XML 33 R23.htm IDEA: XBRL DOCUMENT

Loans Receivable Held for Investment (Tables)

6 Months Ended

Jun. 30, 2023

Loans Receivable Held for Investment [Abstract]

Loans receivable held for investment were as follows as of the dates indicated:

	June 30, 2023			December 31, 2022
	(In thousands)
Real estate:
Single family	$	25,952		$	30,038
Multi-family		529,169			502,141
Commercial real estate		128,029			114,574
Church		11,946			15,780
Construction		77,335			40,703
Commercial – other		53,056			64,841
SBA loans⁽¹⁾		5,724			3,601
Consumer		30			11
Gross loans receivable before deferred loan costs and premiums		831,241			771,689
Unamortized net deferred loan costs and premiums		1,295			1,755
Gross loans receivable		832,536			773,444
Credit and interest marks on purchased loans, net		(945	)		(1,010	)
Allowance for credit losses ⁽²⁾		(6,970	)		(4,388	)
Loans receivable, net	$	824,621		$	768,046

(1)	Including Paycheck Protection Program (PPP) loans.

(2)

The allowance for credit losses as of December 31, 2022 was accounted for under ASC 450 and ASC 310, which is reflective of probable incurred losses as of the date of the consolidated statement of financial condition. Effective January 1, 2023, the allowance for credit losses is accounted for under ASC 326, which is reflective of estimated expected lifetime credit losses.

Carrying Amount of Purchased Credit Impaired Loans

The carrying amount of those loans was as follows:

	June 30, 2023		December 31, 2022
	(In thousands)
Real estate:
Single family	$	–	$	68
Commercial – other		49		57
	$	49	$	125

Accretable yield on Purchased Credit Impaired Loans

The following tables summarize the discount on the PCI loans for the periods indicated:

	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
	(In thousands)
Balance at the beginning of the period	$	165		$	165
Deduction due to payoffs		(112	)		(112	)
Accretion		4			4
Balance at the end of the period	$	49		$	49

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
	(In thousands)
Balance at the beginning of the period	$	165	$	883
Deduction due to payoffs		–		(707	)
Accretion		5		16
Balance at the end of the period	$	160	$	160

Activity in Allowance for Credit Losses on Loans

The following tables summarize the activity in the allowance for credit losses on loans for the period indicated:

	Three Months Ended June 30, 2023
	Beginning Balance		Charge-offs		Recoveries		Provision (Recapture) ⁽¹⁾			Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single family	$	261	$	–	$	–	$	(14	)	$	247
Multi-family		3,932		–		–		323			4,255
Commercial real estate		1,012		–		–		–			1,012
Church		92		–		–		(9	)		83
Construction		593		–		–		195			788
Commercial - other		357		–		–		189			546
SBA loans		38		–		–		1			39
Consumer		–		–		–		–			–
Total	$	6,285	$	–	$	–	$	685		$	6,970

	Six Months Ended June 30, 2023
	Beginning Balance		Impact of CECL Adoption			Charge-offs		Recoveries		Provision (Recapture) ⁽¹⁾			Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single family	$	109	$	214		$	–	$	–	$	(76	)	$	247
Multi-family		3,273		603			–		–		379			4,255
Commercial real estate		449		466			–		–		97			1,012
Church		65		37			–		–		(19	)		83
Construction		313		219			–		–		256			788
Commercial - other		175		254			–		–		117			546
SBA loans		–		20			–		–		19			39
Consumer		4		(4	)		–		–		–			–
Total	$	4,388	$	1,809		$	–	$	–	$	773		$	6,970

(1)	The bank also recorded a provision for off balance sheet loan commitments of $83 thousand for the three months ended June 30, 2023 and $37 thousand for six months ended June 30, 2023.

The following tables present the activity in the allowance for loan losses by loan type for the periods indicated (in thousands):

	For the Three Months Ended June 30, 2022
	Real Estate
	Single Family			Multi- Family			Commercial Real Estate			Church			Construction			Commercial - Other		Consumer		Total
Beginning balance	$	157		$	2,771		$	217		$	63		$	236		$	95	$	–	$	3,539
Provision for (recapture of) loan losses		(37	)		(493	)		(64	)		(15	)		(15	)		43		4		(577	)
Recoveries		–			–			–			–			–			–		–		–
Loans charged off		–			–			–			–			–			–		–		–
Ending balance	$	120		$	2,278		$	153		$	48		$	221		$	138	$	4	$	2,962

	For the Six Months Ended June 30, 2022
	Real Estate
	Single Family			Multi- Family			Commercial Real Estate			Church			Construction		Commercial - Other		Consumer			Total
Beginning balance	$	145		$	2,657		$	236		$	103		$	212	$	23	$	15		$	3,391
Provision for (recapture of) loan losses		(25	)		(379	)		(83	)		(55	)		9		115		(11	)		(429	)
Recoveries		–			–			–			–			–		–		–			–
Loans charged off		–			–			–			–			–		–		–			–
Ending balance	$	120		$	2,278		$	153		$	48		$	221	$	138	$	4		$	2,962

Collateral Dependent Loans By Collateral Type

The following table presents collateral dependent loans by collateral type as of the date indicated:

	June 30, 2023
	Single Family		Multi-Use Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single family	$	50	$	0	$	–	$	–	$	50
Multi family		–		5,741		–		–		5,741
Commercial real estate		–		–		74		–		74
Church		–		–		691		–		691
Commercial – other		–		–		–		275		275
Total	$	50	$	5,741	$	765	$	275	$	6,831

Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on the impairment method as of the date indicated:

	December 31, 2022
	Real Estate
	Single Family		Multi- Family		Commercial Real Estate		Church		Construction		Commercial - Other		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	3	$	–	$	–	$	4	$	–	$	–	$	–	$	7
Collectively evaluated for impairment		106		3,273		449		61		313		175		4		4,381
Total ending allowance balance	$	109	$	3,273	$	449	$	65	$	313	$	175	$	4	$	4,388
Loans:
Loans individually evaluated for impairment	$	57	$	–	$	–	$	1,655	$	–	$	–	$	–	$	1,712
Loans collectively evaluated for impairment		20,893		462,539		63,929		9,008		38,530		29,558		11		624,468
Subtotal		20,950		462,539		63,929		10,663		38,530		29,558		11		626,180
Loans acquired in the CFBanc merger		9,088		41,357		50,645		5,117		2,173		38,884		–		147,264
Total ending loans balance	$	30,038	$	503,896	$	114,574	$	15,780	$	40,703	$	68,442	$	11	$	773,444

Loans Individually Evaluated for Impairment by Loan Type

The following table presents information related to loans individually evaluated for impairment by loan type as of the dates indicated:

	December 31, 2022
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(In thousands)
With no related allowance recorded:
Church	$	1,572	$	1,572	$	–
With an allowance recorded:
Single family		57		57		3
Church		83		83		4
Total	$	1,712	$	1,712	$	7

Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income

The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated:

	Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
	Average Recorded Investment		Cash Basis Interest Income Recognized		Average Recorded Investment		Cash Basis Interest Income Recognized
	(In thousands)
Single family	$	63	$	1	$	63	$	1
Multi-family		274		5		274		5
Church		2,197		25		2,197		25
Commercial - other		–		–		–		–
Total	$	2,534	$	31	$	2,534	$	31

Aging of Recorded Investment in Past Due Loans by Loan Type

The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:

June 30, 2023

30-59 Days

Past Due

60-89 Days

Past Due

Greater than 90

Days Past Due

Total

Past Due

Current

Total

(In thousands)

Loans receivable held for investment:

Single family

–

25,952

Multi-family

–

530,464

Commercial real estate

–

128,029

Church

–

11,946

Construction

–

77,335

Commercial - other

–

53,056

SBA loans

–

5,724

Consumer

–

Total

–

832,536

December 31, 2022

30-59 Days

Past Due

60-89 Days

Past Due

Greater than 90

Days Past Due

Total

Past Due

Current

Total

(In thousands)

Loans receivable held for investment:

Single family

–

30,038

Multi-family

–

503,896

Commercial real estate

–

114,574

Church

–

15,780

Construction

–

40,703

Commercial - other

–

64,841

SBA loans

–

3,601

Consumer

–

Total

–

773,444

Recorded Investment in Non-accrual Loans by Loan Type

The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated:

	June 30, 2023		December 31, 2022
	(In thousands)
Loans receivable held for investment:
Church	$	–	$	144
Total non-accrual loans	$	–	$	144

Loans Held for Investment Portfolio By Internal Risk Grading and By Year of Origination

The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination as of June 30, 2023:

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
	(In thousands)
Single family:
Pass	$	–	$	2,503	$	2,646	$	4,368	$	1,505	$	14,046	$	–	$	25,068
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		–		–		599		–		599
Substandard		–		–		–		–		–		285		–		285
Total	$	–	$	2,503	$	2,646	$	4,368	$	1,505	$	14,930	$	–	$	25,952

Multi-family:
Pass	$	38,445	$	186,771	$	153,606	$	27,679	$	45,935	$	56,486	$	–	$	508,922
Watch		–		3,300		–		–		–		636		–		3,936
Special Mention		–		–		910		–		–		1,821		–		2,731
Substandard		–		–		–		–		753		14,122		–		14,875
Total	$	38,445	$	190,071	$	154,516	$	27,679	$	46,688	$	73,065	$	–	$	530,464

Commercial real estate:
Pass	$	4,623	$	22,427	$	26,079	$	30,445	$	7,131	$	30,497	$	–	$	121,202
Watch		–		446		–		–		–		1,094		–		1,540
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–	$	–	$	–		5,287		–	$	5,287
Total	$	4,623	$	22,873	$	26,079	$	30,445	$	7,131	$	36,878	$	–	$	128,029

Church:
Pass	$	–	$	–	$	2,238	$	1,773	$	–	$	6,301	$	–	$	10,312
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		–		646		–		–		646
Substandard		–		–		–		–		–		988		–		988
Total	$	–	$	–	$	2,238	$	1,773	$	646	$	7,289	$	–	$	11,946

Construction:
Pass	$	–	$	–	$	1,212	$	–	$	–	$	2,135	$	–	$	3,347
Watch		34,550		31,919		7,519		–		–		–		–		73,988
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		–		–		–
Total	$	34,550	$	31,919	$	8,731	$	–	$	–	$	2,135	$	–	$	77,335

Commercial – others:
Pass	$	15,000	$	8,996	$	–	$	5,667	$	4,300	$	12,521	$	–	$	46,484
Watch		–		1,042		101		1,500		2,250		1,232		–		6,125
Special Mention		–		–		172		–		–		–		–		172
Substandard		–		–		–		–		–		275		–		275
Total	$	15,000	$	10,038	$	273	$	7,167	$	6,550	$	14,028	$	–	$	53,056

SBA:
Pass	$	2,465	$	148	$	2,457	$	–	$	25	$	118	$	–	$	5,213
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		511		–		–		–		511
Substandard		–		–		–		–		–		–		–		–
Total	$	2,465	$	148	$	2,457	$	511	$	25	$	118	$	–	$	5,724

Consumer:
Pass	$	30	$	–	$	–	$	–	$	–	$	–	$	–	$	30
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		–		–		–
Total	$	30	$	–	$	–	$	–	$	–	$	–	$	–	$	30

Total loans:
Pass	$	60,563	$	220,845	$	188,238	$	69,932	$	58,896	$	122,104	$	–	$	720,578
Watch		34,550		36,707		7,620		1,500		2,250		2,962		–		85,589
Special Mention		–		–		1,082		511		646		2,420		–		4,659
Substandard		–		–		–		–		753		20,957		–		21,710
Total loans	$	95,113	$	257,552	$	196,940	$	71,943	$	62,545	$	148,443	$	–	$	832,536

The following table stratifies the loan portfolio by the Company’s internal risk rating as of the date indicated:

	December 31, 2022
	Pass		Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Single family	$	29,022	$	354	$	260	$	402	$	–	$	–	$	30,038
Multi-family		479,182		9,855		14,859		–		–		–		503,896
Commercial real estate		104,066		4,524		1,471		4,513		–		–		114,574
Church		14,505		728		–		547		–		–		15,780
Construction		2,173		38,530		–		–		–		–		40,703
Commercial - other		53,396		11,157		–		288		–		–		64,841
SBA		3,032		569		–		–		–		–		3,601
Consumer		11		–		–		–		–		–		11
Total	$	685,387	$	65,717	$	16,590	$	5,750	$	–	$	–	$	773,444