The Company adopted ASU 2016-13 on January 1, 2023. All disclosures as of June 30, 2023 are presented in accordance with ASU 2016-13. The Company did not reclassify comparative financial periods and has presented those disclosures under previously-applied U.S. GAAP.


	June 30, 2023
	(In thousands)
Residential one-to-four family	$	580,396
Multifamily	696,956
Non-residential	237,247
Construction	36,032
Junior liens	21,338
Commercial and industrial	9,743
Consumer and other	33
Total loans	1,581,745


Allowance for credit losses on loans (1)	(14,413)
Loans receivable, net	$	1,567,332


	December 31, 2022
	(In thousands)
Residential one-to-four family	$	594,521
Multifamily	690,278
Non-residential	216,394
Construction	17,990
Junior liens	18,477
Commercial and industrial	4,682
Consumer and other	38
Total gross loans	1,542,380
Deferred fees, costs and premiums and discounts, net	2,747
Total loans	1,545,127
Allowance for loan losses	(13,400)
Loans receivable, net	$	1,531,727

Loans are recorded at amortized cost, which includes principal balance, net deferred fees or costs, premiums and discounts. The Company elected to exclude accrued interest receivable from amortized cost. Accrued interest receivable is reported separately in the consolidated balance sheets and totaled $5.8 million and $5.3 million at June 30, 2023 and December 31, 2022, respectively. Loan origination fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income as an adjustment of yield. At June 30, 2023, net deferred loan fees are included in loans by respective segment and totaled $2.3 million.

The Company had $2.5 million of loans held-for-sale at June 30, 2023 and no loans held-for-sale at December 31, 2022. Loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans are specifically identified and accounted for in accordance with U.S. GAAP.

•Payment on multifamily and non-residential mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment and the value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.

•Properties underlying construction loans often do not generate sufficient cash flows to service debt and thus repayment is subject to the ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.

•Commercial and industrial (“C&I”) loans include C&I revolving lines of credit, term loans, SBA 7a loans and to a lesser extent, Paycheck Protection Program (“PPP”) loans. Payments on C&I loans are driven principally by the cash flows of the businesses and secondarily by the sale or refinance of any collateral securing the loans. Both the cash flow and value of the collateral in liquidation may be affected by adverse general economic conditions.

•The ability of borrowers to service debt in the residential one-to-four family, junior liens and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.

The Company categorizes loans into risk categories based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis is performed whenever a credit is extended, renewed, or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company used the following definitions for risk ratings for loan classification:

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor, or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

Loss – Assets classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset even though partial recovery may be effected in the future.


	Term Loans by Origination Year
	2023		2022		2021		2020		2019		Pre-2019		Revolving Loans		Total
Residential one-to-four family
Pass	$	10,036	$	100,456	$	119,000	$	15,343	$	19,279	$	308,798	$	—	$	572,912

Substandard	—		—		—		—		—		7,484		—		7,484


Total	10,036		100,456		119,000		15,343		19,279		316,282		—		580,396
Multifamily
Pass	17,240		282,553		161,025		35,832		59,947		139,869		—		696,466
Special mention	—		—		—		—		—		330		—		330
Substandard	—		—		—		—		—		160		—		160


Total	17,240		282,553		161,025		35,832		59,947		140,359		—		696,956
Non-residential
Pass	25,820		120,496		14,929		15,310		5,481		54,175		—		236,211
Special mention	—		—		—		—		—		1,036		—		1,036



Total	25,820		120,496		14,929		15,310		5,481		55,211		—		237,247
Construction
Pass	8,291		13,972		13,654		—		—		115		—		36,032




Total	8,291		13,972		13,654		—		—		115		—		36,032
Junior liens
Pass	3,311		5,421		1,525		363		1,871		8,796		—		21,287

Substandard	—		—		—		—		—		51		—		51


Total	3,311		5,421		1,525		363		1,871		8,847		—		21,338
Commercial and industrial
Pass	6,289		110		3,109		170		—		—		—		9,678

Substandard (1)	—		—		65		—		—		—		—		65


Total	6,289		110		3,174		170		—		—		—		9,743
Consumer and other
Pass	18		—		—		—		—		—		15		33




Total	18		—		—		—		—		—		15		33
Total gross loans	$	71,005	$	523,008	$	313,307	$	67,018	$	86,578	$	520,814	$	15	$	1,581,745


	Pass		Special Mention		Substandard		Doubtful / Loss		Total
	(In thousands)
Residential one-to-four family	$	589,137	$	247	$	7,870	$	—	$	597,254
Multifamily	689,277		897		516		—		690,690
Non-residential	214,981		1,080		—		—		216,061
Construction	17,799		—		—		—		17,799
Junior liens	18,579		—		52		—		18,631
Commercial and Industrial	4,653		—		—		—		4,653
Consumer and other	8		—		31		—		39
Total	$	1,534,434	$	2,224	$	8,469	$	—	$	1,545,127


	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans Receivable
	(In thousands)
June 30, 2023
Residential one-to-four family	$	—	$	330	$	6,318	$	6,648	$	573,748	$	580,396
Multifamily	—		—		—		—		696,956		696,956
Non-residential	—		—		—		—		237,247		237,247
Construction	—		—		—		—		36,032		36,032
Junior liens	—		—		51		51		21,287		21,338
Commercial and Industrial	—		—		65		65		9,678		9,743
Consumer and other	—		—		—		—		33		33
Total	$	—	$	330	$	6,434	$	6,764	$	1,574,981	$	1,581,745

December 31, 2022
Residential one-to-four family	$	—	$	845	$	6,738	$	7,583	$	589,671	$	597,254
Multifamily	—		—		182		182		690,508		690,690
Non-residential	—		—		—		—		216,061		216,061
Construction	—		—		—		—		17,799		17,799
Junior liens	—		—		52		52		18,579		18,631
Commercial and Industrial	—		—		96		96		4,557		4,653
Consumer and other	—		—		—		—		39		39
Total	$	—	$	845	$	7,068	$	7,913	$	1,537,214	$	1,545,127


	Non-accrual		Interest Income Recognized on Non-accrual Loans		Amortized Cost Basis of Loans >= 90 Day Past Due and Still Accruing		Amortized Cost Basis of Non-accrual Loans Without Related Allowance
	(In thousands)
Residential one-to-four family	$	7,460	$	—	$	—	$	7,460
Multifamily	160		—		—		160


Commercial and industrial	65		—		—		65
Junior liens	51		—		—		51
Total	$	7,736	$	—	$	—	$	7,736


	June 30, 2022						Six Months Ended June 30, 2022
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
	(In thousands)
With no related allowance recorded:
Residential one-to-four family	$	7,771	$	8,054	$	—	$	8,686	$	61	$	58
Multifamily	659		659		—		671		13		10
Non-residential	3,755		3,595		—		4,275		105		95


Junior liens	54		54		—		55		1		1
	12,239		12,362		—		13,687		180		164
With an allowance recorded:
Residential one-to-four family	1,122		1,125		30		743		23		20





	1,122		1,125		30		743		23		20
Total	$	13,361	$	13,487	$	30	$	14,430	$	203	$	184


	December 31, 2022
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(In thousands)
With no related allowance recorded:
Residential one-to-four family	$	7,368	$	7,669	$	—
Multifamily	516		516		—
Non-residential	2,834		2,671		—


Junior liens	52		52		—
	10,770		10,908		—
With an allowance recorded:
Residential one-to-four family	743		749		27





	743		749		27
Total	$	11,513	$	11,657	$	27

The Company adopted ASU 2022-02 on January 1, 2023. Loans may be modified for borrowers experiencing financial difficulty and may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. At June 30, 2023, there were two loans that met the definition of a modification to a borrower experiencing financial difficulty in accordance with ASU 2022-02. The residential one-to four family loans total $1.1 million, one granted an interest rate reduction and the second, a term extension. The Company did not reclassify comparative financial periods and has presented those disclosures under previously-applied U.S. GAAP.

Prior to the adoption of ASU 2022-02, The Company classified certain loans as troubled debt restructuring (“TDR”) loans when credit terms to a borrower in financial difficulty were modified in accordance with ASC 310-40. The Company has ceased to recognize or measure for new TDRs but those existing at December 31, 2022 remain until settled. The total recorded investment of loans whose terms were modified in TDRs was $5.4 million as of December 31, 2022. The Company allocated $68 thousand of specific reserves to TDR loans as of December 31, 2022. The modification of the terms of TDR loans may have included one or a combination of the following: a reduction of the stated interest rate of the loan, short-term deferral of payment, or an extension of the maturity date.

A TDR loan was considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no TDRs for which there was a payment default within twelve months following the modification during the period ended June 30, 2022. There were no TDRs during the three and six months ended June 30, 2022. The Company implemented modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, the Company elected to not apply TDR classification to COVID-19 related loan modifications. Accordingly, these modifications are exempt from TDR classification under U.S. GAAP and were not classified as TDRs. At December 31, 2022, there were no deferrals related to the CARES Act.