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Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable net of loans in process (“LIP”), at December 31, 2022, and 2021 are summarized as follows:


	December 31,
	2022		2021
	(In thousands)
One-to-four family residential:
Permanent owner occupied	$	233,785	$	185,320
Permanent non-owner occupied	242,051		199,796
	475,836		385,116

Multifamily	126,895		130,146

Commercial real estate	407,882		419,417

Construction/land: (1)
One-to-four family residential	52,836		34,677
Multifamily	15,501		37,194
Commercial	—		6,189
Land	9,783		15,395
	78,120		93,455

Business	31,371		46,590
Consumer	62,055		44,812
Total loans	1,182,159		1,119,536
Less:
Deferred loan (costs) fees, net (2)	(151)		418
ALLL	15,227		15,657
Loans receivable, net	$	1,167,083	$	1,103,461

____________

(1)Included in the construction/land category are “rollover” loans, which are loans that will convert upon completion of the construction period to permanent loans and be reclassified according to the underlying collateral. In addition, raw land or buildable lots, where the Company does not intend to finance the construction are included in the construction/land category. At December 31, 2022, the Company had $15.5 million of multifamily loans and $9.8 million of commercial land loans included in the construction/land loan portfolio that will be converted to permanent loans upon completion of the construction period. At December 31, 2021, total loans included in the construction/land loan portfolio to be converted to permanent loans included $37.2 million of multifamily loans, $12.9 million of commercial land loans, and $6.2 million of commercial real estate loans.

(2)Deferred loan (costs) fees, net, include $3.4 million of unamortized loan purchase premiums at December 31, 2022.

Accrued interest receivable consisted of the following at December 31, 2022 and 2021:


	December 31,
	2022		2021
	(In thousands)
Loans receivable	$	5,290	$	4,634
Investments	1,222		651
Interest-earning deposits	1		—
	$	6,513	$	5,285

Financing Receivables, Summary of Loans By Maturity and Interest Rate Type

The Company originates both adjustable and fixed interest rate loans. The composition of loans receivable at December 31, 2022 and 2021, was as follows:


December 31, 2022
Fixed Rate			Adjustable Rate
Term to Maturity	Principal Balance		Term to Rate Adjustment	Principal Balance
(In thousands)
Due within one year	$	4,673	Due within one year (1)	$	329,764
After one year through three years	56,461		After one year through three years	72,362
After three years through five years	68,783		After three years through five years	224,852
After five years through ten years	104,646		After five years through ten years	108,557
Thereafter	212,061		Thereafter	—
	$	446,624		$	735,535

____________

(1) Includes $158.5 million of prime based loans and $111.1 million in loans that adjust monthly based on LIBOR.


December 31, 2021
Fixed Rate			Adjustable Rate
Term to Maturity	Principal Balance		Term to Rate Adjustment	Principal Balance
(In thousands)
Due within one year	$	39,712	Due within one year (1)	$	284,631
After one year through three years	50,504		After one year through three years	74,706
After three years through five years	92,824		After three years through five years	177,607
After five years through ten years	118,310		After five years through ten years	103,909
Thereafter	177,333		Thereafter	—
	$	478,683		$	640,853

____________

(1) Includes $117.0 million of prime based loans and $114.8 million in loans that adjust monthly based on LIBOR.

Financing Receivable Credit Quality Indicators

The following tables represent a summary of loans at December 31, 2022, and 2021 by type and risk category:


	December 31, 2022
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer		Total
	(In thousands)
Risk Rating:
Pass, grade 1-4	$	473,700	$	122,972	$	342,827	$	78,120	$	31,371	$	61,632	$	1,110,622
Pass, grade 5 (watch)	1,113		2,291		14,845		—		—		27		18,276
Special mention	1,023		—		4,668		—		—		203		5,894
Substandard	—		1,632		45,542		—		—		193		47,367
Total	$	475,836	$	126,895	$	407,882	$	78,120	$	31,371	$	62,055	$	1,182,159


	December 31, 2021
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction / Land		Business		Consumer		Total
	(In thousands)
Risk Rating:
Pass, grade 1-4	$	383,276	$	126,149	$	351,241	$	91,202	$	46,590	$	44,379	$	1,042,837
Pass, grade 5 (watch)	911		3,997		23,019		2,253		—		33		30,213
Special mention	929		—		11,127		—		—		221		12,277
Substandard	—		—		34,030		—		—		179		34,209
Total	$	385,116	$	130,146	$	419,417	$	93,455	$	46,590	$	44,812	$	1,119,536

Schedule of Allowance for Loan and Lease Losses, Roll Forward

The following tables summarize changes in the ALLL and loan portfolio by type of loan and reserve method for the periods indicated. The analysis of pooled loans excluded PPP loans as these loans are fully guaranteed by the SBA.


	At or For the Year Ended December 31, 2022
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer		Total
ALLL:	(In thousands)
Beginning balance	$	3,214	$	1,279	$	6,615	$	2,064	$	1,112	$	1,373	$	15,657
Charge-offs	—		—		—		—		—		(37)		(37)
Recoveries	7		—		—		—		—		—		7
Provision (recapture of provision)	822		(69)		(1,218)		(347)		(164)		576		(400)
Ending balance	$	4,043	$	1,210	$	5,397	$	1,717	$	948	$	1,912	$	15,227

General reserve	$	4,030	$	1,210	$	5,397	$	1,717	$	948	$	1,912	$	15,214
Specific reserve	13		—		—		—		—		—		13

Loans:
Total Loans	$	475,836	$	126,895	$	407,882	$	78,120	$	31,371	$	62,055	$	1,182,159
Loans collectively evaluated for impairment (1) (3)	474,476		125,263		362,340		78,120		31,371		62,055		1,133,625
Loans individually evaluated for impairment (2)	1,360		1,632		45,542		—		—		—		48,534

____________

(1) Loans collectively evaluated for general reserves.

(2) Loans individually evaluated for specific reserves.

(3) PPP loans totaling $785,000 were excluded from the collectively evaluated pool when calculating the ALLL as payment on these loans is guaranteed by the SBA.


	At or For the Year Ended December 31, 2021
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer		Total
ALLL:	(In thousands)
Beginning balance	$	3,181	$	1,366	$	6,127	$	2,189	$	1,242	$	1,069	$	15,174
Charge-offs	—		—		—		—		—		—		—
Recoveries	183		—		—		—		—		—		183
(Recapture) provision	(150)		(87)		488		(125)		(130)		304		300
Ending balance	$	3,214	$	1,279	$	6,615	$	2,064	$	1,112	$	1,373	$	15,657

General reserve	$	3,194	$	1,279	$	6,615	$	2,064	$	1,112	$	1,373	$	15,637
Specific reserve	20		—		—		—		—		—		20

Loans:
Total Loans	$	385,116	$	130,146	$	419,417	$	93,455	$	46,590	$	44,812	$	1,119,536
Loans collectively evaluated for impairment (1) (3)	383,009		130,146		385,387		93,455		46,590		44,812		1,083,399
Loans individually evaluated for impairment (2)	2,107		—		34,030		—		—		—		36,137

_____________

(1) Loans collectively evaluated for general reserves.

(2) Loans individually evaluated for specific reserves.

(3) PPP loans totaling $10.8 million were excluded from the collectively evaluated pool when calculating the ALLL as payment on these loans is guaranteed by the SBA.

Financing Receivables, Aging of loans

The following tables represent a summary at December 31, 2022, and 2021, of the aging of loans by type:


	Loans Past Due as of December 31, 2022
	30-59 Days		60-89 Days		90 Days and Greater		Total		Current		Total Loans (1)
	(In thousands)
Real estate:
One-to-four family residential:
Owner occupied	$	—	$	—	$	—	$	—	$	233,785	$	233,785
Non-owner occupied	27		—		—		27		242,024		242,051
Multifamily	—		—		—		—		126,895		126,895
Commercial real estate	—		—		—		—		407,882		407,882
Construction/land	—		—		—		—		78,120		78,120
Total real estate	27		—		—		27		1,088,706		1,088,733
Business	—		—		—		—		31,371		31,371
Consumer	—		—		193		193		61,862		62,055
Total	$	27	$	—	$	193	$	220	$	1,181,939	$	1,182,159

_________________________

(1) There were no loans 90 days past due and still accruing interest at December 31, 2022.


	Loans Past Due as of December 31, 2021
	30-59 Days		60-89 Days		90 Days and Greater		Total		Current		Total Loans (1)
	(In thousands)
Real estate:
One-to-four family residential:
Owner occupied	$	—	$	—	$	—	$	—	$	185,320	$	185,320
Non-owner occupied	—		—		—		—		199,796		199,796
Multifamily	—		—		—		—		130,146		130,146
Commercial real estate	—		—		—		—		419,417		419,417
Construction/land	—		—		—		—		93,455		93,455
Total real estate	—		—		—		—		1,028,134		1,028,134
Business	76		—		—		76		46,514		46,590
Consumer	179		—		—		179		44,633		44,812
Total	$	255	$	—	$	—	$	255	$	1,119,281	$	1,119,536

________________________

(1) There were no loans 90 days past due and still accruing interest at December 31, 2021.

Financing Receivables, Summary of loans by type and payment activity

The following tables summarize the loan portfolio at December 31, 2022, and 2021, by type and payment activity:


	December 31, 2022
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction / Land		Business		Consumer		Total
	(In thousands)
Performing (1)	$	475,836	$	126,895	$	407,882	$	78,120	$	31,371	$	61,862	$	1,181,966
Nonperforming	—		—		—		—		—		193		193
Total	$	475,836	$	126,895	$	407,882	$	78,120	$	31,371	$	62,055	$	1,182,159

____________

(1) There were $233.8 million of owner-occupied one-to-four family residential loans and $242.1 million of non-owner occupied one-to-four family residential loans classified as performing.


	December 31, 2021
	One-to-Four Family Residential		Multifamily		Commercial Real Estate		Construction/ Land		Business		Consumer		Total
	(In thousands)
Performing (1)	$	385,116	$	130,146	$	419,417	$	93,455	$	46,590	$	44,812	$	1,119,536
Nonperforming (2)	—		—		—		—		—		—		—
Total	$	385,116	$	130,146	$	419,417	$	93,455	$	46,590	$	44,812	$	1,119,536

_____________

(1) There were $185.3 million of owner-occupied one-to-four family residential loans and $199.8 million of non-owner occupied one-to-four family residential loans classified as performing.

Schedule of Impaired Financing Receivables, Average Recorded Investment and Interest Income

The following tables present a summary of loans individually evaluated for impairment at December 31, 2022, and 2021, by the type of loan:


	At December 31, 2022
	Recorded Investment (1)		Unpaid Principal Balance (2)		Related Allowance
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	174	$	175	$	—
Non-owner occupied	188		188		—
Multifamily	1,632		1,632		—
Commercial real estate	45,542		45,542		—


Total	47,536		47,537		—
Loans with an allowance:
One-to-four family residential:
Owner occupied	486		533		12
Non-owner occupied	512		512		1




Total	998		1,045		13
Total impaired loans:
One-to-four family residential:
Owner occupied	660		708		12
Non-owner occupied	700		700		1
Multifamily	1,632		1,632		—
Commercial real estate	45,542		45,542		—


Total	$	48,534	$	48,582	$	13

_________________

(1) Represents the loan balance less charge-offs.

(2) Contractual loan principal balance.


	At December 31, 2021
	Recorded Investment (1)		Unpaid Principal Balance (2)		Related Allowance
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	178	$	185	$	—
Non-owner occupied	915		915		—

Commercial real estate	34,030		34,030		—


Total	35,123		35,130		—
Loans with an allowance:
One-to-four family residential:
Owner occupied	494		541		19
Non-owner occupied	520		520		1




Total	1,014		1,061		20
Total impaired loans:
One-to-four family residential:
Owner occupied	672		726		19
Non-owner occupied	1,435		1,435		1

Commercial real estate	34,030		34,030		—


Total	$	36,137	$	36,191	$	20

_____________

(1) Represents the loan balance less charge-offs.

(2) Contractual loan principal balance.

The following table presents a summary of the average recorded investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2022 and 2021, by the type of loan:


	Year Ended December 31,
	2022				2021
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Loans with no related allowance:
One-to-four family residential:
Owner occupied	$	184	$	11	$	217	$	12
Non-owner occupied	712		23		947		62
Multifamily	1,317		69		828		—
Commercial real estate	41,102		2,054		23,994		1,329


Total	43,315		2,157		25,986		1,403

Loans with an allowance:
One-to-four family residential:
Owner occupied	490		28		498		31
Non-owner occupied	516		36		756		37




Total	1,006		64		1,254		68

Total impaired loans:
One-to-four family residential:
Owner occupied	674		39		715		43
Non-owner occupied	1,228		59		1,703		99
Multifamily	1,317		69		828		—
Commercial real estate	41,102		2,054		23,994		1,329


Total	$	44,321	$	2,221	$	27,240	$	1,471

Schedule of Non-performing assets and troubled debt restructured loans

The following is a summary of information pertaining to TDRs at December 31, 2022 and 2021:


	December 31,
	2022		2021
	(In thousands)






Performing TDRs	$	1,360	$	2,107
Nonaccrual TDRs	—		—
Total TDRs	$	1,360	$	2,107

Troubled Debt Restructurings on Financing Receivables

There were no TDR modifications during the year ended December 31, 2022. The following table presents TDR modifications during the year ended December 31, 2021, and the recorded investment prior to the modification and after the modification:


	Year Ended December 31, 2021
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment

TDRs that occurred during the period:
One-to-four family residential:


Advancement of maturity date	3	$	1,353	$	1,353
Commercial real estate:


Advancement of maturity date	1	1,241		1,241


Total	4	$	2,594	$	2,594