 2023
Residential real estate:
One- to four-family	$	4,704	$	2,413	$	4,418	$	11,535	$	7,785
Second mortgages and equity lines of credit		164		130		57		351		473
Commercial real estate		—		—		5,751		5,751		7,416
Commercial construction		—		—		—		—		—
Commercial and industrial		247		166		1,332		1,745		1,791
Consumer:
Auto		96		69		4		169		4
Personal		16		5		31		52		44
Total	$	5,227	$	2,783	$	11,593	$	19,603	$	17,513

Schedule of loans by risk rating

															Revolving
													Revolving		Loans
													Loans		Converted
	Term Loans at Amortized Cost by Origination Year												Amortized		to Term
	2024		2023		2022		2021		2020		Prior		Cost		Loans		Total
	(in thousands)
As of March 31, 2024
Commercial real estate
Pass	$	24,559	$	147,200	$	826,882	$	455,253	$	233,191	$	614,772	$	—	$	—	$	2,301,857
Special mention		—		1,600		18,839		—		4,293		27,587		—		—		52,319
Substandard		—		—		—		—		—		1,496		—		—		1,496
Doubtful		—		—		—		—		—				—		—		—
Total commercial real estate		24,559		148,800		845,721		455,253		237,484		643,855		—		—		2,355,672
YTD gross charge-offs		—		—		—		—		—		—		—		—		—
Commercial and industrial
Pass		11,690		73,215		50,703		92,676		68,905		94,486		76,180		—		467,855
Special mention		—		—		427		184		22		883		100		—		1,616
Substandard		—		—		2		—		50		390		—		—		442
Doubtful		—		—		—		—		—		1,253		49		—		1,302
Total commercial and industrial		11,690		73,215		51,132		92,860		68,977		97,012		76,329		—		471,215
YTD gross charge-offs		—		—		153		65		3		7		—		—		228
Commercial construction
Pass		—		45,676		110,181		64,268		—		—		721		—		220,846
Special mention		—		4,240		9,725		—		—		—		—		—		13,965
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction		—		49,916		119,906		64,268		—		—		721		—		234,811
YTD gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate
Accrual		12,179		135,862		431,542		471,589		199,720		271,197		163,938		1,329		1,687,356
Non-accrual		—		—		467		294		322		7,363		412		8		8,866
Total residential real estate		12,179		135,862		432,009		471,883		200,042		278,560		164,350		1,337		1,696,222
YTD gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer
Accrual		2,349		5,510		4,791		1,912		803		2,928		954		—		19,247
Non-accrual		—		4		12		—		4		28		6		—		54
Total Consumer		2,349		5,514		4,803		1,912		807		2,956		960		—		19,301
YTD gross charge-offs		—		14		5		19		—		11		—		—		49
Total loans before basis adjustment	$	50,777	$	413,307	$	1,453,571	$	1,086,176	$	507,310	$	1,022,383	$	242,360	$	1,337	$	4,777,221
Total YTD gross charge-offs	$	—	$	14	$	158	$	84	$	3	$	18	$	—	$	—	$	277

															Revolving
													Revolving		Loans
													Loans		Converted
	Term Loans at Amortized Cost by Origination Year												Amortized		to Term
	2023		2022		2021		2020		2019		Prior		Cost		Loans		Total
	(in thousands)
As of December 31, 2023
Commercial real estate
Pass	$	152,047	$	828,335	$	455,996	$	234,585	$	233,713	$	405,103	$	—	$	—	$	2,309,779
Special mention		—		10,971		—		4,300		8,977		2,232		—		—		26,480
Substandard		—		—		—		—		—		1,670		—		—		1,670
Doubtful		—		—		—		—		—		5,746		—		—		5,746
Total commercial real estate		152,047		839,306		455,996		238,885		242,690		414,751		—		—		2,343,675
YTD gross charge-offs		—		—		—		—		—		4,171		—		—		4,171
Commercial and industrial
Pass		73,240		52,190		94,570		70,565		22,988		75,493		74,125		—		463,171
Special mention		—		454		4		23		2		948		50		—		1,481
Substandard		—		52		8		—		—		367		18		—		445
Doubtful		—		—		—		—		—		1,297		49		—		1,346
Total commercial and industrial		73,240		52,696		94,582		70,588		22,990		78,105		74,242		—		466,443
YTD gross charge-offs		24		113		14		5		8		2		—		—		166
Commercial construction
Pass		35,181		109,291		60,113		843		—		—		425		—		205,853
Special mention		—		2,590		—		—		—		—		—		—		2,590
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction		35,181		111,881		60,113		843		—		—		425		—		208,443
YTD gross charge-offs		—		—		—		—		—		—		—		—		—
Residential real estate
Accrual		138,541		434,421		480,010		202,118		38,675		239,185		166,144		1,469		1,700,563
Non-accrual		—		—		—		127		956		6,959		216		—		8,258
Total residential real estate		138,541		434,421		480,010		202,245		39,631		246,144		166,360		1,469		1,708,821
YTD gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer
Accrual		8,218		5,366		2,254		1,021		3,135		963		1,031		—		21,988
Non-accrual		14		18		5		—		2		4		5		—		48
Total Consumer		8,232		5,384		2,259		1,021		3,137		967		1,036		—		22,036
YTD gross charge-offs		7		16		4		15		18		29		—		—		89
Total loans before basis adjustment	$	407,241	$	1,443,688	$	1,092,960	$	513,582	$	308,448	$	739,967	$	242,063	$	1,469	$	4,749,418
Total YTD gross charge-offs	$	31	$	129	$	18	$	20	$	26	$	4,202	$	—	$	—	$	4,426