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Loans Receivable Held for Investment (Tables)

12 Months Ended

Dec. 31, 2023

Loans Receivable Held for Investment [Abstract]

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

	December 31, 2023			December 31, 2022
	(In thousands)
Real estate:
Single-family	$	24,702		$	30,038
Multi-family		561,447			502,141
Commercial real estate		119,436			114,574
Church		12,717			15,780
Construction		89,887			40,703
Commercial – other		63,450			64,841
SBA loans ⁽¹⁾		14,954			3,601
Consumer		13			11
Gross loans receivable before deferred loan costs and premiums		886,606			771,689
Unamortized net deferred loan costs and premiums		1,971			1,755
		888,577			773,444
Credit and interest marks on purchased loans, net		(772	)		(1,010	)
Allowance for credit losses⁽²⁾		(7,348	)		(4,388	)
Loans receivable, net	$	880,457		$	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.

Activity in Allowance for Credit Losses on Loans and Activity in Allowance for Loan Losses by Loan Type

The following table summarizes the activity in the allowance for credit losses on loans for the period indicated:

	For the Year Ended December 31, 2023
	Beginning Balance		Impact of CECL Adoption			Charge-offs		Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family	$	109	$	214		$	–	$	–	$	(63	)	$	260
Multi-family		3,273		603			–		109		428			4,413
Commercial real estate		449		466			–		107		72			1,094
Church		65		37			–		–		(30	)		72
Construction		313		219			–		–		400			932
Commercial - other		175		254			–		–		100			529
SBA loans		–		20			–		–		28			48
Consumer		4		(4	)		–		–		–			–
Total	$	4,388	$	1,809		$	–	$	216	$	935		$	7,348

The following table presents the activity in the allowance for loan losses by loan type for the period indicated:

	For the Year Ended December 31, 2022
	Real Estate
	Single- family			Multi‑ family		Commercial real estate		Church			Construction		Commercial– other		Consumer			Total
	(In thousands)
Beginning balance	$	145		$	2,657	$	236	$	103		$	212	$	23	$	15		$	3,391
Provision for (recapture of) loan losses		(36	)		616		213		(38	)		101		152		(11	)		997
Recoveries		–			–		–		–			–		–		–			–
Loans charged off		–			–		–		–			–		–		–			–
Ending balance	$	109		$	3,273	$	449	$	65		$	313	$	175	$	4		$	4,388

Collateral Dependent Loans by Collateral Type

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

	December 31, 2023
	Single-Family		Multi-Family Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single-family	$	45	$	–	$	–	$	–	$	45
Multi-family		–		5,672		–		–		5,672
Commercial real estate		–		–		65		–		65
Church		–		–		391		–		391
Commercial – other		–		–		–		268		268
Total	$	45	$	5,672	$	456	$	268	$	6,441

Carrying Amount of Purchased Credit Deteriorated Loans

The carrying amount of those loans was as follows:

	December 31, 2023		December 31, 2022
	(In thousands)
Real estate:
Single-family	$	–	$	68
Commercial real estate		–		–
Commercial – other		47		57
	$	47	$	125

Discount on Purchased Credit Deteriorated Loans

The following table summarizes the discount on the PCD loans for the periods indicated:

	December 31, 2023			December 31, 2022
	(In thousands)
Balance at the beginning of the period	$	27		$	289
Deductions due to payoffs		(13	)		–
Accretion		(12	)		(262	)
Balance at the end of the period	$	2		$	27

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 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 period indicated:

	December 31, 2022
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(In thousands)
With no related allowance recorded:
Multi-family	$	–	$	–	$	–
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 table presents the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated:

	For the Year Ended December 31, 2022
	Average Recorded Investment		Cash Basis Interest Income Recognized
	(In thousands)
Single-family	$	83	$	3
Multi-family		–		–
Church		2,381		103
Total	$	2,464	$	106

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 periods indicated:

	December 31, 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:
Real estate:
Single-family	$	–	$	–	$	–	$	–	$	24,702	$	24,702
Multi-family		–		401		–		401		563,017		563,418
Commercial real estate		–		–		–		–		119,436		119,436
Church		–		–		–		–		12,717		12,717
Construction		–		–		–		–		89,887		89,887
Commercial - other		–		–		–		–		63,450		63,450
SBA loans		379		–		–		379		14,575		14,954
Consumer		–		–		–		–		13		13
Total	$	379	$	401	$	–	$	780	$	887,797	$	888,577

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:

Real estate:

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 periods indicated:

	December 31, 2023		December 31, 2022
Loans receivable held for investment:	(In thousands)
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 December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	2,474	$	1,862	$	2,940	$	1,485	$	12,374	$	–	$	21,135
Watch		–		–		750		–		–		999		–		1,749
Special Mention		–		–		–		–		–		116		–		116
Substandard		–		–		–		1,365		–		337		–		1,702
Total	$	–	$	2,474	$	2,612	$	4,305	$	1,485	$	13,826	$	–	$	24,702

Multi-family:
Pass	$	81,927	$	183,295	$	145,652	$	27,356	$	44,511	$	47,119	$	–	$	529,860
Watch		–		4,686		6,203		–		1,186		6,474		–		18,549
Special Mention		–		–		899		–		–		1,344		–		2,243
Substandard		–		–		–		–		363		12,403		–		12,766
Total	$	81,927	$	187,981	$	152,754	$	27,356	$	46,060	$	67,340	$	–	$	563,418

Commercial real estate:
Pass	$	9,881	$	22,131	$	26,019	$	24,684	$	6,718	$	15,106	$	–	$	104,539
Watch		–		442		–		5,286		–		2,599		–		8,327
Special Mention		–		–		–		–		325		–		–		325
Substandard		–		–		–	$	–	$	–		6,245		–	$	6,245
Total	$	9,881	$	22,573	$	26,019	$	29,970	$	7,043	$	23,950	$	–	$	119,436

Church:
Pass	$	2,923	$	–	$	2,210	$	1,748	$	–	$	2,704	$	–	$	9,585
Watch		–		–		–		–		636		1,525		–		2,161
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		971		–		971
Total	$	2,923	$	–	$	2,210	$	1,748	$	636	$	5,200	$	–	$	12,717

Construction:
Pass	$	–	$	1,109	$	1,198	$	–	$	–	$	–	$	–	$	2,307
Watch		42,300		35,179		5,484		–		–		2,097		–		85,060
Special Mention		–		–		2,520		–		–		–		–		2,520
Substandard		–		–		–		–		–		–		–		–
Total	$	42,300	$	36,288	$	9,202	$	–	$	–	$	2,097	$	–	$	89,887

Commercial – other:
Pass	$	15,000	$	9,077	$	87	$	5,600	$	–	$	25,154	$	–	$	54,918
Watch		–		312		–		1,500		6,550		–		–		8,362
Special Mention		–		–		170		–		–		–		–		170
Substandard		–		–		–		–		–		–		–		–
Total	$	15,000	$	9,389	$	257	$	7,100	$	6,550	$	25,154	$	–	$	63,450

SBA:
Pass	$	11,809	$	109	$	2,453	$	–	$	16	$	100	$	–	$	14,487
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		467		–		–		–		467
Substandard		–		–		–		–		–		–		–		–
Total	$	11,809	$	109	$	2,453	$	467	$	16	$	100	$	–	$	14,954

Consumer:
Pass	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		–		–		–
Total	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13

Total loans:
Pass	$	121,553	$	218,195	$	179,481	$	62,328	$	52,730	$	102,557	$	–	$	736,844
Watch		42,300		40,619		12,437		6,786		8,372		13,694		–		124,208
Special Mention		–		–		3,589		467		325		1,460		–		5,841
Substandard		–		–		–		1,365		363		19,956		–		21,684
Total loans	$	163,853	$	258,814	$	195,507	$	70,946	$	61,790	$	137,667	$	–	$	888,577

Based on the most recent analysis performed, the risk categories of loans by loan type as of the dates indicated were as follows:

	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 – others		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