FS Bancorp (FSBW) 10-K16 Mar 232022 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2022	Mar. 10, 2023	Jun. 30, 2022
Document And Entity Information
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	001-35589
Entity Registrant Name	FS BANCORP, INC.
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	45-4585178
Entity Address, Address Line One	6920 220th Street SW
Entity Address, City or Town	Mountlake Terrace
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98043
City Area Code	425
Local Phone Number	771-5299
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	FSBW
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	true
Entity Common Stock, Shares Outstanding		7,738,283
Entity Public Float			$ 196,512,227
Auditor Name	Moss Adams LLP
Auditor Firm ID	659
Auditor Location	Everett, Washington
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001530249
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 10,525	$ 12,043
Interest-bearing deposits at other financial institutions	30,912	14,448
Total cash and cash equivalents	41,437	26,491
Certificates of deposit at other financial institutions	4,712	10,542
Securities available-for-sale, at fair value	229,252	271,359
Securities held-to-maturity, net of allowance for credit losses of $31 and none, respectively (fair value of $7,929 and $8,128, respectively)	8,469	7,500
Loans held for sale, at fair value	20,093	125,810
Loans receivable, net (includes $14,035 and $16,083, at fair value, respectively)	2,190,860	1,728,540
Accrued interest receivable	11,144	7,594
Premises and equipment, net	25,119	26,591
Operating lease right-of-use ("ROU") assets	6,226	4,557
Federal Home Loan Bank ("FHLB") stock, at cost	10,611	4,778
Other real estate owned ("OREO")	570
Deferred tax asset, net	6,670
Bank owned life insurance ("BOLI"), net	36,799	37,092
Servicing rights, held at the lower of cost or fair value	18,017	16,970
Goodwill	2,312	2,312
Core deposit intangible, net	3,369	4,060
Other assets	17,238	12,195
TOTAL ASSETS	2,632,898	2,286,391
LIABILITIES
Noninterest-bearing accounts	554,174	580,749
Interest-bearing accounts	1,573,567	1,334,995
Total deposits	2,127,741	1,915,744
Borrowings	186,528	42,528
Principal amount	50,000	50,000
Unamortized debt issuance costs	(539)	(606)
Total subordinated notes less unamortized debt issuance costs	49,461	49,394
Operating lease liabilities	6,474	4,792
Deferred tax liability, net		1,183
Other liabilities	30,997	25,243
Total liabilities	2,401,201	2,038,884
COMMITMENTS AND CONTINGENCIES (NOTE 12)
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding
Common stock, $.01 par value; 45,000,000 shares authorized; 7,736,185 and 8,169,887 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively	77	82
Additional paid-in capital	55,187	67,958
Retained earnings	202,065	179,215
Accumulated other comprehensive (loss) income, net of tax	(25,632)	252
Total stockholders' equity	231,697	247,507
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,632,898	$ 2,286,391

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Items included in Consolidated Balance Sheets
Allowance for credit losses \| $	$ 31	$ 0
Securities held-to-maturity, at fair value \| $	7,929	8,128
Loans receivable, at fair value \| $	$ 14,035	$ 16,083
Preferred stock par value, in dollars per share \| $ / shares	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value, in dollars per share \| $ / shares	$ 0.01	$ 0.01
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	7,736,185	8,169,887
Common stock, shares outstanding	7,736,185	8,169,887

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INTEREST INCOME
Loans receivable, including fees	$ 111,648,000	$ 90,737,000	$ 84,128,000
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions	7,046,000	5,637,000	4,709,000
Total interest and dividend income	118,694,000	96,374,000	88,837,000
INTEREST EXPENSE
Deposits	9,420,000	6,929,000	11,980,000
Borrowings	3,052,000	1,074,000	1,961,000
Subordinated notes	1,942,000	1,722,000	776,000
Total interest expense	14,414,000	9,725,000	14,717,000
NET INTEREST INCOME	104,280,000	86,649,000	74,120,000
PROVISION FOR CREDIT LOSSES	6,217,000	500,000	13,036,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	98,063,000	86,149,000	61,084,000
NONINTEREST INCOME
Service charges and fee income	8,525,000	4,349,000	2,373,000
Gain on sale of loans	7,917,000	31,083,000	48,842,000
Gain on sale of investment securities			300,000
Earnings on cash surrender value of BOLI	876,000	866,000	870,000
Other noninterest income	790,000	1,215,000	2,974,000
Total noninterest income	18,108,000	37,513,000	55,359,000
NONINTEREST EXPENSE
Salaries and benefits	47,632,000	49,721,000	38,095,000
Operations	10,743,000	10,791,000	10,471,000
Occupancy	5,165,000	4,892,000	4,736,000
Data processing	6,062,000	4,951,000	4,388,000
Loss on sale of OREO		9,000	2,000
OREO expenses			4,000
Loan costs	2,718,000	2,795,000	2,066,000
Professional and board fees	3,154,000	3,181,000	2,797,000
Federal Deposit Insurance Corporation ("FDIC") insurance	1,224,000	636,000	829,000
Marketing and advertising	897,000	634,000	530,000
Acquisition cost	898,000
Amortization of core deposit intangible	691,000	691,000	706,000
(Recovery) impairment of servicing rights	(1,000)	(2,059,000)	1,969,000
Total noninterest expense	79,183,000	76,242,000	66,593,000
INCOME BEFORE PROVISION FOR INCOME TAXES	36,988,000	47,420,000	49,850,000
PROVISION FOR INCOME TAXES	7,339,000	10,008,000	10,586,000
NET INCOME	$ 29,649,000	$ 37,412,000	$ 39,264,000
Basic earnings per share	$ 3.75	$ 4.48	$ 4.58
Diluted earnings per share	$ 3.70	$ 4.37	$ 4.49

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	Jul. 14, 2021
CONSOLIDATED STATEMENTS OF INCOME
Stock split, conversion ratio	2

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 29,649	$ 37,412	$ 39,264
Securities available-for-sale:
Unrealized (loss) gain during period	(41,849)	(5,150)	3,754
Income tax benefit (provision) related to unrealized holding (loss) gain	8,998	1,108	(807)
Reclassification adjustment for realized gain, net included in net income			(300)
Income tax provision related to reclassification for realized gain, net			65
Derivative financial instruments:
Unrealized derivative gain (loss) during period	9,844	1,706	(1,429)
Income tax (provision) benefit related to unrealized derivative gain (loss)	(2,116)	(367)	307
Reclassification adjustment for realized (gain) loss, net included in net income	(970)	538	198
Income tax provision (benefit) related to reclassification, net	209	(116)	(43)
Other comprehensive (loss) income, net of tax	(25,884)	(2,281)	1,745
COMPREHENSIVE INCOME	$ 3,765	$ 35,131	$ 41,009

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Tax.	Unearned ESOP Shares	Total
Beginning balance at Dec. 31, 2019	$ 89	$ 89,223	$ 110,715	$ 788	$ (573)	$ 200,242
Balance (in shares) at Dec. 31, 2019	8,918,082
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			39,264			39,264
Dividends paid			(3,574)			(3,574)
Share-based compensation		1,020				1,020
Restricted stock awards	$ 1					1
Restricted stock awards (in shares)	49,760
Common stock repurchased - repurchase plan	$ (5)	(9,797)				(9,802)
Common stock repurchased - repurchase plan (in shares)	(519,086)
Common stock repurchased for employee/director taxes paid on restricted stock awards		(35)				(35)
Common stock repurchased for employee/director taxes paid on restricted stock awards (in shares)	(1,640)
Stock options exercised, net		(161)				(161)
Stock options exercised, net (in shares)	28,796
Other comprehensive loss, net of tax				1,745		1,745
ESOP shares allocated		1,025			282	1,307
Ending balance at Dec. 31, 2020	$ 85	81,275	146,405	2,533	(291)	230,007
Balance (in shares) at Dec. 31, 2020	8,475,912
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			37,412			37,412
Dividends paid			(4,602)			(4,602)
Share-based compensation		1,446				1,446
New credit standard (Topic 326) - impact in year of adoption (in shares)	41,350
Common stock repurchased - repurchase plan	$ (4)	(13,957)				(13,961)
Common stock repurchased - repurchase plan (in shares)	(518,383)
Common stock repurchased for employee/director taxes paid on restricted stock awards		(211)				(211)
Common stock repurchased for employee/director taxes paid on restricted stock awards (in shares)	(5,970)
Stock options exercised, net	$ 1	(2,077)				(2,076)
Stock options exercised, net (in shares)	176,978
Other comprehensive loss, net of tax				(2,281)		(2,281)
ESOP shares allocated		1,482			$ 291	1,773
Ending balance at Dec. 31, 2021	$ 82	67,958	179,215	252		247,507
Balance (in shares) at Dec. 31, 2021	8,169,887
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			29,649			29,649
Dividends paid			(7,096)			(7,096)
Share-based compensation		1,971				1,971
Issuance of common stock- employee stock purchase plan		503				503
Issuance of common stock- employee stock purchase plan (in shares)	16,934
Restricted stock awards (in shares)	35,050
New credit standard (Topic 326) - impact in year of adoption			297			297
Common stock repurchased - repurchase plan	$ (5)	(15,623)				(15,628)
Common stock repurchased - repurchase plan (in shares)	(544,530)
Common stock repurchased for employee/director taxes paid on restricted stock awards		(190)				(190)
Common stock repurchased for employee/director taxes paid on restricted stock awards (in shares)	(6,150)
Stock options exercised, net		568				568
Stock options exercised, net (in shares)	64,994
Other comprehensive loss, net of tax				(25,884)		(25,884)
Ending balance at Dec. 31, 2022	$ 77	$ 55,187	$ 202,065	$ (25,632)		$ 231,697
Balance (in shares) at Dec. 31, 2022	7,736,185

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2022 $ / shares	Dec. 31, 2021 $ / shares	Dec. 31, 2020 $ / shares
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Dividends paid (in dollars per share)	$ 0.90	$ 0.56	$ 0.42

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CASH FLOWS FROM (USED BY) OPERATING ACTIVITIES
Net income	$ 29,649	$ 37,412	$ 39,264
Adjustments to reconcile net income to net cash from operating activities
Provision for credit losses	6,217	500	13,036
Depreciation, amortization and accretion	14,004	15,183	13,618
Compensation expense related to stock options and restricted stock awards	1,971	1,446	1,020
ESOP compensation expense for allocated shares		1,773	1,307
Provision (benefit) for deferred income taxes	(844)	1,750	(2,390)
Change in cash surrender value of BOLI	(876)	(866)	(870)
Gain on sale of loans held for sale	(7,321)	(30,977)	(48,842)
Gain on sale of portfolio loans	(596)	(106)
Gain on sale of investment securities			(300)
Origination of loans held for sale	(566,898)	(1,353,636)	(1,730,665)
Proceeds from sale of loans held for sale	708,400	1,444,305	1,670,431
(Recovery) impairment of servicing rights	(1)	(2,059)	1,969
Loss on sale of OREO		9	2
Changes in operating assets and liabilities
Accrued interest receivable	(3,550)	(564)	(1,122)
Other assets	2,127	(3,670)	5,511
Other liabilities	2,616	(1,491)	5,714
Net cash from (used by) operating activities	184,898	109,009	(32,317)
Activity in securities available-for-sale:
Proceeds from sale of investment securities	0	0	12,214
Maturities, prepayments, and calls	21,201	29,863	37,964
Purchases	(22,968)	(130,138)	(99,390)
Activity in securities held-to-maturity:
Purchases	(1,000)		(7,500)
Maturities of certificates of deposit at other financial institutions	5,830	1,736	8,624
Portfolio loan originations and principal collections, net	(534,335)	(214,133)	(189,162)
Proceeds from sale of portfolio loans	39,034	2,699
Purchase of portfolio loans	(5,736)	(1,618)	(32,743)
Proceeds from sale of OREO, net	145	81	76
Purchase of premises and equipment	(1,551)	(1,984)	(1,379)
Proceeds from bank owned life insurance death benefits	1,169
Change in FHLB stock, net	(5,833)	2,661	606
Net cash used by investing activities	(504,044)	(310,833)	(270,690)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	211,935	241,537	281,431
Proceeds from borrowings	3,003,617	148,907	601,158
Repayments of borrowings	(2,859,617)	(272,188)	(520,213)
Dividends paid on common stock	(7,096)	(4,602)	(3,574)
Net proceeds from issuance of subordinated notes		49,333
Repayment of subordinated notes		(10,000)
Proceeds (disbursements) from stock options exercised, net	568	(2,076)	(161)
Common stock repurchased for employee/director taxes paid on restricted stock awards	(190)	(211)	(34)
Issuance of common stock - employee stock purchase plan	503
Common stock repurchased	(15,628)	(13,961)	(9,802)
Net cash from financing activities	334,092	136,739	348,805
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	14,946	(65,085)	45,798
CASH AND CASH EQUIVALENTS, beginning of year	26,491	91,576	45,778
CASH AND CASH EQUIVALENTS, end of year	41,437	26,491	91,576
Cash paid during the year for:
Interest on deposits and borrowings	10,968	8,174	14,584
Income taxes	4,693	11,083	11,685
SUPPLEMENTARY DISCLOSURES OF NONCASH OPERATING, INVESTING AND FINANCING ACTIVITIES
Change in unrealized (loss) gain on available-for-sale investment securities	(41,849)	(5,150)	3,454
Change in unrealized gain (loss) on fair value and cash flow hedges	8,857	2,244	(1,231)
Retention in gross mortgage servicing rights from loan sales	5,400	9,760	11,139
OREO received in settlement of loans	145
Transfer of closed retail branch to OREO	570
Right-of-use assets in exchange for lease liabilities	$ 3,049	$ 979	$ 1,202

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations - a Financial Statement Presentation - Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points. Principles of Consolidation - Segment Reporting - Subsequent Events - On November 5, 2022, 1st Security Bank entered into a purchase and assumption agreement to acquire seven branches from Columbia State Bank. On February 24, 2023, the Bank completed the purchase of the branches. The seven branches are located in the communities of Manzanita, Newport, Ontario, Tillamook, and Waldport, Oregon and Goldendale and White Salmon, Washington. In connection with the purchase, the Bank acquired approximately $425.5 million in deposits and $65.8 million in associated loans based on February 24, 2023 financial information and subject to post-closing confirmation and adjustment review. For additional information see “Note 24 - Recent Developments.” Error Corrections Earnings Per Share Prior presentations of earnings per share were revised due to the improper inclusion of certain unvested shares of the Company’s commons stock in the denominator of basic and diluted earnings per share. As a result of the inclusion, earnings per share was understated for the years ended December 31, 2021 and 2020. Basic earnings per share for December 31, 2021 was updated to $4.48, from $4.42 as previously reported, and diluted earnings per share was updated to $4.37, from $4.32 as previously reported. Basic earnings per share for December 31, 2020 was updated to $4.58, from $4.57, as previously reported and diluted earnings per share was unchanged at $4.49. Management evaluated the materiality of this error from qualitative and quantitative perspectives and concluded that the error was immaterial to the prior period financial statements taken as a whole. Consequently, the financial statements for the prior periods include the impact of the correction of the error, and prior period financial statements have not been restated. The error correction did not affect total assets, net income, or cash flows for the periods. Deposits Prior presentation of interest-bearing and noninterest-bearing checking balances was revised due to the misclassification of certain checking products in previous periods. As a result of the misclassification, an interest-bearing checking balance of $121.2 million at December 31, 2021 Management evaluated the materiality of this error from qualitative and quantitative perspectives and concluded that the error was immaterial to the prior period financial statements taken as a whole. Consequently, the financial statements for the prior periods include the impact of the correction of the error, and prior period financial statements have not been restated. The error correction did not affect total assets, net income, or cash flows for the periods. Cash and Cash Equivalents - Securities - Management no longer evaluates securities for other-than-temporary impairment, as ASC Subtopic 326-30, Financial Instruments - Credit Losses - Available for Sale Debt Securities, changes the accounting for recognizing impairment on available for sale and held to maturity debt securities. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component recognized through the Provision for Credit Losses on the Consolidated Statements of Income. (See Note 2 - Investments). Federal Home Loan Bank Stock - respectively. The Bank was in compliance with the FHLB minimum investment requirement at December 31, 2022 and 2021. Management evaluates FHLB stock for impairment annually. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared with the capital stock amount for the FHLB and the length of time this situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on its evaluation, management determined that there was no impairment of FHLB stock at December 31, 2022 and 2021, respectively. Loans Held for Sale - Other Real Estate Owned - Derivatives - The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in noninterest income. Loans Receivable - interest method based on the daily balance of the principal amount outstanding and is credited to income as earned. Loan fees, net of direct origination costs, are deferred and amortized over the life of the loan using the effective yield method. If the loan is repaid prior to maturity, the remaining unamortized net deferred loan origination fee is recognized in income at the time of repayment. Income Recognition on Nonaccrual Loans and Securities Allowance for Credit Losses on Held-to-Maturity Securities The held-to-maturity portfolio consists entirely of corporate securities. Securities are generally rated BBB- or higher. Securities are analyzed individually to establish a reserve. Allowance for Credit Losses on Available-for-Sale Securities Changes in the ACL are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is not included in the estimate of credit losses. Allowance for Credit Losses on Loans Management utilizes relevant available information, from internal and external sources, relating to past events, current conditions, historical loss experience, and reasonable and supportable forecasts. The lookback period in the analysis includes historical data from 2009 to present. Adjustments to historical loss information are made when management determines historical data is not likely reflective of the current portfolio such as limited data sets or lack of default or loss history. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Accrued interest receivable is excluded from the estimate of credit losses for loans. Collective Assessment within each call report code by pass, watch, special mention, substandard, and doubtful. Other loan types are separated into their own cohorts due to specific risk characteristics for that pool of loans. The Company has elected a non-discounted cash flow methodology with probability of default (“PD”) and loss given default (“LGD”) for all call report code cohorts (“cohorts”), with the exception of the indirect and marine portfolios which are evaluated under a vintage methodology. The vintage methodology measures the expected loss calculation for future periods based on historical performance by the origination period of loans with similar life cycles and risk characteristics. Guaranteed portions of loans are measured with zero risk due to cash collateral and full guaranty. The PD calculation looks at the historical loan portfolio at particular points in time (each month during the lookback period) to determine the probability that loans in a certain cohort will default over the next 12-month period. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. In cohorts where the Company’s historical data is insufficient due to a minimal amount of default activity or zero defaults, management uses index PDs comprised of rates derived from the PD experience of other community banks in place of the Company’s historical PDs. Additionally, management reviews all other cohorts to determine if index PDs should be used outside of these criteria. The LGD calculation looks at actual losses (net charge-offs) experienced over the entire lookback period for each cohort of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. All defaults (non-accrual, charge-off, or greater than 90 days past due) occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event (i.e., nonaccrual or charge-off). Due to very limited charge-off history, management uses index LGDs comprised of rates derived from the LGD experience of other community banks in place of the Company’s historical LGDs. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACLL. The calculation includes a 12-month PD forecast based on the Company’s regression model comparing peer nonperforming loan ratios to the national unemployment rate. After the forecast period, PD rates revert on a straight-line basis back to long-term historical average rates over a 12-month period. Due to very limited default history, management uses index PDs comprised of rates derived from the PD experience of other community banks in place of the Company’s historical PDs. The Company recognizes that all significant factors that affect the collectability of the loan portfolio must be considered to determine the estimated credit losses as of the evaluation date. Furthermore, the methodology, in and of itself and even when selectively adjusted by comparison to market and peer data, does not provide a sufficient basis to determine the estimated credit losses. The Company adjusts the modeled historical losses by qualitative and environmental adjustments to incorporate all significant risks to form a sufficient basis to estimate the credit losses. Individual Assessment Where the primary and/or expected source of repayment of a specific loan is believed to be the future liquidation of available collateral, impairment will generally be measured based upon expected future collateral proceeds, net of disposition expenses including sales commissions as well as other costs potentially necessary to sell the asset(s) (i.e., past due taxes, liens, etc.). Estimates of future collateral proceeds will be based upon available appraisals, reference to recent valuations of comparable properties, use of consultants or other professionals with relevant market and/or property-specific knowledge, and any other sources of information believed appropriate by management under the specific circumstances. When appraisals are ordered to support the impairment analysis of an impaired loan, the appraisal is reviewed by the Company’s internal appraisal reviewer. Where the primary and/or expected source of repayment of a specific loan is believed to be the receipt of principal and interest payments from the borrower and/or the refinancing of the loan by another creditor, impairment will generally be measured based upon the present value of expected proceeds discounted at the contractual interest rate. Expected refinancing proceeds may be estimated from review of term sheets actually received by the borrower from other creditors and/or from the Company’s knowledge of terms generally available from other banks. Determining the Contractual Term Troubled Debt Restructurings Allowance for Credit Losses on Unfunded Commitments Premises and Equipment, Net - three Management reviews buildings, improvements and equipment for impairment on an annual basis or whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. Right of Use Lease Asset & Lease Liability - The Company leases retail space, office space, storage space, and equipment under operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent abatement. Variable lease payments are recognized as lease expense as they are incurred. The Company records an operating lease ROU asset and an operating lease liability for operating leases with a lease term greater than 12 months. The ROU asset and lease liability are recorded in “Other assets” and “Other liabilities”, respectively, on the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of the Company’s leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Transfers of Financial Assets - transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Servicing Rights - Servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Capitalized servicing rights are stated separately on the Consolidated Balance Sheets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Income Taxes - The Company follows the authoritative guidance issued related to accounting for uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It is the Company’s policy to record any penalties or interest arising from federal or state taxes as a component of income tax expense. Employee Stock Ownership Plan (“ESOP”) Earnings Per Share (“EPS”) Comprehensive Income (Loss) - for-sale, net of tax and unrealized holding gains (losses) on derivatives designated as hedges, net of tax recorded directly to equity. Financial Instruments - Restricted Assets - Marketing and Advertising Costs - Stock-Based Compensation - Goodwill - Business Combinations In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on that acquisition. Acquired Loans For purchased non-credit-deteriorated loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loan. While credit discounts are included in the determination of the fair value for non-credit-deteriorated loans, since these discounts are expected to be accreted over the life of the loans, they cannot be used to offset the allowance for credit losses that must be recorded at the acquisition date. As a result, an allowance for credit losses is determined at the acquisition date using the same methodology as other loans held for investment and is recognized as a provision for credit losses in the Consolidated Statement of Income. Any subsequent deterioration (improvement) in credit quality is recognized by recording a provision for (or reversal of) credit losses. Application of New Accounting Guidance in 2022 On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326) Topic 326 The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2022 are presented under ASC 326. The adoption resulted in a decrease of $2.9 million to our allowance for credit losses on loans (“ACLL”), an increase of $2.4 million to our allowance for unfunded commitments and letters of credit, an increase of $72,000 to our allowance for held-to-maturity securities, and a net-of-tax cumulative-effect adjustment of $297,000 to increase the beginning balance of retained earnings. The Company finalized the adoption of ASC 326 as of January 1, 2022 as detailed in the following table: January 1, 2022 As Reported January 1, 2022 Pre-Topic 326 Impact of Topic 326 Assets Under Topic 326 Adoption Adoption Allowance for credit losses on debt securities held-to-maturity $ 72 $ — $ 72 Loans Commercial $ 1,728 $ 5,667 $ (3,939) Construction and development 2,328 4,448 (2,120) Home equity 455 279 176 One-to-four-family 3,656 1,424 2,232 Multi-family 1,397 2,980 (1,583) Indirect home improvement 9,394 3,540 5,854 Marine 900 702 198 Other consumer 64 38 26 Commercial and industrial 2,727 5,953 (3,226) Warehouse lending 127 583 (456) Unallocated — 21 (21) Allowance for credit losses on loans $ 22,776 $ 25,635 $ (2,859) Liabilities Allowance for credit losses on unfunded loan commitments $ 2,908 $ 499 $ 2,409 Total $ (378) The adoption of the CECL methodology resulted in an increase of retained earnings of $297,000, net of tax. RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform” (“Topic 848”) In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326)

INVESTMENTS

INVESTMENTS	12 Months Ended
INVESTMENTS	Dec. 31, 2022
INVESTMENTS
INVESTMENTS	NOTE 2 - INVESTMENTS The following tables present the amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale and held-to-maturity, and ACL, at the dates indicated: December 31, 2022 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values ACL U.S. agency securities $ 21,153 $ — $ (3,865) $ 17,288 $ — Corporate securities 9,497 27 (979) 8,545 — Municipal bonds 144,200 21 (23,619) 120,602 — Mortgage-backed securities 82,424 — (12,458) 69,966 — U.S. Small Business Administration securities 14,519 — (1,668) 12,851 — Total securities available-for-sale 271,793 48 (42,589) 229,252 — SECURITIES HELD-TO-MATURITY Corporate securities 8,500 — (571) 7,929 31 Total securities held-to-maturity 8,500 — (571) 7,929 31 Total securities $ 280,293 $ 48 $ (43,160) $ 237,181 $ 31 December 31, 2021 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values U.S. agency securities $ 21,155 $ 133 $ (318) $ 20,970 Corporate securities 9,495 31 (524) 9,002 Municipal bonds 136,377 1,577 (2,521) 135,433 Mortgage-backed securities 88,641 1,457 (696) 89,402 U.S. Small Business Administration securities 16,383 235 (66) 16,552 Total securities available-for-sale 272,051 3,433 (4,125) 271,359 SECURITIES HELD-TO-MATURITY Corporate securities 7,500 628 — 8,128 Total securities held-to-maturity 7,500 628 — 8,128 Total securities $ 279,551 $ 4,061 $ (4,125) $ 279,487 The following table presents the activity in the ACL on securities held-to-maturity by major security type for the year indicated: SECURITIES HELD-TO-MATURITY For the Year Ended Corporate Securities December 31, 2022 Beginning allowance balance $ — Impact of adopting ASU 2016-13 72 Reversal of provision for credit losses (41) Securities charged-off — Recoveries — Total ending allowance balance $ 31 Management measures expected credit losses on held-to-maturity debt securities on an individual basis. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on held-to-maturity debt securities totaled $116,000 and $113,000 as of December 31, 2022 and December 31, 2021, respectively and was $1.2 million and $1.1 million on available-for-sale debt securities as of December 31, 2022 and December 31, 2021, respectively. Accrued interest receivable on securities is reported in “Accrued interest receivable” on the Consolidated Balance Sheets and is excluded from the calculation of the ACL. The Bank monitors the credit quality of debt securities held-to-maturity quarterly through the use of credit rating, material event notices, and changes in market value. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator: December 31, Corporate securities 2022 2021 BBB/BBB- $ 8,500 $ 7,500 At December 31, 2022, there were no debt securities held-to-maturity that were classified as either nonaccrual or 90 days or more past due and still accruing interest. At December 31, 2022, the Bank pledged 10 securities held at the FHLB of Des Moines with a carrying value of $13.5 million to secure Washington State public deposits of $15.6 million with a $6.3 million collateral requirement by the Washington Public Deposit Protection Commission. At December 31, 2021, the Bank pledged seven securities held at the FHLB of Des Moines with a carrying value of $8.1 million to secure Washington State public deposits of $13.9 million with a $5.6 million collateral requirement by the Washington Public Deposit Protection Commission. At December 31, 2022, the Bank pledged one security with a total carrying value of $2.8 million to secure interest rate swaps designated as cash flow hedges. See “Note 17- Derivatives” for detail on the Bank’s interest rate swaps. Investment securities that were in an unrealized loss position at the dates indicated are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. December 31, 2022 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 3,823 $ (118) $ 13,465 $ (3,747) $ 17,288 $ (3,865) Corporate securities 2,494 (4) 4,026 (975) 6,520 (979) Municipal bonds 44,261 (5,794) 73,990 (17,825) 118,251 (23,619) Mortgage-backed securities 29,791 (3,188) 40,175 (9,270) 69,966 (12,458) U.S. Small Business Administration securities 10,807 (1,162) 2,044 (506) 12,851 (1,668) Total securities available-for-sale $ 91,176 $ (10,266) $ 133,700 $ (32,323) $ 224,876 $ (42,589) SECURITIES HELD-TO-MATURITY Corporate securities 7,929 (571) — — 7,929 (571) Total securities held-to-maturity 7,929 (571) — — 7,929 (571) Total $ 99,105 $ (10,837) $ 133,700 $ (32,323) $ 232,805 $ (43,160) December 31, 2021 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 13,125 $ (105) $ 3,752 $ (213) $ 16,877 $ (318) Corporate securities — — 5,476 (524) 5,476 (524) Municipal bonds 72,098 (1,961) 14,116 (560) 86,214 (2,521) Mortgage-backed securities 33,291 (620) 3,825 (76) 37,116 (696) U.S. Small Business Administration securities 2,988 (66) — — 2,988 (66) Total securities available-for-sale $ 121,502 $ (2,752) $ 27,169 $ (1,373) $ 148,671 $ (4,125) There were seven held-to-maturity debt securities with unrealized losses less than one year and none with unrealized losses of more than one year at December 31, 2022. There were no held-to-maturity debt securities in an unrealized loss position as of December 31, 2021. There were 88 available-for-sale securities with unrealized losses of less than one year and 106 available-for-sale securities with an unrealized loss of more than one year at December 31, 2022. There were 75 available-for-sale securities with unrealized losses of less than one year and 17 available-for-sale securities with unrealized losses of more than one year at December 31, 2021. The unrealized losses associated with these securities are believed to be caused by changing market conditions that are considered to be temporary and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. Management monitors the published credit ratings of the issuers of the debt securities for material ratings or outlook changes. Substantially all of the Company’s municipal bond portfolio is comprised of obligations of states and political subdivisions located within the Company’s geographic footprint that are monitored through quarterly or annual financial review utilizing published credit ratings. All of the available-for-sale mortgage-backed securities and U.S. Small Business Administration securities in an unrealized loss position are issued or guaranteed by government-sponsored enterprises, and the available-for-sale corporate securities are all investment grade and monitored for rating or outlook changes. Based on the Company’s evaluation of these securities, no credit impairment was recorded for the years ended December 31, 2022 and 2021. The contractual maturities of securities available-for-sale and held-to-maturity at the dates indicated are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date. December 31, 2022 2021 SECURITIES AVAILABLE-FOR-SALE Amortized Fair Amortized Fair U.S. agency securities Cost Value Cost Value Due after one year through five years $ 4,874 $ 4,321 $ 959 $ 1,004 Due after five years through ten years 6,989 5,963 6,920 6,850 Due after ten years 9,290 7,004 13,276 13,116 Subtotal 21,153 17,288 21,155 20,970 Corporate securities Due within one year 1,000 997 — — Due after one year through five years 2,497 2,519 3,495 3,526 Due after five years through ten years 4,000 3,763 4,000 3,627 Due after ten years 2,000 1,266 2,000 1,849 Subtotal 9,497 8,545 9,495 9,002 Municipal bonds Due within one year 2,660 2,644 — — Due after one year through five years 1,038 1,012 3,724 3,850 Due after five years through ten years 6,341 5,771 6,857 7,035 Due after ten years 134,161 111,175 125,796 124,548 Subtotal 144,200 120,602 136,377 135,433 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 68,421 57,358 75,171 75,737 Federal Home Loan Mortgage Corporation (“FHLMC”) 9,290 8,424 9,606 9,768 Government National Mortgage Association (“GNMA”) 4,713 4,184 3,864 3,897 Subtotal 82,424 69,966 88,641 89,402 U.S. Small Business Administration securities Due after one year through five years 2,553 2,407 2,485 2,507 Due after five years through ten years 4,461 3,996 4,420 4,515 Due after ten years 7,505 6,448 9,478 9,530 Subtotal 14,519 12,851 16,383 16,552 Total securities available-for-sale 271,793 229,252 272,051 271,359 SECURITIES HELD-TO-MATURITY Corporate securities Due after five years through ten years 8,500 7,929 7,500 8,128 Total securities held-to-maturity 8,500 7,929 7,500 8,128 Total securities $ 280,293 $ 237,181 $ 279,551 $ 279,487 There were no sales proceeds, gains or losses from the sale of securities available-for-sale for both the years ended December 31, 2022 and 2021, compared to proceeds of $12.2 million and gains of $300,000 on the sale of securities available-for-sale for the year ended December 31, 2020.

LOANS RECEIVABLE AND ALLOWANCE

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS	12 Months Ended
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS	Dec. 31, 2022
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS	NOTE 3 - LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS The composition of the loan portfolio was as follows at the dates indicated: December 31, REAL ESTATE LOANS 2022 2021 Commercial $ 334,059 $ 264,429 Construction and development 342,591 240,553 Home equity 55,387 41,017 One-to-four-family (excludes loans held for sale) 469,485 366,146 Multi-family 219,738 178,158 Total real estate loans 1,421,260 1,090,303 CONSUMER LOANS Indirect home improvement 495,941 336,285 Marine 70,567 82,778 Other consumer 3,064 2,980 Total consumer loans 569,572 422,043 COMMERCIAL BUSINESS LOANS Commercial and industrial (includes Paycheck Protection Program ("PPP") loans) 196,791 208,552 Warehouse lending 31,229 33,277 Total commercial business loans 228,020 241,829 Total loans receivable, gross 2,218,852 1,754,175 Allowance for credit losses on loans (1) (27,992) (25,635) Total loans receivable, net $ 2,190,860 $ 1,728,540 ______________________________ (1) Allowance for credit losses on loans in 2022 is reported using the CECL method and the allowance for loan losses in 2021 is reported using the incurred loss method. Loan amounts are net of unearned loan fees in excess of unamortized costs and premiums of $7.8 million as of December 31, 2022 and $4.9 million as of December 31, 2021. Net loans include unamortized net discounts on acquired loans of $437,000 and $751,000 as of December 31, 2022 and 2021, respectively. Net loans do not include accrued interest receivable. Accrued interest receivable on loans was $9.6 million as of December 31, 2022 and $6.3 million as of December 31, 2021 and was reported in “Accrued interest receivable” on the Consolidated Balance Sheets. Most of the Company’s commercial and multi-family real estate, construction, residential, and commercial business lending activities are with customers located in Western Washington, near our newest loan production office in Vancouver, Washington, or near our loan production office located in the Tri-Cities, Washington. The Company originates real estate, consumer and commercial business loans, and has concentrations in these areas, however, indirect home improvement loans, including solar-related home improvement loans, are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, Arizona, Minnesota, Nevada, Texas, Utah, Massachusetts, and Montana. Loans are generally secured by collateral and rights to collateral vary and are legally documented to the extent practicable. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. At December 31, 2022, the Bank held approximately $840.2 million in loans that are pledged as collateral for FHLB advances, compared to approximately $761.6 million at December 31, 2021. The Bank held approximately $579.8 million in loans that are pledged as collateral for the FRB line of credit at December 31, 2022, compared to approximately $428.7 million at December 31, 2021. The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the manner in which management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending. Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending Home Equity Lending One-to-Four-Family Real Estate Lending Multi-family Lending Consumer Loans Indirect Home Improvement Marine. Other Consumer. Commercial Business Loans Commercial and Industrial Lending (“C&I”) Warehouse Lending The following tables detail activity in the allowance for credit losses on loans and the allowance for loan losses by loan categories, at or for the years indicated: At or For the Year Ended December 31, 2022 ALLOWANCE FOR CREDIT Real Commercial LOSSES ON LOANS Estate Consumer Business Unallocated Total Beginning balance, prior to adoption of ASC 326 $ 14,798 $ 4,280 $ 6,536 $ 21 $ 25,635 Impact of adopting ASC 326 (5,234) 6,078 (3,682) (21) (2,859) Provision for credit losses on loans 2,559 3,158 906 — 6,623 Loans charged-off — (2,465) — — (2,465) Recoveries — 1,058 — — 1,058 Net Charge-offs — (1,407) — — (1,407) Total ending allowance balance $ 12,123 $ 12,109 $ 3,760 $ — $ 27,992 At or For the Year Ended December 31, 2021 Real Commercial ALLOWANCE FOR LOAN LOSSES Estate Consumer Business Unallocated Total Beginning balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 Provision for (reversal of) loan losses 952 (1,417) 1,635 (670) 500 Loans charged-off — (1,755) (38) — (1,793) Recoveries — 756 — — 756 Net charge-offs — (999) (38) — (1,037) Total ending allowance balance $ 14,798 $ 4,280 $ 6,536 $ 21 $ 25,635 Period end amount allocated to: Loans individually evaluated for impairment $ 23 $ 219 $ 921 $ — $ 1,163 Loans collectively evaluated for impairment 14,775 4,061 5,615 21 24,472 Ending balance $ 14,798 $ 4,280 $ 6,536 $ 21 $ 25,635 LOANS RECEIVABLE Loans individually evaluated for impairment $ 781 $ 629 $ 4,419 $ — $ 5,829 Loans collectively evaluated for impairment 1,089,522 421,414 237,410 — 1,748,346 Ending balance $ 1,090,303 $ 422,043 $ 241,829 $ — $ 1,754,175 At or For the Year Ended December 31, 2020 Commercial ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Business Unallocated Total Beginning balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 Provision for loan losses 7,622 3,372 1,354 688 13,036 Charge-offs — (1,101) (22) — (1,123) Recoveries 18 659 353 — 1,030 Net recoveries (charge-offs) 18 (442) 331 — (93) Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 Period end amount allocated to: Loans individually evaluated for impairment $ 15 $ 305 $ 990 $ — $ 1,310 Loans collectively evaluated for impairment 13,831 6,391 3,949 691 24,862 Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 LOANS RECEIVABLE Loans individually evaluated for impairment $ 1,280 $ 871 $ 5,610 $ — $ 7,761 Loans collectively evaluated for impairment 922,261 373,282 267,849 — 1,563,392 Ending balance $ 923,541 $ 374,153 $ 273,459 $ — $ 1,571,153 Nonaccrual and Past Due Loans TDR Loans The Company had two TDR loans on nonaccrual totaling $3.7 million at December 31, 2022, compared to none at December 31, 2021. The two nonaccrual loans at December 31, 2022, consisted of commercial business loans. The Company had no commitments to lend additional funds on these restructured loans. The TDRs were the result of interest rate modifications and extended payment terms. The Company has not forgiven any principal on these loans. There were no TDRs which incurred a payment default within twelve months of the restructure date during the years ended December 31, 2022 and 2021. The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans at the dates indicated: December 31, 2022 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual (1) Commercial $ — $ — $ — $ — $ 334,059 $ 334,059 $ — Construction and development — — — — 342,591 342,591 — Home equity 29 104 16 149 55,238 55,387 46 One-to-four-family — — 463 463 469,022 469,485 920 Multi-family — — — — 219,738 219,738 — Total real estate loans 29 104 479 612 1,420,648 1,421,260 966 CONSUMER LOANS Indirect home improvement 2,298 685 532 3,515 492,426 495,941 1,076 Marine 650 385 86 1,121 69,446 70,567 267 Other consumer 32 37 5 74 2,990 3,064 9 Total consumer loans 2,980 1,107 623 4,710 564,862 569,572 1,352 COMMERCIAL BUSINESS LOANS Commercial and industrial 1 — 2,617 2,618 194,173 196,791 6,334 Warehouse lending — — — — 31,229 31,229 — Total commercial business loans 1 — 2,617 2,618 225,402 228,020 6,334 Total loans $ 3,010 $ 1,211 $ 3,719 $ 7,940 $ 2,210,912 $ 2,218,852 $ 8,652 December 31, 2021 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual (1) Commercial $ — $ — $ — $ — $ 264,429 $ 264,429 $ — Construction and development — — — — 240,553 240,553 — Home equity — — 179 179 40,838 41,017 301 One-to-four-family 593 264 480 1,337 364,809 366,146 480 Multi-family — — — — 178,158 178,158 — Total real estate loans 593 264 659 1,516 1,088,787 1,090,303 781 CONSUMER LOANS Indirect home improvement 1,047 280 295 1,622 334,663 336,285 554 Marine 119 — — 119 82,659 82,778 57 Other consumer 11 2 18 31 2,949 2,980 18 Total consumer loans 1,177 282 313 1,772 420,271 422,043 629 COMMERCIAL BUSINESS LOANS Commercial and industrial 791 — — 791 207,761 208,552 4,419 Warehouse lending — — — — 33,277 33,277 — Total commercial business loans 791 — — 791 241,038 241,829 4,419 Total loans $ 2,561 $ 546 $ 972 $ 4,079 $ 1,750,096 $ 1,754,175 $ 5,829 ______________________________ (1) Includes past due loans as applicable. There were no loans 90 days or more past due and still accruing interest at both December 31, 2022 and 2021. Impaired Loans and the Allowance for Loan Losses - Financial Instruments - Credit Losses (Topic 326) The following table presents impaired loans with and without allowance reserves at December 31, 2021. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees. December 31, 2021 Unpaid WITH NO RELATED ALLOWANCE RECORDED Principal Recorded Related Real estate loans: Balance Investment Allowance Home equity $ 259 $ 227 $ — One-to-four-family 497 480 — 756 707 — WITH RELATED ALLOWANCE RECORDED Real estate loans: Home equity 92 74 23 Consumer loans: Indirect 551 554 193 Marine 56 57 20 Other consumer 18 18 6 Commercial business loans: Commercial and industrial 4,417 4,419 921 5,134 5,122 1,163 Total $ 5,890 $ 5,829 $ 1,163 The following table presents the average recorded investment in loans individually evaluated for impairment and the interest income recognized and received at and for the years indicated: At or For the Year Ended December 31, 2021 2020 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Interest Income Average Recorded Interest Income Real estate loans: Investment Recognized Investment Recognized Commercial $ — $ — $ 996 $ — Construction and development 771 — — — Home equity 427 15 485 25 One-to-four-family 513 15 954 17 Consumer loans: Other consumer — — 3 — Commercial business loans: Commercial and industrial — — 100 37 1,711 30 2,538 79 WITH RELATED ALLOWANCE RECORDED Real estate loans: Home equity 57 — — — One-to-four-family 20 — 60 — Consumer loans: Indirect 643 38 675 60 Marine 77 6 40 3 Other consumer 8 1 1 — Commercial business loans: Commercial and industrial 4,779 276 2,531 162 5,584 321 3,307 225 Total $ 7,295 $ 351 $ 5,845 $ 304 Credit Quality Indicators As part of the Company’s on-going monitoring of credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grading of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions in the Company’s markets. The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 considered “Pass” and loans in risk grades 7 to 10 are reported as classified loans in the Company’s allowance for loan loss analysis. A description of the 10 risk grades is as follows: ● Grades 1 and 2 - These grades include loans to very high quality borrowers with excellent or desirable business credit. ● Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk. ● Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk. ● Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term. ● Grade 7 - This grade is for “Other Assets Especially Mentioned (OAEM)” in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected. ● Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected. ● Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable. ● Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off. Homogeneous loans are risk rated based upon the Federal Financial Institutions Examination Council’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification Policy, loans that are current or less than 90 days past due are graded “Pass” and risk graded “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” risk graded “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. Management may choose to conservatively risk rate credits even if paying in accordance with the loan’s repayment terms. Commercial real estate, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if current on their loan payment obligations. We regularly review our credits for accuracy of risk grades whenever we receive new information. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk, and complexity. In addition, nonowner-occupied commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly. The following tables summarize risk rated loan balances by category as of December 31, 2022. Term loans that are renewed or extended for periods longer than 90 days are presented as new origination in the year of the most recent renewal or extension. December 31, 2022 Revolving Loans REAL ESTATE LOANS Term Loans by Year of Origination Converted Commercial 2022 2021 2020 2019 2018 Prior Revolving Loans to Term Total Loans Pass $ 86,189 $ 76,030 $ 46,125 $ 38,930 $ 14,101 $ 55,271 $ — $ — $ 316,646 Watch 9,504 — 373 — — — — — 9,877 Special mention — — — 2,113 — — — — 2,113 Substandard — — — — 581 4,842 — — 5,423 Total commercial 95,693 76,030 46,498 41,043 14,682 60,113 — — 334,059 Construction and development Pass 193,084 118,724 21,966 8,379 — 438 — — 342,591 Total construction and development 193,084 118,724 21,966 8,379 — 438 — — 342,591 Home equity Pass 4,978 1,696 6,818 11 1,203 1,572 39,063 — 55,341 Substandard — — — — 13 33 — — 46 Total home equity 4,978 1,696 6,818 11 1,216 1,605 39,063 — 55,387 One-to-four-family Pass 166,388 129,282 82,461 31,878 15,837 40,526 — 199 466,571 Substandard — — — — 1,941 973 — — 2,914 Total one-to-four-family 166,388 129,282 82,461 31,878 17,778 41,499 — 199 469,485 Multi-family Pass 41,041 63,353 48,376 38,805 4,176 23,987 — — 219,738 Total multi-family 41,041 63,353 48,376 38,805 4,176 23,987 — — 219,738 Total real estate loans $ 501,184 $ 389,085 $ 206,119 $ 120,116 $ 37,852 $ 127,642 $ 39,063 $ 199 $ 1,421,260 December 31, 2022 Revolving Loans CONSUMER LOANS Term Loans by Year of Origination Converted Indirect home improvement 2022 2021 2020 2019 2018 Prior Revolving Loans to Term Total Loans Pass $ 253,495 $ 123,264 $ 46,476 $ 31,251 $ 18,165 $ 22,205 $ 9 $ — $ 494,865 Substandard 347 213 137 62 169 148 — — 1,076 Total indirect home improvement 253,842 123,477 46,613 31,313 18,334 22,353 9 — 495,941 Marine Pass 27,904 11,762 15,139 6,224 5,415 3,856 — — 70,300 Substandard — — — 151 61 55 — — 267 Total marine 27,904 11,762 15,139 6,375 5,476 3,911 — — 70,567 Other consumer Pass 792 754 116 48 14 80 1,251 — 3,055 Substandard 1 5 — — — — 3 — 9 Total other consumer 793 759 116 48 14 80 1,254 — 3,064 Total consumer loans $ 282,539 $ 135,998 $ 61,868 $ 37,736 $ 23,824 $ 26,344 $ 1,263 $ — $ 569,572 December 31, 2022 COMMERCIAL Revolving Loans BUSINESS LOANS Term Loans by Year of Origination Converted Commercial and industrial 2022 2021 2020 2019 2018 Prior Revolving Loans to Term Total Loans Pass $ 24,337 $ 22,561 $ 12,461 $ 3,940 $ 3,074 $ 7,701 $ 104,524 $ — $ 178,598 Watch — 1,127 2,932 — — 746 1,327 — 6,132 Special mention — — — 634 — — 963 — 1,597 Substandard — 1,586 1,265 2,291 190 3,739 1,093 300 10,464 Total commercial and industrial 24,337 25,274 16,658 6,865 3,264 12,186 107,907 300 196,791 Warehouse lending Pass — — — — — — 31,227 — 31,227 Watch — — — — — — 2 — 2 Total warehouse lending — — — — — — 31,229 — 31,229 Total commercial business loans $ 24,337 $ 25,274 $ 16,658 $ 6,865 $ 3,264 $ 12,186 $ 139,136 $ 300 $ 228,020 TOTAL LOANS RECEIVABLE, GROSS Pass $ 798,208 $ 547,426 $ 279,938 $ 159,466 $ 61,985 $ 155,636 $ 176,074 $ 199 $ 2,178,932 Watch 9,504 1,127 3,305 — — 746 1,329 — 16,011 Special mention — — — 2,747 — — 963 — 3,710 Substandard 348 1,804 1,402 2,504 2,955 9,790 1,096 300 20,199 Total loans receivable, gross $ 808,060 $ 550,357 $ 284,645 $ 164,717 $ 64,940 $ 166,172 $ 179,462 $ 499 $ 2,218,852 The following table summarizes risk rated loan balances by category as of December 31, 2021: December 31, 2021 Special Pass Watch Mention Substandard Doubtful Loss REAL ESTATE LOANS (1 - 5) (6) (7) (8) (9) (10) Total Commercial $ 253,092 $ 4,652 $ 5,769 $ 916 $ — $ — $ 264,429 Construction and development 240,553 — — — — — 240,553 Home equity 40,716 — — 301 — — 41,017 One-to-four-family 363,682 — — 2,464 — — 366,146 Multi-family 178,158 — — — — — 178,158 Total real estate loans 1,076,201 4,652 5,769 3,681 — — 1,090,303 CONSUMER LOANS Indirect home improvement 335,731 — — 554 — — 336,285 Marine 82,721 — — 57 — — 82,778 Other consumer 2,962 — — 18 — — 2,980 Total consumer loans 421,414 — — 629 — — 422,043 COMMERCIAL BUSINESS LOANS Commercial and industrial 188,767 4,182 1,829 13,774 — — 208,552 Warehouse lending 33,277 — — — — — 33,277 Total commercial business loans 222,044 4,182 1,829 13,774 — — 241,829 Total loans receivable, gross $ 1,719,659 $ 8,834 $ 7,598 $ 18,084 $ — $ — $ 1,754,175 The following table presents the amortized cost basis of loans on nonaccrual status at December 31, 2022. There were no loans 90 days or more past due and still accruing interest as of December 31, 2022. December 31, 2022 Nonaccrual with No Nonaccrual with Allowance for Credit Allowance for Credit Total REAL ESTATE LOANS Losses Losses Nonaccrual Home equity $ 46 $ — $ 46 One-to-four-family 920 — 920 966 — 966 CONSUMER LOANS Indirect home improvement — 1,076 1,076 Marine — 267 267 Other consumer — 9 9 — 1,352 1,352 COMMERCIAL BUSINESS LOANS Commercial and industrial — 6,334 6,334 Total $ 966 $ 7,686 $ 8,652 The Company recognized interest income on nonaccrual loans of $506,000, $351,000, and $304,000 during the years ended December 31, 2022, 2021, and 2020. The following table presents the amortized cost basis of collateral dependent loans by class of loans as of December 31, 2022: December 31, 2022 REAL ESTATE LOANS Real Estate Equipment Total Home equity $ 46 $ — $ 46 One-to-four-family 920 — 920 966 — 966 CONSUMER LOANS Indirect home improvement — 1,076 1,076 Marine — 267 267 — 1,343 1,343 COMMERCIAL BUSINESS LOANS Commercial and industrial — 6,334 6,334 Total $ 966 $ 7,677 $ 8,643 Related Party Loans Certain directors and executive officers or their related affiliates are customers of and have had banking transactions with the Company. Total loans to directors, executive officers, and their affiliates are subject to regulatory limitations. Outstanding loan balances of related party loans were as follows and were within regulatory limitations: At December 31, 2022 2021 Beginning balance $ 4,207 $ 3,797 Additions — 647 Repayments (762) (237) Ending balance $ 3,445 $ 4,207 The aggregate maximum loan balance of extended credit was $3.4 million and $4.3 million at December 31, 2022 and 2021, respectively, and includes the ending balances from the tables above. These loans and lines of credit were made in compliance with applicable laws on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectability.

SERVICING RIGHTS

SERVICING RIGHTS	12 Months Ended
SERVICING RIGHTS	Dec. 31, 2022
SERVICING RIGHTS
SERVICING RIGHTS	NOTE 4 - SERVICING RIGHTS Loans serviced for others are not included on the Consolidated Balance Sheets. The unpaid principal balances of permanent loans serviced for others were $2.78 billion and $2.61 billion at December 31, 2022 and 2021, respectively. The following table summarizes mortgage servicing rights (“MSR”) activity at or for the years indicated: At or For the Year Ended December 31, 2022 2021 2020 Beginning balance, at the lower of cost or fair value $ 16,970 $ 12,595 $ 11,560 Additions 5,400 9,760 11,139 MSR amortized (4,354) (7,444) (8,135) Recovery (impairment) of servicing rights 1 2,059 (1,969) Ending balance, at the lower of cost or fair value $ 18,017 $ 16,970 $ 12,595 The fair value of the servicing rights’ assets was $35.5 million and $26.1 million at December 31, 2022 and December 31, 2021, respectively. Fair value adjustments to servicing rights are mainly due to market-based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights. The following provides valuation assumptions used in determining the fair value of MSR at the dates indicated: At December 31, Key assumptions: 2022 2021 Weighted average discount rate 9.6 % 9.1 % Conditional prepayment rate (“CPR”) 8.2 % 13.8 % Weighted average life in years 7.8 5.9 Key economic assumptions of the current fair value for single family MSR are presented in the table below. Also presented is the sensitivity to market rate changes for the par rate coupon for a conventional one-to-four-family FNMA, FHLMC, GNMA, or FHLB serviced home loan. The table below references a 50 basis point and 100 basis point adverse rate change and the impact on prepayment speeds and discount rates at the dates indicated. December 31, 2022 2021 Aggregate portfolio principal balance $ 2,783,458 $ 2,609,776 Weighted average rate of note 3.4 % 3.2 % At December 31, 2022 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 8.2 % 8.6 % 9.3 % Fair value MSR $ 35,478 $ 34,997 $ 34,188 Percentage of MSR 1.3 % 1.3 % 1.2 % Discount rate 9.6 % 10.1 % 10.6 % Fair value MSR $ 35,478 $ 34,715 $ 33,984 Percentage of MSR 1.3 % 1.2 % 1.2 % At December 31, 2021 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 13.8 % 20.0 % 31.5 % Fair value MSR $ 26,070 $ 21,188 $ 15,348 Percentage of MSR 1.0 % 0.8 % 0.6 % Discount rate 9.1 % 9.6 % 10.1 % Fair value MSR $ 26,070 $ 25,586 $ 25,119 Percentage of MSR 1.0 % 1.0 % 1.0 % These sensitivities are hypothetical and should be used with caution as the tables above demonstrate the Company’s methodology for estimating the fair value of MSR which is highly sensitive to changes in key assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on the fair value of MSR. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. Also, in these tables, the effects of a variation in a particular assumption on the fair value of MSR is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance; however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities. Thus, any measurement of the fair value of MSR is limited by the conditions existing and assumptions made at a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. The Company recorded $7.1 million, $6.3 million, and $4.4 million of gross contractually specified servicing fees, late fees, and other ancillary fees resulting from servicing of loans for the years ended December 31, 2022, 2021, and 2020, respectively. The income, net of MSR amortization, is reported in “Service charges and fee income” on the Consolidated Statements of Income.

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
PREMISES AND EQUIPMENT	Dec. 31, 2022
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 5 - PREMISES AND EQUIPMENT Premises and equipment at the dates indicated were as follows: December 31, 2022 2021 Land $ 5,715 $ 6,008 Buildings 16,934 17,290 Furniture, fixtures, and equipment 16,226 15,307 Leasehold improvements 2,461 2,461 Building improvements 7,688 7,558 Projects in process 537 67 Subtotal 49,561 48,691 Less accumulated depreciation and amortization (24,442) (22,100) Total $ 25,119 $ 26,591 Depreciation and amortization expense for these assets totaled $2.5 million, $2.7 million, and $2.8 million for the years ended December 31, 2022, 2021, and 2020, respectively.

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2022
LEASES
LEASES	NOTE 6 - LEASES The Company has operating leases for retail bank and home lending branches, loan production offices, and certain equipment. The Company’s leases have remaining lease terms of three months to seven years and six months, some of which include options to extend the leases for up to five years. The components of lease cost (included in occupancy expense on the Consolidated Statements of Income) for the years indicated are as follows: For Year Ended December 31, Lease cost: 2022 2021 2020 Operating lease cost $ 1,422 $ 1,433 $ 1,393 Short-term lease cost 21 5 11 Total lease cost $ 1,443 $ 1,438 $ 1,404 The following table provides supplemental information related to operating leases at or for the years indicated: Cash paid for amounts included in the At or For the Year Ended December 31, measurement of lease liabilities: 2022 2021 Operating cash flows from operating leases $ 1,431 $ 1,402 Weighted average remaining lease term- operating leases 4.6 years 4.8 years Weighted average discount rate- operating leases 2.42 % 2.17 % The Company’s leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the discount rate used in determining the lease liability for each individual lease was the FHLB of Des Moines’ fixed advance rate. Maturities of operating lease liabilities at December 31, 2022 for future periods are as follows: 2023 $ 1,512 2024 1,462 2025 1,152 2026 1,030 2027 745 Thereafter 1,251 Total lease payments 7,152 Less imputed interest (678) Total $ 6,474

OTHER REAL ESTATE OWNED ("OREO"

OTHER REAL ESTATE OWNED ("OREO")	12 Months Ended
OTHER REAL ESTATE OWNED ("OREO")	Dec. 31, 2022
OTHER REAL ESTATE OWNED ("OREO")
OTHER REAL ESTATE OWNED ("OREO")	NOTE 7 - OTHER REAL ESTATE OWNED (“OREO”) The following table presents the activity related to OREO at and for the years indicated: At or For the Year Ended December 31, 2022 2021 2020 Beginning balance $ — $ 90 $ 168 Loans transferred to OREO 145 — — Closed retail branch transferred to OREO 570 — — Gross proceeds from sale of OREO (145) (81) (76) Loss on sale of OREO — (9) (2) Ending balance $ 570 $ — $ 90 There was one OREO property at December 31, 2022 and none at December 31, 2021. OREO holding costs were $10,000, none, and $4,000 for the years ended December 31, 2022, 2021 and 2020, respectively. There were $511,000 and $710,000 in mortgage loans collateralized by residential real estate property in the process of foreclosure at December 31, 2022 and 2021, respectively.

DEPOSITS

DEPOSITS	12 Months Ended
DEPOSITS	Dec. 31, 2022
DEPOSITS
DEPOSITS	NOTE 8 - DEPOSITS Deposits are summarized as follows at the dates indicated: December 31, 2022 2021 Noninterest-bearing checking (1) $ 537,938 $ 564,360 Interest-bearing checking (1)(2) 135,127 228,024 Savings 134,358 193,922 Money market (3) 574,290 552,357 Certificates of deposit less than $100,000 (4) 440,785 186,974 Certificates of deposit of $100,000 through $250,000 195,447 116,206 Certificates of deposit of $250,000 and over 93,560 57,512 Escrow accounts related to mortgages serviced (5) 16,236 16,389 Total $ 2,127,741 $ 1,915,744 ____________________________ (1) Prior presentation of noninterest-bearing and interest-bearing checking balances was revised due to misclassification of certain checking products in the previous period. As a result of the misclassification, interest-bearing checking balances totaling $121.2 million at December 31, 2021, were reclassified to noninterest-bearing checking for comparative purposes. Balances as of the dates and average values included herein have been updated to reflect the reclassification. (2) Includes $2.3 million and $90.0 million of brokered deposits at December 31, 2022 and 2021, respectively. (3) Includes $59.7 million and $5.0 million of brokered deposits at December 31, 2022 and 2021, respectively. (4) Includes $332.0 million and $97.6 million of brokered certificates of deposit at December 31, 2022 and 2021, respectively. (5) Noninterest-bearing accounts. Scheduled maturities of time deposits at December 31, 2022 for future years ending are as follows: December 31, 2022 Maturing in 2023 $ 472,231 Maturing in 2024 90,507 Maturing in 2025 113,434 Maturing in 2026 36,618 Maturing in 2027 16,947 Thereafter 55 Total $ 729,792 Interest expense by deposit category for the years indicated is as follows: Year Ended December 31, 2022 2021 2020 Interest-bearing checking $ 495 $ 282 $ 388 Savings and money market 3,775 1,604 2,458 Certificates of deposit 5,150 5,043 9,134 Total $ 9,420 $ 6,929 $ 11,980 The Company had related party deposits of approximately $5.7 million and $3.9 million at December 31, 2022 and 2021, respectively, which included deposits held for directors and executive officers.

DEBT

DEBT	12 Months Ended
DEBT	Dec. 31, 2022
DEBT
DEBT	NOTE 9 - DEBT Borrowings The Bank is a member of the FHLB of Des Moines, which entitles it to certain benefits including a variety of borrowing options consisting of a secured credit line that allows both fixed and variable rate advances. The FHLB borrowings at December 31, 2022 and 2021, consisted of a warehouse securities credit line (“securities line”), which allows advances with interest rates fixed at the time of borrowing and a warehouse federal funds (“Fed Funds”) advance, which allows daily advances at variable interest rates. Credit capacity is primarily determined by the value of assets collateralized at the FHLB, funds on deposit at the FHLB, and stock owned by the Bank. Credit is limited to 45% of the Company’s total assets and available pledged assets. The Bank entered into an Advances, Pledges and Security Agreement with the FHLB for which specific loans are pledged to secure these credit lines. At December 31, 2022, loans of approximately $840.2 million were pledged to the FHLB. At December 31, 2022, the Bank’s total borrowing capacity was $601.7 million with the FHLB of Des Moines, with unused borrowing capacity of $414.8 million. In addition, all FHLB stock owned by the Company is collateral for credit lines. The Bank maintains a short-term borrowing line with the FRB with total credit based on eligible collateral. The Bank can borrow under the Term Auction or Term Facility at rates published by the San Francisco FRB. At December 31, 2022 and 2021, the Bank had approximately $579.8 million and $428.7 million, respectively, in pledged consumer loans with a Term Auction or Term Facility borrowing capacity of $205.8 million and $200.1 million, respectively, of which none was outstanding at either date. The Bank also had $101.0 million unsecured Fed Funds lines of credit with other financial institutions of which none was outstanding at December 31, 2022. Advances on these lines at the dates indicated were as follows: December 31, 2022 2021 Federal Home Loan Bank $ 186,528 $ 42,528 Total $ 186,528 $ 42,528 Scheduled maturities of Federal Home Loan Bank advances were as follows: Interest Years Ending December 31, Balances Rates 2023 $ 182,633 4.27 % 2024 3,895 2.27 % Total $ 186,528 Subordinated Notes On February 10, 2021, FS Bancorp completed the private placement of $50.0 million of its 3.75% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) at an offering price equal to 100% of the aggregate principal amount of the Notes, resulting in net proceeds, after placement agent fees and offering expenses, of approximately $49.3 million. The interest rate on the Notes remains fixed equal to 3.75% for the first five years. After five years the interest rate changes to a floating interest rate tied to a benchmark rate, which is expected to be Three-Month Term Secured Overnight Financing Rate (“SOFR”), plus a spread of 337 The Notes are unsecured obligations and are subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company's current and future subsidiaries, including the Bank’s deposits as well as the Company's subsidiaries' liabilities to general creditors and liabilities arising during the ordinary course of business. The Notes may be included in Tier 2 capital for the Company under current regulatory guidelines and interpretations. The maximum balance at any month end and the average balances and weighted average interest rates on debt during the years indicated were as follows: For the Year Ending December 31, 2022 2021 2020 Maximum balance: FHLB advances and Fed Funds $ 260,828 $ 102,528 $ 159,114 FRB — — 27,000 Fed Funds lines of credit — — — Subordinated notes 50,000 50,000 10,000 PPP Liquidity Facility — 59,349 74,112 Average balance: FHLB advances and Fed Funds 102,008 55,602 99,773 FRB 548 205 1,096 Fed Funds lines of credit 15 11 3 Subordinated notes 50,000 44,699 10,000 PPP Liquidity Facility — 7,310 46,965 Weighted average interest rates FHLB advances and Fed Funds 2.98 % 1.88 % 1.80 % FRB 1.69 % 0.25 % 0.25 % Fed Funds lines of credit 3.28 % 0.49 % 0.36 % Subordinated notes 3.75 % 3.75 % 6.50 % PPP Liquidity Facility — % 0.35 % 0.35 %

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
EMPLOYEE BENEFITS	Dec. 31, 2022
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS	NOTE 10 - EMPLOYEE BENEFITS On January 1, 2012, the Company established an ESOP for eligible employees of the Company and the Bank. Employees of the Company and the Bank are eligible to participate in the ESOP if they have been credited with at least 1,000 hours of service during the employees’ first 12 month period and based on the employee’s anniversary date will be vested in the ESOP. The employee will be 100% vested in the ESOP after two years of working at least 1,000 hours in each of those two years . The ESOP borrowed $2.6 million from FS Bancorp, Inc. and used those funds to acquire 518,420 shares of FS Bancorp, Inc. common stock in the open market at an average price of $5.09 per share during the second half of 2012. The Bank made contributions to the ESOP in amounts necessary to amortize the ESOP loan payable to FS Bancorp, Inc. over a period of 10 years , bearing interest at 2.30% . Intercompany expenses associated with the ESOP are eliminated in consolidation. Shares purchased by the ESOP with the loan proceeds are held in a suspense account and allocated to ESOP participants on a pro rata basis as principal and interest payments are made by the ESOP to FS Bancorp, Inc. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Bank’s discretionary contributions to the ESOP and earnings on the ESOP assets. Payments of principal and interest are due annually on December 31, the Company’s fiscal year end. On December 31, 2021, the ESOP paid the tenth annual and final installment of principal in the amount of $288,000 , plus accrued interest of $7,000 pursuant to the ESOP loan agreement. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average daily market prices of the shares at December 31, 2021 for the prior 90 days. These shares become outstanding for earnings per share computations. The compensation expense is accrued monthly throughout the year. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings; dividends on unallocated ESOP shares are recorded as a reduction of debt and accrued interest. Compensation expense related to the ESOP for the years ended December 31, 2021 and 2020, was $1.8 million, and $1.3 million, respectively. Shares held by the ESOP at December 31, 2022, 2021, and 2020, were as follows (shown as actual, post stock split): Balances at December 31, 2022 2021 2020 Allocated shares — — 427,488 Committed to be released shares — — — Unallocated shares — — 51,842 Total ESOP shares — — 479,330 Fair value of unallocated shares (in thousands) $ — $ — $ 1,307 All ESOP shares were allocated as of December 31, 2021. 401(k) Plan The Company has a salary deferral 401(k) Plan covering substantially all of its employees. Employees are eligible to participate in the 401(k) plan at the date of hire if they are 18 years of age. Eligible employees may contribute through payroll deductions and are 100% vested at all times in their deferral contributions account. The Company matches 100% for contributions of 1% to 3%, and 50% for contributions of 4% to 5%. There was a $1.9 million, $1.7 million, and $1.5 million matching contribution for the years ended December 31, 2022, 2021, and 2020, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2022
INCOME TAXES
INCOME TAXES	NOTE 11 - INCOME TAXES The components of income tax expense for the years indicated were as follows: Minnesot For the Year Ending December 31, Provision for income taxes 2022 2021 2020 Current $ 8,183 $ 8,258 $ 12,976 Deferred (844) 1,750 (2,390) Total provision for income taxes $ 7,339 $ 10,008 $ 10,586 A reconciliation of the effective income tax rate with the federal statutory tax rates at the dates indicated was as follows: December 31, 2022 2021 2020 Amount Rate Amount Rate Amount Rate Income tax provision at statutory rate $ 7,767 21.0 % $ 9,958 21.0 % $ 10,469 21.0 % Tax exempt income (852) (2.3) (492) (1.0) (292) (0.6) Nondeductible items resulting in increase in tax 31 0.1 28 — 57 0.1 Increase in tax resulting from other items 274 0.7 100 0.2 175 0.4 Equity compensation (146) (0.4) (883) (1.9) (46) (0.1) Executive compensation 265 0.7 979 2.1 8 — ESOP — — 318 0.7 215 0.4 Total $ 7,339 19.8 % $ 10,008 21.1 % $ 10,586 21.2 % Total deferred tax assets and liabilities at the dates indicated were as follows: Deferred Tax Assets December 31, 2022 2021 Net operating loss carryforward $ — $ 189 Allowance for credit losses 6,119 5,673 Non-accrued loan interest 11 — Restricted stock awards 101 121 Non-qualified stock options 438 265 Lease liability 1,392 1,030 Securities available-for-sale 9,146 149 Unfunded commitments 547 107 Other 234 45 Total deferred tax assets 17,988 7,579 Deferred Tax Liabilities Loan origination costs (2,123) (1,982) Servicing rights (3,874) (3,649) Stock dividend - FHLB stock (35) (35) Property, plant, and equipment (1,095) (1,036) Purchase accounting adjustments (727) (863) Lease right-of-use assets (1,338) (979) Interest rate swaps designated as cash flow hedge (2,126) (218) Total deferred tax liabilities (11,318) (8,762) Net deferred tax assets (liabilities) $ 6,670 $ (1,183) The Company files a U.S. Federal income tax return and Oregon and Idaho state returns, which are subject to examination by tax authorities for years 2019 and later. At December 31, 2022 and 2021, the Company had no uncertain tax positions. The Company recognizes interest and penalties in tax expense and at December 31, 2022, 2021 and 2020, the Company recognized no interest and penalties.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES Commitments - The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table provides a summary of the Company’s commitments at the dates indicated: COMMITMENTS TO EXTEND CREDIT December 31, REAL ESTATE LOANS 2022 2021 Commercial $ 1,260 $ 787 Construction and development 201,708 182,297 One-to-four-family (includes locks for saleable loans) 10,713 78,264 Home equity 77,566 67,596 Multi-family 2,999 3,434 Total real estate loans 294,246 332,378 CONSUMER LOANS 39,406 35,873 COMMERCIAL BUSINESS LOANS Commercial and industrial 150,109 126,220 Warehouse lending 64,781 64,160 Total commercial business loans 214,890 190,380 Total commitments to extend credit $ 548,542 $ 558,631 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the amount of the total commitments does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Company is committed. The Company’s ACL - unfunded loan commitments at December 31, 2022 and reserves for estimated losses from unfunded commitments at December 31, 2021 was $2.5 million and $499,000, respectively. The increase in the ACL - unfunded loan commitments reflects the adoption of CECL, as well as the increased provision for credit losses - unfunded loan commitments recorded during the year. One-to-four-family commitments included in the table above are accounted for as fair value derivatives and do not carry an associated reserve. The Company’s derivative positions are presented with discussion in “Note 17 - Derivatives.” The Company also sells one-to-four-family loans to the FHLB of Des Moines that require a limited level of recourse if the loans default and exceed a certain loss exposure. Specific to that recourse, the FHLB of Des Moines established a first loss account (“FLA”) related to the loans and required a credit enhancement (“CE”) obligation by the Bank to be utilized after the FLA is used. Based on loans sold through December 31, 2022, the total loans sold to the FHLB were $10.1 million with the FLA being $581,000 and the CE obligation at $389,000 or 3.8% of the loans outstanding. Management has established a holdback of 10% of the outstanding CE obligation, or $39,000, which is a part of the off-balance sheet holdback for loans sold. At December 31, 2022 and 2021, there were no loans sold to the FHLB of Des Moines greater than 30 days past their contractual payment due date. Contingent liabilities for loans held for sale The Company has entered into a severance agreement with its Chief Executive Officer (“CEO”). The severance agreement, subject to certain requirements, generally includes a lump sum payment to the CEO equal to 24 months of base compensation in the event their employment is involuntarily terminated, other than for cause or the executive terminates his employment with good reason, as defined in the severance agreement. The Company has entered into change of control agreements with its Chief Financial Officer, Chief Lending Officer, Chief Credit Officer, Chief Risk Officer, Chief Human Resources Officer, Senior Vice President Compliance Officer, Executive Vice President of Retail Banking and Marketing, and the Executive Vice President of Home Lending. The change of control agreements, subject to certain requirements, generally remain in effect until canceled by either party upon at least 24 months prior written notice. Under the change of control agreements, the executive generally will be entitled to a change of control payment from the Company if the executive is involuntarily terminated within six months preceding or 12 months after a change in control (as defined in the change of control agreements). In such an event, the executives would each be entitled to receive a cash payment in an amount equal to 12 months of their then current salary, subject to certain requirements in the change of control agreements. As a result of the nature of our activities, the Company is subject to various pending and threatened legal actions, which arise in the ordinary course of business. From time to time, subordination liens may create litigation which requires us to defend our lien rights. In the opinion of management, liabilities arising from these claims, if any, will not have a material effect on our financial position. The Company had no material pending legal actions at December 31, 2022.

SIGNIFICANT CONCENTRATION OF CR

SIGNIFICANT CONCENTRATION OF CREDIT RISK	12 Months Ended
SIGNIFICANT CONCENTRATION OF CREDIT RISK	Dec. 31, 2022
SIGNIFICANT CONCENTRATION OF CREDIT RISK
SIGNIFICANT CONCENTRATION OF CREDIT RISK	NOTE 13 - SIGNIFICANT CONCENTRATION OF CREDIT RISK Most of the Company’s commercial and multi-family real estate, construction, residential, and commercial business lending activities are with customers located in Western Washington, near the one loan production office located in the Tri-Cities, Washington, and our newest loan production office in Vancouver, Washington. The Company originates real estate, consumer, and commercial business loans and has concentrations in these areas, however, indirect home improvement loans, including solar-related home improvement loans are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, Arizona, Minnesota, Nevada, Texas, Utah, Massachusetts, and Montana. Loans are generally secured by collateral and rights to collateral vary and are legally documented to the extent practicable. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. The concentration on commercial real estate remains below the 300% of Risk Based Capital regulatory threshold and the subset of construction concentration, excluding owner-occupied loans is within Board approved limits. The construction, land development, and other land concentration represents more than 100% of the Bank’s total regulatory capital at 106.5% and is focused on in city, in fill vertical construction financing in King and Snohomish counties. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms.

REGULATORY CAPITAL

REGULATORY CAPITAL	12 Months Ended
REGULATORY CAPITAL	Dec. 31, 2022
REGULATORY CAPITAL
REGULATORY CAPITAL	NOTE 14 - REGULATORY CAPITAL The Bank is subject to various regulatory capital requirements administered by the Federal Reserve and the FDIC. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines of the regulatory framework for prompt corrective action, the Bank must meet specific capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital classification is also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As of September 30, 2022, the Company opted to discontinue the community bank leverage ratio (“CBLR”) framework and return to the former risk-based capital adequacy framework. The Bank remains well capitalized under prompt corrective action provisions. The CBLR calculated for the Bank at December 31, 2021 was 12.2%. At December 31, 2021, the Bank was considered well capitalized under the CBLR framework with Tier 1 capital of $270.8 million and a minimum Tier 1 capital requirement of $189.3 million. Under the risk-based capital adequacy framework, quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 capital (as defined in the regulations) to total average assets (as defined), and minimum ratios of Tier 1 total capital (as defined) and common equity Tier 1 (“CET 1”) capital to risk-weighted assets (as defined). The Bank must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and CET 1 capital ratios as set forth in the table below to be categorized as well capitalized. At December 31, 2022, the Bank was categorized as well capitalized under applicable regulatory requirements. There are no conditions or events since that notification that management believes have changed the Bank’s category. Management believes, at December 31, 2022, that the Bank met all capital adequacy requirements. The following table compares the Bank’s actual capital amounts and ratios at December 31, 2022 to their minimum and well capitalized regulatory capital requirements at that date (dollars in thousands): To be Well Capitalized Under Prompt For Capital For Capital Adequacy Corrective Actual Adequacy Purposes with Capital Buffer Action Provisions Bank Only Amount Ratio Amount Ratio Amount Ratio Amount Ratio At December 31, 2022 Total risk-based capital (to risk-weighted assets) $ 323,577 13.70 % $ 188,937 8.00 % $ 247,980 10.50 % $ 236,171 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 294,043 12.45 % $ 141,703 6.00 % $ 200,746 8.50 % $ 188,937 8.00 % Tier 1 leverage capital (to average assets) $ 294,043 11.28 % $ 104,304 4.00 % $ N/A N/A $ 130,380 5.00 % CET 1 capital (to risk-weighted assets) $ 294,043 12.45 % $ 106,277 4.50 % $ 165,320 7.00 % $ 153,511 6.50 % In addition to the minimum CET 1, Tier 1, total capital, and leverage ratios, the Bank is required to maintain a capital conservation buffer consisting of additional CET 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. At December 31, 2022, the Bank’s capital exceeded the conservation buffer. The Company is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. Bank holding companies with less than $3.0 billion in assets are generally not subject to compliance with the Federal Reserve’s capital regulations, which are generally the same as the capital regulations applicable to the Bank. The Federal Reserve has a policy that a bank holding company is required to serve as a source of financial and managerial strength to the holding company’s subsidiary bank and expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations. If the Company were subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets at December 31, 2022, it would have exceeded all regulatory capital requirements. For informational purposes, the regulatory capital ratios calculated for the Company at December 31, 2022 were 9.7% for Tier 1 leverage-based capital, 10.7% for Tier 1 risk-based capital, 14.0% for total risk-based capital, and 10.7% for CET 1 capital ratio. The Tier 1 leverage-based capital ratio calculated for the Company at December 31, 2021 was 10.8%.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
FAIR VALUE MEASUREMENTS	Dec. 31, 2022
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 15 - FAIR VALUE MEASUREMENTS The Company determines fair value based on the requirements established in ASC Topic 820 Fair Value Measurements, Topic 820 Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, The following definitions describe the levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 The following methods were used to estimate the fair value of certain assets and liabilities on a recurring and nonrecurring basis. Securities Mortgage Loans Held for Sale - Loans Receivable - Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, including commercial, real estate and consumer loans. Each loan category is further segregated by fixed and adjustable-rate loans. The fair value of loans is calculated by discounting expected cash flows at rates at which similar loans are currently being made. These amounts are discounted further by embedded probable losses expected to be realized in the portfolio. Certain residential mortgage loans were initially originated for sale and measured at fair value; after origination, the loans were transferred to loans held for investment. As of December 31, 2022 and 2021, there were $14.0 million and $16.1 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from held for sale to loans held for investment. The aggregate unpaid principal balance of these loans was $15.6 million and $16.1 million as of December 31, 2022 and 2021, respectively. Gains and losses from changes in fair value for these loans are reported in earnings as a component of “Other noninterest income” on the Consolidated Statements of Income. For the years ended December 31, 2022, 2021, and 2020, the Company recorded net decreases in fair value of $1.7 million and $29,000 , and a net increase in fair value of $15,000 , respectively. For loans originated as held for sale and transferred into loans held for investment, the fair value is determined based on quoted secondary market prices for similar loans (Level 2). Derivative Instruments - Other Real Estate Owned Loans Individually Evaluated - Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or when the Bank determines that foreclosure is probable, the expected credit loss is measured based on the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Bank measures the expected credit loss for a loan using the fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Bank’s assessment as of the reporting date. In both cases, if the fair value of the collateral is less than the amortized cost basis of the loan, the Bank will recognize an allowance as the difference between the fair value of the collateral, less costs to sell (if applicable) at the reporting date and the amortized cost basis of the loan. If the fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off by the subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported (Level 3). Servicing Rights The following table presents securities available-for-sale, mortgage loans held for sale, loans receivable, at fair value, and derivative assets and liabilities measured at fair value on a recurring basis at the dates indicated: Financial Assets At December 31, 2022 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 17,288 $ — $ 17,288 Corporate securities — 8,545 — 8,545 Municipal bonds — 120,602 — 120,602 Mortgage-backed securities — 69,966 — 69,966 U.S. Small Business Administration securities — 12,851 — 12,851 Mortgage loans held for sale, at fair value — 20,093 — 20,093 Loans receivable, at fair value — 14,035 — 14,035 Derivatives: Forward TBA mortgage-backed securities — 164 — 164 Interest rate lock commitments with customers — — 107 107 Interest rate swaps — 9,870 — 9,870 Total assets measured at fair value $ — $ 273,414 $ 107 $ 273,521 Financial Liabilities Derivatives: Mandatory and best effort forward commitments with investors $ — $ — $ (38) $ (38) Total liabilities measured at fair value $ — $ — $ (38) $ (38) Financial Assets At December 31, 2021 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 20,970 $ — $ 20,970 Corporate securities — 7,995 1,007 9,002 Municipal bonds — 135,302 131 135,433 Mortgage-backed securities — 89,402 — 89,402 U.S. Small Business Administration securities — 16,552 — 16,552 Mortgage loans held for sale, at fair value — 125,810 — 125,810 Loans receivable, at fair value — 16,083 — 16,083 Derivatives: Mandatory and best effort forward commitments with investors — — 808 808 Forward TBA mortgage-backed securities — 53 — 53 Interest rate swaps — 1,168 — 1,168 Interest rate lock commitments with customers — — 757 757 Total assets measured at fair value $ — $ 413,335 $ 2,703 $ 416,038 Financial Liabilities Derivatives: Interest rate swaps — (155) — (155) Total liabilities measured at fair value $ — $ (155) $ — $ (155) The following table presents impaired loans, OREO, and servicing rights measured at fair value on a nonrecurring basis at the dated indicated. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were evaluated. December 31, 2022 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 8,652 $ 8,652 OREO — — 570 570 MSR — — 35,478 35,478 December 31, 2021 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 5,829 $ 5,829 MSR — — 26,070 26,070 Quantitative Information about Level 3 Fair Value Measurements - Level 3 Significant Weighted Average Fair Value Valuation Unobservable December 31, December 31, Instruments Techniques Inputs Range 2022 2021 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 92.5 % 93.3 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 92.5 % 93.3 % NONRECURRING Loans individually evaluated Fair value of underlying collateral Discount applied to the obtained appraisal 10.0% 10.0 % 10.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 10.0% 10.0 % N/A % MSR Industry sources Pre-payment speeds 0% - 50% 8.2 % 13.8 % The pull-through rate is based on historical loan closing rates for similar interest rate lock commitments. An increase or decrease in the pull-through rate would have a corresponding positive or negative fair value adjustment. The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years indicated: Purchases Net change in Net change in Beginning and Sales and Ending fair value for fair value for 2022 Balance Issuances Settlements Balance gains/(losses) (1) gains/(losses) (2) Interest rate lock commitments with customers $ 757 $ 3,215 $ (3,865) $ 107 $ (650) $ — Individual forward sale commitments with investors 808 6,383 (7,229) (38) (846) — 2021 Interest rate lock commitments with customers $ 4,024 $ 23,164 $ (26,431) $ 757 $ (3,267) $ — Individual forward sale commitments with investors (67) 2,526 (1,651) 808 875 — Securities available-for-sale, at fair value 1,111 40 (13) 1,138 — 27 2020 Interest rate lock commitments with customers $ 557 $ 53,281 $ (49,814) $ 4,024 $ 3,467 $ — Individual forward sale commitments with investors (195) (4,857) 4,985 (67) 128 — Securities available-for-sale, at fair value 1,162 — (51) 1,111 — (40) _____________________________ (1) Relating to items held at end of period included in income. (2) Relating to items held at end of period included in other comprehensive income. (Losses) gains on interest rate lock commitments and on forward sale commitments with investors carried at fair value are recorded in “Gain on sale of loans” on the Consolidated Statements of Income. The following table provides estimated fair values of the Company’s financial instruments at the dates indicated, whether or not recognized at fair value on the Consolidated Balance Sheets: December 31, December 31, 2022 2021 Financial Assets Carrying Fair Carrying Fair Level 1 inputs: Amount Value Amount Value Cash and cash equivalents $ 41,437 $ 41,437 $ 26,491 $ 26,491 Certificates of deposit at other financial institutions 4,712 4,712 10,542 10,542 Level 2 inputs: Securities available-for-sale, at fair value 229,252 229,252 270,221 270,221 Securities held-to-maturity 8,500 7,929 7,500 8,128 Loans held for sale, at fair value 20,093 20,093 125,810 125,810 FHLB stock, at cost 10,611 10,611 4,778 4,778 Forward TBA mortgage-backed securities 164 164 53 53 Loans receivable, at fair value 14,035 14,035 16,083 16,083 Interest rate swaps 9,870 9,870 1,168 1,168 Accrued interest receivable 11,144 11,144 7,594 7,594 Level 3 inputs: Securities available-for-sale, at fair value — — 1,138 1,138 Loans receivable, gross 2,204,817 2,153,769 1,738,092 1,725,651 MSR, held at lower of cost or fair value 18,017 35,478 16,970 26,070 Fair value interest rate locks with customers 107 107 757 757 Mandatory and best effort forward commitments with investors — — 808 808 Financial Liabilities Level 2 inputs: Deposits 2,127,741 2,105,926 1,915,744 1,912,498 Borrowings 186,528 186,188 42,528 43,365 Subordinated notes, excluding unamortized debt issuance costs 50,000 44,500 50,000 51,688 Accrued interest payable 2,270 2,270 766 766 Interest rate swaps — — 155 155 Level 3 inputs: Mandatory and best effort forward commitments with investors 38 38 — —

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
EARNINGS PER SHARE	Dec. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 16 - EARNINGS PER SHARE The Company computes earnings per share using the two-class method, which is an earnings allocation method for computing earnings per share that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Unvested share-based awards containing non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For earnings per share calculations for 2021 and 2020, the ESOP shares committed to be released are included as outstanding shares for both basic and diluted earnings per share. All ESOP shares were allocated as of December 31, 2021. The following table presents a reconciliation of the components used to compute basic and diluted earnings per share at or for the years indicated: At or For the Year Ended December 31, Numerator (Dollars in thousands, except per share amounts): 2022 2021 2020 Net income $ 29,649 $ 37,412 $ 39,264 Dividends and undistributed earnings allocated to participating securities (554) (611) (545) Net income available to common shareholders $ 29,095 $ 36,801 $ 38,719 Denominator (shown as actual): Basic weighted average common shares outstanding 7,754,507 8,217,916 8,461,280 Dilutive shares 119,133 200,580 162,038 Diluted weighted average common shares outstanding 7,873,640 8,418,496 8,623,318 Basic earnings per share $ 3.75 $ 4.48 $ 4.58 Diluted earnings per share $ 3.70 $ 4.37 $ 4.49 Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive. 61,912 16,466 133,238

DERIVATIVES

DERIVATIVES	12 Months Ended
DERIVATIVES	Dec. 31, 2022
DERIVATIVES
DERIVATIVES	NOTE 17 - DERIVATIVES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s predominant derivative and hedging activities involve interest rate swaps related to certain borrowings, brokered deposits, investment securities, forward sales contracts, and commitments to extend credit associated with mortgage banking activities. Generally, these instruments help the Company manage exposure to market risk. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors. Mortgage Banking Derivatives Not Designated as Hedges The Company regularly enters into commitments to originate and sell loans held for sale. The Company has exposure to movements in interest rates associated with written interest rate lock commitments with potential borrowers to originate one-to four-family loans that are intended to be sold and for closed one-to-four-family mortgage loans held for sale for which fair value accounting has been elected, that are awaiting sale and delivery into the secondary market. The Company economically hedges the risk of changing interest rates associated with these mortgage loan commitments by entering into forward sales contracts to sell one-to-four-family mortgage loans or into contracts to sell forward To-Be-Announced (“TBA”) mortgage-backed securities. These commitments and contracts are considered derivatives but have not been designated as hedging instruments for reporting purposes under U.S. GAAP. Rather, they are accounted for as free-standing derivatives, or economic hedges, with changes in the fair value of the derivatives reported in noninterest income or noninterest expense. The Bank recognizes all derivative instruments as either “Other assets” or “Other liabilities” on the Consolidated Balance Sheets and measures those instruments at fair value. Cash Flow Hedges The Company has entered into interest rate swaps to reduce the exposure to variability in interest-related cash outflows attributable to changes in forecasted LIBOR based brokered deposits. These derivative instruments are designated as cash flow hedges. The hedged item is the LIBOR portion of the series of future adjustable-rate borrowings and deposits over the term of the interest rate swap. Accordingly, changes to the amount of interest payment cash flows for the hedged transactions attributable to a change in credit risk are excluded from management’s assessment of hedge effectiveness. The Bank tests for hedging effectiveness on a quarterly basis. The accumulated other comprehensive income is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Bank has not recorded any hedge ineffectiveness since inception. The Bank expects that approximately $3.8 million will be reclassified from accumulated other comprehensive loss as a decrease to interest expense over the next twelve months related to these cash flow hedges. Fair Value Hedges The Company is exposed to changes in the fair value of certain of its pools of prepayable fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, the SOFR. Interest rate swaps designated as fair value hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of December 31, 2022, the following amounts were recorded on the balance sheet related to cumulative-basis adjustment for fair value hedges. The Company had no fair value hedges at December 31, 2021. December 31, 2022 Line item in the statement of financial position in which the hedged Item is included Hedged Assets Investment securities (1) $ 55,893 $ 4,107 Total $ 55,893 $ 4,107 ____________________________________ 1) These amounts include the amortized cost basis of closed portfolios used in designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $242.1 million; the cumulative basis adjustments associated with these hedging relationships was $4.1 million; and the amounts of the designated hedged items was $60.0 million. The following tables summarize the Company’s derivative instruments at the dates indicated. The Company has master netting agreements with derivative dealers with which it does business, but reflects gross assets and liabilities as “Other assets” and “Other liabilities”, respectively, on the Consolidated Balance Sheets, as follows: December 31, 2022 Fair Value Cash flow hedges: Notional Asset Liability Interest rate swaps - brokered deposits $ 90,000 $ 5,780 $ — Fair value hedges: Interest rate swaps - securities $ 60,000 $ 4,090 $ — Non-hedging derivatives: Fallout adjusted interest rate lock commitments with customers 8,837 107 — Mandatory and best effort forward commitments with investors 4,558 — 38 Forward TBA mortgage-backed securities 27,000 164 — December 31, 2021 Fair Value Cash flow hedges: Notional Asset Liability Interest rate swaps - brokered deposits $ 90,000 $ 1,168 $ 155 Non-hedging derivatives: Fallout adjusted interest rate lock commitments with customers 71,890 757 — Mandatory and best effort forward commitments with investors 74,375 808 — Forward TBA mortgage-backed securities 111,000 53 — The following table summarizes the effect of fair value and cash flow hedge accounting on the income statement for the years indicated: Year Ended December 31, 2022 2021 2020 Interest Interest Interest Interest Interest Interest Expense Income Expense Income Expense Income Deposits Securities Deposits Securities Deposits Securities Total amounts presented on the Consolidated Statements of Income $ 9,420 $ 7,046 $ 6,929 $ 5,637 $ 11,980 $ 4,709 Net gains (losses) on fair value hedging relationships: Interest rate swaps - securities Recognized on hedged items $ — $ (4,107) $ — $ — $ — $ — Recognized on derivatives designated as hedging instruments — 4,103 — — — — Net expense recognized on fair value hedges $ — $ (4) $ — $ — $ — $ — Net gain (loss) on cash flow hedging relationships: Interest rate swaps - brokered deposits and borrowings Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ 970 $ — $ (538) $ — $ (198) $ — Net income (expense) recognized on cash flow hedges $ 970 $ — $ (538) $ — $ (198) $ — Changes in the fair value of the non-hedging derivatives recognized in “Noninterest income” on the Consolidated Statements of Income and included in gain on sale of loans resulted in a net loss of $2.6 million and net gains of $5.1 million and $6.3 million for the years ended December 31, 2022, 2021, and 2020, respectively. The following table presents a summary of amounts outstanding in derivative financial instruments including those entered into in connection with the same counter-party under master netting agreements as of the years indicated. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related asset or liability for each counter-party. Gross Amounts Net Amounts of Assets Gross Amounts Not Offset Gross Amounts Offset in the Presented in the in the Statement of Financial Position Offsetting of derivative assets of Recognized Statement of Statement of Financial Cash Collateral at December 31, 2022 Assets Financial Position Financial Position Instruments Received Net Amount Interest rate swaps $ 9,870 $ — $ 9,870 $ — $ — $ 9,870 at December 31, 2021 Interest rate swaps $ 1,168 $ — $ 1,168 $ — $ — $ 1,168 Gross Amounts Net Amounts of Gross Amounts Not Offset Gross Amounts Offset in the Liabilities in the Statement of Financial Position Offsetting of derivative liabilities of Recognized Statement of Presented in the Statement Financial Cash Collateral at December 31, 2022 Liabilities Financial Position of Financial Position Instruments Posted Net Amount Interest rate swaps $ — $ — $ — $ — $ — $ — at December 31, 2021 Interest rate swaps $ 155 $ — $ 155 $ — $ 155 $ — Credit Risk-related Contingent Features The Company has interest rate swap agreements with certain of its derivative counterparties that contain a provision where if the Company either defaults or fails to maintain its status as a well or adequately capitalized institution, then the Company could be required to terminate the contracts or post additional collateral. As of December 31, 2022, the Company had no derivatives in a net liability position related to these agreements. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of securities with a carrying value of $2.8 million and cash of $680,000 to secure interest rate swap agreements as of December 31, 2022. The Company had posted cash collateral of $170,000 for TBA trades with counterparties at that date. In certain cases, the Company will have posted excess collateral, compared to total exposure due to initial margin requirements or day-to-day rate volatility.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Dec. 31, 2022
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 18 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the years indicated: Unrealized Gains Gains and and (Losses) (Losses) on on Available Derivative for Sale Year Ended December 31, 2022 Instruments Securities Total Beginning balance $ 794 $ (542) $ 252 Other comprehensive income (loss) before reclassification, net of tax 7,728 (32,851) (25,123) Amounts reclassified from accumulated other comprehensive loss, net of tax (761) — (761) Net current period other comprehensive income (loss) 6,967 (32,851) (25,884) Ending balance $ 7,761 $ (33,393) $ (25,632) Unrealized Gains Gains and and (Losses) (Losses) on on Available Derivative for Sale Year Ended December 31, 2021 Instruments Securities Total Beginning balance $ (967) $ 3,500 $ 2,533 Other comprehensive income (loss) before reclassification, net of tax 1,339 (4,042) (2,703) Amounts reclassified from accumulated other comprehensive income, net of tax 422 — 422 Net current period other comprehensive income (loss) 1,761 (4,042) (2,281) Ending balance $ 794 $ (542) $ 252 Unrealized Gains Gains and and (Losses) (Losses) on on Available Derivative for Sale Year Ended December 31, 2020 Instruments Securities Total Beginning balance $ — $ 788 $ 788 Other comprehensive (loss) income before reclassification, net of tax (1,122) 2,947 1,825 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 155 (235) (80) Net current period other comprehensive (loss) income (967) 2,712 1,745 Ending balance $ (967) $ 3,500 $ 2,533

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
STOCK-BASED COMPENSATION	Dec. 31, 2022
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	Stock Options and Restricted Stock On May 17, 2018, the shareholders of the Company approved the 2018 Equity Incentive Plan (the “2018 Plan”) that authorizes 1.3 million shares of the Company’s common stock to be awarded. The 2018 Plan provides for the grant of incentive stock options, non-qualified stock options, and up to 326,000 shares as restricted stock awards (“RSAs”) to directors, emeritus directors, officers, employees or advisory directors of the Company. At December 31, 2022, there were 342,096 shares available for future stock option awards and 109,410 shares available under the 2018 Plan. For the years ended December 31, 2022, 2021, and 2020, total share-based compensation expense was $2.0 million, $1.4 million, and $1.0 million, respectively. The related income tax benefit was $414,000, $304,000, and $214,000 for the years ended December 31, 2022, 2021, and 2020, respectively. Stock Options The 2018 plan consists of stock option awards that may be granted as incentive stock options or nonqualified stock options. Stock option awards generally vest over a one two The fair value of options granted was determined using the following weighted-average assumptions as of the grant date for the years indicated: For the Year Ended December 31, 2022 2021 2020 Dividend yield 2.59% 1.58% 1.97% Expected volatility 26.86% 37.10% 26.79% Risk-free interest rate 2.88% 1.01% 0.42% Expected term in years 6.5 6.5 6.5 Weighted-average grant date fair value per option granted $ 7.13 $ 10.67 $ 8.00 The following table presents a summary of the Company’s stock option plan awards during the years indicated (shown as actual). Share and per share data has been adjusted for all periods to reflect a two-for-one stock split effective July 14, 2021. Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2020 575,980 $ 18.49 6.77 $ 7,722,369 Granted 124,570 $ 21.35 — — Less exercised 28,796 $ 8.45 — $ 453,674 Forfeited or expired — — — — Outstanding at December 31, 2020 671,754 $ 19.45 6.58 $ 5,721,159 Outstanding at January 1, 2021 671,754 $ 19.45 6.58 $ 5,721,159 Granted 118,850 $ 35.46 — — Less exercised 176,978 $ 12.73 — $ 4,265,369 Forfeited or expired — — — — Outstanding at December 31, 2021 613,626 $ 25.24 7.17 $ 5,362,902 Outstanding at January 1, 2022 613,626 $ 25.24 7.17 $ 5,362,902 Granted 99,200 $ 30.94 — — Less exercised 64,994 $ 19.75 — $ 790,558 Forfeited or expired — — — — Outstanding at December 31, 2022 647,832 $ 26.67 6.84 $ 4,627,255 Expected to vest, assuming a 0.31% annual forfeiture rate at December 31, 2022 (1) 645,998 $ 26.66 6.84 $ 4,619,599 Exercisable at December 31, 2022 312,821 $ 24.03 5.46 $ 3,007,299 ___________________________ (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 3.1% of the options forfeited over 10 years. At December 31, 2022, there was $2.0 million of total unrecognized compensation cost related to nonvested stock options granted under the 2018 plan. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.3 years. Restricted Stock Awards The RSAs fair value is equal to the value of the market price of the Company’s common stock on the grant date and compensation expense is recognized over the vesting period of the awards based on the fair value of the restricted stock. Shares for the 2018 Plan generally vest over a one two The following table presents a summary of the Company’s nonvested awards during the years indicated (shown as actual). Share and per share data has been adjusted for all periods to reflect a two-for-one stock split effective July 14, 2021. Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2020 80,430 $ 26.82 Granted 49,760 21.35 Less vested 20,006 26.84 Forfeited or expired — — Nonvested at December 31, 2020 110,184 $ 24.35 Nonvested at January 1, 2021 110,184 $ 24.35 Granted 41,350 35.46 Less vested 29,862 24.78 Forfeited or expired — — Nonvested at December 31, 2021 121,672 $ 28.02 Nonvested at January 1, 2022 121,672 $ 28.02 Granted 35,050 30.94 Less vested 38,192 28.12 Forfeited or expired — — Nonvested at December 31, 2022 118,530 $ 28.85 At December 31, 2022, there was $2.9 million of total unrecognized compensation costs related to nonvested shares granted under the 2018 plan as RSAs. The cost is expected to be recognized over the remaining weighted-average vesting period of 3.3 years.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	12 Months Ended
BUSINESS SEGMENTS	Dec. 31, 2022
BUSINESS SEGMENTS
BUSINESS SEGMENTS	NOTE 20 - BUSINESS SEGMENTS The Company’s business segments are determined based on the products and services provided, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. This process is dynamic and is based on management’s current view of the Company’s operations and is not necessarily comparable with similar information for other financial institutions. The Company defines its business segments by product type and customer segment which it has organized into two lines of business: commercial and consumer banking and home lending. The Company uses various management accounting methodologies to assign certain income statement items to the responsible operating segment, including: ● a funds transfer pricing (“FTP”) system, which allocates interest income credits and funding charges between the segments, assigning to each segment a funding credit for its liabilities, such as deposits, and a charge to fund its assets; ● a cost per loan serviced allocation based on the number of loans being serviced on the balance sheet and the number of loans serviced for third parties; ● an allocation based upon the approximate square footage utilized by the home lending segment in Company owned locations; ● an allocation of charges for services rendered to the segments by centralized functions, such as corporate overhead, which are generally based on the number of full-time employees (“FTEs”) in each segment; and ● an allocation of the Company’s consolidated income taxes which are based on the effective tax rate applied to the segment’s pretax income or loss. The FTP methodology is based on management’s estimated cost of originating funds including the cost of overhead for deposit generation. A description of the Company’s business segments and the products and services that they provide is as follows: Commercial and Consumer Banking Segment The commercial and consumer banking segment provides diversified financial products and services to our commercial and consumer customers through Bank branches, automated teller machines (“ATM”), online banking platforms, mobile banking apps, and telephone banking. These products and services include deposit products; residential, consumer, business and commercial real estate lending portfolios and cash management services. The Company originates consumer loans, commercial and multi-family real estate loans, construction loans for residential and multi-family construction, and commercial business loans. At December 31, 2022, the Company’s retail deposit branch network consisted of 20 branches in the Pacific Northwest. This segment is also responsible for the management of the investment portfolio and other assets of the Bank. Home Lending Segment The home lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment. The majority of mortgage loans are sold to or securitized by FNMA, FHLMC, GNMA or the FHLB of Des Moines, while the Company generally retains the right to service these loans. Loans originated under the guidelines of the Federal Housing Administration or (“FHA”), US Department of Veterans Affairs or VA, and United States Department of Agriculture or USDA are generally sold servicing released to a correspondent bank or mortgage company. The Company has the option to sell loans on a servicing-released or servicing-retained basis to securitizers and correspondent lenders. A small percentage of its loans are brokered to other lenders. On occasion, the Company may sell a portion of its MSR portfolio and may sell small pools of loans initially originated to be held in the loan portfolio. The Company manages the loan funding and the interest rate risk associated with the secondary market loan sales and the retained one-to-four-family mortgage servicing rights within this business segment. One-to-four-family loans originated for investment and held in this segment are allocated to the home lending segment with a corresponding provision expense and FTP for cost of funds. Segment Financial Results The tables below summarize the financial results for each segment based on the factors mentioned above within each segment at or for the years indicated: At or For the Year Ended December 31, 2022 Commercial and Consumer Condensed income statement: Banking Home Lending Total Net interest income (1) $ 93,358 $ 10,922 $ 104,280 Provision for credit losses on loans (2) (5,064) (1,153) (6,217) Noninterest income 10,158 7,950 18,108 Noninterest expense (59,723) (19,460) (79,183) Income (loss) before (provision) benefit for income taxes 38,729 (1,741) 36,988 (Provision) benefit for income taxes (7,684) 345 (7,339) Net income (loss) $ 31,045 $ (1,396) $ 29,649 Total average assets for period ended $ 2,018,263 $ 417,431 $ 2,435,694 FTEs 405 132 537 At or For the Year Ended December 31, 2021 Commercial and Consumer Condensed income statement: Banking Home Lending Total Net interest income (1) $ 78,306 $ 8,343 $ 86,649 (Provision for) reversal of loan losses (2) (2,613) 2,113 (500) Noninterest income 8,545 28,968 37,513 Noninterest expense (56,557) (19,685) (76,242) Income before provision for income taxes 27,681 19,739 47,420 Provision for income taxes (5,842) (4,166) (10,008) Net income $ 21,839 $ 15,573 $ 37,412 Total average assets for period ended $ 1,779,850 $ 409,363 $ 2,189,213 FTEs 384 152 536 At or For the Year Ended December 31, 2020 Commercial and Consumer Condensed income statement: Banking Home Lending Total Net interest income (1) $ 68,997 $ 5,123 $ 74,120 Provision for loan losses (2) (10,278) (2,758) (13,036) Noninterest income 10,551 44,808 55,359 Noninterest expense (49,242) (17,351) (66,593) Income before provision for income taxes 20,028 29,822 49,850 Provision for income taxes (4,253) (6,333) (10,586) Net income $ 15,775 $ 23,489 $ 39,264 Total average assets for period ended $ 1,543,681 $ 396,367 $ 1,940,048 FTEs 354 152 506 __________________________ (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. (2) The provision for credit losses was calculated using the CECL methodology in 2022 and the provision for loan losses was calculated using the previous incurred loss methodology in 2021 and 2020. The change in methodology reflects shifts in allocation between segments due to various changes, to include adjustments to qualitative factors, changes in loan balances, and charge-off and recovery activity.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	12 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS	Dec. 31, 2022
REVENUE FROM CONTRACTS WITH CUSTOMERS
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 21 - REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. All the Company’s revenue from contracts with customers in-scope of ASC 606 is recognized in noninterest income and included in our commercial and consumer banking segment. The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years indicated: For the Year Ended December 31, Noninterest income 2022 2021 2020 In-scope of Topic 606: Debit card interchange fees $ 2,266 $ 2,252 $ 1,879 Deposit service and account maintenance fees 919 757 786 Noninterest income (in-scope of Topic 606) 3,185 3,009 2,665 Noninterest income (out-of-scope of Topic 606) 14,923 34,504 52,694 Total noninterest income $ 18,108 $ 37,513 $ 55,359 Deposit Service and Account Maintenance Fees The Bank earns fees from its deposit customers for account maintenance, transaction-based services and overdraft charges. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposits accounts are charged to deposit customers for specific services provided to the customer, such as wire fees, as well as charges against the account, such as fees for non-sufficient funds and overdrafts. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. Debit Interchange Income Debit and ATM interchange income represent fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders’ debit card.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Dec. 31, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 22 - GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and certain other intangibles generally arise from business combinations accounted for under the acquisition method of accounting. Goodwill totaled $2.3 million at December 31, 2022 and 2021, and represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of the fair values of liabilities assumed as a result of the purchase of four retail bank branches (“Branch Purchase”) from Bank of America on January 22, 2016. Goodwill is not amortized but is evaluated for impairment on an annual basis at December 31 of each year or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performed an impairment analysis at December 31, 2022 and determined that no impairment of goodwill existed. Core deposit intangible (“CDI”) is evaluated for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. As of December 31, 2022, management believes that there have been no events or changes in the circumstances that would indicate a potential impairment of CDI. The following table summarizes the changes in the Company’s other intangible assets comprised solely of CDI for the years indicated: Other Intangible Assets Accumulated Gross CDI Amortization Net CDI Balance, December 31, 2019 $ 7,490 $ (2,033) $ 5,457 Amortization — (706) (706) Balance, December 31, 2020 7,490 (2,739) 4,751 Amortization — (691) (691) Balance, December 31, 2021 7,490 (3,430) 4,060 Amortization — (691) (691) Balance, December 31, 2022 $ 7,490 $ (4,121) $ 3,369 The CDI represents the fair value of the intangible core deposit base acquired in business combinations. The CDI will be amortized on a straight-line basis over 10 years for the CDI related to the Anchor Acquisition in November 2018 and on an accelerated basis over approximately nine years for the CDI related to the Branch Purchase. Total amortization expense was $691,000 for both years ended December 31, 2022 and 2021, and $706,000 for the year ended December 31, 2020. Amortization expense for CDI is expected to be as follows for the years ended December 31: 2023 $ 691 2024 621 2025 525 2026 525 2027 525 Thereafter 482 Total $ 3,369

PARENT COMPANY ONLY FINANCIAL I

PARENT COMPANY ONLY FINANCIAL INFORMATION	12 Months Ended
PARENT COMPANY ONLY FINANCIAL INFORMATION	Dec. 31, 2022
PARENT COMPANY ONLY FINANCIAL INFORMATION
PARENT COMPANY ONLY FINANCIAL INFORMATION	NOTE 23 - PARENT COMPANY ONLY FINANCIAL INFORMATION The Condensed Balance Sheets, Statements of Income, and Statements of Cash Flows for the Company (Parent Only) are presented below: Condensed Balance Sheets December 31, Assets 2022 2021 Cash and due from banks $ 7,195 $ 19,883 Investment in subsidiary 274,092 277,390 Other assets 704 407 Total assets $ 281,991 $ 297,680 Liabilities and Stockholders' Equity Subordinated notes, net 49,461 49,394 Other liabilities 833 779 Total liabilities 50,294 50,173 Stockholders' equity 231,697 247,507 Total liabilities and stockholders' equity $ 281,991 $ 297,680 Condensed Statements of Income Year Ended December 31, 2022 2021 2020 Interest expense on subordinated note $ (1,942) $ (1,722) $ (776) Dividends received from subsidiary 9,110 9,800 20,862 Other expenses (274) (272) (195) Income before income tax benefit and equity in undistributed net income of subsidiary 6,894 7,806 19,891 Income tax benefit 465 419 204 Equity in undistributed earnings of subsidiary 22,290 29,187 19,169 Net income $ 29,649 $ 37,412 $ 39,264 Condensed Statements of Cash Flows Year Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 29,649 $ 37,412 $ 39,264 Equity in undistributed net income of subsidiary (22,290) (29,187) (19,169) Amortization 67 61 115 ESOP compensation expense for allocated shares — 1,482 1,025 Share-based compensation expense related to stock options and restricted stock 1,971 1,446 1,020 Changes in operating assets and liabilities Other assets (297) (205) (30) Other liabilities 55 569 27 Net cash from operating activities 9,155 11,578 22,252 Cash flows (used by) from investing activities: Net proceeds from ESOP — 291 282 Investment in subsidiary — (25,000) — Net cash from (used by) investing activities — (24,709) 282 Cash flows (used by) from financing activities: Net proceeds from issuance of subordinated notes — 49,333 — Repayment of subordinated notes — (10,000) — Proceeds (disbursements) from stock options exercised 568 (2,076) (161) Common stock repurchased for employee/director taxes paid on restricted stock awards (190) (211) (34) Issuance of common stock - employee stock purchase plan 503 — — Common stock repurchased (15,628) (13,961) (9,802) Dividends paid on common stock (7,096) (4,602) (3,574) Net cash (used by) from financing activities (21,843) 18,483 (13,571) Net (decrease) increase in cash and cash equivalents (12,688) 5,352 8,963 Cash and cash equivalents, beginning of year 19,883 14,531 5,568 Cash and cash equivalents, end of year $ 7,195 $ 19,883 $ 14,531

RECENT DEVELOPMENTS

RECENT DEVELOPMENTS	12 Months Ended
RECENT DEVELOPMENTS	Dec. 31, 2022
RECENT DEVELOPMENTS
RECENT DEVELOPMENTS	NOTE 24 - RECENT DEVELOPMENTS Acquisition of Seven Columbia State Bank Branches On February 24, 2023, 1st Security Bank purchased seven branches from Columbia State Bank. The acquisition includes the branch banking operations of a total of seven retail bank branches located in the communities of Manzanita, Newport, Ontario, Tillamook, and Waldport, Oregon and Goldendale and White Salmon, Washington. In connection with the acquisition, 1st Security Bank acquired approximately $425.5 million of deposits, $65.8 million of performing loans and the bank facilities and certain other assets of the acquired branches. In consideration of the purchased assets and transferred liabilities, 1st Security Bank paid (a) the recorded investment of the loans acquired, (b) the net book value, or approximately $6.4 million, for the bank facilities and certain assets located at the acquired branches, and (c) a deposit premium of 4.15% for core deposits and 2.5% for public funds on substantially all of the deposits assumed, which equated to approximately $16.8 million. The acquisition settled by Columbia State Bank paying cash of approximately $337.3 million to 1st Security Bank for the difference between these amounts and the total deposits assumed. The branch purchase was accounted for under the acquisition method in accordance with ASC 805, “Business Combinations,” and accordingly the assets and liabilities were recorded at their fair values on the date of acquisition. Determining the fair value of assets and liabilities is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as information relative to closing date fair values become available. The initial accounting for the business combination is incomplete at this time and therefore, the estimated fair values of assets acquired and liabilities assumed at the date of acquisition has been excluded.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Statement Presentation	Financial Statement Presentation - Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points.
Principles of Consolidation	Principles of Consolidation -
Segment Reporting	Segment Reporting -
Subsequent Events	Subsequent Events - On November 5, 2022, 1st Security Bank entered into a purchase and assumption agreement to acquire seven branches from Columbia State Bank. On February 24, 2023, the Bank completed the purchase of the branches. The seven branches are located in the communities of Manzanita, Newport, Ontario, Tillamook, and Waldport, Oregon and Goldendale and White Salmon, Washington. In connection with the purchase, the Bank acquired approximately $425.5 million in deposits and $65.8 million in associated loans based on February 24, 2023 financial information and subject to post-closing confirmation and adjustment review. For additional information see “Note 24 - Recent Developments.”
Error Corrections	Error Corrections Earnings Per Share Prior presentations of earnings per share were revised due to the improper inclusion of certain unvested shares of the Company’s commons stock in the denominator of basic and diluted earnings per share. As a result of the inclusion, earnings per share was understated for the years ended December 31, 2021 and 2020. Basic earnings per share for December 31, 2021 was updated to $4.48, from $4.42 as previously reported, and diluted earnings per share was updated to $4.37, from $4.32 as previously reported. Basic earnings per share for December 31, 2020 was updated to $4.58, from $4.57, as previously reported and diluted earnings per share was unchanged at $4.49. Management evaluated the materiality of this error from qualitative and quantitative perspectives and concluded that the error was immaterial to the prior period financial statements taken as a whole. Consequently, the financial statements for the prior periods include the impact of the correction of the error, and prior period financial statements have not been restated. The error correction did not affect total assets, net income, or cash flows for the periods. Deposits Prior presentation of interest-bearing and noninterest-bearing checking balances was revised due to the misclassification of certain checking products in previous periods. As a result of the misclassification, an interest-bearing checking balance of $121.2 million at December 31, 2021 Management evaluated the materiality of this error from qualitative and quantitative perspectives and concluded that the error was immaterial to the prior period financial statements taken as a whole. Consequently, the financial statements for the prior periods include the impact of the correction of the error, and prior period financial statements have not been restated. The error correction did not affect total assets, net income, or cash flows for the periods.
Cash and Cash Equivalents	Cash and Cash Equivalents -
Securities	Securities - Management no longer evaluates securities for other-than-temporary impairment, as ASC Subtopic 326-30, Financial Instruments - Credit Losses - Available for Sale Debt Securities, changes the accounting for recognizing impairment on available for sale and held to maturity debt securities. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component recognized through the Provision for Credit Losses on the Consolidated Statements of Income. (See Note 2 - Investments).
Federal Home Loan Bank Stock	Federal Home Loan Bank Stock - respectively. The Bank was in compliance with the FHLB minimum investment requirement at December 31, 2022 and 2021. Management evaluates FHLB stock for impairment annually. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared with the capital stock amount for the FHLB and the length of time this situation has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on its evaluation, management determined that there was no impairment of FHLB stock at December 31, 2022 and 2021, respectively.
Loans Held for Sale	Loans Held for Sale -
Other Real Estate Owned	Other Real Estate Owned -
Derivatives	Derivatives - The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in noninterest income.
Loans Receivable	Loans Receivable - interest method based on the daily balance of the principal amount outstanding and is credited to income as earned. Loan fees, net of direct origination costs, are deferred and amortized over the life of the loan using the effective yield method. If the loan is repaid prior to maturity, the remaining unamortized net deferred loan origination fee is recognized in income at the time of repayment. Income Recognition on Nonaccrual Loans and Securities
Allowance for Credit Losses on Held-to-Maturity Securities	Allowance for Credit Losses on Held-to-Maturity Securities The held-to-maturity portfolio consists entirely of corporate securities. Securities are generally rated BBB- or higher. Securities are analyzed individually to establish a reserve.
Allowance for Credit Losses on Available-for-Sale Securities	Allowance for Credit Losses on Available-for-Sale Securities Changes in the ACL are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is not included in the estimate of credit losses.
Allowance for Credit Losses on Loans	Allowance for Credit Losses on Loans Management utilizes relevant available information, from internal and external sources, relating to past events, current conditions, historical loss experience, and reasonable and supportable forecasts. The lookback period in the analysis includes historical data from 2009 to present. Adjustments to historical loss information are made when management determines historical data is not likely reflective of the current portfolio such as limited data sets or lack of default or loss history. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Accrued interest receivable is excluded from the estimate of credit losses for loans.
Collective Assessment	Collective Assessment within each call report code by pass, watch, special mention, substandard, and doubtful. Other loan types are separated into their own cohorts due to specific risk characteristics for that pool of loans. The Company has elected a non-discounted cash flow methodology with probability of default (“PD”) and loss given default (“LGD”) for all call report code cohorts (“cohorts”), with the exception of the indirect and marine portfolios which are evaluated under a vintage methodology. The vintage methodology measures the expected loss calculation for future periods based on historical performance by the origination period of loans with similar life cycles and risk characteristics. Guaranteed portions of loans are measured with zero risk due to cash collateral and full guaranty. The PD calculation looks at the historical loan portfolio at particular points in time (each month during the lookback period) to determine the probability that loans in a certain cohort will default over the next 12-month period. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. In cohorts where the Company’s historical data is insufficient due to a minimal amount of default activity or zero defaults, management uses index PDs comprised of rates derived from the PD experience of other community banks in place of the Company’s historical PDs. Additionally, management reviews all other cohorts to determine if index PDs should be used outside of these criteria. The LGD calculation looks at actual losses (net charge-offs) experienced over the entire lookback period for each cohort of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. All defaults (non-accrual, charge-off, or greater than 90 days past due) occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event (i.e., nonaccrual or charge-off). Due to very limited charge-off history, management uses index LGDs comprised of rates derived from the LGD experience of other community banks in place of the Company’s historical LGDs. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACLL. The calculation includes a 12-month PD forecast based on the Company’s regression model comparing peer nonperforming loan ratios to the national unemployment rate. After the forecast period, PD rates revert on a straight-line basis back to long-term historical average rates over a 12-month period. Due to very limited default history, management uses index PDs comprised of rates derived from the PD experience of other community banks in place of the Company’s historical PDs. The Company recognizes that all significant factors that affect the collectability of the loan portfolio must be considered to determine the estimated credit losses as of the evaluation date. Furthermore, the methodology, in and of itself and even when selectively adjusted by comparison to market and peer data, does not provide a sufficient basis to determine the estimated credit losses. The Company adjusts the modeled historical losses by qualitative and environmental adjustments to incorporate all significant risks to form a sufficient basis to estimate the credit losses.
Individual Assessment	Individual Assessment Where the primary and/or expected source of repayment of a specific loan is believed to be the future liquidation of available collateral, impairment will generally be measured based upon expected future collateral proceeds, net of disposition expenses including sales commissions as well as other costs potentially necessary to sell the asset(s) (i.e., past due taxes, liens, etc.). Estimates of future collateral proceeds will be based upon available appraisals, reference to recent valuations of comparable properties, use of consultants or other professionals with relevant market and/or property-specific knowledge, and any other sources of information believed appropriate by management under the specific circumstances. When appraisals are ordered to support the impairment analysis of an impaired loan, the appraisal is reviewed by the Company’s internal appraisal reviewer. Where the primary and/or expected source of repayment of a specific loan is believed to be the receipt of principal and interest payments from the borrower and/or the refinancing of the loan by another creditor, impairment will generally be measured based upon the present value of expected proceeds discounted at the contractual interest rate. Expected refinancing proceeds may be estimated from review of term sheets actually received by the borrower from other creditors and/or from the Company’s knowledge of terms generally available from other banks.
Determining the Contractual Term	Determining the Contractual Term
Troubled Debt Restructurings	Troubled Debt Restructurings
Allowance for Credit Losses on Unfunded Commitments	Allowance for Credit Losses on Unfunded Commitments
Premises and Equipment, Net	Premises and Equipment, Net - three Management reviews buildings, improvements and equipment for impairment on an annual basis or whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property.
Right of Use Lease Asset & Lease Liability	Right of Use Lease Asset & Lease Liability - The Company leases retail space, office space, storage space, and equipment under operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent abatement. Variable lease payments are recognized as lease expense as they are incurred. The Company records an operating lease ROU asset and an operating lease liability for operating leases with a lease term greater than 12 months. The ROU asset and lease liability are recorded in “Other assets” and “Other liabilities”, respectively, on the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of the Company’s leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Transfers of Financial Assets and Servicing Rights	Transfers of Financial Assets - transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Servicing Rights - Servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Capitalized servicing rights are stated separately on the Consolidated Balance Sheets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets.
Income Taxes	Income Taxes - The Company follows the authoritative guidance issued related to accounting for uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It is the Company’s policy to record any penalties or interest arising from federal or state taxes as a component of income tax expense.
Employee Stock Ownership Plan ("ESOP")	Employee Stock Ownership Plan (“ESOP”)
Earnings Per Share ("EPS")	Earnings Per Share (“EPS”)
Comprehensive Income (Loss)	Comprehensive Income (Loss) - for-sale, net of tax and unrealized holding gains (losses) on derivatives designated as hedges, net of tax recorded directly to equity.
Financial Instruments	Financial Instruments -
Restricted Assets	Restricted Assets -
Marketing and Advertising Costs	Marketing and Advertising Costs -
Stock-Based Compensation	Stock-Based Compensation -
Goodwill	Goodwill -
Business Combinations	Business Combinations In the event that the fair value of net assets acquired exceeds the purchase price, including fair value of liabilities assumed, a bargain purchase gain is recorded on that acquisition.
Acquired Loans	Acquired Loans For purchased non-credit-deteriorated loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loan. While credit discounts are included in the determination of the fair value for non-credit-deteriorated loans, since these discounts are expected to be accreted over the life of the loans, they cannot be used to offset the allowance for credit losses that must be recorded at the acquisition date. As a result, an allowance for credit losses is determined at the acquisition date using the same methodology as other loans held for investment and is recognized as a provision for credit losses in the Consolidated Statement of Income. Any subsequent deterioration (improvement) in credit quality is recognized by recording a provision for (or reversal of) credit losses.
Application of New Accounting Guidance in 2022	Application of New Accounting Guidance in 2022 On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326) Topic 326 The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2022 are presented under ASC 326. The adoption resulted in a decrease of $2.9 million to our allowance for credit losses on loans (“ACLL”), an increase of $2.4 million to our allowance for unfunded commitments and letters of credit, an increase of $72,000 to our allowance for held-to-maturity securities, and a net-of-tax cumulative-effect adjustment of $297,000 to increase the beginning balance of retained earnings. The Company finalized the adoption of ASC 326 as of January 1, 2022 as detailed in the following table: January 1, 2022 As Reported January 1, 2022 Pre-Topic 326 Impact of Topic 326 Assets Under Topic 326 Adoption Adoption Allowance for credit losses on debt securities held-to-maturity $ 72 $ — $ 72 Loans Commercial $ 1,728 $ 5,667 $ (3,939) Construction and development 2,328 4,448 (2,120) Home equity 455 279 176 One-to-four-family 3,656 1,424 2,232 Multi-family 1,397 2,980 (1,583) Indirect home improvement 9,394 3,540 5,854 Marine 900 702 198 Other consumer 64 38 26 Commercial and industrial 2,727 5,953 (3,226) Warehouse lending 127 583 (456) Unallocated — 21 (21) Allowance for credit losses on loans $ 22,776 $ 25,635 $ (2,859) Liabilities Allowance for credit losses on unfunded loan commitments $ 2,908 $ 499 $ 2,409 Total $ (378) The adoption of the CECL methodology resulted in an increase of retained earnings of $297,000, net of tax.
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform” (“Topic 848”) In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326)
Loan Portfolio Segment	The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the manner in which management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending. Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending Home Equity Lending One-to-Four-Family Real Estate Lending Multi-family Lending Consumer Loans Indirect Home Improvement Marine. Other Consumer. Commercial Business Loans Commercial and Industrial Lending (“C&I”) Warehouse Lending
Nonaccrual and Past Due Loans	Nonaccrual and Past Due Loans
Credit Quality Indicators	The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 considered “Pass” and loans in risk grades 7 to 10 are reported as classified loans in the Company’s allowance for loan loss analysis. A description of the 10 risk grades is as follows: ● Grades 1 and 2 - These grades include loans to very high quality borrowers with excellent or desirable business credit. ● Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk. ● Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk. ● Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term. ● Grade 7 - This grade is for “Other Assets Especially Mentioned (OAEM)” in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected. ● Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected. ● Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable. ● Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off. Homogeneous loans are risk rated based upon the Federal Financial Institutions Examination Council’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification Policy, loans that are current or less than 90 days past due are graded “Pass” and risk graded “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” risk graded “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. Management may choose to conservatively risk rate credits even if paying in accordance with the loan’s repayment terms. Commercial real estate, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if current on their loan payment obligations. We regularly review our credits for accuracy of risk grades whenever we receive new information. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk, and complexity. In addition, nonowner-occupied commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly.
401 (k) Plan	401(k) Plan The Company has a salary deferral 401(k) Plan covering substantially all of its employees. Employees are eligible to participate in the 401(k) plan at the date of hire if they are 18 years of age. Eligible employees may contribute through payroll deductions and are 100% vested at all times in their deferral contributions account. The Company matches 100% for contributions of 1% to 3%, and 50% for contributions of 4% to 5%. There was a $1.9 million, $1.7 million, and $1.5 million matching contribution for the years ended December 31, 2022, 2021, and 2020, respectively.
Loan Commitments	The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments
Determination of Fair Market Values	The following methods were used to estimate the fair value of certain assets and liabilities on a recurring and nonrecurring basis. Securities Mortgage Loans Held for Sale - Loans Receivable - Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, including commercial, real estate and consumer loans. Each loan category is further segregated by fixed and adjustable-rate loans. The fair value of loans is calculated by discounting expected cash flows at rates at which similar loans are currently being made. These amounts are discounted further by embedded probable losses expected to be realized in the portfolio. Certain residential mortgage loans were initially originated for sale and measured at fair value; after origination, the loans were transferred to loans held for investment. As of December 31, 2022 and 2021, there were $14.0 million and $16.1 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from held for sale to loans held for investment. The aggregate unpaid principal balance of these loans was $15.6 million and $16.1 million as of December 31, 2022 and 2021, respectively. Gains and losses from changes in fair value for these loans are reported in earnings as a component of “Other noninterest income” on the Consolidated Statements of Income. For the years ended December 31, 2022, 2021, and 2020, the Company recorded net decreases in fair value of $1.7 million and $29,000 , and a net increase in fair value of $15,000 , respectively. For loans originated as held for sale and transferred into loans held for investment, the fair value is determined based on quoted secondary market prices for similar loans (Level 2). Derivative Instruments - Other Real Estate Owned Loans Individually Evaluated - Expected credit losses for loans evaluated individually are measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or when the Bank determines that foreclosure is probable, the expected credit loss is measured based on the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. As a practical expedient, the Bank measures the expected credit loss for a loan using the fair value of the collateral, if repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Bank’s assessment as of the reporting date. In both cases, if the fair value of the collateral is less than the amortized cost basis of the loan, the Bank will recognize an allowance as the difference between the fair value of the collateral, less costs to sell (if applicable) at the reporting date and the amortized cost basis of the loan. If the fair value of the collateral exceeds the amortized cost basis of the loan, any expected recovery added to the amortized cost basis will be limited to the amount previously charged-off by the subsequent changes in the expected credit losses for loans evaluated individually are included within the provision for credit losses in the same manner in which the expected credit loss initially was recognized or as a reduction in the provision that would otherwise be reported (Level 3). Servicing Rights

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of adoption	January 1, 2022 As Reported January 1, 2022 Pre-Topic 326 Impact of Topic 326 Assets Under Topic 326 Adoption Adoption Allowance for credit losses on debt securities held-to-maturity $ 72 $ — $ 72 Loans Commercial $ 1,728 $ 5,667 $ (3,939) Construction and development 2,328 4,448 (2,120) Home equity 455 279 176 One-to-four-family 3,656 1,424 2,232 Multi-family 1,397 2,980 (1,583) Indirect home improvement 9,394 3,540 5,854 Marine 900 702 198 Other consumer 64 38 26 Commercial and industrial 2,727 5,953 (3,226) Warehouse lending 127 583 (456) Unallocated — 21 (21) Allowance for credit losses on loans $ 22,776 $ 25,635 $ (2,859) Liabilities Allowance for credit losses on unfunded loan commitments $ 2,908 $ 499 $ 2,409 Total $ (378)

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
INVESTMENTS (Tables)	Dec. 31, 2022
INVESTMENTS
Schedule of Available-for-sale Securities Reconciliation	December 31, 2022 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values ACL U.S. agency securities $ 21,153 $ — $ (3,865) $ 17,288 $ — Corporate securities 9,497 27 (979) 8,545 — Municipal bonds 144,200 21 (23,619) 120,602 — Mortgage-backed securities 82,424 — (12,458) 69,966 — U.S. Small Business Administration securities 14,519 — (1,668) 12,851 — Total securities available-for-sale 271,793 48 (42,589) 229,252 — SECURITIES HELD-TO-MATURITY Corporate securities 8,500 — (571) 7,929 31 Total securities held-to-maturity 8,500 — (571) 7,929 31 Total securities $ 280,293 $ 48 $ (43,160) $ 237,181 $ 31 December 31, 2021 Estimated Amortized Unrealized Unrealized Fair SECURITIES AVAILABLE-FOR-SALE Cost Gains Losses Values U.S. agency securities $ 21,155 $ 133 $ (318) $ 20,970 Corporate securities 9,495 31 (524) 9,002 Municipal bonds 136,377 1,577 (2,521) 135,433 Mortgage-backed securities 88,641 1,457 (696) 89,402 U.S. Small Business Administration securities 16,383 235 (66) 16,552 Total securities available-for-sale 272,051 3,433 (4,125) 271,359 SECURITIES HELD-TO-MATURITY Corporate securities 7,500 628 — 8,128 Total securities held-to-maturity 7,500 628 — 8,128 Total securities $ 279,551 $ 4,061 $ (4,125) $ 279,487
Schedule of allowance of credit losses	SECURITIES HELD-TO-MATURITY For the Year Ended Corporate Securities December 31, 2022 Beginning allowance balance $ — Impact of adopting ASU 2016-13 72 Reversal of provision for credit losses (41) Securities charged-off — Recoveries — Total ending allowance balance $ 31
Schedule of Amortized cost of debt securities	December 31, Corporate securities 2022 2021 BBB/BBB- $ 8,500 $ 7,500
Schedule of Unrealized Loss on Investments	December 31, 2022 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 3,823 $ (118) $ 13,465 $ (3,747) $ 17,288 $ (3,865) Corporate securities 2,494 (4) 4,026 (975) 6,520 (979) Municipal bonds 44,261 (5,794) 73,990 (17,825) 118,251 (23,619) Mortgage-backed securities 29,791 (3,188) 40,175 (9,270) 69,966 (12,458) U.S. Small Business Administration securities 10,807 (1,162) 2,044 (506) 12,851 (1,668) Total securities available-for-sale $ 91,176 $ (10,266) $ 133,700 $ (32,323) $ 224,876 $ (42,589) SECURITIES HELD-TO-MATURITY Corporate securities 7,929 (571) — — 7,929 (571) Total securities held-to-maturity 7,929 (571) — — 7,929 (571) Total $ 99,105 $ (10,837) $ 133,700 $ (32,323) $ 232,805 $ (43,160) December 31, 2021 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized SECURITIES AVAILABLE-FOR-SALE Value Losses Value Losses Value Losses U.S. agency securities $ 13,125 $ (105) $ 3,752 $ (213) $ 16,877 $ (318) Corporate securities — — 5,476 (524) 5,476 (524) Municipal bonds 72,098 (1,961) 14,116 (560) 86,214 (2,521) Mortgage-backed securities 33,291 (620) 3,825 (76) 37,116 (696) U.S. Small Business Administration securities 2,988 (66) — — 2,988 (66) Total securities available-for-sale $ 121,502 $ (2,752) $ 27,169 $ (1,373) $ 148,671 $ (4,125)
Schedule of Available-for-Sale and Held-To-Maturity Securities by Contractual Maturity	December 31, 2022 2021 SECURITIES AVAILABLE-FOR-SALE Amortized Fair Amortized Fair U.S. agency securities Cost Value Cost Value Due after one year through five years $ 4,874 $ 4,321 $ 959 $ 1,004 Due after five years through ten years 6,989 5,963 6,920 6,850 Due after ten years 9,290 7,004 13,276 13,116 Subtotal 21,153 17,288 21,155 20,970 Corporate securities Due within one year 1,000 997 — — Due after one year through five years 2,497 2,519 3,495 3,526 Due after five years through ten years 4,000 3,763 4,000 3,627 Due after ten years 2,000 1,266 2,000 1,849 Subtotal 9,497 8,545 9,495 9,002 Municipal bonds Due within one year 2,660 2,644 — — Due after one year through five years 1,038 1,012 3,724 3,850 Due after five years through ten years 6,341 5,771 6,857 7,035 Due after ten years 134,161 111,175 125,796 124,548 Subtotal 144,200 120,602 136,377 135,433 Mortgage-backed securities Federal National Mortgage Association (“FNMA”) 68,421 57,358 75,171 75,737 Federal Home Loan Mortgage Corporation (“FHLMC”) 9,290 8,424 9,606 9,768 Government National Mortgage Association (“GNMA”) 4,713 4,184 3,864 3,897 Subtotal 82,424 69,966 88,641 89,402 U.S. Small Business Administration securities Due after one year through five years 2,553 2,407 2,485 2,507 Due after five years through ten years 4,461 3,996 4,420 4,515 Due after ten years 7,505 6,448 9,478 9,530 Subtotal 14,519 12,851 16,383 16,552 Total securities available-for-sale 271,793 229,252 272,051 271,359 SECURITIES HELD-TO-MATURITY Corporate securities Due after five years through ten years 8,500 7,929 7,500 8,128 Total securities held-to-maturity 8,500 7,929 7,500 8,128 Total securities $ 280,293 $ 237,181 $ 279,551 $ 279,487

LOANS RECEIVABLE AND ALLOWANC_2

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables)	12 Months Ended
	Dec. 31, 2022
LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Schedule of Accounts, Notes, Loans and Financing Receivable	December 31, REAL ESTATE LOANS 2022 2021 Commercial $ 334,059 $ 264,429 Construction and development 342,591 240,553 Home equity 55,387 41,017 One-to-four-family (excludes loans held for sale) 469,485 366,146 Multi-family 219,738 178,158 Total real estate loans 1,421,260 1,090,303 CONSUMER LOANS Indirect home improvement 495,941 336,285 Marine 70,567 82,778 Other consumer 3,064 2,980 Total consumer loans 569,572 422,043 COMMERCIAL BUSINESS LOANS Commercial and industrial (includes Paycheck Protection Program ("PPP") loans) 196,791 208,552 Warehouse lending 31,229 33,277 Total commercial business loans 228,020 241,829 Total loans receivable, gross 2,218,852 1,754,175 Allowance for credit losses on loans (1) (27,992) (25,635) Total loans receivable, net $ 2,190,860 $ 1,728,540 ______________________________ (1) Allowance for credit losses on loans in 2022 is reported using the CECL method and the allowance for loan losses in 2021 is reported using the incurred loss method.
Allowance for Credit Losses on Financing Receivables	At or For the Year Ended December 31, 2022 ALLOWANCE FOR CREDIT Real Commercial LOSSES ON LOANS Estate Consumer Business Unallocated Total Beginning balance, prior to adoption of ASC 326 $ 14,798 $ 4,280 $ 6,536 $ 21 $ 25,635 Impact of adopting ASC 326 (5,234) 6,078 (3,682) (21) (2,859) Provision for credit losses on loans 2,559 3,158 906 — 6,623 Loans charged-off — (2,465) — — (2,465) Recoveries — 1,058 — — 1,058 Net Charge-offs — (1,407) — — (1,407) Total ending allowance balance $ 12,123 $ 12,109 $ 3,760 $ — $ 27,992 At or For the Year Ended December 31, 2021 Real Commercial ALLOWANCE FOR LOAN LOSSES Estate Consumer Business Unallocated Total Beginning balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 Provision for (reversal of) loan losses 952 (1,417) 1,635 (670) 500 Loans charged-off — (1,755) (38) — (1,793) Recoveries — 756 — — 756 Net charge-offs — (999) (38) — (1,037) Total ending allowance balance $ 14,798 $ 4,280 $ 6,536 $ 21 $ 25,635 Period end amount allocated to: Loans individually evaluated for impairment $ 23 $ 219 $ 921 $ — $ 1,163 Loans collectively evaluated for impairment 14,775 4,061 5,615 21 24,472 Ending balance $ 14,798 $ 4,280 $ 6,536 $ 21 $ 25,635 LOANS RECEIVABLE Loans individually evaluated for impairment $ 781 $ 629 $ 4,419 $ — $ 5,829 Loans collectively evaluated for impairment 1,089,522 421,414 237,410 — 1,748,346 Ending balance $ 1,090,303 $ 422,043 $ 241,829 $ — $ 1,754,175 At or For the Year Ended December 31, 2020 Commercial ALLOWANCE FOR LOAN LOSSES Real Estate Consumer Business Unallocated Total Beginning balance $ 6,206 $ 3,766 $ 3,254 $ 3 $ 13,229 Provision for loan losses 7,622 3,372 1,354 688 13,036 Charge-offs — (1,101) (22) — (1,123) Recoveries 18 659 353 — 1,030 Net recoveries (charge-offs) 18 (442) 331 — (93) Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 Period end amount allocated to: Loans individually evaluated for impairment $ 15 $ 305 $ 990 $ — $ 1,310 Loans collectively evaluated for impairment 13,831 6,391 3,949 691 24,862 Ending balance $ 13,846 $ 6,696 $ 4,939 $ 691 $ 26,172 LOANS RECEIVABLE Loans individually evaluated for impairment $ 1,280 $ 871 $ 5,610 $ — $ 7,761 Loans collectively evaluated for impairment 922,261 373,282 267,849 — 1,563,392 Ending balance $ 923,541 $ 374,153 $ 273,459 $ — $ 1,571,153
Past Due Financing Receivables	December 31, 2022 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual (1) Commercial $ — $ — $ — $ — $ 334,059 $ 334,059 $ — Construction and development — — — — 342,591 342,591 — Home equity 29 104 16 149 55,238 55,387 46 One-to-four-family — — 463 463 469,022 469,485 920 Multi-family — — — — 219,738 219,738 — Total real estate loans 29 104 479 612 1,420,648 1,421,260 966 CONSUMER LOANS Indirect home improvement 2,298 685 532 3,515 492,426 495,941 1,076 Marine 650 385 86 1,121 69,446 70,567 267 Other consumer 32 37 5 74 2,990 3,064 9 Total consumer loans 2,980 1,107 623 4,710 564,862 569,572 1,352 COMMERCIAL BUSINESS LOANS Commercial and industrial 1 — 2,617 2,618 194,173 196,791 6,334 Warehouse lending — — — — 31,229 31,229 — Total commercial business loans 1 — 2,617 2,618 225,402 228,020 6,334 Total loans $ 3,010 $ 1,211 $ 3,719 $ 7,940 $ 2,210,912 $ 2,218,852 $ 8,652 December 31, 2021 30-59 60-89 Days Days 90 Days Total Total Past Past or More Past Loans Non- REAL ESTATE LOANS Due Due Past Due Due Current Receivable Accrual (1) Commercial $ — $ — $ — $ — $ 264,429 $ 264,429 $ — Construction and development — — — — 240,553 240,553 — Home equity — — 179 179 40,838 41,017 301 One-to-four-family 593 264 480 1,337 364,809 366,146 480 Multi-family — — — — 178,158 178,158 — Total real estate loans 593 264 659 1,516 1,088,787 1,090,303 781 CONSUMER LOANS Indirect home improvement 1,047 280 295 1,622 334,663 336,285 554 Marine 119 — — 119 82,659 82,778 57 Other consumer 11 2 18 31 2,949 2,980 18 Total consumer loans 1,177 282 313 1,772 420,271 422,043 629 COMMERCIAL BUSINESS LOANS Commercial and industrial 791 — — 791 207,761 208,552 4,419 Warehouse lending — — — — 33,277 33,277 — Total commercial business loans 791 — — 791 241,038 241,829 4,419 Total loans $ 2,561 $ 546 $ 972 $ 4,079 $ 1,750,096 $ 1,754,175 $ 5,829 ______________________________ (1) Includes past due loans as applicable.
Impaired Financing Receivables	December 31, 2021 Unpaid WITH NO RELATED ALLOWANCE RECORDED Principal Recorded Related Real estate loans: Balance Investment Allowance Home equity $ 259 $ 227 $ — One-to-four-family 497 480 — 756 707 — WITH RELATED ALLOWANCE RECORDED Real estate loans: Home equity 92 74 23 Consumer loans: Indirect 551 554 193 Marine 56 57 20 Other consumer 18 18 6 Commercial business loans: Commercial and industrial 4,417 4,419 921 5,134 5,122 1,163 Total $ 5,890 $ 5,829 $ 1,163 At or For the Year Ended December 31, 2021 2020 WITH NO RELATED ALLOWANCE RECORDED Average Recorded Interest Income Average Recorded Interest Income Real estate loans: Investment Recognized Investment Recognized Commercial $ — $ — $ 996 $ — Construction and development 771 — — — Home equity 427 15 485 25 One-to-four-family 513 15 954 17 Consumer loans: Other consumer — — 3 — Commercial business loans: Commercial and industrial — — 100 37 1,711 30 2,538 79 WITH RELATED ALLOWANCE RECORDED Real estate loans: Home equity 57 — — — One-to-four-family 20 — 60 — Consumer loans: Indirect 643 38 675 60 Marine 77 6 40 3 Other consumer 8 1 1 — Commercial business loans: Commercial and industrial 4,779 276 2,531 162 5,584 321 3,307 225 Total $ 7,295 $ 351 $ 5,845 $ 304
Summarize risk rated loan balances	December 31, 2022 Revolving Loans REAL ESTATE LOANS Term Loans by Year of Origination Converted Commercial 2022 2021 2020 2019 2018 Prior Revolving Loans to Term Total Loans Pass $ 86,189 $ 76,030 $ 46,125 $ 38,930 $ 14,101 $ 55,271 $ — $ — $ 316,646 Watch 9,504 — 373 — — — — — 9,877 Special mention — — — 2,113 — — — — 2,113 Substandard — — — — 581 4,842 — — 5,423 Total commercial 95,693 76,030 46,498 41,043 14,682 60,113 — — 334,059 Construction and development Pass 193,084 118,724 21,966 8,379 — 438 — — 342,591 Total construction and development 193,084 118,724 21,966 8,379 — 438 — — 342,591 Home equity Pass 4,978 1,696 6,818 11 1,203 1,572 39,063 — 55,341 Substandard — — — — 13 33 — — 46 Total home equity 4,978 1,696 6,818 11 1,216 1,605 39,063 — 55,387 One-to-four-family Pass 166,388 129,282 82,461 31,878 15,837 40,526 — 199 466,571 Substandard — — — — 1,941 973 — — 2,914 Total one-to-four-family 166,388 129,282 82,461 31,878 17,778 41,499 — 199 469,485 Multi-family Pass 41,041 63,353 48,376 38,805 4,176 23,987 — — 219,738 Total multi-family 41,041 63,353 48,376 38,805 4,176 23,987 — — 219,738 Total real estate loans $ 501,184 $ 389,085 $ 206,119 $ 120,116 $ 37,852 $ 127,642 $ 39,063 $ 199 $ 1,421,260 December 31, 2022 Revolving Loans CONSUMER LOANS Term Loans by Year of Origination Converted Indirect home improvement 2022 2021 2020 2019 2018 Prior Revolving Loans to Term Total Loans Pass $ 253,495 $ 123,264 $ 46,476 $ 31,251 $ 18,165 $ 22,205 $ 9 $ — $ 494,865 Substandard 347 213 137 62 169 148 — — 1,076 Total indirect home improvement 253,842 123,477 46,613 31,313 18,334 22,353 9 — 495,941 Marine Pass 27,904 11,762 15,139 6,224 5,415 3,856 — — 70,300 Substandard — — — 151 61 55 — — 267 Total marine 27,904 11,762 15,139 6,375 5,476 3,911 — — 70,567 Other consumer Pass 792 754 116 48 14 80 1,251 — 3,055 Substandard 1 5 — — — — 3 — 9 Total other consumer 793 759 116 48 14 80 1,254 — 3,064 Total consumer loans $ 282,539 $ 135,998 $ 61,868 $ 37,736 $ 23,824 $ 26,344 $ 1,263 $ — $ 569,572 December 31, 2022 COMMERCIAL Revolving Loans BUSINESS LOANS Term Loans by Year of Origination Converted Commercial and industrial 2022 2021 2020 2019 2018 Prior Revolving Loans to Term Total Loans Pass $ 24,337 $ 22,561 $ 12,461 $ 3,940 $ 3,074 $ 7,701 $ 104,524 $ — $ 178,598 Watch — 1,127 2,932 — — 746 1,327 — 6,132 Special mention — — — 634 — — 963 — 1,597 Substandard — 1,586 1,265 2,291 190 3,739 1,093 300 10,464 Total commercial and industrial 24,337 25,274 16,658 6,865 3,264 12,186 107,907 300 196,791 Warehouse lending Pass — — — — — — 31,227 — 31,227 Watch — — — — — — 2 — 2 Total warehouse lending — — — — — — 31,229 — 31,229 Total commercial business loans $ 24,337 $ 25,274 $ 16,658 $ 6,865 $ 3,264 $ 12,186 $ 139,136 $ 300 $ 228,020 TOTAL LOANS RECEIVABLE, GROSS Pass $ 798,208 $ 547,426 $ 279,938 $ 159,466 $ 61,985 $ 155,636 $ 176,074 $ 199 $ 2,178,932 Watch 9,504 1,127 3,305 — — 746 1,329 — 16,011 Special mention — — — 2,747 — — 963 — 3,710 Substandard 348 1,804 1,402 2,504 2,955 9,790 1,096 300 20,199 Total loans receivable, gross $ 808,060 $ 550,357 $ 284,645 $ 164,717 $ 64,940 $ 166,172 $ 179,462 $ 499 $ 2,218,852 The following table summarizes risk rated loan balances by category as of December 31, 2021: December 31, 2021 Special Pass Watch Mention Substandard Doubtful Loss REAL ESTATE LOANS (1 - 5) (6) (7) (8) (9) (10) Total Commercial $ 253,092 $ 4,652 $ 5,769 $ 916 $ — $ — $ 264,429 Construction and development 240,553 — — — — — 240,553 Home equity 40,716 — — 301 — — 41,017 One-to-four-family 363,682 — — 2,464 — — 366,146 Multi-family 178,158 — — — — — 178,158 Total real estate loans 1,076,201 4,652 5,769 3,681 — — 1,090,303 CONSUMER LOANS Indirect home improvement 335,731 — — 554 — — 336,285 Marine 82,721 — — 57 — — 82,778 Other consumer 2,962 — — 18 — — 2,980 Total consumer loans 421,414 — — 629 — — 422,043 COMMERCIAL BUSINESS LOANS Commercial and industrial 188,767 4,182 1,829 13,774 — — 208,552 Warehouse lending 33,277 — — — — — 33,277 Total commercial business loans 222,044 4,182 1,829 13,774 — — 241,829 Total loans receivable, gross $ 1,719,659 $ 8,834 $ 7,598 $ 18,084 $ — $ — $ 1,754,175
Schedule of amortized cost basis of loans	December 31, 2022 Nonaccrual with No Nonaccrual with Allowance for Credit Allowance for Credit Total REAL ESTATE LOANS Losses Losses Nonaccrual Home equity $ 46 $ — $ 46 One-to-four-family 920 — 920 966 — 966 CONSUMER LOANS Indirect home improvement — 1,076 1,076 Marine — 267 267 Other consumer — 9 9 — 1,352 1,352 COMMERCIAL BUSINESS LOANS Commercial and industrial — 6,334 6,334 Total $ 966 $ 7,686 $ 8,652
Schedule of amortized cost basis of collateral dependent impaired loans	December 31, 2022 REAL ESTATE LOANS Real Estate Equipment Total Home equity $ 46 $ — $ 46 One-to-four-family 920 — 920 966 — 966 CONSUMER LOANS Indirect home improvement — 1,076 1,076 Marine — 267 267 — 1,343 1,343 COMMERCIAL BUSINESS LOANS Commercial and industrial — 6,334 6,334 Total $ 966 $ 7,677 $ 8,643
Schedule of Related Party Loans	At December 31, 2022 2021 Beginning balance $ 4,207 $ 3,797 Additions — 647 Repayments (762) (237) Ending balance $ 3,445 $ 4,207

SERVICING RIGHTS (Tables)

SERVICING RIGHTS (Tables)	12 Months Ended
SERVICING RIGHTS (Tables)	Dec. 31, 2022
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Summary of servicing rights activity	At or For the Year Ended December 31, 2022 2021 2020 Beginning balance, at the lower of cost or fair value $ 16,970 $ 12,595 $ 11,560 Additions 5,400 9,760 11,139 MSR amortized (4,354) (7,444) (8,135) Recovery (impairment) of servicing rights 1 2,059 (1,969) Ending balance, at the lower of cost or fair value $ 18,017 $ 16,970 $ 12,595
Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights	December 31, 2022 2021 Aggregate portfolio principal balance $ 2,783,458 $ 2,609,776 Weighted average rate of note 3.4 % 3.2 % At December 31, 2022 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 8.2 % 8.6 % 9.3 % Fair value MSR $ 35,478 $ 34,997 $ 34,188 Percentage of MSR 1.3 % 1.3 % 1.2 % Discount rate 9.6 % 10.1 % 10.6 % Fair value MSR $ 35,478 $ 34,715 $ 33,984 Percentage of MSR 1.3 % 1.2 % 1.2 % At December 31, 2021 Base 0.5% Adverse Rate Change 1.0% Adverse Rate Change Conditional prepayment rate 13.8 % 20.0 % 31.5 % Fair value MSR $ 26,070 $ 21,188 $ 15,348 Percentage of MSR 1.0 % 0.8 % 0.6 % Discount rate 9.1 % 9.6 % 10.1 % Fair value MSR $ 26,070 $ 25,586 $ 25,119 Percentage of MSR 1.0 % 1.0 % 1.0 %
Mortgage servicing rights.
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Valuation assumptions	At December 31, Key assumptions: 2022 2021 Weighted average discount rate 9.6 % 9.1 % Conditional prepayment rate (“CPR”) 8.2 % 13.8 % Weighted average life in years 7.8 5.9

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
PREMISES AND EQUIPMENT (Tables)	Dec. 31, 2022
PREMISES AND EQUIPMENT
Schedule of Premises and Equipment	December 31, 2022 2021 Land $ 5,715 $ 6,008 Buildings 16,934 17,290 Furniture, fixtures, and equipment 16,226 15,307 Leasehold improvements 2,461 2,461 Building improvements 7,688 7,558 Projects in process 537 67 Subtotal 49,561 48,691 Less accumulated depreciation and amortization (24,442) (22,100) Total $ 25,119 $ 26,591

LEASES (Tables)

LEASES (Tables)	12 Months Ended
LEASES (Tables)	Dec. 31, 2022
LEASES
Summary of lease cost	For Year Ended December 31, Lease cost: 2022 2021 2020 Operating lease cost $ 1,422 $ 1,433 $ 1,393 Short-term lease cost 21 5 11 Total lease cost $ 1,443 $ 1,438 $ 1,404
Supplemental information related to operating leases	Cash paid for amounts included in the At or For the Year Ended December 31, measurement of lease liabilities: 2022 2021 Operating cash flows from operating leases $ 1,431 $ 1,402 Weighted average remaining lease term- operating leases 4.6 years 4.8 years Weighted average discount rate- operating leases 2.42 % 2.17 %
Summary of maturities of operating lease liabilities	2023 $ 1,512 2024 1,462 2025 1,152 2026 1,030 2027 745 Thereafter 1,251 Total lease payments 7,152 Less imputed interest (678) Total $ 6,474

OTHER REAL ESTATE OWNED ("ORE_2

OTHER REAL ESTATE OWNED ("OREO") (Tables)	12 Months Ended
OTHER REAL ESTATE OWNED ("OREO") (Tables)	Dec. 31, 2022
OTHER REAL ESTATE OWNED ("OREO")
Schedule of Other Real Estate Owned	At or For the Year Ended December 31, 2022 2021 2020 Beginning balance $ — $ 90 $ 168 Loans transferred to OREO 145 — — Closed retail branch transferred to OREO 570 — — Gross proceeds from sale of OREO (145) (81) (76) Loss on sale of OREO — (9) (2) Ending balance $ 570 $ — $ 90

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
DEPOSITS (Tables)	Dec. 31, 2022
DEPOSITS
Schedule of Deposit Liabilities	December 31, 2022 2021 Noninterest-bearing checking (1) $ 537,938 $ 564,360 Interest-bearing checking (1)(2) 135,127 228,024 Savings 134,358 193,922 Money market (3) 574,290 552,357 Certificates of deposit less than $100,000 (4) 440,785 186,974 Certificates of deposit of $100,000 through $250,000 195,447 116,206 Certificates of deposit of $250,000 and over 93,560 57,512 Escrow accounts related to mortgages serviced (5) 16,236 16,389 Total $ 2,127,741 $ 1,915,744 ____________________________ (1) Prior presentation of noninterest-bearing and interest-bearing checking balances was revised due to misclassification of certain checking products in the previous period. As a result of the misclassification, interest-bearing checking balances totaling $121.2 million at December 31, 2021, were reclassified to noninterest-bearing checking for comparative purposes. Balances as of the dates and average values included herein have been updated to reflect the reclassification. (2) Includes $2.3 million and $90.0 million of brokered deposits at December 31, 2022 and 2021, respectively. (3) Includes $59.7 million and $5.0 million of brokered deposits at December 31, 2022 and 2021, respectively. (4) Includes $332.0 million and $97.6 million of brokered certificates of deposit at December 31, 2022 and 2021, respectively. (5) Noninterest-bearing accounts.
Schedule of Maturities of Time Deposits for Future Periods	December 31, 2022 Maturing in 2023 $ 472,231 Maturing in 2024 90,507 Maturing in 2025 113,434 Maturing in 2026 36,618 Maturing in 2027 16,947 Thereafter 55 Total $ 729,792
Schedule of Interest Expense by Deposit Category	Year Ended December 31, 2022 2021 2020 Interest-bearing checking $ 495 $ 282 $ 388 Savings and money market 3,775 1,604 2,458 Certificates of deposit 5,150 5,043 9,134 Total $ 9,420 $ 6,929 $ 11,980

DEBT (Tables)

DEBT (Tables)	12 Months Ended
DEBT (Tables)	Dec. 31, 2022
DEBT
Schedule of Advances on Borrowing Line	December 31, 2022 2021 Federal Home Loan Bank $ 186,528 $ 42,528 Total $ 186,528 $ 42,528
Schedule of Federal Home Loan Bank Advances Maturities Summary Due	Interest Years Ending December 31, Balances Rates 2023 $ 182,633 4.27 % 2024 3,895 2.27 % Total $ 186,528
Debt with Maximum and Average Balances	For the Year Ending December 31, 2022 2021 2020 Maximum balance: FHLB advances and Fed Funds $ 260,828 $ 102,528 $ 159,114 FRB — — 27,000 Fed Funds lines of credit — — — Subordinated notes 50,000 50,000 10,000 PPP Liquidity Facility — 59,349 74,112 Average balance: FHLB advances and Fed Funds 102,008 55,602 99,773 FRB 548 205 1,096 Fed Funds lines of credit 15 11 3 Subordinated notes 50,000 44,699 10,000 PPP Liquidity Facility — 7,310 46,965 Weighted average interest rates FHLB advances and Fed Funds 2.98 % 1.88 % 1.80 % FRB 1.69 % 0.25 % 0.25 % Fed Funds lines of credit 3.28 % 0.49 % 0.36 % Subordinated notes 3.75 % 3.75 % 6.50 % PPP Liquidity Facility — % 0.35 % 0.35 %

EMPLOYEE BENEFITS (Tables)

EMPLOYEE BENEFITS (Tables)	12 Months Ended
EMPLOYEE BENEFITS (Tables)	Dec. 31, 2022
EMPLOYEE BENEFITS
Schedule of Shares Under ESOP	Balances at December 31, 2022 2021 2020 Allocated shares — — 427,488 Committed to be released shares — — — Unallocated shares — — 51,842 Total ESOP shares — — 479,330 Fair value of unallocated shares (in thousands) $ — $ — $ 1,307

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2022
INCOME TAXES
Schedule of Components of Income Tax Expense (Benefit)	Minnesot For the Year Ending December 31, Provision for income taxes 2022 2021 2020 Current $ 8,183 $ 8,258 $ 12,976 Deferred (844) 1,750 (2,390) Total provision for income taxes $ 7,339 $ 10,008 $ 10,586
Schedule of Effective Income Tax Rate Reconciliation	December 31, 2022 2021 2020 Amount Rate Amount Rate Amount Rate Income tax provision at statutory rate $ 7,767 21.0 % $ 9,958 21.0 % $ 10,469 21.0 % Tax exempt income (852) (2.3) (492) (1.0) (292) (0.6) Nondeductible items resulting in increase in tax 31 0.1 28 — 57 0.1 Increase in tax resulting from other items 274 0.7 100 0.2 175 0.4 Equity compensation (146) (0.4) (883) (1.9) (46) (0.1) Executive compensation 265 0.7 979 2.1 8 — ESOP — — 318 0.7 215 0.4 Total $ 7,339 19.8 % $ 10,008 21.1 % $ 10,586 21.2 %
Schedule of Deferred Tax Assets and Liabilities	Deferred Tax Assets December 31, 2022 2021 Net operating loss carryforward $ — $ 189 Allowance for credit losses 6,119 5,673 Non-accrued loan interest 11 — Restricted stock awards 101 121 Non-qualified stock options 438 265 Lease liability 1,392 1,030 Securities available-for-sale 9,146 149 Unfunded commitments 547 107 Other 234 45 Total deferred tax assets 17,988 7,579 Deferred Tax Liabilities Loan origination costs (2,123) (1,982) Servicing rights (3,874) (3,649) Stock dividend - FHLB stock (35) (35) Property, plant, and equipment (1,095) (1,036) Purchase accounting adjustments (727) (863) Lease right-of-use assets (1,338) (979) Interest rate swaps designated as cash flow hedge (2,126) (218) Total deferred tax liabilities (11,318) (8,762) Net deferred tax assets (liabilities) $ 6,670 $ (1,183)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
Schedule of Commitments to Extend Credit	COMMITMENTS TO EXTEND CREDIT December 31, REAL ESTATE LOANS 2022 2021 Commercial $ 1,260 $ 787 Construction and development 201,708 182,297 One-to-four-family (includes locks for saleable loans) 10,713 78,264 Home equity 77,566 67,596 Multi-family 2,999 3,434 Total real estate loans 294,246 332,378 CONSUMER LOANS 39,406 35,873 COMMERCIAL BUSINESS LOANS Commercial and industrial 150,109 126,220 Warehouse lending 64,781 64,160 Total commercial business loans 214,890 190,380 Total commitments to extend credit $ 548,542 $ 558,631

REGULATORY CAPITAL (Tables)

REGULATORY CAPITAL (Tables)	12 Months Ended
REGULATORY CAPITAL (Tables)	Dec. 31, 2022
REGULATORY CAPITAL
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations	To be Well Capitalized Under Prompt For Capital For Capital Adequacy Corrective Actual Adequacy Purposes with Capital Buffer Action Provisions Bank Only Amount Ratio Amount Ratio Amount Ratio Amount Ratio At December 31, 2022 Total risk-based capital (to risk-weighted assets) $ 323,577 13.70 % $ 188,937 8.00 % $ 247,980 10.50 % $ 236,171 10.00 % Tier 1 risk-based capital (to risk-weighted assets) $ 294,043 12.45 % $ 141,703 6.00 % $ 200,746 8.50 % $ 188,937 8.00 % Tier 1 leverage capital (to average assets) $ 294,043 11.28 % $ 104,304 4.00 % $ N/A N/A $ 130,380 5.00 % CET 1 capital (to risk-weighted assets) $ 294,043 12.45 % $ 106,277 4.50 % $ 165,320 7.00 % $ 153,511 6.50 %

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Schedule of assets and liabilities measured at fair value on a recurring basis	Financial Assets At December 31, 2022 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 17,288 $ — $ 17,288 Corporate securities — 8,545 — 8,545 Municipal bonds — 120,602 — 120,602 Mortgage-backed securities — 69,966 — 69,966 U.S. Small Business Administration securities — 12,851 — 12,851 Mortgage loans held for sale, at fair value — 20,093 — 20,093 Loans receivable, at fair value — 14,035 — 14,035 Derivatives: Forward TBA mortgage-backed securities — 164 — 164 Interest rate lock commitments with customers — — 107 107 Interest rate swaps — 9,870 — 9,870 Total assets measured at fair value $ — $ 273,414 $ 107 $ 273,521 Financial Liabilities Derivatives: Mandatory and best effort forward commitments with investors $ — $ — $ (38) $ (38) Total liabilities measured at fair value $ — $ — $ (38) $ (38) Financial Assets At December 31, 2021 Securities available-for-sale: Level 1 Level 2 Level 3 Total U.S. agency securities $ — $ 20,970 $ — $ 20,970 Corporate securities — 7,995 1,007 9,002 Municipal bonds — 135,302 131 135,433 Mortgage-backed securities — 89,402 — 89,402 U.S. Small Business Administration securities — 16,552 — 16,552 Mortgage loans held for sale, at fair value — 125,810 — 125,810 Loans receivable, at fair value — 16,083 — 16,083 Derivatives: Mandatory and best effort forward commitments with investors — — 808 808 Forward TBA mortgage-backed securities — 53 — 53 Interest rate swaps — 1,168 — 1,168 Interest rate lock commitments with customers — — 757 757 Total assets measured at fair value $ — $ 413,335 $ 2,703 $ 416,038 Financial Liabilities Derivatives: Interest rate swaps — (155) — (155) Total liabilities measured at fair value $ — $ (155) $ — $ (155)
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets	December 31, 2022 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 8,652 $ 8,652 OREO — — 570 570 MSR — — 35,478 35,478 December 31, 2021 Level 1 Level 2 Level 3 Total Loans individually evaluated $ — $ — $ 5,829 $ 5,829 MSR — — 26,070 26,070
Fair value reconciliation - Level 3 on recurring basis	Purchases Net change in Net change in Beginning and Sales and Ending fair value for fair value for 2022 Balance Issuances Settlements Balance gains/(losses) (1) gains/(losses) (2) Interest rate lock commitments with customers $ 757 $ 3,215 $ (3,865) $ 107 $ (650) $ — Individual forward sale commitments with investors 808 6,383 (7,229) (38) (846) — 2021 Interest rate lock commitments with customers $ 4,024 $ 23,164 $ (26,431) $ 757 $ (3,267) $ — Individual forward sale commitments with investors (67) 2,526 (1,651) 808 875 — Securities available-for-sale, at fair value 1,111 40 (13) 1,138 — 27 2020 Interest rate lock commitments with customers $ 557 $ 53,281 $ (49,814) $ 4,024 $ 3,467 $ — Individual forward sale commitments with investors (195) (4,857) 4,985 (67) 128 — Securities available-for-sale, at fair value 1,162 — (51) 1,111 — (40) _____________________________ (1) Relating to items held at end of period included in income. (2) Relating to items held at end of period included in other comprehensive income.
Fair Value, by Balance Sheet Grouping	December 31, December 31, 2022 2021 Financial Assets Carrying Fair Carrying Fair Level 1 inputs: Amount Value Amount Value Cash and cash equivalents $ 41,437 $ 41,437 $ 26,491 $ 26,491 Certificates of deposit at other financial institutions 4,712 4,712 10,542 10,542 Level 2 inputs: Securities available-for-sale, at fair value 229,252 229,252 270,221 270,221 Securities held-to-maturity 8,500 7,929 7,500 8,128 Loans held for sale, at fair value 20,093 20,093 125,810 125,810 FHLB stock, at cost 10,611 10,611 4,778 4,778 Forward TBA mortgage-backed securities 164 164 53 53 Loans receivable, at fair value 14,035 14,035 16,083 16,083 Interest rate swaps 9,870 9,870 1,168 1,168 Accrued interest receivable 11,144 11,144 7,594 7,594 Level 3 inputs: Securities available-for-sale, at fair value — — 1,138 1,138 Loans receivable, gross 2,204,817 2,153,769 1,738,092 1,725,651 MSR, held at lower of cost or fair value 18,017 35,478 16,970 26,070 Fair value interest rate locks with customers 107 107 757 757 Mandatory and best effort forward commitments with investors — — 808 808 Financial Liabilities Level 2 inputs: Deposits 2,127,741 2,105,926 1,915,744 1,912,498 Borrowings 186,528 186,188 42,528 43,365 Subordinated notes, excluding unamortized debt issuance costs 50,000 44,500 50,000 51,688 Accrued interest payable 2,270 2,270 766 766 Interest rate swaps — — 155 155 Level 3 inputs: Mandatory and best effort forward commitments with investors 38 38 — —
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation assumptions	Level 3 Significant Weighted Average Fair Value Valuation Unobservable December 31, December 31, Instruments Techniques Inputs Range 2022 2021 RECURRING Interest rate lock commitments with customers Quoted market prices Pull-through expectations 80% - 99% 92.5 % 93.3 % Individual forward sale commitments with investors Quoted market prices Pull-through expectations 80% - 99% 92.5 % 93.3 % NONRECURRING Loans individually evaluated Fair value of underlying collateral Discount applied to the obtained appraisal 10.0% 10.0 % 10.0 % OREO Fair value of collateral Discount applied to the obtained appraisal 10.0% 10.0 % N/A % MSR Industry sources Pre-payment speeds 0% - 50% 8.2 % 13.8 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
EARNINGS PER SHARE (Tables)	Dec. 31, 2022
EARNINGS PER SHARE
Schedule of Earnings Per Share, Basic and Diluted	At or For the Year Ended December 31, Numerator (Dollars in thousands, except per share amounts): 2022 2021 2020 Net income $ 29,649 $ 37,412 $ 39,264 Dividends and undistributed earnings allocated to participating securities (554) (611) (545) Net income available to common shareholders $ 29,095 $ 36,801 $ 38,719 Denominator (shown as actual): Basic weighted average common shares outstanding 7,754,507 8,217,916 8,461,280 Dilutive shares 119,133 200,580 162,038 Diluted weighted average common shares outstanding 7,873,640 8,418,496 8,623,318 Basic earnings per share $ 3.75 $ 4.48 $ 4.58 Diluted earnings per share $ 3.70 $ 4.37 $ 4.49 Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive. 61,912 16,466 133,238

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
DERIVATIVES (Tables)	Dec. 31, 2022
DERIVATIVES
Schedule of cumulative-basis adjustment for fair value hedges	December 31, 2022 Line item in the statement of financial position in which the hedged Item is included Hedged Assets Investment securities (1) $ 55,893 $ 4,107 Total $ 55,893 $ 4,107 ____________________________________ 1) These amounts include the amortized cost basis of closed portfolios used in designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $242.1 million; the cumulative basis adjustments associated with these hedging relationships was $4.1 million; and the amounts of the designated hedged items was $60.0 million.
Schedule of Derivative Instruments	December 31, 2022 Fair Value Cash flow hedges: Notional Asset Liability Interest rate swaps - brokered deposits $ 90,000 $ 5,780 $ — Fair value hedges: Interest rate swaps - securities $ 60,000 $ 4,090 $ — Non-hedging derivatives: Fallout adjusted interest rate lock commitments with customers 8,837 107 — Mandatory and best effort forward commitments with investors 4,558 — 38 Forward TBA mortgage-backed securities 27,000 164 — December 31, 2021 Fair Value Cash flow hedges: Notional Asset Liability Interest rate swaps - brokered deposits $ 90,000 $ 1,168 $ 155 Non-hedging derivatives: Fallout adjusted interest rate lock commitments with customers 71,890 757 — Mandatory and best effort forward commitments with investors 74,375 808 — Forward TBA mortgage-backed securities 111,000 53 —
Schedule of effect of fair value and cash flow hedge accounting on the income statement	Year Ended December 31, 2022 2021 2020 Interest Interest Interest Interest Interest Interest Expense Income Expense Income Expense Income Deposits Securities Deposits Securities Deposits Securities Total amounts presented on the Consolidated Statements of Income $ 9,420 $ 7,046 $ 6,929 $ 5,637 $ 11,980 $ 4,709 Net gains (losses) on fair value hedging relationships: Interest rate swaps - securities Recognized on hedged items $ — $ (4,107) $ — $ — $ — $ — Recognized on derivatives designated as hedging instruments — 4,103 — — — — Net expense recognized on fair value hedges $ — $ (4) $ — $ — $ — $ — Net gain (loss) on cash flow hedging relationships: Interest rate swaps - brokered deposits and borrowings Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ 970 $ — $ (538) $ — $ (198) $ — Net income (expense) recognized on cash flow hedges $ 970 $ — $ (538) $ — $ (198) $ —
Schedule of offsetting derivative assets	Gross Amounts Net Amounts of Assets Gross Amounts Not Offset Gross Amounts Offset in the Presented in the in the Statement of Financial Position Offsetting of derivative assets of Recognized Statement of Statement of Financial Cash Collateral at December 31, 2022 Assets Financial Position Financial Position Instruments Received Net Amount Interest rate swaps $ 9,870 $ — $ 9,870 $ — $ — $ 9,870 at December 31, 2021 Interest rate swaps $ 1,168 $ — $ 1,168 $ — $ — $ 1,168
Schedule of offsetting derivative liabilities	Gross Amounts Net Amounts of Gross Amounts Not Offset Gross Amounts Offset in the Liabilities in the Statement of Financial Position Offsetting of derivative liabilities of Recognized Statement of Presented in the Statement Financial Cash Collateral at December 31, 2022 Liabilities Financial Position of Financial Position Instruments Posted Net Amount Interest rate swaps $ — $ — $ — $ — $ — $ — at December 31, 2021 Interest rate swaps $ 155 $ — $ 155 $ — $ 155 $ —

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Dec. 31, 2022
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax	Unrealized Gains Gains and and (Losses) (Losses) on on Available Derivative for Sale Year Ended December 31, 2022 Instruments Securities Total Beginning balance $ 794 $ (542) $ 252 Other comprehensive income (loss) before reclassification, net of tax 7,728 (32,851) (25,123) Amounts reclassified from accumulated other comprehensive loss, net of tax (761) — (761) Net current period other comprehensive income (loss) 6,967 (32,851) (25,884) Ending balance $ 7,761 $ (33,393) $ (25,632) Unrealized Gains Gains and and (Losses) (Losses) on on Available Derivative for Sale Year Ended December 31, 2021 Instruments Securities Total Beginning balance $ (967) $ 3,500 $ 2,533 Other comprehensive income (loss) before reclassification, net of tax 1,339 (4,042) (2,703) Amounts reclassified from accumulated other comprehensive income, net of tax 422 — 422 Net current period other comprehensive income (loss) 1,761 (4,042) (2,281) Ending balance $ 794 $ (542) $ 252 Unrealized Gains Gains and and (Losses) (Losses) on on Available Derivative for Sale Year Ended December 31, 2020 Instruments Securities Total Beginning balance $ — $ 788 $ 788 Other comprehensive (loss) income before reclassification, net of tax (1,122) 2,947 1,825 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 155 (235) (80) Net current period other comprehensive (loss) income (967) 2,712 1,745 Ending balance $ (967) $ 3,500 $ 2,533

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
STOCK-BASED COMPENSATION (Tables)	Dec. 31, 2022
STOCK-BASED COMPENSATION
Weighted-Average Assumptions - Fair value of options granted	For the Year Ended December 31, 2022 2021 2020 Dividend yield 2.59% 1.58% 1.97% Expected volatility 26.86% 37.10% 26.79% Risk-free interest rate 2.88% 1.01% 0.42% Expected term in years 6.5 6.5 6.5 Weighted-average grant date fair value per option granted $ 7.13 $ 10.67 $ 8.00
Summary of Stock Option Awards	Weighted-Average Weighted- Remaining Average Contractual Term In Aggregate Shares Exercise Price Years Intrinsic Value Outstanding at January 1, 2020 575,980 $ 18.49 6.77 $ 7,722,369 Granted 124,570 $ 21.35 — — Less exercised 28,796 $ 8.45 — $ 453,674 Forfeited or expired — — — — Outstanding at December 31, 2020 671,754 $ 19.45 6.58 $ 5,721,159 Outstanding at January 1, 2021 671,754 $ 19.45 6.58 $ 5,721,159 Granted 118,850 $ 35.46 — — Less exercised 176,978 $ 12.73 — $ 4,265,369 Forfeited or expired — — — — Outstanding at December 31, 2021 613,626 $ 25.24 7.17 $ 5,362,902 Outstanding at January 1, 2022 613,626 $ 25.24 7.17 $ 5,362,902 Granted 99,200 $ 30.94 — — Less exercised 64,994 $ 19.75 — $ 790,558 Forfeited or expired — — — — Outstanding at December 31, 2022 647,832 $ 26.67 6.84 $ 4,627,255 Expected to vest, assuming a 0.31% annual forfeiture rate at December 31, 2022 (1) 645,998 $ 26.66 6.84 $ 4,619,599 Exercisable at December 31, 2022 312,821 $ 24.03 5.46 $ 3,007,299 ___________________________ (1) Forfeiture rate has been calculated and estimated to assume a forfeiture of 3.1% of the options forfeited over 10 years.
Summary of Nonvested Awards	Weighted-Average Grant-Date Fair Value Nonvested Shares Shares Per Share Nonvested at January 1, 2020 80,430 $ 26.82 Granted 49,760 21.35 Less vested 20,006 26.84 Forfeited or expired — — Nonvested at December 31, 2020 110,184 $ 24.35 Nonvested at January 1, 2021 110,184 $ 24.35 Granted 41,350 35.46 Less vested 29,862 24.78 Forfeited or expired — — Nonvested at December 31, 2021 121,672 $ 28.02 Nonvested at January 1, 2022 121,672 $ 28.02 Granted 35,050 30.94 Less vested 38,192 28.12 Forfeited or expired — — Nonvested at December 31, 2022 118,530 $ 28.85

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	12 Months Ended
BUSINESS SEGMENTS (Tables)	Dec. 31, 2022
BUSINESS SEGMENTS
Schedule of Segment Reporting Information, by Segment	At or For the Year Ended December 31, 2022 Commercial and Consumer Condensed income statement: Banking Home Lending Total Net interest income (1) $ 93,358 $ 10,922 $ 104,280 Provision for credit losses on loans (2) (5,064) (1,153) (6,217) Noninterest income 10,158 7,950 18,108 Noninterest expense (59,723) (19,460) (79,183) Income (loss) before (provision) benefit for income taxes 38,729 (1,741) 36,988 (Provision) benefit for income taxes (7,684) 345 (7,339) Net income (loss) $ 31,045 $ (1,396) $ 29,649 Total average assets for period ended $ 2,018,263 $ 417,431 $ 2,435,694 FTEs 405 132 537 At or For the Year Ended December 31, 2021 Commercial and Consumer Condensed income statement: Banking Home Lending Total Net interest income (1) $ 78,306 $ 8,343 $ 86,649 (Provision for) reversal of loan losses (2) (2,613) 2,113 (500) Noninterest income 8,545 28,968 37,513 Noninterest expense (56,557) (19,685) (76,242) Income before provision for income taxes 27,681 19,739 47,420 Provision for income taxes (5,842) (4,166) (10,008) Net income $ 21,839 $ 15,573 $ 37,412 Total average assets for period ended $ 1,779,850 $ 409,363 $ 2,189,213 FTEs 384 152 536 At or For the Year Ended December 31, 2020 Commercial and Consumer Condensed income statement: Banking Home Lending Total Net interest income (1) $ 68,997 $ 5,123 $ 74,120 Provision for loan losses (2) (10,278) (2,758) (13,036) Noninterest income 10,551 44,808 55,359 Noninterest expense (49,242) (17,351) (66,593) Income before provision for income taxes 20,028 29,822 49,850 Provision for income taxes (4,253) (6,333) (10,586) Net income $ 15,775 $ 23,489 $ 39,264 Total average assets for period ended $ 1,543,681 $ 396,367 $ 1,940,048 FTEs 354 152 506 __________________________ (1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. (2) The provision for credit losses was calculated using the CECL methodology in 2022 and the provision for loan losses was calculated using the previous incurred loss methodology in 2021 and 2020. The change in methodology reflects shifts in allocation between segments due to various changes, to include adjustments to qualitative factors, changes in loan balances, and charge-off and recovery activity.

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	12 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	Dec. 31, 2022
REVENUE FROM CONTRACTS WITH CUSTOMERS
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	For the Year Ended December 31, Noninterest income 2022 2021 2020 In-scope of Topic 606: Debit card interchange fees $ 2,266 $ 2,252 $ 1,879 Deposit service and account maintenance fees 919 757 786 Noninterest income (in-scope of Topic 606) 3,185 3,009 2,665 Noninterest income (out-of-scope of Topic 606) 14,923 34,504 52,694 Total noninterest income $ 18,108 $ 37,513 $ 55,359

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Dec. 31, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of changes in other intangible assets	Other Intangible Assets Accumulated Gross CDI Amortization Net CDI Balance, December 31, 2019 $ 7,490 $ (2,033) $ 5,457 Amortization — (706) (706) Balance, December 31, 2020 7,490 (2,739) 4,751 Amortization — (691) (691) Balance, December 31, 2021 7,490 (3,430) 4,060 Amortization — (691) (691) Balance, December 31, 2022 $ 7,490 $ (4,121) $ 3,369
Schedule of amortization expense	2023 $ 691 2024 621 2025 525 2026 525 2027 525 Thereafter 482 Total $ 3,369

PARENT COMPANY ONLY FINANCIAL_2

PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)	12 Months Ended
PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)	Dec. 31, 2022
PARENT COMPANY ONLY FINANCIAL INFORMATION
Schedule of Condensed Balance Sheet	Condensed Balance Sheets December 31, Assets 2022 2021 Cash and due from banks $ 7,195 $ 19,883 Investment in subsidiary 274,092 277,390 Other assets 704 407 Total assets $ 281,991 $ 297,680 Liabilities and Stockholders' Equity Subordinated notes, net 49,461 49,394 Other liabilities 833 779 Total liabilities 50,294 50,173 Stockholders' equity 231,697 247,507 Total liabilities and stockholders' equity $ 281,991 $ 297,680
Schedule of Condensed Statements of Income	Condensed Statements of Income Year Ended December 31, 2022 2021 2020 Interest expense on subordinated note $ (1,942) $ (1,722) $ (776) Dividends received from subsidiary 9,110 9,800 20,862 Other expenses (274) (272) (195) Income before income tax benefit and equity in undistributed net income of subsidiary 6,894 7,806 19,891 Income tax benefit 465 419 204 Equity in undistributed earnings of subsidiary 22,290 29,187 19,169 Net income $ 29,649 $ 37,412 $ 39,264
Schedule of Condensed Statements of Cash Flows	Condensed Statements of Cash Flows Year Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 29,649 $ 37,412 $ 39,264 Equity in undistributed net income of subsidiary (22,290) (29,187) (19,169) Amortization 67 61 115 ESOP compensation expense for allocated shares — 1,482 1,025 Share-based compensation expense related to stock options and restricted stock 1,971 1,446 1,020 Changes in operating assets and liabilities Other assets (297) (205) (30) Other liabilities 55 569 27 Net cash from operating activities 9,155 11,578 22,252 Cash flows (used by) from investing activities: Net proceeds from ESOP — 291 282 Investment in subsidiary — (25,000) — Net cash from (used by) investing activities — (24,709) 282 Cash flows (used by) from financing activities: Net proceeds from issuance of subordinated notes — 49,333 — Repayment of subordinated notes — (10,000) — Proceeds (disbursements) from stock options exercised 568 (2,076) (161) Common stock repurchased for employee/director taxes paid on restricted stock awards (190) (211) (34) Issuance of common stock - employee stock purchase plan 503 — — Common stock repurchased (15,628) (13,961) (9,802) Dividends paid on common stock (7,096) (4,602) (3,574) Net cash (used by) from financing activities (21,843) 18,483 (13,571) Net (decrease) increase in cash and cash equivalents (12,688) 5,352 8,963 Cash and cash equivalents, beginning of year 19,883 14,531 5,568 Cash and cash equivalents, end of year $ 7,195 $ 19,883 $ 14,531

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) segment Office item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Feb. 24, 2023 USD ($) item
Schedule of Accounting Policies [Line Items]
Number of operating segments	2
Maximum term to qualify as cash and cash equivalents	90 days
Cash and due from banks and interest-bearing deposits in excess of FDIC insured limits	$ 281,000	$ 327,000
FHLB investment requirement, capital stock amount	$ 2,500,000
FHLB investment requirement, percent of advances from FHLB	4%
Federal Home Loan Bank Stock	$ 10,611,000	4,778,000
Impairment of FHLB stock	$ 0	0
Minimum term for accrual of interest on loans to be discontinued	90 days
Minimum term delinquent loan performs under contract terms and returned to accrual status	6 months
Reserve requirement	$ 0	0
Marketing and advertising	897,000	634,000	$ 530,000
Goodwill, Impairment Loss	0	0	$ 0
Total deposits	2,127,741,000	1,915,744,000
Loans receivable, net	$ 2,190,860,000	$ 1,728,540,000
Building and building improvements \| Minimum
Schedule of Accounting Policies [Line Items]
Useful life	25 years
Furniture, fixtures and equipment \| Minimum
Schedule of Accounting Policies [Line Items]
Useful life	3 years
Furniture, fixtures and equipment \| Maximum
Schedule of Accounting Policies [Line Items]
Useful life	10 years
Puget Sound
Schedule of Accounting Policies [Line Items]
Number of bank branches \| item	20
Number of administrative offices that originates loans and accept deposits \| Office	1
Columbia State Bank \| Subsequent Event
Schedule of Accounting Policies [Line Items]
Number of bank branches \| item				7
Total deposits				$ 425,500,000
Loans receivable, net				$ 65,800,000
Columbia State Bank \| Subsequent Event \| Purchase and Assumption Agreement
Schedule of Accounting Policies [Line Items]
Number of bank branches \| item				7

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Error Corrections (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Accounting Policies [Line Items]
Basic earnings per share	$ 3.75	$ 4.48	$ 4.58
Diluted earnings per share	$ 3.70	$ 4.37	4.49
Interest-bearing accounts	$ 1,573,567	$ 1,334,995
Noninterest-bearing accounts	$ 554,174	580,749
Error correction
Schedule of Accounting Policies [Line Items]
Noninterest-bearing accounts		$ 121,200
Previously reported
Schedule of Accounting Policies [Line Items]
Basic earnings per share		$ 4.42	4.57
Diluted earnings per share		$ 4.32	$ 4.49
Interest-bearing accounts		$ 121,200

BASIS OF PRESENTATION AND SUM_6

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption (Details) - USD ($)	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Schedule of Accounting Policies [Line Items]
Accrued interest receivable on available-for-sale debt securities	$ 1,200,000		$ 1,100,000
Accrued interest receivable on held to maturity debt securities	116,000		113,000
Increase in retained earnings	202,065,000		179,215,000
Assets
Allowance for credit losses on loans	27,992,000		25,635,000
Liabilities
Allowance for credit losses on unfunded loan commitments	2,500,000		$ 499,000
ASU No 2016-13
Assets
Allowance for credit losses on loans		$ 25,635,000
Liabilities
Allowance for credit losses on unfunded loan commitments		499,000
ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Schedule of Accounting Policies [Line Items]
Increase in retained earnings	$ 297,000
Assets
Allowance for credit losses on debt securities held-to-maturity		72,000
Allowance for credit losses on loans		22,776,000
Liabilities
Allowance for credit losses on unfunded loan commitments		2,908,000
ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Schedule of Accounting Policies [Line Items]
Increase in retained earnings		297,000
Assets
Allowance for credit losses on debt securities held-to-maturity		72,000
Allowance for credit losses on loans		(2,859,000)
Liabilities
Allowance for credit losses on unfunded loan commitments		2,409,000
Total		(378,000)
Commercial \| ASU No 2016-13
Assets
Allowance for credit losses on loans		5,667,000
Commercial \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		1,728,000
Commercial \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		(3,939,000)
Construction and development \| ASU No 2016-13
Assets
Allowance for credit losses on loans		4,448,000
Construction and development \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		2,328,000
Construction and development \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		(2,120,000)
Home equity. \| ASU No 2016-13
Assets
Allowance for credit losses on loans		279,000
Home equity. \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		455,000
Home equity. \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		176,000
One-to-four-family \| ASU No 2016-13
Assets
Allowance for credit losses on loans		1,424,000
One-to-four-family \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		3,656,000
One-to-four-family \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		2,232,000
Multi-family \| ASU No 2016-13
Assets
Allowance for credit losses on loans		2,980,000
Multi-family \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		1,397,000
Multi-family \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		(1,583,000)
Indirect home improvement \| ASU No 2016-13
Assets
Allowance for credit losses on loans		3,540,000
Indirect home improvement \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		9,394,000
Indirect home improvement \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		5,854,000
Marine \| ASU No 2016-13
Assets
Allowance for credit losses on loans		702,000
Marine \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		900,000
Marine \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		198,000
Other consumer loans \| ASU No 2016-13
Assets
Allowance for credit losses on loans		38,000
Other consumer loans \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		64,000
Other consumer loans \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		26,000
Commercial and industrial \| ASU No 2016-13
Assets
Allowance for credit losses on loans		5,953,000
Commercial and industrial \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		2,727,000
Commercial and industrial \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		(3,226,000)
Warehouse lending \| ASU No 2016-13
Assets
Allowance for credit losses on loans		583,000
Warehouse lending \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets
Allowance for credit losses on loans		127,000
Warehouse lending \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		(456,000)
Unallocated \| ASU No 2016-13
Assets
Allowance for credit losses on loans		21,000
Unallocated \| ASU No 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
Assets
Allowance for credit losses on loans		$ (21,000)

INVESTMENTS - Securities Reconc

INVESTMENTS - Securities Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
SECURITIES AVAILABLE-FOR-SALE
Amortized cost	$ 271,793	$ 272,051
Unrealized Gains	48	3,433
Unrealized Losses	(42,589)	(4,125)
Securities available-for-sale, at fair value	229,252	271,359
SECURITIES HELD-TO-MATURITY
Amortized cost	8,500	7,500
Unrealized gains		628
Unrealized losses	(571)
Securities held-to-maturity, at fair value	7,929	8,128
Allowance for credit losses	31	0
Total securities
Amortized cost	280,293	279,551
Unrealized gains	48	4,061
Unrealized losses	(43,160)	(4,125)
Total securities, at fair value	237,181	279,487
Allowance for credit losses	31
U.S. agency securities
SECURITIES AVAILABLE-FOR-SALE
Amortized cost	21,153	21,155
Unrealized gains		133
Unrealized losses	(3,865)	(318)
Securities available-for-sale, at fair value	17,288	20,970
Corporate securities
SECURITIES AVAILABLE-FOR-SALE
Amortized cost	9,497	9,495
Unrealized gains	27	31
Unrealized losses	(979)	(524)
Securities available-for-sale, at fair value	8,545	9,002
SECURITIES HELD-TO-MATURITY
Amortized cost	8,500	7,500
Unrealized gains		628
Unrealized losses	(571)
Securities held-to-maturity, at fair value	7,929	8,128
Allowance for credit losses	31
Municipal bonds
SECURITIES AVAILABLE-FOR-SALE
Amortized cost	144,200	136,377
Unrealized gains	21	1,577
Unrealized losses	(23,619)	(2,521)
Securities available-for-sale, at fair value	120,602	135,433
Mortgage-backed securities
SECURITIES AVAILABLE-FOR-SALE
Amortized cost	82,424	88,641
Unrealized gains		1,457
Unrealized losses	(12,458)	(696)
Securities available-for-sale, at fair value	69,966	89,402
U.S. Small Business Administration securities
SECURITIES AVAILABLE-FOR-SALE
Amortized cost	14,519	16,383
Unrealized gains	0	235
Unrealized losses	(1,668)	(66)
Securities available-for-sale, at fair value	12,851	$ 16,552
Allowance for credit losses	$ 0

INVESTMENTS - Narrative (Detail

INVESTMENTS - Narrative (Details)	12 Months Ended
INVESTMENTS - Narrative (Details)	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Debt and Equity Securities, FV-NI [Line Items]
Held-to maturity securities with unrealized losses of less than one year \| security	7
Held-to maturity securities with unrealized losses of more than one year \| security	0
Held-to maturity securities with unrealized losses \| security		0
Available-for-sale securities with unrealized losses of less than one year \| security	88	75
Available-for-sale securities with unrealized losses of more than one year \| security	106	17
Number of securities pledged and held at FHLB	10	7
Carrying value of pledged securities	$ 13,500,000	$ 8,100,000
Public deposits	15,600,000	13,900,000
Amount of credit impairment	0	0
Accrued interest receivable on held to maturity debt securities	116,000	113,000
Accrued interest receivable on available-for-sale debt securities	$ 1,200,000	$ 1,100,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Interest Receivable	Interest Receivable
Debt securities held to maturity classified as nonaccrual or 90 days or more past due and still accruing	$ 0
Asset pledged as collateral \| Washington Public Deposit Protection Commission
Debt and Equity Securities, FV-NI [Line Items]
Collateral requirement	$ 6,300,000	$ 5,600,000
Cash Flow Hedges \| Asset pledged as collateral
Debt and Equity Securities, FV-NI [Line Items]
Number of Securities Pledged	1
Carrying value of pledged securities	$ 2,800,000

INVESTMENTS - Allowance for cre

INVESTMENTS - Allowance for credit losses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning allowance balance	$ 0
Total ending allowance balance	31
Corporate securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Reversal of provision for credit losses	(41)
Total ending allowance balance	31
Corporate securities \| Accounting Standards Update 2016-13
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Total ending allowance balance	$ 72

INVESTMENTS - Amortized cost of

INVESTMENTS - Amortized cost of debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Amortized cost	$ 8,500	$ 7,500
Corporate securities
Financing Receivable, Recorded Investment [Line Items]
Amortized cost	8,500	7,500
BBB/BBB- \| Corporate securities
Financing Receivable, Recorded Investment [Line Items]
Amortized cost	$ 8,500	$ 7,500

INVESTMENTS - Investments with

INVESTMENTS - Investments with Unrealized Losses Policy (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months	$ 91,176	$ 121,502
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer	133,700	27,169
Securities available-for-sale, Unrealized loss position, Fair Value	224,876	148,671
Securities held-to-maturity, Unrealized loss position, Fair Value, Less than 12 Months	7,929
Securities held-to-maturity, Unrealized loss position, Fair Value	7,929
Total securities, Unrealized loss position, Fair Value, Less than 12 Months	99,105
Total securities, Unrealized loss position, Fair Value, 12 Months or Longer	133,700
Total securities, Unrealized loss position, Fair Value	232,805
Unrealized Losses
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months	(10,266)	(2,752)
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer	(32,323)	(1,373)
Securities available-for-sale, Unrealized losses	(42,589)	(4,125)
Securities held-to-maturity, Unrealized loss position, Unrealized losses, Less than 12 Months	(571)
Securities held-to-maturity, Unrealized losses	(571)
Unrealized loss position, Less than 12 Months, Unrealized Losses	(10,837)
Unrealized loss position, 12 Months or Longer, Unrealized Losses	(32,323)
Unrealized loss position, Unrealized Losses	(43,160)
U.S. agency securities
Fair Value
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months	3,823	13,125
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer	13,465	3,752
Securities available-for-sale, Unrealized loss position, Fair Value	17,288	16,877
Unrealized Losses
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months	(118)	(105)
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer	(3,747)	(213)
Securities available-for-sale, Unrealized losses	(3,865)	(318)
Corporate securities
Fair Value
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months	2,494
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer	4,026	5,476
Securities available-for-sale, Unrealized loss position, Fair Value	6,520	5,476
Securities held-to-maturity, Unrealized loss position, Fair Value, Less than 12 Months	7,929
Securities held-to-maturity, Unrealized loss position, Fair Value	7,929
Unrealized Losses
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months	(4)
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer	(975)	(524)
Securities available-for-sale, Unrealized losses	(979)	(524)
Securities held-to-maturity, Unrealized loss position, Unrealized losses, Less than 12 Months	(571)
Securities held-to-maturity, Unrealized losses	(571)
Municipal bonds
Fair Value
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months	44,261	72,098
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer	73,990	14,116
Securities available-for-sale, Unrealized loss position, Fair Value	118,251	86,214
Unrealized Losses
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months	(5,794)	(1,961)
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer	(17,825)	(560)
Securities available-for-sale, Unrealized losses	(23,619)	(2,521)
Mortgage-backed securities
Fair Value
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months	29,791	33,291
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer	40,175	3,825
Securities available-for-sale, Unrealized loss position, Fair Value	69,966	37,116
Unrealized Losses
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months	(3,188)	(620)
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer	(9,270)	(76)
Securities available-for-sale, Unrealized losses	(12,458)	(696)
U.S. Small Business Administration securities
Fair Value
Securities available-for-sale, Unrealized loss position, Fair Value, Less than 12 Months	10,807	2,988
Securities available-for-sale, Unrealized loss position, Fair Value, 12 Months or Longer	2,044
Securities available-for-sale, Unrealized loss position, Fair Value	12,851	2,988
Unrealized Losses
Securities available-for-sale, Unrealized loss position, Unrealized losses, Less than 12 Months	(1,162)	(66)
Securities available-for-sale, Unrealized loss position, Unrealized losses, 12 Months or Longer	(506)
Securities available-for-sale, Unrealized losses	$ (1,668)	$ (66)

INVESTMENTS - Available for Sal

INVESTMENTS - Available for Sale Securities by Contractual Maturity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Proceeds from sale of available-for-sale securities	$ 0	$ 0	$ 12,214,000
Gains from securities available-for-sale	0	0	$ 300,000
Amortized Cost
Securities available-for-sale, Total	271,793,000	272,051,000
Securities held-to-maturity, Total	8,500,000	7,500,000
Total securities	280,293,000	279,551,000
Fair Value
Securities available-for-sale, Total	229,252,000	271,359,000
Securities held-to-maturity, Total	7,929,000	8,128,000
Total securities	237,181,000	279,487,000
U.S. agency securities
Amortized Cost
Securities available-for-sale, Due after one year through five years	4,874,000	959,000
Securities available-for-sale, Due after five years through ten years	6,989,000	6,920,000
Securities available-for-sale, Due after ten years	9,290,000	13,276,000
Securities available-for-sale, Subtotal	21,153,000	21,155,000
Securities available-for-sale, Total	21,153,000	21,155,000
Fair Value
Securities available-for-sale, Due after one year through five years	4,321,000	1,004,000
Securities available-for-sale, Due after five years through ten years	5,963,000	6,850,000
Securities available-for-sale, Due after ten years	7,004,000	13,116,000
Securities available-for-sale, Subtotal	17,288,000	20,970,000
Securities available-for-sale, Total	17,288,000	20,970,000
Corporate securities
Amortized Cost
Securities available-for-sale, Due in one year or less	1,000,000
Securities available-for-sale, Due after one year through five years	2,497,000	3,495,000
Securities available-for-sale, Due after five years through ten years	4,000,000	4,000,000
Securities available-for-sale, Due after ten years	2,000,000	2,000,000
Securities available-for-sale, Subtotal	9,497,000	9,495,000
Securities available-for-sale, Total	9,497,000	9,495,000
Securities held-to-maturity, Due after five years through ten years	8,500,000	7,500,000
Fair Value
Securities available-for-sale, Due in one year or less	997,000
Securities available-for-sale, Due after one year through five years	2,519,000	3,526,000
Securities available-for-sale, Due after five years through ten years	3,763,000	3,627,000
Securities available-for-sale, Due after ten years	1,266,000	1,849,000
Securities available-for-sale, Subtotal	8,545,000	9,002,000
Securities available-for-sale, Total	8,545,000	9,002,000
Securities held-to-maturity, Due after five years through ten years	7,929,000	8,128,000
Municipal bonds
Amortized Cost
Securities available-for-sale, Due in one year or less	2,660,000
Securities available-for-sale, Due after one year through five years	1,038,000	3,724,000
Securities available-for-sale, Due after five years through ten years	6,341,000	6,857,000
Securities available-for-sale, Due after ten years	134,161,000	125,796,000
Securities available-for-sale, Subtotal	144,200,000	136,377,000
Securities available-for-sale, Total	144,200,000	136,377,000
Fair Value
Securities available-for-sale, Due in one year or less	2,644,000
Securities available-for-sale, Due after one year through five years	1,012,000	3,850,000
Securities available-for-sale, Due after five years through ten years	5,771,000	7,035,000
Securities available-for-sale, Due after ten years	111,175,000	124,548,000
Securities available-for-sale, Subtotal	120,602,000	135,433,000
Securities available-for-sale, Total	120,602,000	135,433,000
Mortgage-backed securities
Amortized Cost
Securities available-for-sale, Mortgage-backed securities	82,424,000	88,641,000
Securities available-for-sale, Total	82,424,000	88,641,000
Fair Value
Securities available-for-sale, Mortgage-backed securities	69,966,000	89,402,000
Securities available-for-sale, Total	69,966,000	89,402,000
Federal National Mortgage Association ("FNMA")
Amortized Cost
Securities available-for-sale, Mortgage-backed securities	68,421,000	75,171,000
Fair Value
Securities available-for-sale, Mortgage-backed securities	57,358,000	75,737,000
Federal Home Loan Mortgage Corporation ("FHLMC")
Amortized Cost
Securities available-for-sale, Mortgage-backed securities	9,290,000	9,606,000
Fair Value
Securities available-for-sale, Mortgage-backed securities	8,424,000	9,768,000
Government National Mortgage Association ("GNMA")
Amortized Cost
Securities available-for-sale, Mortgage-backed securities	4,713,000	3,864,000
Fair Value
Securities available-for-sale, Mortgage-backed securities	4,184,000	3,897,000
U.S. Small Business Administration securities
Amortized Cost
Securities available-for-sale, Due after one year through five years	2,553,000	2,485,000
Securities available-for-sale, Due after five years through ten years	4,461,000	4,420,000
Securities available-for-sale, Due after ten years	7,505,000	9,478,000
Securities available-for-sale, Subtotal	14,519,000	16,383,000
Securities available-for-sale, Total	14,519,000	16,383,000
Fair Value
Securities available-for-sale, Due after one year through five years	2,407,000	2,507,000
Securities available-for-sale, Due after five years through ten years	3,996,000	4,515,000
Securities available-for-sale, Due after ten years	6,448,000	9,530,000
Securities available-for-sale, Subtotal	12,851,000	16,552,000
Securities available-for-sale, Total	$ 12,851,000	$ 16,552,000

LOANS RECEIVABLE AND ALLOWANC_3

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	$ 2,218,852	$ 1,754,175	$ 1,571,153
Allowance for credit losses on loans	(27,992)	(25,635)
Total loans receivable, net	2,190,860	1,728,540
REAL ESTATE LOANS
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	1,421,260	1,090,303	923,541
REAL ESTATE LOANS \| Commercial
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	334,059	264,429
REAL ESTATE LOANS \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	342,591	240,553
REAL ESTATE LOANS \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	55,387	41,017
REAL ESTATE LOANS \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	469,485	366,146
REAL ESTATE LOANS \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	219,738	178,158
CONSUMER LOANS
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	569,572	422,043	374,153
CONSUMER LOANS \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	495,941	336,285
CONSUMER LOANS \| Marine
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	70,567	82,778
CONSUMER LOANS \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	3,064	2,980
COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	228,020	241,829	$ 273,459
COMMERCIAL BUSINESS LOANS \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	196,791	208,552
COMMERCIAL BUSINESS LOANS \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable, gross	$ 31,229	$ 33,277

LOANS RECEIVABLE AND ALLOWANC_4

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) item division segment	Dec. 31, 2021 USD ($) segment division
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan portfolio segments \| segment	3	3
Number of warehouse lending divisions \| division	2	2
Loans pledged as collateral for FHLB advances	$ 840,200,000	$ 761,600,000
Loans pledged as collateral for Federal Reserve Bank lines of credit	$ 579,800,000	428,700,000
Minimum term for accrual of interest on loans to be discontinued	90 days
Unearned loan fees in excess of unamortized costs and premiums	$ 7,800,000	4,900,000
Net discounts on acquired loans	437,000	751,000
Accrued interest receivable	$ 9,600,000	$ 6,300,000
Accounts Receivable, Noncurrent, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Interest Receivable	Interest Receivable
Minimum \| Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Units in Real Estate Property \| item	5

LOANS RECEIVABLE AND ALLOWANC_5

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Allowance for Loan Losses by Loan Categories (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$ 25,635	$ 26,172
Provision for credit losses on loans	6,623	500	$ 13,036
Loans charged-off	(2,465)	(1,793)	(1,123)
Recoveries	1,058	756	1,030
Net recoveries (charge-offs)	(1,407)	(1,037)	(93)
Ending balance	27,992	25,635	26,172
Period end amount allocated to:
Loans individually evaluated for impairment		1,163	1,310
Loans collectively evaluated for impairment		24,472	24,862
Ending balance	27,992	25,635	26,172
LOANS RECEIVABLE
Loans individually evaluated for impairment		5,829	7,761
Loans collectively evaluated for impairment		1,748,346	1,563,392
Total loans receivable	2,218,852	1,754,175	1,571,153
Cumulative Effect, Period of Adoption, Adjusted Balance
ALLOWANCE FOR LOAN LOSSES
Beginning balance	25,635	26,172	13,229
Ending balance		25,635	26,172
Period end amount allocated to:
Ending balance		25,635	26,172
Accounting Standards Update 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
ALLOWANCE FOR LOAN LOSSES
Ending balance	(2,859)
Period end amount allocated to:
Ending balance	(2,859)
Unallocated Financing Receivables [Member]
ALLOWANCE FOR LOAN LOSSES
Beginning balance	21	691
Provision for credit losses on loans		(670)	688
Ending balance		21	691
Period end amount allocated to:
Loans collectively evaluated for impairment		21	691
Ending balance		21	691
Unallocated Financing Receivables [Member] \| Cumulative Effect, Period of Adoption, Adjusted Balance
ALLOWANCE FOR LOAN LOSSES
Beginning balance	21	691	3
Ending balance		21	691
Period end amount allocated to:
Ending balance		21	691
Unallocated Financing Receivables [Member] \| Accounting Standards Update 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
ALLOWANCE FOR LOAN LOSSES
Ending balance	(21)
Period end amount allocated to:
Ending balance	(21)
REAL ESTATE LOANS
ALLOWANCE FOR LOAN LOSSES
Beginning balance	14,798	13,846
Provision for credit losses on loans	2,559	952	7,622
Recoveries			18
Net recoveries (charge-offs)			18
Ending balance	12,123	14,798	13,846
Period end amount allocated to:
Loans individually evaluated for impairment		23	15
Loans collectively evaluated for impairment		14,775	13,831
Ending balance	12,123	14,798	13,846
LOANS RECEIVABLE
Loans individually evaluated for impairment		781	1,280
Loans collectively evaluated for impairment		1,089,522	922,261
Total loans receivable	1,421,260	1,090,303	923,541
REAL ESTATE LOANS \| Cumulative Effect, Period of Adoption, Adjusted Balance
ALLOWANCE FOR LOAN LOSSES
Beginning balance	14,798	13,846	6,206
Ending balance		14,798	13,846
Period end amount allocated to:
Ending balance		14,798	13,846
REAL ESTATE LOANS \| Accounting Standards Update 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
ALLOWANCE FOR LOAN LOSSES
Ending balance	(5,234)
Period end amount allocated to:
Ending balance	(5,234)
CONSUMER LOANS
ALLOWANCE FOR LOAN LOSSES
Beginning balance	4,280	6,696
Provision for credit losses on loans	3,158	(1,417)	3,372
Loans charged-off	(2,465)	(1,755)	(1,101)
Recoveries	1,058	756	659
Net recoveries (charge-offs)	(1,407)	(999)	(442)
Ending balance	12,109	4,280	6,696
Period end amount allocated to:
Loans individually evaluated for impairment		219	305
Loans collectively evaluated for impairment		4,061	6,391
Ending balance	12,109	4,280	6,696
LOANS RECEIVABLE
Loans individually evaluated for impairment		629	871
Loans collectively evaluated for impairment		421,414	373,282
Total loans receivable	569,572	422,043	374,153
CONSUMER LOANS \| Cumulative Effect, Period of Adoption, Adjusted Balance
ALLOWANCE FOR LOAN LOSSES
Beginning balance	4,280	6,696	3,766
Ending balance		4,280	6,696
Period end amount allocated to:
Ending balance		4,280	6,696
CONSUMER LOANS \| Accounting Standards Update 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
ALLOWANCE FOR LOAN LOSSES
Ending balance	6,078
Period end amount allocated to:
Ending balance	6,078
COMMERCIAL BUSINESS LOANS
ALLOWANCE FOR LOAN LOSSES
Beginning balance	6,536	4,939
Provision for credit losses on loans	906	1,635	1,354
Loans charged-off		(38)	(22)
Recoveries			353
Net recoveries (charge-offs)		(38)	331
Ending balance	3,760	6,536	4,939
Period end amount allocated to:
Loans individually evaluated for impairment		921	990
Loans collectively evaluated for impairment		5,615	3,949
Ending balance	3,760	6,536	4,939
LOANS RECEIVABLE
Loans individually evaluated for impairment		4,419	5,610
Loans collectively evaluated for impairment		237,410	267,849
Total loans receivable	228,020	241,829	273,459
COMMERCIAL BUSINESS LOANS \| Cumulative Effect, Period of Adoption, Adjusted Balance
ALLOWANCE FOR LOAN LOSSES
Beginning balance	6,536	4,939	3,254
Ending balance		6,536	4,939
Period end amount allocated to:
Ending balance		$ 6,536	$ 4,939
COMMERCIAL BUSINESS LOANS \| Accounting Standards Update 2016-13 \| Cumulative Effect, Period of Adoption, Adjustment
ALLOWANCE FOR LOAN LOSSES
Ending balance	(3,682)
Period end amount allocated to:
Ending balance	$ (3,682)

LOANS RECEIVABLE AND ALLOWANC_6

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Schedule of Troubled Debt Restructurings Accrual and Non-accrual (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($)
Financing Receivable, Modifications [Line Items]
Non-Accrual \| $	$ 8,652,000
Number of TDRs which incurred payment default \| loan	0
COMMERCIAL BUSINESS LOANS
Financing Receivable, Modifications [Line Items]
Number of TDR loans on non-accrual \| loan	2
Non-Accrual \| $	$ 3,700,000	$ 0
Number of Non-accrual loans \| loan	2
Commitments to lend additional loans \| $	$ 0

LOANS RECEIVABLE AND ALLOWANC_7

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Aging Analysis of Past Due Loans (Details) $ in Thousands	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	$ 2,218,852	$ 1,754,175	$ 1,571,153
Non-Accrual	$ 8,652
Number of TDRs which incurred payment default \| loan	0
REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	$ 1,421,260	1,090,303	923,541
Non-Accrual	966
CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	569,572	422,043	374,153
Non-Accrual	1,352
COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	228,020	241,829	$ 273,459
Non-Accrual	3,700	0
Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	334,059	264,429
Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	342,591	240,553
Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	55,387	41,017
Non-Accrual	46
One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	469,485	366,146
Non-Accrual	920
Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	219,738	178,158
Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	495,941	336,285
Non-Accrual	1,076
Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	70,567	82,778
Non-Accrual	267
Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	3,064	2,980
Non-Accrual	9
Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	196,791	208,552
Non-Accrual	6,334
Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	31,229	33,277
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	3,010	2,561
30-59 Days Past Due \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	29	593
30-59 Days Past Due \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,980	1,177
30-59 Days Past Due \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	1	791
30-59 Days Past Due \| Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
30-59 Days Past Due \| Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
30-59 Days Past Due \| Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	29	0
30-59 Days Past Due \| One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	593
30-59 Days Past Due \| Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
30-59 Days Past Due \| Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,298	1,047
30-59 Days Past Due \| Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	650	119
30-59 Days Past Due \| Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	32	11
30-59 Days Past Due \| Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	1	791
30-59 Days Past Due \| Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	1,211	546
60-89 Days Past Due \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	104	264
60-89 Days Past Due \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	1,107	282
60-89 Days Past Due \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
60-89 Days Past Due \| Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
60-89 Days Past Due \| Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
60-89 Days Past Due \| Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	104	0
60-89 Days Past Due \| One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	264
60-89 Days Past Due \| Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
60-89 Days Past Due \| Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	685	280
60-89 Days Past Due \| Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	385	0
60-89 Days Past Due \| Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	37	2
60-89 Days Past Due \| Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
60-89 Days Past Due \| Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	$ 3,719	$ 972
Number Of Loans Accruing Interest \| loan	0	0
90 Days or More Past Due \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	$ 479	$ 659
90 Days or More Past Due \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	623	313
90 Days or More Past Due \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,617	0
90 Days or More Past Due \| Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
90 Days or More Past Due \| Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
90 Days or More Past Due \| Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	16	179
90 Days or More Past Due \| One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	463	480
90 Days or More Past Due \| Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
90 Days or More Past Due \| Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	532	295
90 Days or More Past Due \| Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	86	0
90 Days or More Past Due \| Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	5	18
90 Days or More Past Due \| Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,617	0
90 Days or More Past Due \| Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	7,940	4,079
Past Due \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	612	1,516
Past Due \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	4,710	1,772
Past Due \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,618	791
Past Due \| Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
Past Due \| Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
Past Due \| Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	149	179
Past Due \| One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	463	1,337
Past Due \| Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
Past Due \| Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	3,515	1,622
Past Due \| Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	1,121	119
Past Due \| Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	74	31
Past Due \| Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,618	791
Past Due \| Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	0	0
Not Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,210,912	1,750,096
Not Past Due \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	1,420,648	1,088,787
Not Past Due \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	564,862	420,271
Not Past Due \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	225,402	241,038
Not Past Due \| Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	334,059	264,429
Not Past Due \| Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	342,591	240,553
Not Past Due \| Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	55,238	40,838
Not Past Due \| One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	469,022	364,809
Not Past Due \| Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	219,738	178,158
Not Past Due \| Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	492,426	334,663
Not Past Due \| Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	69,446	82,659
Not Past Due \| Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	2,990	2,949
Not Past Due \| Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	194,173	207,761
Not Past Due \| Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans receivable	31,229	33,277
Non-Accrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	8,652	5,829
Non-Accrual \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	966	781
Non-Accrual \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	1,352	629
Non-Accrual \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	6,334	4,419
Non-Accrual \| Commercial \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	0	0
Non-Accrual \| Construction and development \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	0	0
Non-Accrual \| Home equity. \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	46	301
Non-Accrual \| One-to-four-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	920	480
Non-Accrual \| Multi-family \| REAL ESTATE LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	0	0
Non-Accrual \| Indirect home improvement \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	1,076	554
Non-Accrual \| Marine \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	267	57
Non-Accrual \| Other consumer loans \| CONSUMER LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	9	18
Non-Accrual \| Commercial and industrial \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	6,334	4,419
Non-Accrual \| Warehouse lending \| COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-Accrual	$ 0	$ 0

LOANS RECEIVABLE AND ALLOWANC_8

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Average Recorded Investment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded	$ 1,711	$ 2,538
Average Recorded Investment, with an allowance recorded	5,584	3,307
Average Recorded Investment	7,295	5,845
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with no related allowance recorded	30	79
Interest Income Recognized, with an allowance recorded	321	225
Interest Income Recognized	351	304
REAL ESTATE LOANS \| Commercial
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded		996
REAL ESTATE LOANS \| Construction and development
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded	771
REAL ESTATE LOANS \| Home equity.
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded	427	485
Average Recorded Investment, with an allowance recorded	57
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with no related allowance recorded	15	25
REAL ESTATE LOANS \| One-to-four-family
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded	513	954
Average Recorded Investment, with an allowance recorded	20	60
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with no related allowance recorded	15	17
CONSUMER LOANS \| Indirect home improvement
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with an allowance recorded	643	675
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with an allowance recorded	38	60
CONSUMER LOANS \| Marine
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with an allowance recorded	77	40
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with an allowance recorded	6	3
CONSUMER LOANS \| Other consumer loans
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded		3
Average Recorded Investment, with an allowance recorded	8	1
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with an allowance recorded	1
COMMERCIAL BUSINESS LOANS \| Commercial and industrial
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Average Recorded Investment, with no related allowance recorded		100
Average Recorded Investment, with an allowance recorded	4,779	2,531
Impaired Financing Receivable, Interest Income [Abstract]
Interest Income Recognized, with no related allowance recorded		37
Interest Income Recognized, with an allowance recorded	$ 276	$ 162

LOANS RECEIVABLE AND ALLOWANC_9

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Financing Receivables, Related Allowance Recorded and No Related Allowance Recorded (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with no related allowance recorded	$ 756
Unpaid Principal Balance, with an allowance recorded	5,134
Impaired Financing Receivable, Unpaid Principal Balance, Total	5,890
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with no related allowance recorded	707
Recorded Investment, with an allowance recorded	5,122
Recorded Investment	5,829
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with an allowance recorded	1,163
Related Allowance	1,163
REAL ESTATE LOANS \| Home equity.
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with no related allowance recorded	259
Unpaid Principal Balance, with an allowance recorded	92
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with no related allowance recorded	227
Recorded Investment, with an allowance recorded	74
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with an allowance recorded	23
REAL ESTATE LOANS \| One-to-four-family
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with no related allowance recorded	497
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with no related allowance recorded	480
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with no related allowance recorded	0
CONSUMER LOANS \| Indirect home improvement
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with an allowance recorded	551
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with an allowance recorded	554
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with an allowance recorded	193
CONSUMER LOANS \| Marine
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with an allowance recorded	56
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with an allowance recorded	57
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with an allowance recorded	20
CONSUMER LOANS \| Other consumer loans
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with an allowance recorded	18
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with an allowance recorded	18
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with an allowance recorded	6
COMMERCIAL BUSINESS LOANS \| Commercial and industrial
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Unpaid Principal Balance, with an allowance recorded	4,417
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment, with an allowance recorded	4,419
Impaired Financing Receivable Related Allowance Abstract
Related Allowance, with an allowance recorded	$ 921

LOANS RECEIVABLE AND ALLOWAN_10

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Risk Rated Loan Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
2022	$ 808,060
2021	550,357
2020	284,645
2019	164,717
2018	64,940
Prior	166,172
Revolving Loans	179,462
Revolving Loans Converted to Term	499
Total Loans	2,218,852
Total Loans	2,218,852	$ 1,754,175	$ 1,571,153
Pass
Financing Receivable, Recorded Investment [Line Items]
2022	798,208
2021	547,426
2020	279,938
2019	159,466
2018	61,985
Prior	155,636
Revolving Loans	176,074
Revolving Loans Converted to Term	199
Total Loans	2,178,932
Total Loans		1,719,659
Watch
Financing Receivable, Recorded Investment [Line Items]
2022	9,504
2021	1,127
2020	3,305
Prior	746
Revolving Loans	1,329
Total Loans	16,011
Total Loans		8,834
Special Mention
Financing Receivable, Recorded Investment [Line Items]
2019	2,747
Revolving Loans	963
Total Loans	3,710
Total Loans		7,598
Substandard
Financing Receivable, Recorded Investment [Line Items]
2022	348
2021	1,804
2020	1,402
2019	2,504
2018	2,955
Prior	9,790
Revolving Loans	1,096
Revolving Loans Converted to Term	300
Total Loans	20,199
Total Loans		18,084
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
Loss
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS
Financing Receivable, Recorded Investment [Line Items]
2022	501,184
2021	389,085
2020	206,119
2019	120,116
2018	37,852
Prior	127,642
Revolving Loans	39,063
Revolving Loans Converted to Term	199
Total Loans	1,421,260
Total Loans	1,421,260	1,090,303	923,541
REAL ESTATE LOANS \| Commercial
Financing Receivable, Recorded Investment [Line Items]
2022	95,693
2021	76,030
2020	46,498
2019	41,043
2018	14,682
Prior	60,113
Total Loans	334,059
Total Loans	334,059	264,429
REAL ESTATE LOANS \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	193,084
2021	118,724
2020	21,966
2019	8,379
Prior	438
Total Loans	342,591
Total Loans	342,591	240,553
REAL ESTATE LOANS \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
2022	4,978
2021	1,696
2020	6,818
2019	11
2018	1,216
Prior	1,605
Revolving Loans	39,063
Total Loans	55,387
Total Loans	55,387	41,017
REAL ESTATE LOANS \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
2022	166,388
2021	129,282
2020	82,461
2019	31,878
2018	17,778
Prior	41,499
Revolving Loans Converted to Term	199
Total Loans	469,485
Total Loans	469,485	366,146
REAL ESTATE LOANS \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
2022	41,041
2021	63,353
2020	48,376
2019	38,805
2018	4,176
Prior	23,987
Total Loans	219,738
Total Loans	219,738	178,158
REAL ESTATE LOANS \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans		1,076,201
REAL ESTATE LOANS \| Pass \| Commercial
Financing Receivable, Recorded Investment [Line Items]
2022	86,189
2021	76,030
2020	46,125
2019	38,930
2018	14,101
Prior	55,271
Total Loans	316,646
Total Loans		253,092
REAL ESTATE LOANS \| Pass \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	193,084
2021	118,724
2020	21,966
2019	8,379
Prior	438
Total Loans	342,591
Total Loans		240,553
REAL ESTATE LOANS \| Pass \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
2022	4,978
2021	1,696
2020	6,818
2019	11
2018	1,203
Prior	1,572
Revolving Loans	39,063
Total Loans	55,341
Total Loans		40,716
REAL ESTATE LOANS \| Pass \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
2022	166,388
2021	129,282
2020	82,461
2019	31,878
2018	15,837
Prior	40,526
Revolving Loans Converted to Term	199
Total Loans	466,571
Total Loans		363,682
REAL ESTATE LOANS \| Pass \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
2022	41,041
2021	63,353
2020	48,376
2019	38,805
2018	4,176
Prior	23,987
Total Loans	219,738
Total Loans		178,158
REAL ESTATE LOANS \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total Loans		4,652
REAL ESTATE LOANS \| Watch \| Commercial
Financing Receivable, Recorded Investment [Line Items]
2022	9,504
2020	373
Total Loans	9,877
Total Loans		4,652
REAL ESTATE LOANS \| Watch \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Watch \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Watch \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Watch \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans		5,769
REAL ESTATE LOANS \| Special Mention \| Commercial
Financing Receivable, Recorded Investment [Line Items]
2019	2,113
Total Loans	2,113
Total Loans		5,769
REAL ESTATE LOANS \| Special Mention \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Special Mention \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Special Mention \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Special Mention \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans		3,681
REAL ESTATE LOANS \| Substandard \| Commercial
Financing Receivable, Recorded Investment [Line Items]
2018	581
Prior	4,842
Total Loans	5,423
Total Loans		916
REAL ESTATE LOANS \| Substandard \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Substandard \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
2018	13
Prior	33
Total Loans	46
Total Loans		301
REAL ESTATE LOANS \| Substandard \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
2018	1,941
Prior	973
Total Loans	2,914
Total Loans		2,464
REAL ESTATE LOANS \| Substandard \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Doubtful \| Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Doubtful \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Doubtful \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Doubtful \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Doubtful \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Loss
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Loss \| Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Loss \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Loss \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Loss \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
REAL ESTATE LOANS \| Loss \| Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS
Financing Receivable, Recorded Investment [Line Items]
2022	282,539
2021	135,998
2020	61,868
2019	37,736
2018	23,824
Prior	26,344
Revolving Loans	1,263
Total Loans	569,572
Total Loans	569,572	422,043	374,153
CONSUMER LOANS \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
2022	253,842
2021	123,477
2020	46,613
2019	31,313
2018	18,334
Prior	22,353
Revolving Loans	9
Total Loans	495,941
Total Loans	495,941	336,285
CONSUMER LOANS \| Marine
Financing Receivable, Recorded Investment [Line Items]
2022	27,904
2021	11,762
2020	15,139
2019	6,375
2018	5,476
Prior	3,911
Total Loans	70,567
Total Loans	70,567	82,778
CONSUMER LOANS \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
2022	793
2021	759
2020	116
2019	48
2018	14
Prior	80
Revolving Loans	1,254
Total Loans	3,064
Total Loans	3,064	2,980
CONSUMER LOANS \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans		421,414
CONSUMER LOANS \| Pass \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
2022	253,495
2021	123,264
2020	46,476
2019	31,251
2018	18,165
Prior	22,205
Revolving Loans	9
Total Loans	494,865
Total Loans		335,731
CONSUMER LOANS \| Pass \| Marine
Financing Receivable, Recorded Investment [Line Items]
2022	27,904
2021	11,762
2020	15,139
2019	6,224
2018	5,415
Prior	3,856
Total Loans	70,300
Total Loans		82,721
CONSUMER LOANS \| Pass \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
2022	792
2021	754
2020	116
2019	48
2018	14
Prior	80
Revolving Loans	1,251
Total Loans	3,055
Total Loans		2,962
CONSUMER LOANS \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Watch \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Watch \| Marine
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Watch \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Special Mention \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Special Mention \| Marine
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Special Mention \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans		629
CONSUMER LOANS \| Substandard \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
2022	347
2021	213
2020	137
2019	62
2018	169
Prior	148
Total Loans	1,076
Total Loans		554
CONSUMER LOANS \| Substandard \| Marine
Financing Receivable, Recorded Investment [Line Items]
2019	151
2018	61
Prior	55
Total Loans	267
Total Loans		57
CONSUMER LOANS \| Substandard \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
2022	1
2021	5
Revolving Loans	3
Total Loans	9
Total Loans		18
CONSUMER LOANS \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Doubtful \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Doubtful \| Marine
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Doubtful \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Loss
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Loss \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Loss \| Marine
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
CONSUMER LOANS \| Loss \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment [Line Items]
2022	24,337
2021	25,274
2020	16,658
2019	6,865
2018	3,264
Prior	12,186
Revolving Loans	139,136
Revolving Loans Converted to Term	300
Total Loans	228,020
Total Loans	228,020	241,829	$ 273,459
COMMERCIAL BUSINESS LOANS \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2022	24,337
2021	25,274
2020	16,658
2019	6,865
2018	3,264
Prior	12,186
Revolving Loans	107,907
Revolving Loans Converted to Term	300
Total Loans	196,791
Total Loans	196,791	208,552
COMMERCIAL BUSINESS LOANS \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Revolving Loans	31,229
Total Loans	31,229
Total Loans	31,229	33,277
COMMERCIAL BUSINESS LOANS \| Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans		222,044
COMMERCIAL BUSINESS LOANS \| Pass \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2022	24,337
2021	22,561
2020	12,461
2019	3,940
2018	3,074
Prior	7,701
Revolving Loans	104,524
Total Loans	178,598
Total Loans		188,767
COMMERCIAL BUSINESS LOANS \| Pass \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Revolving Loans	31,227
Total Loans	31,227
Total Loans		33,277
COMMERCIAL BUSINESS LOANS \| Watch
Financing Receivable, Recorded Investment [Line Items]
Total Loans		4,182
COMMERCIAL BUSINESS LOANS \| Watch \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2021	1,127
2020	2,932
Prior	746
Revolving Loans	1,327
Total Loans	6,132
Total Loans		4,182
COMMERCIAL BUSINESS LOANS \| Watch \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Revolving Loans	2
Total Loans	2
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans		1,829
COMMERCIAL BUSINESS LOANS \| Special Mention \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2019	634
Revolving Loans	963
Total Loans	1,597
Total Loans		1,829
COMMERCIAL BUSINESS LOANS \| Special Mention \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans		13,774
COMMERCIAL BUSINESS LOANS \| Substandard \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2021	1,586
2020	1,265
2019	2,291
2018	190
Prior	3,739
Revolving Loans	1,093
Revolving Loans Converted to Term	300
Total Loans	$ 10,464
Total Loans		13,774
COMMERCIAL BUSINESS LOANS \| Substandard \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Doubtful \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Doubtful \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Loss
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Loss \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans		0
COMMERCIAL BUSINESS LOANS \| Loss \| Warehouse lending
Financing Receivable, Recorded Investment [Line Items]
Total Loans		$ 0

LOANS RECEIVABLE AND ALLOWAN_11

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Amortized Cost Basis of Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with no Allowance for Credit Losses	$ 966
Nonaccrual with Allowance for Credit Losses	7,686
Total Nonaccrual	8,652
Recognized interest income on nonaccrual loans	506,000	$ 351,000	$ 304,000
REAL ESTATE LOANS
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with no Allowance for Credit Losses	966
Total Nonaccrual	966
REAL ESTATE LOANS \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with no Allowance for Credit Losses	46
Total Nonaccrual	46
REAL ESTATE LOANS \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with no Allowance for Credit Losses	920
Total Nonaccrual	920
CONSUMER LOANS
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with Allowance for Credit Losses	1,352
Total Nonaccrual	1,352
CONSUMER LOANS \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with Allowance for Credit Losses	1,076
Total Nonaccrual	1,076
CONSUMER LOANS \| Marine
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with Allowance for Credit Losses	267
Total Nonaccrual	267
CONSUMER LOANS \| Other consumer loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with Allowance for Credit Losses	9
Total Nonaccrual	9
COMMERCIAL BUSINESS LOANS
Financing Receivable, Recorded Investment [Line Items]
Total Nonaccrual	3,700	$ 0
COMMERCIAL BUSINESS LOANS \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual with Allowance for Credit Losses	6,334
Total Nonaccrual	$ 6,334

LOANS RECEIVABLE AND ALLOWAN_12

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Amortized Cost Basis of Collateral Dependent Impaired Loans (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	$ 8,643
Real Estate
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	966
Equipment
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	7,677
REAL ESTATE LOANS
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	966
REAL ESTATE LOANS \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	46
REAL ESTATE LOANS \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	920
REAL ESTATE LOANS \| Real Estate
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	966
REAL ESTATE LOANS \| Real Estate \| Home equity.
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	46
REAL ESTATE LOANS \| Real Estate \| One-to-four-family
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	920
CONSUMER LOANS
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	1,343
CONSUMER LOANS \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	1,076
CONSUMER LOANS \| Marine
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	267
CONSUMER LOANS \| Equipment
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	1,343
CONSUMER LOANS \| Equipment \| Indirect home improvement
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	1,076
CONSUMER LOANS \| Equipment \| Marine
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	267
COMMERCIAL BUSINESS LOANS \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	6,334
COMMERCIAL BUSINESS LOANS \| Equipment \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Amortized cost basis of collateral dependent impaired loans	$ 6,334

LOANS RECEIVABLE AND ALLOWAN_13

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS - Related Party Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable, Related Parties [Roll Forward]
Beginning balance	$ 4,207	$ 3,797
Additions		647
Repayments	(762)	(237)
Ending balance	3,445	4,207
Aggregate loan balances of extended credit	$ 3,400	$ 4,300

SERVICING RIGHTS - Narrative (D

SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractually specified servicing fees, late fees, and other ancillary fees	$ 7.1	$ 6.3	$ 4.4
Mortgage servicing rights.
Off-balance Sheet Risks, Disclosure Information [Line Items]
The unpaid principal balances of mortgage loans serviced	2,780	2,610
Fair market value of servicing rights' assets	$ 35.5	$ 26.1

SERVICING RIGHTS - Servicing Ri

SERVICING RIGHTS - Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance, at the lower of cost or fair value	$ 16,970	$ 12,595	$ 11,560
Additions	5,400	9,760	11,139
MSR amortized	(4,354)	(7,444)	(8,135)
Recovery (impairment) of servicing rights	1	2,059	(1,969)
Ending balance, at the lower of cost or fair value	$ 18,017	$ 16,970	$ 12,595

SERVICING RIGHTS - Valuation As

SERVICING RIGHTS - Valuation Assumptions (Details) - Mortgage servicing rights.	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Off-balance Sheet Risks, Disclosure Information [Line Items]
Weighted average discount rate	9.60%	9.10%
Conditional prepayment rate ("CPR")	8.20%	13.80%
Weighted average life in years	7 years 9 months 18 days	5 years 10 months 24 days

SERVICING RIGHTS - Changes in V

SERVICING RIGHTS - Changes in Valuation Assumptions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Off-balance Sheet Risks, Disclosure Information [Line Items]
Basis Points Drop in Rate, Assumption One	0.50%	0.50%
Basis Points Drop in Rate, Assumption Two	1%	1%
Mortgage servicing rights.
Off-balance Sheet Risks, Disclosure Information [Line Items]
Aggregate portfolio principal balance	$ 2,783,458	$ 2,609,776
Weighted average rate of note	3.40%	3.20%
Conditional prepayment rate, base	8.20%	13.80%
Conditional prepayment rate, 0.5% Adverse Change	8.60%	20%
Conditional prepayment rate, 1.0% Adverse Change	9.30%	31.50%
Fair value MSR, base	$ 35,478	$ 26,070
Fair value MSR, 0.5% Adverse Change	34,997	21,188
Fair value of MSR, 1.0% Adverse Change	$ 34,188	$ 15,348
Percentage of MSR, base	1.30%	1%
Percentage of MSR, 0.5% Adverse Change	1.30%	0.80%
Percentage of MSR, 1.0% Adverse Change	1.20%	0.60%
Discount rate, base	9.60%	9.10%
Discount rate, 0.5% Adverse Change	10.10%	9.60%
Discount rate, 1.0% Adverse Change	10.60%	10.10%
Fair value MSR, 0.5% Adverse Change	$ 34,715	$ 25,586
Fair value MSR, 1.0% Adverse Change	$ 33,984	$ 25,119
Percentage of MSR, 0.5% Adverse Change	1.20%	1%
Percentage of MSR, 1.0% Adverse Change	1.20%	1%

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 49,561	$ 48,691
Less accumulated depreciation and amortization	(24,442)	(22,100)
Property, Plant and Equipment, Net, Total	25,119	26,591
Depreciation and amortization	2,500	2,700	$ 2,800
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	5,715	6,008
Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	16,934	17,290
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	16,226	15,307
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	2,461	2,461
Building improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	7,688	7,558
Projects in process
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 537	$ 67

LEASES (Details)

LEASES (Details)	12 Months Ended
LEASES (Details)	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Options to extend	true
Renewal term	5 years
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	3 months
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	7 years 6 months

LEASES - Components of lease co

LEASES - Components of lease cost and Supplemental information related to operating leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease cost:
Operating lease cost	$ 1,422	$ 1,433	$ 1,393
Short-term lease cost	21	5	11
Total lease cost	1,443	1,438	$ 1,404
Operating cash flows from operating leases	$ 1,431	$ 1,402
Weighted average remaining lease term- operating leases	4 years 7 months 6 days	4 years 9 months 18 days
Weighted average discount rate- operating leases	2.42%	2.17%

LEASES - Maturities of operatin

LEASES - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
2023	$ 1,512
2024	1,462
2025	1,152
2026	1,030
2027	745
Thereafter	1,251
Total lease payments	7,152
Less imputed interest	(678)
Total	$ 6,474	$ 4,792

OTHER REAL ESTATE OWNED ("ORE_3

OTHER REAL ESTATE OWNED ("OREO") - Activity related to OREO (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Real Estate [Roll Forward]
Beginning balance		$ 90	$ 168
Loans transferred to OREO	$ 145
Closed retail branch transferred to OREO	570
Gross proceeds from sale of OREO	(145)	(81)	(76)
Loss on sale of OREO		$ (9)	(2)
Ending balance	$ 570		$ 90

OTHER REAL ESTATE OWNED ("ORE_4

OTHER REAL ESTATE OWNED ("OREO") - Narrative (Details)	12 Months Ended
OTHER REAL ESTATE OWNED ("OREO") - Narrative (Details)	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($)
OTHER REAL ESTATE OWNED ("OREO")
Number of OREO Properties \| property	1	0
Holding costs	$ 10,000	$ 0	$ 4,000
Mortgage loans in process of foreclosure	$ 511,000	$ 710,000

DEPOSITS - Deposit Liabilities

DEPOSITS - Deposit Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
DEPOSITS
Noninterest-bearing checking	$ 537,938	$ 564,360
Interest-bearing checking	135,127	228,024
Savings	134,358	193,922
Money market	574,290	552,357
Certificates of deposit less than $100,000	440,785	186,974
Certificates of deposit of $100,000 through $250,000	195,447	116,206
Certificates of deposit of $250,000 and over	93,560	57,512
Escrow accounts related to mortgages serviced	16,236	16,389
Total deposits	2,127,741	1,915,744
Interest-bearing domestic deposit, brokered deposits	2,300	90,000
Deposits, money market deposits, brokered deposits	59,700	5,000
Certificates of deposits less than 100000 brokered deposits	332,000	97,600
Interest-bearing to noninterest-bearing due to reclass		121,200
Related-party deposits	$ 5,700	$ 3,900

DEPOSITS - Maturities of Time D

DEPOSITS - Maturities of Time Deposits for Future Periods (Details) $ in Thousands	Dec. 31, 2022 USD ($)
DEPOSITS
Maturing in 2023	$ 472,231
Maturing in 2024	90,507
Maturing in 2025	113,434
Maturing in 2026	36,618
Maturing in 2027	16,947
Thereafter	55
Total	$ 729,792

DEPOSITS - Interest Expense by

DEPOSITS - Interest Expense by Deposit Category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
DEPOSITS
Interest-bearing checking	$ 495	$ 282	$ 388
Savings and money market	3,775	1,604	2,458
Certificates of deposit	5,150	5,043	9,134
Total	$ 9,420	$ 6,929	$ 11,980

DEBT - Narrative (Details)

DEBT - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
DEBT - Narrative (Details) - USD ($) $ in Thousands	Feb. 10, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Federal home loan bank, advances, general debt obligations, maximum amount available, percentage of total assets (as a percent)		45%
Federal home loan bank, advances, general debt obligations, collateral pledged		$ 840,200
Federal home loan bank, borrowing capacity		601,700
Federal home loan bank, unused borrowing capacity		414,800
Unsecured Fed Funds lines of credit		101,000
Unsecured Fed Funds, lines of credit, outstanding balance		0
Total loans receivable, gross		2,218,852	$ 1,754,175	$ 1,571,153
Fixed To Floating Rate Subordinated Note Due 2031 \| Private Placement
Debt Instrument [Line Items]
Private placement amount	$ 50,000
Annual interest rate (as a percent)	3.75%
Offering price percentage (as a percent)	100%
Net proceeds	$ 49,300
Period for fixed interest rate on debt	5 years
Debt Instrument, Basis Spread on Variable Rate	3.37%
Federal Reserve Bank
Debt Instrument [Line Items]
Warehouse lines of credit		205,800	200,100
Line of credit, outstanding balance		0	0
Federal Reserve Bank
Debt Instrument [Line Items]
Loans pledged as collateral		$ 579,800	$ 428,700

DEBT - Advances on Borrowing Li

DEBT - Advances on Borrowing Line (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal home loan bank, advances, general debt obligations	$ 186,528
Long-term Debt	186,528	$ 42,528
Securities Line
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal home loan bank, advances, general debt obligations	$ 186,528	$ 42,528
Securities Line \| Maximum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, interest rates	4.60%	2.87%
Securities Line \| Minimum
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, interest rates	1.72%	0.30%

DEBT - Maximum and Average bala

DEBT - Maximum and Average balances, Weighted Average Interest Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Maximum balance:
FHLB advances and Fed Funds	$ 260,828	$ 102,528	$ 159,114
FRB			27,000
Long-term Debt	186,528	42,528
Average balance:
FHLB advances and Fed Funds	102,008	55,602	99,773
FRB	548	205	1,096
Fed Funds lines of credit	$ 15	$ 11	$ 3
Weighted average interest rates
FHLB advances and Fed Funds (as a percent)	2.98%	1.88%	1.80%
FRB (as a percent)	1.69%	0.25%	0.25%
Fed Funds lines of credit (as a percent)	3.28%	0.49%	0.36%
Subordinated notes
Average balance:
Long term debt	$ 50,000	$ 44,699	$ 10,000
Weighted average interest rates
Weighted average interest rate (as a percent)	3.75%	3.75%	6.50%
Subordinated notes \| Maximum
Maximum balance:
Long-term Debt	$ 50,000	$ 50,000	$ 10,000
PPP Liquidity Facility
Average balance:
Long term debt		$ 7,310	$ 46,965
Weighted average interest rates
Weighted average interest rate (as a percent)		0.35%	0.35%
PPP Liquidity Facility \| Maximum
Maximum balance:
Long-term Debt		$ 59,349	$ 74,112

DEBT - Schedule of Federal Home

DEBT - Schedule of Federal Home Loan Bank Advances Maturities Summary Due (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2023	$ 182,633
2024	3,895
Total	$ 186,528
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract]
2023, Interest Rates (percent)	4.27%
2024, Interest Rates (percent)	2.27%

EMPLOYEE BENEFITS - Narrative (

EMPLOYEE BENEFITS - Narrative (Details) - USD ($)		12 Months Ended
EMPLOYEE BENEFITS - Narrative (Details) - USD ($)	Jan. 01, 2012	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2012
Schedule of Defined Contribution Plans Disclosures [Line Items]
Defined contribution plan, minimum age requirement		18 years
Percentage vested in deferral contributions account		100%
Employer contributions		$ 1,900,000	$ 1,700,000	$ 1,500,000
Employee Stock Ownership Plan (ESOP), Interest Payments from ESOP			7,000
Number of hours of service required for participation in ESOP, per first 12 month period (in hours)	1000 hours
Vesting percentage after requisite service period is met (as a percent)					100%
Requisite service period (in years)	2 years
Number of hours per service period year (in hours)	1000 hours
ESOP borrowings from FS Bancorp	$ 2,600,000
Shares acquired (in shares)	518,420			479,330
Employee stock ownership plan (ESOP), weighted average purchase price of shares purchased (in dollars per share)	$ 5.09
Amortization period of ESOP loan	10 years
Employee Stock Ownership Plan (ESOP), Debt Structure, Employer Loan, Interest Rate	2.30%
Employee stock ownership plan (ESOP), periodic installment payments from esop, amount paid			288,000
ESOP compensation expense for allocated shares			$ 1,773,000	$ 1,307,000
Contributions between 1% to 3%
Schedule of Defined Contribution Plans Disclosures [Line Items]
Employer matching percentage		100%
Contributions between 1% to 3% \| Minimum
Schedule of Defined Contribution Plans Disclosures [Line Items]
Defined contribution plan, employee contribution (percent)		1%
Contributions between 1% to 3% \| Maximum
Schedule of Defined Contribution Plans Disclosures [Line Items]
Defined contribution plan, employee contribution (percent)		3%
Contributions between 4% and 5%
Schedule of Defined Contribution Plans Disclosures [Line Items]
Employer matching percentage		50%
Contributions between 4% and 5% \| Minimum
Schedule of Defined Contribution Plans Disclosures [Line Items]
Defined contribution plan, employee contribution (percent)		4%
Contributions between 4% and 5% \| Maximum
Schedule of Defined Contribution Plans Disclosures [Line Items]
Defined contribution plan, employee contribution (percent)		5%

EMPLOYEE BENEFITS - Schedule of

EMPLOYEE BENEFITS - Schedule of Shares Under ESOP (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2012
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract]
Allocated shares	427,488
Unallocated shares	51,842
Total ESOP shares (in shares)	479,330	518,420
Fair value of unallocated shares (in thousands)	$ 1,307

INCOME TAXES - Components of In

INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Provision for income taxes
Current	$ 8,183	$ 8,258	$ 12,976
Deferred	(844)	1,750	(2,390)
Income Tax Expense (Benefit), Total	$ 7,339	$ 10,008	$ 10,586

INCOME TAXES - Effective Income

INCOME TAXES - Effective Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Income tax provision at statutory rate	$ 7,767	$ 9,958	$ 10,469
Tax exempt income	(852)	(492)	(292)
Nondeductible items resulting in increase in tax	31	28	57
Increase in tax resulting from other items	274	100	175
Equity compensation	(146)	(883)	(46)
Executive compensation	265	979	8
ESOP	0	318	215
Income Tax Expense (Benefit), Total	$ 7,339	$ 10,008	$ 10,586
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Income tax provision at statutory rate	21%	21%	21%
Tax exempt income	(2.30%)	(1.00%)	(0.60%)
Nondeductible items resulting in increase in tax	0.10%	0%	0.10%
Increase in tax resulting from other items	0.70%	0.20%	0.40%
Equity compensation	(0.40%)	(1.90%)	(0.10%)
Executive compensation	0.70%	2.10%	0%
ESOP	0%	0.70%	0.40%
Total	19.80%	21.10%	21.20%

INCOME TAXES - Deferred Assets

INCOME TAXES - Deferred Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Tax Assets
Net operating loss carryforward	$ 0	$ 189
Allowance for credit losses	6,119	5,673
Non-accrued loan interest	11	0
Restricted stock awards	101	121
Non-qualified stock options	438	265
Lease liability	1,392	1,030
Securities available-for-sale	9,146	149
Unfunded commitments	547	107
Other	234	45
Total deferred tax assets	17,988	7,579
Deferred Tax Liabilities
Loan origination costs	(2,123)	(1,982)
Servicing rights	(3,874)	(3,649)
Stock dividend - FHLB stock	(35)	(35)
Property, plant, and equipment	(1,095)	(1,036)
Purchase accounting adjustments	(727)	(863)
Lease right-of-use assets	(1,338)	(979)
Interest rate swaps designated as cash flow hedge	(2,126)	(218)
Total deferred tax liabilities	(11,318)	(8,762)
Net deferred tax assets (liabilities)	$ 6,670
Net deferred tax assets (liabilities)		$ (1,183)

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INCOME TAXES
Uncertain tax positions	$ 0	$ 0
Recognized interest and penalties	$ 0	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Commitment (Details) - Commitments to Extend Credit - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	$ 548,542	$ 558,631
REAL ESTATE LOANS.
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	294,246	332,378
Commercial
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	1,260	787
Construction and development
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	201,708	182,297
One-to-four-family
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	10,713	78,264
Home equity.
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	77,566	67,596
Multi-family
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	2,999	3,434
CONSUMER LOANS.
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	39,406	35,873
COMMERCIAL BUSINESS LOANS.
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	214,890	190,380
Commercial and industrial
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	150,109	126,220
Warehouse lending
Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments	$ 64,781	$ 64,160

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Narrative (Details)	12 Months Ended
COMMITMENTS AND CONTINGENCIES - Narrative (Details)	Dec. 31, 2022 USD ($) action	Dec. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Allowance for unfunded loan commitments	$ 2,500,000	$ 499,000
Amount of loans sold to FHLB	10,100,000
Amount of federal home loan bank, first loss account established	581,000
Bank recourse obligation	$ 389,000
Bank recourse obligation, percentage of loans outstanding	3.80%
Holdback as a percentage of outstanding CE	10%
Holdback for loans sold to FHLB	$ 39,000
Outstanding delinquencies on loans sold to Federal Home Loan Bank	$ 0	0
Change of control agreement, executive payment, period following change in control (in months)	12 months
Pending material legal actions \| action	0
Maximum
Loss Contingencies [Line Items]
Change of control agreement, executive payment, period prior to change in control (in months)	6 months
Change of control agreement, period of base compensation disbursed as lump sum payment (in months)	12 months
Minimum
Loss Contingencies [Line Items]
Change of control agreement, notice required to cancel agreement (in months)	24 months
CEO
Loss Contingencies [Line Items]
Severance agreement, period of base compensation disbursed as lump sum payment (in months)	24 months
One-to-four-family \| Guarantee on loans sold
Loss Contingencies [Line Items]
Reserve for estimated losses	$ 2,300,000	$ 2,700,000

SIGNIFICANT CONCENTRATION OF _2

SIGNIFICANT CONCENTRATION OF CREDIT RISK (Details)	12 Months Ended
SIGNIFICANT CONCENTRATION OF CREDIT RISK (Details)	Dec. 31, 2022
Credit Concentration Risk \| Construction Land Development And Other Land Concentration \| Regulatory Capital
Concentration Risk [Line Items]
Concentration Risk, Percentage	106.50%

REGULATORY CAPITAL - (Narrative

REGULATORY CAPITAL - (Narrative) (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage capital, Ratio	0.097	0.108
Tier 1 risk-based capital, Ratio	0.107
Total risk-based capital, Ratio	0.140
CET 1 capital, Ratio	0.107
Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage capital, Ratio	0.1128	0.122
CET 1 capital, Amount	$ 294,043	$ 270,800
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 130,380	$ 189,300
Tier 1 risk-based capital, Ratio	0.1245
Total risk-based capital, Ratio	0.1370
CET 1 capital, Ratio	0.1245

REGULATORY CAPITAL - Compliance

REGULATORY CAPITAL - Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital, Ratio	0.140
Tier 1 risk-based capital, Ratio	0.107
Tier 1 leverage capital, Ratio	0.097	0.108
CET 1 capital, Ratio	0.107
Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital, Amount	$ 323,577
Total risk-based capital, Ratio	0.1370
Total risk-based capital, For Capital Adequacy Purposes, Amount	$ 188,937
Total risk-based capital, For Capital Adequacy Purposes, Ratio	0.0800
Total risk-based capital, For Capital Adequacy with Capital Buffer, Amount	$ 247,980
Total risk-based capital, For Capital Adequacy with Capital Buffer, Ratio	0.1050
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 236,171
Total risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.1000
Tier 1 risk-based capital, Amount	$ 294,043
Tier 1 risk-based capital, Ratio	0.1245
Tier 1 risk-based capital, For Capital Adequacy Purposes, Amount	$ 141,703
Tier 1 risk-based capital, For Capital Adequacy Purposes, Ratio	0.0600
Tier 1 risk-based capital, For Capital Adequacy with Capital Buffer, Amount	$ 200,746
Tier 1 risk-based capital, For Capital Adequacy with Capital Buffer, Ratio	0.0850
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 188,937
Tier 1 risk-based capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0800
Tier 1 leverage capital	$ 294,043
Tier 1 leverage capital, Ratio	0.1128	0.122
Tier 1 leverage capital, For Capital Adequacy Purposes, Amount	$ 104,304
Tier 1 leverage capital, For Capital Adequacy Purposes, Ratio	0.0400
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 130,380	$ 189,300
Tier 1 leverage capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0500
CET 1 capital, Amount	$ 294,043	$ 270,800
CET 1 capital, Ratio	0.1245
CET 1 capital, For Capital Adequacy Purposes, Amount	$ 106,277
CET 1 capital, For Capital Adequacy Purposes, Ratio	0.0450
CET 1 capital, For Capital Adequacy with Capital Buffer, Amount	$ 165,320
CET 1 capital, For Capital Adequacy with Capital Buffer, Ratio	0.0700
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 153,511
CET 1 capital, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0650

FAIR VALUE MEASUREMENTS - Avail

FAIR VALUE MEASUREMENTS - Available for Sale Securities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, at fair value	$ 14,035	$ 16,083
Level 2 \| Residential Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, at fair value	14,000	16,100
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	273,521	416,038
Total liabilities measured at fair value	(38)	(155)
Fair Value, Measurements, Recurring \| Residential Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, at fair value	14,035	16,083
Fair Value, Measurements, Recurring \| Securities available-for-sale. \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	17,288	20,970
Fair Value, Measurements, Recurring \| Securities available-for-sale. \| Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	8,545	9,002
Fair Value, Measurements, Recurring \| Securities available-for-sale. \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	120,602	135,433
Fair Value, Measurements, Recurring \| Securities available-for-sale. \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	69,966	89,402
Fair Value, Measurements, Recurring \| Securities available-for-sale. \| U.S. Small Business Administration securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	12,851	16,552
Fair Value, Measurements, Recurring \| Securities available-for-sale. \| Mortgage loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	20,093	125,810
Fair Value, Measurements, Recurring \| Derivative \| Forward TBA mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	164	53
Fair Value, Measurements, Recurring \| Derivative \| Mandatory and best effort forward commitments with investors
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		808
Total liabilities measured at fair value	(38)
Fair Value, Measurements, Recurring \| Derivative \| Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	9,870	1,168
Total liabilities measured at fair value		(155)
Fair Value, Measurements, Recurring \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	107
Fair Value, Measurements, Recurring \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		757
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Total liabilities measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Residential Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Securities available-for-sale. \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Securities available-for-sale. \| Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Securities available-for-sale. \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Securities available-for-sale. \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Securities available-for-sale. \| U.S. Small Business Administration securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Securities available-for-sale. \| Mortgage loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Derivative \| Forward TBA mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Derivative \| Mandatory and best effort forward commitments with investors
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0
Total liabilities measured at fair value	0
Fair Value, Measurements, Recurring \| Level 1 \| Derivative \| Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Total liabilities measured at fair value		0
Fair Value, Measurements, Recurring \| Level 1 \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0
Fair Value, Measurements, Recurring \| Level 1 \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	273,414	413,335
Total liabilities measured at fair value	0	(155)
Fair Value, Measurements, Recurring \| Level 2 \| Residential Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, at fair value	14,035	16,083
Fair Value, Measurements, Recurring \| Level 2 \| Securities available-for-sale. \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	17,288	20,970
Fair Value, Measurements, Recurring \| Level 2 \| Securities available-for-sale. \| Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	8,545	7,995
Fair Value, Measurements, Recurring \| Level 2 \| Securities available-for-sale. \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	120,602	135,302
Fair Value, Measurements, Recurring \| Level 2 \| Securities available-for-sale. \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	69,966	89,402
Fair Value, Measurements, Recurring \| Level 2 \| Securities available-for-sale. \| U.S. Small Business Administration securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	12,851	16,552
Fair Value, Measurements, Recurring \| Level 2 \| Securities available-for-sale. \| Mortgage loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	20,093	125,810
Fair Value, Measurements, Recurring \| Level 2 \| Derivative \| Forward TBA mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	164	53
Fair Value, Measurements, Recurring \| Level 2 \| Derivative \| Mandatory and best effort forward commitments with investors
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0
Total liabilities measured at fair value	0
Fair Value, Measurements, Recurring \| Level 2 \| Derivative \| Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	9,870	1,168
Total liabilities measured at fair value		(155)
Fair Value, Measurements, Recurring \| Level 2 \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0
Fair Value, Measurements, Recurring \| Level 2 \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		0
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	107	2,703
Total liabilities measured at fair value	(38)	0
Fair Value, Measurements, Recurring \| Level 3 \| Residential Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, at fair value	0	0
Fair Value, Measurements, Recurring \| Level 3 \| Securities available-for-sale. \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 3 \| Securities available-for-sale. \| Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	1,007
Fair Value, Measurements, Recurring \| Level 3 \| Securities available-for-sale. \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	131
Fair Value, Measurements, Recurring \| Level 3 \| Securities available-for-sale. \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 3 \| Securities available-for-sale. \| U.S. Small Business Administration securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 3 \| Securities available-for-sale. \| Mortgage loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 3 \| Derivative \| Forward TBA mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Fair Value, Measurements, Recurring \| Level 3 \| Derivative \| Mandatory and best effort forward commitments with investors
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		808
Total liabilities measured at fair value	(38)
Fair Value, Measurements, Recurring \| Level 3 \| Derivative \| Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Total liabilities measured at fair value		0
Fair Value, Measurements, Recurring \| Level 3 \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 107
Fair Value, Measurements, Recurring \| Level 3 \| Derivative \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		$ 757

FAIR VALUE MEASUREMENTS - Loans

FAIR VALUE MEASUREMENTS - Loans Individually Evaluated, OREO and Servicing Rights on Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 570
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated	8,652	$ 5,829
Other real estate owned	570
MSR	35,478	26,070
Fair Value, Measurements, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated	0	0
Other real estate owned	0
MSR	0	0
Fair Value, Measurements, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated	0	0
Other real estate owned	0
MSR	0	0
Fair Value, Measurements, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans individually evaluated	8,652	5,829
Other real estate owned	570
MSR	$ 35,478	$ 26,070

FAIR VALUE MEASUREMENTS - Disco

FAIR VALUE MEASUREMENTS - Discount Rate (Details)	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Measurements, Recurring \| Interest rate lock commitments with customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Valuation Technique [Extensible List]	fsbw:QuotedMarketPricesMember	fsbw:QuotedMarketPricesMember
Debt Securities, Available-for-sale, Measurement Input [Extensible List]	fsbw:MeasurementInputPullThroughExpectationsMember	fsbw:MeasurementInputPullThroughExpectationsMember
Fair Value, Measurements, Recurring \| Individual forward sale commitments with investors
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Valuation Technique [Extensible List]	fsbw:QuotedMarketPricesMember	fsbw:QuotedMarketPricesMember
Debt Securities, Available-for-sale, Measurement Input [Extensible List]	fsbw:MeasurementInputPullThroughExpectationsMember	fsbw:MeasurementInputPullThroughExpectationsMember
Fair Value, Measurements, Nonrecurring \| Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Valuation Technique [Extensible List]	fsbw:FairValueOfUnderlyingCollateralMember	fsbw:FairValueOfUnderlyingCollateralMember
Debt Securities, Available-for-sale, Measurement Input [Extensible List]	fsbw:MeasurementInputDiscountAppliedToObtainedAppraisalMember	fsbw:MeasurementInputDiscountAppliedToObtainedAppraisalMember
Fair Value, Measurements, Nonrecurring \| OREO
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Valuation Technique [Extensible List]	fsbw:FairValueOfCollateralMember	fsbw:FairValueOfCollateralMember
Debt Securities, Available-for-sale, Measurement Input [Extensible List]	fsbw:MeasurementInputDiscountAppliedToObtainedAppraisalMember	fsbw:MeasurementInputDiscountAppliedToObtainedAppraisalMember
Fair Value, Measurements, Nonrecurring \| Servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Valuation Technique [Extensible List]	fsbw:IndustrySourcesMember	fsbw:IndustrySourcesMember
Debt Securities, Available-for-sale, Measurement Input [Extensible List]	fsbw:PrepaymentSpeedsMember	fsbw:PrepaymentSpeedsMember
Level 3 \| Fair Value, Measurements, Recurring \| Interest rate lock commitments with customers \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.80	0.80
Level 3 \| Fair Value, Measurements, Recurring \| Interest rate lock commitments with customers \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.99	0.99
Level 3 \| Fair Value, Measurements, Recurring \| Interest rate lock commitments with customers \| Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.925	0.933
Level 3 \| Fair Value, Measurements, Recurring \| Individual forward sale commitments with investors \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.80	0.80
Level 3 \| Fair Value, Measurements, Recurring \| Individual forward sale commitments with investors \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.99	0.99
Level 3 \| Fair Value, Measurements, Recurring \| Individual forward sale commitments with investors \| Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.925	0.933
Level 3 \| Fair Value, Measurements, Nonrecurring \| Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.100	0.100
Level 3 \| Fair Value, Measurements, Nonrecurring \| Impaired Loans \| Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.100	0.100
Level 3 \| Fair Value, Measurements, Nonrecurring \| OREO
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.100	0.100
Level 3 \| Fair Value, Measurements, Nonrecurring \| OREO \| Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	10
Level 3 \| Fair Value, Measurements, Nonrecurring \| Servicing rights \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0	0
Level 3 \| Fair Value, Measurements, Nonrecurring \| Servicing rights \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.50	0.50
Level 3 \| Fair Value, Measurements, Nonrecurring \| Servicing rights \| Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement inputs (as a percent)	0.082	0.138

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Level 3 on recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest rate lock commitments with customers
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 757	$ 4,024	$ 557
Purchases and Issuances	3,215	23,164	53,281
Sales and Settlements	(3,865)	(26,431)	(49,814)
Ending Balance	107	757	4,024
Net change in fair value for gains/(losses) relating to items held at end of period included in income	(650)	(3,267)	3,467
Individual forward sale commitments with investors
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	808	(67)	(195)
Purchases and Issuances	6,383	2,526	(4,857)
Sales and Settlements	(7,229)	(1,651)	4,985
Ending Balance	(38)	808	(67)
Net change in fair value for gains/(losses) relating to items held at end of period included in income	(846)	875	128
Securities available-for-sale.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 1,138	1,111	1,162
Purchases and Issuances		40
Sales and Settlements		(13)	(51)
Ending Balance		1,138	1,111
Net change in fair value for gains/(losses) relating to items held at end of period included in other comprehensive		$ 27	$ (40)

FAIR VALUE MEASUREMENTS - Fai_2

FAIR VALUE MEASUREMENTS - Fair Value By Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial Assets
Certificates of deposit at other financial institutions	$ 4,712	$ 10,542
Securities available-for-sale, at fair value	229,252	271,359
Securities held-to-maturity	8,500	7,500
Loans held for sale, at fair value	20,093	125,810
Loans receivable, at fair value	14,035	16,083
Loans receivable, gross	2,218,852	1,754,175	$ 1,571,153
Carrying Amount \| Level 1
Financial Assets
Cash and cash equivalents	41,437	26,491
Certificates of deposit at other financial institutions	4,712	10,542
Carrying Amount \| Level 2
Financial Assets
Securities available-for-sale, at fair value	229,252	270,221
Securities held-to-maturity	8,500	7,500
Loans held for sale, at fair value	20,093	125,810
FHLB stock, at cost	10,611	4,778
Forward TBA mortgage-backed securities	164	53
Loans receivable, at fair value	14,035	16,083
Interest rate swaps	9,870	1,168
Accrued interest receivable	11,144	7,594
Financial Liabilities
Deposits	2,127,741	1,915,744
Borrowings	186,528	42,528
Subordinated notes, excluding unamortized debt issuance costs	50,000	50,000
Accrued interest payable	2,270	766
Interest rate swaps		155
Carrying Amount \| Level 3
Financial Assets
Securities available-for-sale, at fair value		1,138
Loans receivable, gross	2,204,817	1,738,092
Servicing rights, held at lower of cost or fair value	18,017	16,970
Fair value interest rate locks with customers	107	757
Mandatory and best effort forward commitments with investors		808
Financial Liabilities
Mandatory and best effort forward commitments with investors	38
Fair Value \| Level 1
Financial Assets
Cash and cash equivalents	41,437	26,491
Certificates of deposit at other financial institutions	4,712	10,542
Fair Value \| Level 2
Financial Assets
Securities available-for-sale, at fair value	229,252	270,221
Securities held-to-maturity	7,929	8,128
Loans held for sale, at fair value	20,093	125,810
FHLB stock, at cost	10,611	4,778
Forward TBA mortgage-backed securities	164	53
Loans receivable, at fair value	14,035	16,083
Interest rate swaps	9,870	1,168
Accrued interest receivable	11,144	7,594
Financial Liabilities
Deposits	2,105,926	1,912,498
Borrowings	186,188	43,365
Subordinated notes, excluding unamortized debt issuance costs	44,500	51,688
Accrued interest payable	2,270	766
Interest rate swaps		155
Fair Value \| Level 3
Financial Assets
Securities available-for-sale, at fair value		1,138
Loans receivable, gross	2,153,769	1,725,651
Servicing rights, held at lower of cost or fair value	35,478	26,070
Fair value interest rate locks with customers	107	757
Mandatory and best effort forward commitments with investors		$ 808
Financial Liabilities
Mandatory and best effort forward commitments with investors	$ 38

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)	12 Months Ended
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable, at fair value	$ 14,035,000	$ 16,083,000
Increase (decrease) in fair value of loans receivable	(1,700,000)	(29,000)	$ 15,000
Level 2 \| Residential Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable, at fair value	14,000,000	16,100,000
The unpaid principal balances of mortgage loans serviced	$ 15,600,000	$ 16,100,000

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator (Dollars in thousands, except per share amounts):
Net Income	$ 29,649	$ 37,412	$ 39,264
Dividends and undistributed earnings allocated to participating securities	(554)	(611)	(545)
Net income available to common shareholders	$ 29,095	$ 36,801	$ 38,719
Denominator (shown as actual):
Basic weighted average common shares outstanding (in shares)	7,754,507	8,217,916	8,461,280
Dilutive shares (in shares)	119,133	200,580	162,038
Diluted weighted average common shares outstanding (in shares)	7,873,640	8,418,496	8,623,318
Basic earnings per share	$ 3.75	$ 4.48	$ 4.58
Diluted earnings per share	$ 3.70	$ 4.37	$ 4.49
Potentially dilutive weighted average share options that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive	61,912	16,466	133,238

DERIVATIVES (Details)

DERIVATIVES (Details) $ in Millions	Dec. 31, 2022 USD ($)
DERIVATIVES
Reclassification to interest expense related to cash flow hedges over next 12 months	$ 3.8

DERIVATIVES - Cumulative-basis

DERIVATIVES - Cumulative-basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Fair value hedges		$ 0
Fair Value Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Carrying Amount of the Hedged Assets	$ 55,893
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of the Hedged Assets	4,107
Amortized cost basis of closed portfolios used in hedging relationships	242,100
Amount of designated hedged item	$ 60,000

DERIVATIVES - Derivative instru

DERIVATIVES - Derivative instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Designated as Hedging Instrument \| Interest rate swaps \| Cash Flow Hedges
Derivative [Line Items]
Notional	$ 90,000	$ 90,000
Fair Value, Asset	5,780	1,168
Fair Value, Liability	0	155
Designated as Hedging Instrument \| Interest rate swaps \| Fair Value Hedges
Derivative [Line Items]
Notional	60,000
Fair Value, Asset	4,090
Fair Value, Liability	0
Not Designated as Hedging Instrument \| Interest rate lock commitments with customers
Derivative [Line Items]
Notional	8,837	71,890
Fair Value, Asset	107	757
Fair Value, Liability	0	0
Not Designated as Hedging Instrument \| Mandatory and best effort forward commitments
Derivative [Line Items]
Notional	4,558	74,375
Fair Value, Asset	0	808
Fair Value, Liability	38	0
Not Designated as Hedging Instrument \| Forward TBA mortgage-backed securities
Derivative [Line Items]
Notional	27,000	111,000
Fair Value, Asset	164	$ 53
Fair Value, Liability	$ 0

DERIVATIVES - Effect of Fair Va

DERIVATIVES - Effect of Fair Value and Cash Flow Hedge Accounting (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
DERIVATIVES
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$ 970	$ (538)	$ (198)
Changes in the fair value of the non hedging derivatives	(2,600)	5,100	6,300
Interest rate swaps \| Interest Expense Deposits
DERIVATIVES
Total amounts presented on the Consolidated Statements of Income	9,420	6,929	11,980
Interest rate swaps \| Interest Income Securities
DERIVATIVES
Total amounts presented on the Consolidated Statements of Income	7,046	5,637	4,709
Fair Value Hedges \| Interest rate swaps \| Interest Income Securities
DERIVATIVES
Net gains (losses) on fair value hedging relationships - Recognized on hedged items	(4,107)
Net gains (losses) on fair value hedging relationships - Recognized on derivatives designated as hedging instruments	4,103
Net expense recognized on fair value hedges	(4)
Cash Flow Hedges \| Interest rate swaps \| Interest Expense Deposits
DERIVATIVES
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	970	(538)	(198)
Net income (expense) recognized on cash flow hedges	$ 970	$ (538)	$ (198)

DERIVATIVES - Offsetting Deriva

DERIVATIVES - Offsetting Derivative Assets (Details) - Interest rate swaps - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	$ 9,870	$ 1,168
Net Amounts of Assets Presented in the Statement of Financial Position	9,870	1,168
Gross Amounts Not Offset in the Statement of Financial Position - Net Amount	$ 9,870	$ 1,168

DERIVATIVES - Offsetting Deri_2

DERIVATIVES - Offsetting Derivative Liabilities (Details) - Interest rate swaps $ in Thousands	Dec. 31, 2021 USD ($)
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 155
Net Amounts of Liabilities Presented in the Statement of Financial Position	155
Gross Amounts Not Offset in the Statement of Financial Position - Cash Collateral Posted	$ 155

DERIVATIVES - Credit-risk-relat

DERIVATIVES - Credit-risk-related Contingent Features (Details)	Dec. 31, 2022 USD ($)
Credit-risk-related Contingent Features
Derivative, net liability position	$ 0
Carrying value of collateral already posted	2,800,000
Interest rate swaps
Credit-risk-related Contingent Features
Cash collateral for borrowed securities	680,000
Collateral for TBA Trades [Member]
Credit-risk-related Contingent Features
Cash collateral for borrowed securities	$ 170,000

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 247,507	$ 230,007	$ 200,242
Net current period other comprehensive income (loss)	(25,884)	(2,281)	1,745
Ending balance	231,697	247,507	230,007
Gains and Losses on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	794	(967)
Other comprehensive income (loss) before reclassification, net of tax	7,728	1,339	(1,122)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(761)	422	155
Net current period other comprehensive income (loss)	6,967	1,761	(967)
Ending balance	7,761	794	(967)
Unrealized Gains and Losses on Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(542)	3,500	788
Other comprehensive income (loss) before reclassification, net of tax	(32,851)	(4,042)	2,947
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			(235)
Net current period other comprehensive income (loss)	(32,851)	(4,042)	2,712
Ending balance	(33,393)	(542)	3,500
Accumulated Other Comprehensive Income (Loss), Net of Tax.
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	252	2,533	788
Other comprehensive income (loss) before reclassification, net of tax	(25,123)	(2,703)	1,825
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(761)	422	(80)
Net current period other comprehensive income (loss)	(25,884)	(2,281)	1,745
Ending balance	$ (25,632)	$ 252	$ 2,533

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details)		12 Months Ended
STOCK-BASED COMPENSATION - Narrative (Details)	Jul. 14, 2021	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	May 17, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award contractual life		10 years
Stock split, conversion ratio	2
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years		6 years 6 months	6 years 6 months	6 years 6 months
2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense \| $		$ 2,000,000	$ 1,400,000	$ 1,000,000
Income tax benefit from share-based compensation expense \| $		$ 414,000	$ 304,000	$ 214,000
Remaining weighted-average vesting period		6 years 10 months 2 days	7 years 2 months 1 day	6 years 6 months 29 days
2018 Equity Incentive Plan \| Equity option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award contractual life		10 years
Shares available for grant \| shares		342,096
Expiration period		10 years
Unrecognized compensation cost, nonvested awards \| $		$ 2,000,000
Remaining weighted-average vesting period		3 years 3 months 18 days
2018 Equity Incentive Plan \| Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares) \| shares					326,000
Shares available for grant \| shares		109,410
Unrecognized compensation cost, nonvested awards \| $		$ 2,900,000
Weighted-average vesting period		3 years 3 months 18 days
2018 Equity Incentive Plan \| Equity option and restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares) \| shares					1,300,000
Maximum \| 2018 Equity Incentive Plan \| Restricted stock awards \| Independent Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Maximum \| 2018 Equity Incentive Plan \| Restricted stock awards \| Officers And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		5 years
Minimum \| 2018 Equity Incentive Plan \| Restricted stock awards \| Independent Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		1 year
Minimum \| 2018 Equity Incentive Plan \| Restricted stock awards \| Officers And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
One year vesting \| 2018 Equity Incentive Plan \| Stock Options \| Directors Excluding CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		1 year
One year vesting \| 2018 Equity Incentive Plan \| Equity option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years		5 years 6 months
One year vesting \| Minimum \| 2018 Equity Incentive Plan \| Equity option \| Directors Excluding CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		1 year
Two year vesting \| 2018 Equity Incentive Plan \| Stock Options \| Directors Excluding CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Two year vesting \| 2018 Equity Incentive Plan \| Equity option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years		5 years 9 months
Two year vesting \| 2018 Equity Incentive Plan \| Equity option \| Directors Excluding CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Two year vesting \| Minimum \| 2018 Equity Incentive Plan \| Equity option \| Officers And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Three year vesting \| 2018 Equity Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years		6 years
Three year vesting \| Maximum \| 2018 Equity Incentive Plan \| Equity option \| Directors Excluding CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Five year vesting \| 2018 Equity Incentive Plan \| Equity option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual award vesting percentage		20%
Expected term in years		6 years 6 months
Five year vesting \| 2018 Equity Incentive Plan \| Equity option \| Directors Excluding CEO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		5 years
Five year vesting \| Maximum \| 2018 Equity Incentive Plan \| Equity option \| Officers And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		5 years

STOCK-BASED COMPENSATION - Fair

STOCK-BASED COMPENSATION - Fair Value of Options (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	2.59%	1.58%	1.97%
Expected volatility	26.86%	37.10%	26.79%
Risk-free interest rate	2.88%	1.01%	0.42%
Expected term in years	6 years 6 months	6 years 6 months	6 years 6 months
Weighted-average grant date fair value per option granted	$ 7.13	$ 10.67	$ 8

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares
Award contractual life	10 years
Aggregate Intrinsic Value
Forfeited or Expired, Aggregate Intrinsic Value	$ 0
2013 Equity Incentive Plan
Shares
Annual forfeiture rate	0.31%
Expected forfeiture rate over contractual term	3.10%
2018 Equity Incentive Plan
Shares
Outstanding, beginning balance (in shares)	613,626	671,754	575,980
Granted, Shares	99,200	118,850	124,570
Less exercised (in shares)	64,994	176,978	28,796
Forfeited or Expired, Shares	0
Outstanding, ending balance (in shares)	647,832	613,626	671,754	575,980
Expected to vest, assuming a 0.31% annual forfeiture rate (in shares)	645,998
Exercisable (in shares)	312,821
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 25.24	$ 19.45	$ 18.49
Granted (in dollars per share)	30.94	35.46	21.35
Less exercised (in dollars per share)	19.75	12.73	8.45
Forfeited or expired, Weighted-Average Exercise Price (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	26.67	$ 25.24	$ 19.45	$ 18.49
Expected to vest, assuming a 0.31% annual forfeiture rate (in dollars per share)	26.66
Exercisable (in dollars per share)	$ 24.03
Weighted-Average Remaining Contractual Term In Years
Outstanding, beginning balance	6 years 10 months 2 days	7 years 2 months 1 day	6 years 6 months 29 days	6 years 9 months 7 days
Outstanding, ending balance	6 years 10 months 2 days	7 years 2 months 1 day	6 years 6 months 29 days
Expected to vest, assuming a 0.31% annual forfeiture rate, Weighted Average Remaining Contractual Term	6 years 10 months 2 days	7 years 2 months 1 day	6 years 6 months 29 days	6 years 9 months 7 days
Exercisable	5 years 5 months 15 days
Aggregate Intrinsic Value
Beginning balance	$ 5,362,902	$ 5,721,159	$ 7,722,369
Less exercised	790,558	4,265,369	453,674
Forfeited or Expired, Aggregate Intrinsic Value	0
Ending balance	4,627,255	$ 5,362,902	$ 5,721,159	$ 7,722,369
Expected to vest, assuming a 0.31% annual forfeiture rate	4,619,599
Exercisable	$ 3,007,299
2018 Equity Incentive Plan \| Equity option
Shares
Award contractual life	10 years
Weighted-Average Remaining Contractual Term In Years
Outstanding, ending balance	3 years 3 months 18 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Awards (Details) - Restricted stock awards - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares
Nonvested, Beginning balance (in shares)	121,672	110,184	80,430
Granted (shares)	35,050	41,350	49,760
Less vested (in shares)	38,192	29,862	20,006
Nonvested, Ending balance (in shares)	118,530	121,672	110,184
Weighted-Average Grant-Date Fair Value Per Share
Nonvested, Beginning balance (in dollars per share)	$ 28.02	$ 24.35	$ 26.82
Granted (in dollars per share)	30.94	35.46	21.35
Less vested (in dollars per share)	28.12	24.78	26.84
Nonvested, Ending balance (in dollars per share)	$ 28.85	$ 28.02	$ 24.35
Minimum \| 2018 Equity Incentive Plan \| Independent Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Minimum \| 2018 Equity Incentive Plan \| Officers And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	2 years
Maximum \| 2018 Equity Incentive Plan \| Independent Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Maximum \| 2018 Equity Incentive Plan \| Officers And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	5 years

BUSINESS SEGMENTS - Narrative (

BUSINESS SEGMENTS - Narrative (Details)	12 Months Ended
BUSINESS SEGMENTS - Narrative (Details)	Dec. 31, 2022 segment item	Dec. 31, 2022 USD ($) item
Segment Reporting Information [Line Items]
Number of operating segments	2	2
Retail Deposit \| Pacific Northwest
Segment Reporting Information [Line Items]
Number of bank branches	20	20

BUSINESS SEGMENTS - Segment Fin

BUSINESS SEGMENTS - Segment Financial Results (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) employee	Dec. 31, 2021 USD ($) employee	Dec. 31, 2020 USD ($) employee
Segment Reporting Information [Line Items]
Net interest income	$ 104,280	$ 86,649	$ 74,120
(Provision for) reversal of loan losses	(6,217)	(500)	(13,036)
Noninterest income	18,108	37,513	55,359
Noninterest expense	(79,183)	(76,242)	(66,593)
INCOME BEFORE PROVISION FOR INCOME TAXES	36,988	47,420	49,850
(Provision) benefit for income taxes	(7,339)	(10,008)	(10,586)
NET INCOME	29,649	37,412	39,264
Total assets	2,632,898	2,286,391
Total average assets for period ended	$ 2,435,694	$ 2,189,213	$ 1,940,048
FTEs \| employee	537	536	506
Home Lending
Segment Reporting Information [Line Items]
Net interest income	$ 10,922	$ 8,343	$ 5,123
(Provision for) reversal of loan losses	(1,153)	2,113	(2,758)
Noninterest income	7,950	28,968	44,808
Noninterest expense	(19,460)	(19,685)	(17,351)
INCOME BEFORE PROVISION FOR INCOME TAXES	(1,741)	19,739	29,822
(Provision) benefit for income taxes	345	(4,166)	(6,333)
NET INCOME	(1,396)	15,573	23,489
Total average assets for period ended	$ 417,431	$ 409,363	$ 396,367
FTEs \| employee	132	152	152
Commercial and Consumer Banking
Segment Reporting Information [Line Items]
Net interest income	$ 93,358	$ 78,306	$ 68,997
(Provision for) reversal of loan losses	(5,064)	(2,613)	(10,278)
Noninterest income	10,158	8,545	10,551
Noninterest expense	(59,723)	(56,557)	(49,242)
INCOME BEFORE PROVISION FOR INCOME TAXES	38,729	27,681	20,028
(Provision) benefit for income taxes	(7,684)	(5,842)	(4,253)
NET INCOME	31,045	21,839	15,775
Total average assets for period ended	$ 2,018,263	$ 1,779,850	$ 1,543,681
FTEs \| employee	405	384	354

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Noninterest Income
Noninterest income (in-scope of Topic 606)	$ 3,185	$ 3,009	$ 2,665
Noninterest income (out-of-scope of Topic 606)	14,923	34,504	52,694
Total noninterest income	18,108	37,513	55,359
Debit Card Interchange Fees
Noninterest Income
Noninterest income (in-scope of Topic 606)	2,266	2,252	1,879
Deposit service and account maintenance fees
Noninterest Income
Noninterest income (in-scope of Topic 606)	$ 919	$ 757	$ 786

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($)	12 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 2,312,000	$ 2,312,000
Goodwill, Impairment Loss	0	0	$ 0
Finite-Lived Intangible Assets, Net [Abstract]
Finite-Lived Intangible Assets, Gross, Total	7,490,000	7,490,000	7,490,000
Finite-Lived Intangible Assets, Accumulated Amortization	(3,430,000)	(2,739,000)	(2,033,000)
Finite-Lived Intangible Assets, Net, Beginning Balance	4,060,000	4,751,000	5,457,000
Amortization	(691,000)	(691,000)	(706,000)
Finite-Lived Intangible Assets, Gross, Total	7,490,000	7,490,000	7,490,000
Finite-Lived Intangible Assets, Accumulated Amortization	(4,121,000)	(3,430,000)	(2,739,000)
Finite-Lived Intangible Assets, Net, Ending Balance	3,369,000	4,060,000	4,751,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2023	691,000
2024	621,000
2025	525,000
2026	525,000
2027	525,000
Thereafter	482,000
Total	$ 3,369,000	4,060,000	$ 4,751,000
Anchor Bancorp
Finite-Lived Intangible Assets, Net [Abstract]
Amortization period - CDI	10 years
Bank of America
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 2,300,000	$ 2,300,000
Finite-Lived Intangible Assets, Net [Abstract]
Amortization period - CDI	9 years

PARENT COMPANY ONLY FINANCIAL_3

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 10,525	$ 12,043
Other assets	17,238	12,195
TOTAL ASSETS	2,632,898	2,286,391
Liabilities and Stockholders' Equity
Subordinated note, net	49,461	49,394
Other liabilities	30,997	25,243
Total liabilities	2,401,201	2,038,884
Total stockholders' equity	231,697	247,507	$ 230,007	$ 200,242
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,632,898	2,286,391
FS Bancorp, Inc.
Assets
Cash and due from banks	7,195	19,883
Investment in subsidiary	274,092	277,390
Other assets	704	407
TOTAL ASSETS	281,991	297,680
Liabilities and Stockholders' Equity
Subordinated note, net	49,461	49,394
Other liabilities	833	779
Total liabilities	50,294	50,173
Total stockholders' equity	231,697	247,507
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 281,991	$ 297,680

PARENT COMPANY ONLY FINANCIAL_4

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Income Statements, Captions [Line Items]
Interest from subsidiary	$ 111,648	$ 90,737	$ 84,128
Interest expense on subordinated note	(1,942)	(1,722)	(776)
Dividends received from subsidiary	7,046	5,637	4,709
Income tax benefit	7,339	10,008	10,586
NET INCOME	29,649	37,412	39,264
FS Bancorp, Inc.
Condensed Income Statements, Captions [Line Items]
Interest expense on subordinated note	(1,942)	(1,722)	(776)
Dividends received from subsidiary	9,110	9,800	20,862
Other expenses	(274)	(272)	(195)
Income before income tax benefit and equity in undistributed net income of subsidiary	6,894	7,806	19,891
Income tax benefit	465	419	204
Equity in undistributed earnings of subsidiary	22,290	29,187	19,169
NET INCOME	$ 29,649	$ 37,412	$ 39,264

PARENT COMPANY ONLY FINANCIAL_5

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 29,649	$ 37,412	$ 39,264
ESOP compensation expense for allocated shares		1,773	1,307
Changes in operating assets and liabilities
Other assets	2,127	(3,670)	5,511
Other liabilities	2,616	(1,491)	5,714
Net cash from (used by) operating activities	184,898	109,009	(32,317)
Cash flows from investing activities:
Net cash used by investing activities	(504,044)	(310,833)	(270,690)
Cash flows used by financing activities:
Repayment of subordinated notes		(10,000)
Proceeds (disbursements) from stock options exercised, net	568	(2,076)	(161)
Common stock repurchased for employee/director taxes paid on restricted stock awards	(190)	(211)	(34)
Issuance of common stock - employee stock purchase plan	503
Common stock repurchased	(15,628)	(13,961)	(9,802)
Dividends paid on common stock	(7,096)	(4,602)	(3,574)
Net cash from financing activities	334,092	136,739	348,805
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	14,946	(65,085)	45,798
CASH AND CASH EQUIVALENTS, beginning of year	26,491	91,576	45,778
CASH AND CASH EQUIVALENTS, end of year	41,437	26,491	91,576
FS Bancorp, Inc.
Cash flows from operating activities:
Net income	29,649	37,412	39,264
Equity in undistributed net income of subsidiary	(22,290)	(29,187)	(19,169)
Amortization	67	61	115
ESOP compensation expense for allocated shares		1,482	1,025
Share-based compensation expense related to stock options and restricted stock	1,971	1,446	1,020
Changes in operating assets and liabilities
Other assets	(297)	(205)	(30)
Other liabilities	55	569	27
Net cash from (used by) operating activities	9,155	11,578	22,252
Cash flows from investing activities:
Net proceeds from ESOP		291	282
Investment in subsidiary		(25,000)
Net cash used by investing activities		(24,709)	282
Cash flows used by financing activities:
Net proceeds from issuance of subordinated notes		49,333
Repayment of subordinated notes		(10,000)
Proceeds (disbursements) from stock options exercised, net	568	(2,076)	(161)
Common stock repurchased for employee/director taxes paid on restricted stock awards	(190)	(211)	(34)
Issuance of common stock - employee stock purchase plan	503
Common stock repurchased	(15,628)	(13,961)	(9,802)
Dividends paid on common stock	(7,096)	(4,602)	(3,574)
Net cash from financing activities	(21,843)	18,483	(13,571)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(12,688)	5,352	8,963
CASH AND CASH EQUIVALENTS, beginning of year	19,883	14,531	5,568
CASH AND CASH EQUIVALENTS, end of year	$ 7,195	$ 19,883	$ 14,531

RECENT DEVELOPMENTS (Details)

RECENT DEVELOPMENTS (Details) $ in Thousands	Feb. 24, 2023 USD ($) item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Subsequent Event [Line Items]
Total deposits		$ 2,127,741	$ 1,915,744
Loans receivable, net		$ 2,190,860	$ 1,728,540
Subsequent Event \| Columbia State Bank
Subsequent Event [Line Items]
Number of bank branches \| item	7
Total deposits	$ 425,500
Loans receivable, net	65,800
Consideration transferred for facilities and certain assets	$ 6,400
Deposit premium, core deposits (as a percentage)	4.15%
Deposit premium	$ 16,800
Acquisition settled by cash	$ 337,300
Subsequent Event \| Columbia State Bank \| Maximum
Subsequent Event [Line Items]
Deposit premium, public funds (as a percentage)	2.50%
Fair values refinement period	1 year
Subsequent Event \| Purchase and Assumption Agreement \| Columbia State Bank
Subsequent Event [Line Items]
Number of bank branches \| item	7