Loans Receivable and ALLL (Tables)

9 Months Ended

Dec. 31, 2022

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following is a summary of loans receivable at December 31, 2022 and March 31, 2022:

	December 31, 2022				March 31, 2022
$ in thousands	Amount		Percent		Amount		Percent
Gross loans receivable:
One-to-four family	$	65,291	11.2	%	$	69,297	12.0	%
Multifamily	176,480		30.2	%	160,800		27.9	%
Commercial real estate	172,468		29.5	%	174,270		30.2	%
Business (1)	167,700		28.7	%	170,497		29.6	%
Consumer (2)	2,127		0.4	%	1,623		0.3	%
Total loans receivable	$	584,066	100.0	%	$	576,487	100.0	%
Unamortized premiums, deferred costs and fees, net	2,683				3,017
Allowance for loan losses	(5,154)				(5,624)
Total loans receivable, net	$	581,595			$	573,880

(1) Includes PPP loans and business overdrafts

(2) Includes personal loans and consumer overdrafts

Allowance for Loan Losses

The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the three and nine month periods ended December 31, 2022 and 2021, and the fiscal year ended March 31, 2022.

Three months ended December 31, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	704	$	1,055	$	1,608	$	1,814	$	82	$	246	$	5,509
Charge-offs	—		—		—		—		(106)		—		(106)
Recoveries	—		—		—		30		2		—		32
Provision for (recovery of) Loan Losses	20		25		(563)		69		143		25		(281)
Ending Balance	$	724	$	1,080	$	1,045	$	1,913	$	121	$	271	$	5,154

Nine months ended December 31, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Charge-offs	—		—		—		—		(130)		—		(130)
Recoveries	90		—		10		53		4		—		157
Provision for (recovery of) Loan Losses	(97)		(34)		(122)		(637)		124		269		(497)
Ending Balance	$	724	$	1,080	$	1,045	$	1,913	$	121	$	271	$	5,154
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	621	$	1,080	$	1,045	$	1,761	$	121	$	271	$	4,899
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	103		—		—		152		—		—		255
Loan Receivables Ending Balance:	$	66,142	$	177,647	$	173,219	$	167,602	$	2,139	$	—	$	586,749
Ending Balance: collectively evaluated for impairment	61,045		177,576		165,944		161,635		2,139		—		568,339
Ending Balance: individually evaluated for impairment	5,097		71		7,275		5,967		—		—		18,410

At March 31, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for Loan Losses Ending Balance:	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	731		1,114		1,157		2,428		123		2		5,555
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	—		—		—		69		—		—		69
Loan Receivables Ending Balance:	$	70,261	$	162,261	$	175,313	$	170,031	$	1,638	$	—	$	579,504
Ending Balance: collectively evaluated for impairment	65,369		161,746		175,313		163,991		1,638		—		568,057
Ending Balance: individually evaluated for impairment	4,892		515		—		6,040		—		—		11,447

Three months ended December 31, 2021
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,015	$	914	$	1,002	$	2,106	$	137	$	341	$	5,515
Charge-offs	—		—		—		—		(123)		(129)		(252)
Recoveries	—		—		—		32		1		—		33
Provision for (recovery of) Loan Losses	(94)		188		93		(30)		116		(81)		192
Ending Balance	$	921	$	1,102	$	1,095	$	2,108	$	131	$	131	$	5,488

Nine months ended December 31, 2021
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,058	$	880	$	907	$	1,855	$	165	$	275	$	5,140
Charge-offs	—		—		—		—		(222)		(1)		(223)
Recoveries	—		—		—		82		21		—		103
Provision for (recovery of) Loan Losses	(137)		222		188		171		167		(143)		468
Ending Balance	$	921	$	1,102	$	1,095	$	2,108	$	131	$	131	$	5,488

Schedule Nonaccrual Loans

The following is a summary of nonaccrual loans at December 31, 2022 and March 31, 2022.

$ in thousands	December 31, 2022		March 31, 2022
Gross loans receivable:
One-to-four family	$	4,066	$	4,892
Multifamily	71		515
Commercial real estate	7,275		4,601
Business	973		1,448
Consumer	—		25
Total nonaccrual loans	$	12,385	$	11,481

Loans Receivable, Credit Quality Indicators

At December 31, 2022, and based on the most recent analysis performed in the current quarter, the risk category by class of loans is as follows:

$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	175,990	$	165,237	$	154,280
Special Mention	771		707		6,136
Substandard	886		7,275		7,186
Total	$	177,647	$	173,219	$	167,602
			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	61,045	$	2,139
Non-Performing			5,097		—
Total			$	66,142	$	2,139

    At March 31, 2022, the risk category by class of loans was as follows:

$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	155,274	$	164,543	$	155,196
Special Mention	897		8,157		6,302
Substandard	6,090		2,613		8,533
Total	$	162,261	$	175,313	$	170,031
			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	65,369	$	1,613
Non-Performing			4,892		25
Total			$	70,261	$	1,638

Past Due Financing Receivables

The following table presents an aging analysis of the recorded investment of past due loans receivables at December 31, 2022 and March 31, 2022.

.

December 31, 2022
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	—	$	233	$	3,968	$	4,201	$	61,941	$	66,142
Multifamily	2,991		—		71		3,062		174,585		177,647
Commercial real estate	3,238		1,237		7,274		11,749		161,470		173,219
Business	8,443		—		464		8,907		158,695		167,602
Consumer	33		121		—		154		1,985		2,139
Total	$	14,705	$	1,591	$	11,777	$	28,073	$	558,676	$	586,749

March 31, 2022
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	1,943	$	—	$	5,229	$	7,172	$	63,089	$	70,261
Multifamily	4,435		115		515		5,065		157,196		162,261
Commercial real estate	4,010		—		4,601		8,611		166,702		175,313
Business	923		40		664		1,627		168,404		170,031
Consumer	84		45		25		154		1,484		1,638
Total	$	11,395	$	200	$	11,034	$	22,629	$	556,875	$	579,504

Impaired Loans

The following table presents information on impaired loans with the associated allowance amount, if applicable, at December 31, 2022 and March 31, 2022.

	At December 31, 2022						At March 31, 2022
$ in thousands	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Recorded Investment		Unpaid Principal Balance		Associated Allowance
With no specific allowance recorded:
One-to-four family	$	4,066	$	4,661	$	—	$	4,892	$	5,576	$	—
Multifamily	71		71		—		515		515		—
Commercial real estate	7,275		7,401		—		—		—		—
Business	1,168		1,211		—		837		909		—
With an allowance recorded:
One-to-four family	1,031		1,031		103		—		—		—
Business	4,799		4,799		152		5,203		5,203		69
Total	$	18,410	$	19,174	$	255	$	11,447	$	12,203	$	69

    The following tables presents information on average balances of impaired loans and the interest income recognized on a cash basis for the three and nine month periods ended December 31, 2022 and 2021.

	For the Three Months Ended December 31,								For the Nine Months Ended December 31,
	2022				2021				2022				2021
$ in thousands	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family	$	4,204	$	2	$	4,429	$	13	$	4,479	$	40	$	4,443	$	19
Multifamily	36		—		699		9		293		—		442		9
Commercial real estate	7,560		33		188		7		3,637		107		551		7
Business	1,174		10		2,125		24		1,003		44		2,212		24
With an allowance recorded:
One-to-four family	1,035		9		73		—		516		31		74		1
Commercial real estate	804		—		—		—		—		—		—		—
Business	4,962		67		5,293		—		5,001		202		5,333		149
Total	$	19,775	$	121	$	12,807	$	53	$	14,929	$	424	$	13,055	$	209

Troubled Debt Restructuring

The following table presents an analysis of the loan modifications that were classified as TDRs during the three and nine months ended December 31, 2022.

	Loan Modifications for the nine months ended
	December 31, 2022
$ in thousands	Number of loans	Recorded investment at time of modification
One-to-four family	2	$	1,047