Loans Receivable and the Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Loans Receivable and the Allowance for Credit Losses

Summary of composition of loans

	June 30,		December 31,
	2023		2022
	(In Thousands)
Residential real estate:
One-to-four family	$	5,351	$	5,467
Multi-family		122,976		123,385
Mixed-use		28,890		21,902
Total residential real estate		157,217		150,754
Non-residential real estate		20,805		25,324
Construction		1,098,756		930,628
Commercial and industrial		114,035		110,069
Consumer		730		546
Total Loans		1,391,543		1,217,321
Deferred loan costs, net		243		372
Allowance for credit losses		(4,400)		(5,474)
	$	1,387,386	$	1,212,219

Schedule of analysis of the activity in the allowance for loan losses

At June 30, 2023:

			Non-				Commercial
	Residential		residential				and
	Real Estate		Real Estate		Construction		Industrial		Consumer		Unallocated		Total
	(In Thousands)
Allowance for credit losses:
Ending balance	$	1,559	$	118	$	2,123	$	515	$	85	$	—	$	4,400
Ending balance: individually evaluated for credit loss	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated for credit loss	$	1,559	$	118	$	2,123	$	515	$	85	$	—	$	4,400
Loans receivable:
Ending balance	$	157,217	$	20,805	$	1,098,756	$	114,035	$	730	$	—	$	1,391,543
Ending balance: individually evaluated for credit loss	$	—	$	—	$	14,953	$	—	$	—	$	—	$	14,953
Ending balance: collectively evaluated for credit loss	$	157,217	$	20,805	$	1,083,803	$	114,035	$	730	$	—	$	1,376,590

At December 31, 2022:

			Non-				Commercial
	Residential		residential				and
	Real Estate		Real Estate		Construction		Industrial		Consumer		Unallocated		Total
	(In Thousands)
Allowance for loan losses:
Ending balance	$	528	$	131	$	3,835	$	955	$	18	$	7	$	5,474
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated for impairment	$	528	$	131	$	3,835	$	955	$	18	$	7	$	5,474
Loans receivable:
Ending balance	$	150,754	$	25,324	$	930,628	$	110,069	$	546	$	—	$	1,217,321
Ending balance: individually evaluated for impairment	$	855	$	—	$	—	$	—	$	—	$	—	$	855
Ending balance: collectively evaluated for impairment	$	149,899	$	25,324	$	930,628	$	110,069	$	546	$	—	$	1,216,466

			Non-				Commercial
	Residential		residential				and
	Real Estate		Real Estate		Construction		Industrial		Consumer		Unallocated		Total
	(In Thousands)
Allowance for credit losses:
Balance -March 31, 2023	$	1,474	$	122	$	1,842	$	506	$	122	$	—	$	4,066
Charge-offs		—		—		(159)		—		(35)		—		(194)
Recoveries		—		—		—		—		—		—		—
Provision (Benefit)		85		(4)		440		9		(2)		—		528
Balance -June 30, 2023	$	1,559	$	118	$	2,123	$	515	$	85	$	—	$	4,400
			Non-				Commercial
	Residential		residential				and
	Real Estate		Real Estate		Construction		Industrial		Consumer		Unallocated		Total
	(In Thousands)
Allowance for loan losses:
Balance - March 31, 2022	$	510	$	340	$	3,392	$	958	$	17	$	111	$	5,328
Charge-offs		—		—		—		—		(7)		—		(7)
Recoveries		146		—		—		—		—		—		146
Provision (Benefit)		(110)		(142)		189		(93)		6		150		—
Balance - June 30, 2022	$	546	$	198	$	3,581	$	865	$	16	$	261	$	5,467

			Non-				Commercial
	Residential		residential				and
	Real Estate		Real Estate		Construction		Industrial		Consumer		Unallocated		Total
	(In Thousands)
Allowance for credit losses:
Balance - December 31, 2022	$	528	$	131	$	3,835	$	955	$	18	$	7	$	5,474
Impact of adopting ASC 326		895		7		(2,086)		(437)		44		(7)		(1,584)
Charge-offs		—		—		(159)		—		(56)		—		(215)
Recoveries		—		—		—		—		—		—		—
Provision (Benefit)		136		(20)		533		(3)		79		—		725
Balance - June 30, 2023	$	1,559	$	118	$	2,123	$	515	$	85	$	—	$	4,400
			Non-				Commercial
	Residential		residential				and
	Real Estate		Real Estate		Construction		Industrial		Consumer		Unallocated		Total
	(In Thousands)
Allowance for loan losses:
Balance - December 31, 2021	$	571	$	381	$	3,143	$	973	$	10	$	164	$	5,242
Charge-offs		—		—		—		—		(17)		—		(17)
Recoveries		189		53		—		—		—		—		242
Provision (Benefit)		(214)		(236)		438		(108)		23		97		—
Balance - June 30, 2022	$	546	$	198	$	3,581	$	865	$	16	$	261	$	5,467

Summary of recorded investment, unpaid principal balance and allocated allowance for loan losses for loans that were considered impaired

As of and for the Three and Six Months Ended June 30, 2023 and June 30, 2022:

							Three Months Ended June 30, 2023				Six Months Ended June 30, 2023
	Recorded		Unpaid Principal		Related		Average Recorded		Interest Income		Average Recorded		Interest Income
2023 - Collateral Dependent	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
	(In Thousands)
With no related allowance recorded:
Residential real estate-Multi-family	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-residential real estate		—		—		—		—		—		—		—
Construction		4,353		4,353		—		1,450		—		726		—
Commercial and industrial		—		—		—		—		—		—		—
		4,353		4,353		—		1,450		—		726		—
With an allowance recorded		—		—		—		—		—		—		—
Total:
Residential real estate-Multi-family		—		—		—		—		—		—		—
Non-residential real estate		—		—		—		—		—		—		—
Construction		4,353		4,353		—		1,450		—		726		—
Commercial and industrial		—		—		—		—		—		—		—
	$	4,353	$	4,353	$	—	$	1,450	$	—	$	726	$	—
							Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
	Recorded		Unpaid Principal		Related		Average Recorded		Interest Income		Average Recorded		Interest Income
2022 - Impaired	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
	(In Thousands)
With no related allowance recorded:
Residential real estate-Multi-family	$	865	$	865	$	—	$	865	$	16	$	869	$	22
Non-residential real estate		769		836		—		768		4		760		14
Construction		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—		—
		1,634		1,701		—		1,633		20		1,629		36
With an allowance recorded		—		—		—		—		—		—		—
Total:
Residential real estate-Multi-family		865		865		—		865		16		869		22
Non-residential real estate		769		836		—		768		4		760		14
Construction		—		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—		—
	$	1,634	$	1,701	$	—	$	1,633	$	20	$	1,629	$	36

As of and for the Year Ended December 31, 2022:

	Recorded		Unpaid Principal		Related		Average Recorded		Interest Income
2022	Investment		Balance		Allowance		Investment		Recognized
	(In Thousands)
With no related allowance recorded:
Residential real estate-Multi-family	$	855	$	769	$	—	$	863	$	43
Non-residential real estate		—		—		—		385		14
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
		855		769		—		1,248		57
With an allowance recorded		—		—		—		—		—
Total:
Residential real estate-Multi-family		855		769		—		863		43
Non-residential real estate		—		—		—		385		14
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
	$	855	$	769	$	—	$	1,248	$	57

Schedule of age analysis of past due loans

Age Analysis of Past Due Loans as of June 30, 2023:

													Recorded
													Investment >
	30 – 59 Days		60 – 89 Days		Greater Than		Total Past				Total Loans		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Receivable		Accruing
	(In Thousands)
Residential real estate:
One- to four-family	$	—	$	—	$	—	$	—	$	5,351	$	5,351	$	—
Multi-family		—		—		—		—		122,976		122,976		—
Mixed-use		—		—		—		—		28,890		28,890		—
Non-residential real estate		—		—		—		—		20,805		20,805		—
Construction loans		4,353		—		—		4,353		1,094,403		1,098,756		—
Commercial and industrial loans		—		—		—		—		114,035		114,035		—
Consumer		—		—		—		—		730		730		—
	$	4,353	$	—	$	—	$	4,353	$	1,387,190	$	1,391,543	$	—

Age Analysis of Past Due Loans as of December 31, 2022:

													Recorded
													Investment
	30 – 59 Days		60 – 89 Days		Greater Than		Total Past				Total Loans		> 90 Days and
	Past Due		Past Due		90 Days		Due		Current		Receivable		Accruing
	(In Thousands)
Residential real estate:
One- to four-family	$	—	$	—	$	—	$	—	$	5,467	$	5,467	$	—
Multi-family		—		946		—		946		122,439		123,385		—
Mixed-use		—		—		—		—		21,902		21,902		—
Non-residential real estate		—		—		—		—		25,324		25,324		—
Construction loans		—		—		—		—		930,628		930,628		—
Commercial and industrial loans		—		—		—		—		110,069		110,069		—
Consumer		—		—		—		—		546		546		—
	$	—	$	946	$	—	$	946	$	1,216,375	$	1,217,321	$	—

Summary of risk category of loans

														Revolving		Revolving
	Term Loans Amortized Costs Basis by Origination Year													Loans		Loans
														Amortized		Converted
June 30, 2023		2023		2022		2021		2020		2019		Prior		Cost Basis		to Term		Total
Residential real estate
Risk Rating
Pass	$	21,490	$	58,586	$	16,309	$	10,821	$	1,365	$	47,734	$	-	$	-	$	156,305
Special Mention		-		-		-		912		-		-		-		-		912
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	21,490	$	58,586	$	16,309	$	11,733	$	1,365	$	47,734	$	-	$	-	$	157,217
Residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-residential real estate
Risk Rating
Pass	$	-	$	254	$	2,163	$	1,004	$	385	$	16,999	$	-	$	-	$	20,805
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	-	$	254	$	2,163	$	1,004	$	385	$	16,999	$	-	$	-	$	20,805
Non-residential real estate
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Risk Rating
Pass	$	145,988	$	535,614	$	259,495	$	67,280	$	33,895	$	41,531	$	-	$	-	$	1,083,803
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		2,000		1,500		4,353		-		7,100		-		-		14,953
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	145,988	$	537,614	$	260,995	$	71,633	$	33,895	$	48,631	$	-	$	-	$	1,098,756
Construction
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	159	$	-	$	-	$	159
Commercial and industrial
Risk Rating
Pass	$	140	$	9,066	$	534	$	605	$	637	$	2,453	$	99,011	$	1,589	$	114,035
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	140	$	9,066	$	534	$	605	$	637	$	2,453	$	99,011	$	1,589	$	114,035
Commercial and industrial
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer
Risk Rating
Pass	$	707	$	-	$	-	$	-	$	-	$		$	23	$	-	$	730
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	707	$	-	$	-	$	-	$	-	$	-	$	23	$	-	$	730
Consumer
Current period gross charge-offs	$	56	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	56
Total
Risk Rating
Pass	$	168,325	$	603,520	$	278,501	$	79,710	$	36,282	$	108,717	$	99,034	$	1,589	$	1,375,678
Special Mention		-		-		-		912		-		-		-		-		912
Substandard		-		2,000		1,500		4,353		-		7,100		-		-		14,953
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	168,325	$	605,520	$	280,001	$	84,975	$	36,282	$	115,817	$	99,034	$	1,589	$	1,391,543

Credit Risk Profile by Internally Assigned Grade as of December 31, 2022:

	Residential		Non-residential				Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Total
	(In Thousands)
Grade:
Pass	$	148,953	$	25,324	$	930,628	$	110,069	$	546	$	1,215,520
Special Mention		946		—		—		—		—		946
Substandard		855		—		—		—		—		855
Doubtful		—		—		—		—		—		—
	$	150,754	$	25,324	$	930,628	$	110,069	$	546	$	1,217,321

Schedule of allowance for credit losses on off balance sheet commitments.

	Allowance for
	Credit Loss
Balance – December 31, 2022	$	-
Impact of adopting ASC 326		1,586
Provision for credit loss		(200)
Balance – March 31, 2023	$	1,386
Provision for credit loss		83
Balance – June 30, 2023	$	1,469