XML 27 R13.htm IDEA: XBRL DOCUMENT v3.24.1
ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2023
Credit Loss [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES
On January 1, 2023, the Company adopted ASU 2016-13, which requires the measurement of expected credit losses for financial assets measured at amortized cost, including loans, held-to-maturity securities and certain off-balance-sheet credit exposures and ASU 2022-02, which eliminates the recognition and measurement guidance of TDRs, so that creditors will apply the same guidance to all modifications when determining whether a modification results in a new receivable or continuation of an existing receivable. See Note 1 - Summary of Significant Accounting Policies for a description of the adoption of ASU 2016-13 and the Company’s allowance methodology.
Under ASU 2016-13, the Company’s methodology for determining the allowance for credit losses on loans is based upon key assumptions, including the lookback period, historical loss experience, economic forecasts over a reasonable and supportable forecast period, reversion period, prepayments and qualitative adjustments. The allowance is measured on a pool basis when similar risk characteristics exist. Loans that do not share common risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation.
Allowance for Credit Losses - Loans
The allowance for credit losses on loans is summarized in the following table:
20232022
(In thousands)
Balance at beginning of period$13,400 $14,425 
Impact of adopting ASU 2016-13 and ASU 2022-02668 — 
Charge-offs(64)(58)
Recoveries4 34 
Net charge-offs(60)(24)
Recovery of provision for credit loss on loans146 (1,001)
Balance at end of period$14,154 $13,400 
The following tables present the activity in the Company’s allowance for credit losses by class of loans for the year ended December 31, 2023 and 2022:
Balance at December 31, 2022
Impact of adopting ASU 2016-13 and ASU 2022-02Charge-offsRecoveries(Recovery of) Provision for Credit Loss - Loans
Balance at December 31, 2023
(In thousands)
Residential one-to-four family$2,264 $(183)$(18)$— $(95)$1,968 
Multifamily5,491 2,057 — — (502)7,046 
Non-residential3,357 146 — — 245 3,748 
Construction1,697 (832)— — 357 1,222 
Junior liens451 (405)— — 30 76 
Commercial and industrial 47 (23)— — 70 94 
Consumer and other— 1 (46)4 41 — 
Unallocated93 (93)— — — — 
Total$13,400 $668 $(64)$4 $146 $14,154 
Balance at December 31, 2021
Charge-offsRecoveries(Recovery of) Provision for Loan Loss
Balance at December 31, 2022
(In thousands)
Residential one-to-four family$2,822 $— $30 $(588)$2,264 
Multifamily5,263 — — 228 5,491 
Non-residential2,846 — — 511 3,357 
Construction2,678 — — (981)1,697 
Junior liens636 — — (185)451 
Commercial and industrial 51 — — (4)47 
Consumer and other38 (58)4 16 — 
Unallocated91 — — 2 93 
Total$14,425 $(58)$34 $(1,001)$13,400 
During 2023, one residential loan, that was originated in 2006, had a charge-off of $18 thousand. The loan was transferred to other real estate owned in the third quarter of 2023. Consumer and other charge-offs relate to overdrafts, which were originated in the fourth quarter of 2022 or in 2023, as it is our policy to charge these off within 60 days of occurrence.
The following table represents the allocation of allowance for credit losses on loans and the related recorded investment, including deferred fees and costs, in loans by loan portfolio segment, disaggregated based on the impairment methodology at December 31, 2023 and 2022.
LoansAllowance for Credit Losses on Loans
December 31, 2023Individually EvaluatedCollectively EvaluatedTotalIndividually EvaluatedCollectively EvaluatedTotal
(In thousands)
Residential one-to-four family$5,721 $545,208 $550,929 $— $1,968 $1,968 
Multifamily146 682,418 682,564 — 7,046 7,046 
Non-residential— 232,505 232,505 — 3,748 3,748 
Construction— 60,414 60,414 — 1,222 1,222 
Junior liens49 22,454 22,503 — 76 76 
Commercial and industrial (1)— 11,768 11,768 — 94 94 
Consumer and other— 47 47 — — — 
Total$5,916 $1,554,814 $1,560,730 $— $14,154 $14,154 
LoansAllowance for Loan Losses
December 31, 2022Individually EvaluatedCollectively EvaluatedTotalIndividually EvaluatedCollectively EvaluatedTotal
(In thousands)
Residential one-to-four family$8,418 $588,836 $597,254 $27 $2,237 $2,264 
Multifamily516 690,174 690,690 — 5,491 5,491 
Non-residential2,671 213,390 216,061 — 3,357 3,357 
Construction— 17,799 17,799 — 1,697 1,697 
Junior liens52 18,579 18,631 — 451 451 
Commercial and industrial (1)— 4,653 4,653 — 47 47 
Consumer and other— 39 39 — — — 
Unallocated— — — — 93 93 
Total$11,657 $1,533,470 $1,545,127 $27 $13,373 $13,400 
(1) Includes PPP loans which carry the federal guarantee of the SBA and do not have an allowance for credit losses.
Allowance for Credit Losses - Securities
The Company recorded an allowance for credit losses on securities of $170 thousand upon adoption of ASU 2016-13 on January 1, 2023. Prior year disclosures have not been restated. At December 31, 2023, the balance of the allowance for credit losses on securities was $158 thousand. For 2023, the Company recorded a decrease in provision for credit losses of $12 thousand on held-to-maturity securities. Accrued interest receivable on securities is reported as a component of accrued interest receivable on the consolidated balance sheets and totaled $1.5 million and $1.0 million at December 31, 2023 and December 31, 2022, respectively. The Company made the election to exclude accrued interest receivable from the estimate of credit losses on securities.
Allowance for Credit Losses - Off-Balance-Sheet Exposures
The allowance for credit losses on off-balance-sheet exposures is reported in other liabilities in the consolidated balance sheets. The liability represents an estimate of expected credit losses arising from off-balance-sheet exposures such as letters of credit, guarantees and unfunded loan commitments. The process for measuring lifetime expected credit losses on these exposures is consistent with that for loans as discussed above, but is subject to an additional estimate reflecting the likelihood that funding will occur. No liability is recognized for off-balance-sheet credit exposures that are unconditionally cancellable by the Company. Adjustments to the liability are reported as a component of provision for credit losses.
The Company recorded a decrease in the allowance for credit losses for off-balance-sheet exposures of $811 thousand upon adoption on January 1, 2023. Prior year disclosures have not been restated. At December 31, 2023 and December 31, 2022, the balance of the allowance for credit losses for off-balance-sheet exposures was $303 thousand and $1.7 million, respectively. The Company recorded a recovery of provision for credit loss on off-balance-sheet exposures of $575 thousand for 2023 in provision for credit losses and a recovery of $311 thousand for 2022 in other non-interest expense.