Loans Receivable Held for Investment (Tables)

3 Months Ended

Mar. 31, 2024

Loans Receivable Held for Investment [Abstract]

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

	March 31, 2024			December 31, 2023
	(In thousands)
Real estate:
Single-family	$	28,184		$	24,702
Multi-family		601,126			561,447
Commercial real estate		124,717			119,436
Church		12,573			12,717
Construction		90,333			89,887
Commercial – other		63,538			63,450
SBA loans ⁽¹⁾		12,475			14,954
Consumer		14			13
Gross loans receivable before deferred loan costs and premiums		932,960			886,606
Unamortized net deferred loan costs and premiums		1,828			1,971
Gross loans receivable		934,788			888,577
Credit and interest marks on purchased loans, net		(739	)		(772	)
Allowance for credit losses		(7,552	)		(7,348	)
Loans receivable, net	$	926,497		$	880,457

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

Carrying Amount of Purchased Credit Impaired Loans

The carrying amount of those loans was as follows:

	March 31, 2024		December 31, 2023
Real estate:	(In thousands)
Single-family	$	–	$	–
Commercial – other		47		47
	$	47	$	47

Discount on Purchased Credit Impaired Loans

The following tables summarizes the discount on the PCI loans for the three months ended:

	March 31, 2024			March 31, 2023
	(In thousands)
Balance at the beginning of the period	$	2		$	27
Deduction due to payoffs		–			(12	)
Accretion		(2	)		(4	)
Balance at the end of the period	$	–		$	11

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

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

	March 31, 2024
	Beginning Balance		Charge-offs		Recoveries		Provision (recapture)			Ending Balance
Loans receivable held for investment:
Single-family	$	260	$	–	$	–	$	38		$	298
Multi-family		4,413		–		–		(88	)		4,325
Commercial real estate		1,094		–		–		15			1,109
Church		72		–		–		18			90
Construction		932		–		–		24			956
Commercial - other		529		–		–		193			722
SBA loans		48		–		–		4			52
Consumer		–		–		–		–			–
Total	$	7,348	$	–	$	–	$	204		$	7,552

	March 31, 2023
	Beginning Balance		Impact of CECL Adoption			Charge-offs		Recoveries		Provision (benefit)			Ending Balance
	(In thousands)
Loans receivable held for investment:
Single-family	$	109	$	214		$	–	$	–	$	(62	)	$	261
Multi-family		3,273		603			–		–		56			3,932
Commercial real estate		449		466			–		–		97			1,012
Church		65		37			–		–		(10	)		92
Construction		313		219			–		–		61			593
Commercial - other		175		254			–		–		(72	)		357
SBA loans		–		20			–		–		18			38
Consumer		4		(4	)		–		–		–			–
Total	$	4,388	$	1,809		$	–	$	–	$	88		$	6,285

Collateral Dependent Loans By Collateral Type

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

	March 31, 2024
	Single-Family		Multi-Family Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single-family	$	42	$	–	$	–	$	–	$	42
Multi-family		–		401		–		–		401
Commercial real estate		–		–		58		–		58
Church		–		–		388		–		388
Commercial – other		–		–		–		267		267
Total	$	42	$	401	$	446	$	267	$	1,156

	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

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:

	March 31, 2024
	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	$	–	$	–	$	–	$	–	$	28,184	$	28,184
Multi-family		–		–		401		401		602,553		602,954
Commercial real estate		–		–		–		–		124,717		124,717
Church		–		–		–		–		12,573		12,573
Construction		–		–		–		–		90,333		90,333
Commercial - other		–		–		–		–		63,538		63,538
SBA loans		9		360		–		369		12,106		12,475
Consumer		–		–		–		–		14		14
Total	$	9	$	360	$	401	$	770	$	934,018	$	934,788

	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:
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

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:

	March 31, 2024		December 31, 2023
	(In thousands)
Loans receivable held for investment:
Multi-family	$	401	$	–
Total non-accrual loans	$	401	$	–

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 the date indicated:

	Term Loans Amortized Cost Basis by Origination Year - As of March 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	551	$	4,135	$	3,039	$	2,050	$	14,612	$	–	$	24,387
Watch		–		–		–		745		869		714		–		2,328
Special Mention		–		–		–		–		–		115		–		115
Substandard		–		–		–		–		1,354		–		–		1,354
Total	$	–	$	551	$	4,135	$	3,784	$	4,273	$	15,441	$	–	$	28,184

Multi-family:
Pass	$	39,797	$	86,356	$	182,415	$	144,826	$	27,195	$	92,345	$	–	$	572,934
Watch		–		–		4,667		6,168		–		4,377		–		15,212
Special Mention		–		–		–		–		–		2,039		–		2,039
Substandard		–		–		–		894		–		11,875		–		12,769
Total	$	39,797	$	86,356	$	187,082	$	151,888	$	27,195	$	110,636	$	–	$	602,954

Commercial real estate:
Pass	$	15,000	$	1,751	$	21,406	$	25,877	$	24,477	$	22,487	$	–	$	110,998
Watch		–		–		440		–		5,256		2,579		–		8,275
Special Mention		–		884		–		–		–		–		–		884
Substandard		–		–		–		–		–		4,560		–		4,560
Total	$	15,000	$	2,635	$	21,846	$	25,877	$	29,733	$	29,626	$	–	$	124,717

Church:
Pass	$	–	$	2,892	$	–	$	2,196	$	1,735	$	2,649	$	–	$	9,472
Watch		–		–		–		–		–		1,490		–		1,490
Special Mention		–		–		–		–		–		648		–		648
Substandard		–		–		–		–		–		963		–		963
Total	$	–	$	2,892	$	–	$	2,196	$	1,735	$	5,750	$	–	$	12,573

Construction:
Pass	$	–	$	–	$	–	$	–	$	–	$	–	$	–	$	–
Watch		954		43,787		31,126		8,094		–		1,841		–		85,802
Special Mention		–		252		4,279		–		–		–		–		4,531
Substandard		–		–		–		–		–		–		–		–
Total	$	954	$	44,039	$	35,405	$	8,094	$	–	$	1,841	$	–	$	90,333

Commercial – other:
Pass	$	–	$	15,000	$	9,033	$	80	$	6,196	$	7,632	$	–	$	37,941
Watch		17,594		–		312		–		–		6,549		–		24,455
Special Mention		–		–		–		–		972		–		–		972
Substandard		–		–		–		170		–		–		–		170
Total	$	17,594	$	15,000	$	9,345	$	250	$	7,168	$	14,181	$	–	$	63,538

SBA:
Pass	$	–	$	9,065	$	150	$	15	$	–	$	1,425	$	–	$	10,655
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		446		1,374		–		1,820
Total	$	–	$	9,065	$	150	$	15	$	446	$	2,799	$	–	$	12,475

Consumer:
Pass	$	14	$	–	$	–	$	–	$	–	$	–	$	–	$	14
Watch		–		–		–		–		–		–		–		–
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		–		–		–
Total	$	14	$	–	$	–	$	–	$	–	$	–	$	–	$	14

Total loans:
Pass	$	54,811	$	115,615	$	217,139	$	176,033	$	61,653	$	141,150	$	–	$	766,401
Watch		18,548		43,787		36,545		15,007		6,125		17,550		–		137,562
Special Mention		–		1,136		4,279		–		972		2,802		–		9,189
Substandard		–		–		–		1,064		1,800		18,772		–		21,636
Total loans	$	73,359	$	160,538	$	257,963	$	192,104	$	70,550	$	180,274	$	–	$	934,788

	Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023
	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