LOANS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2023

LOANS RECEIVABLE

Schedule of loans receivable

	September 30,		December 31,
(Dollars in thousands)	2023		2022
Real estate loans
One- to four-family residential	$	83,973	$	87,508
Commercial real estate		19,113		19,437
Construction and land		6,622		6,172
Multi-family residential		3,424		3,200
Total real estate loans		113,132		116,317
Other loans
Commercial and industrial		19,634		13,843
Consumer		2,906		3,447
Total other loans		22,540		17,290
Total loans		135,672		133,607
Less: Allowance for loan losses		(2,036)		(1,807)
Net loans	$	133,636	$	131,800

Schedule of changes in the allowance for loan losses

The following tables outline the changes in the allowance for loan losses for the nine months ended September 30, 2023 and 2022.

	For the Nine Months Ended September 30, 2023
(Dollars in thousands)	Beginning Balance			ASC 326 Adoption Impact(1)	Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses
One- to four-family residential	$	1,224	$	158	$	(299)	$	-	$	98	$	1,181
Commercial real estate		248		(53)		(5)		-		-		190
Construction and land		74		40		48		-		-		162
Multi-family residential		40		5		(2)		-		-		43
Commercial and industrial		175		51		73		-		1		300
Consumer		46		8		2		(26)		11		41
Unallocated		-		-		119		-		-		119
Total for loans	$	1,807	$	209	$	(64)	$	(26)	$	110	$	2,036
Unfunded lending commitments(2)		-		216		64		-		-		280
Total	$	1,807	$	425	$	-	$	(26)	$	110	$	2,316

(1) Refer to Note 2 for more information on the adoption of ASC 326.

(2) The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the provision for loan losses and reported in aggregate as the provision for credit losses on the income statement.

	For the Nine Months Ended September 30, 2022
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for loan losses
One- to four-family residential	$	1,573	$	(232)	$	(154)	$	70	$	1,257
Commercial real estate		370		(101)		-		-		269
Construction and land		55		(10)		-		-		45
Multi-family residential		73		(33)		-		-		40
Commercial and industrial		137		4		(21)		19		139
Consumer		68		(3)		(16)		5		54
Total	$	2,276	$	(375)	$	(191)	$	94	$	1,804

The following tables outline the allowance for loan losses and the balance of loans by method of loss evaluation at September 30, 2023 and December 31, 2022.

	September 30, 2023						December 31, 2022
(Dollars in thousands)	Individually Evaluated		Collectively Evaluated		Total		Individually Evaluated		Collectively Evaluated		Total
Allowance for loan losses
One- to four-family residential	$	127	$	1,054	$	1,181	$	216	$	1,008	$	1,224
Commercial real estate		-		190		190		-		248		248
Construction and land		49		113		162		-		74		74
Multi-family residential		-		43		43		-		40		40
Commercial and industrial		-		300		300		-		175		175
Consumer		-		41		41		-		46		46
Unallocated		-		119		119		-		-		-
Total	$	176	$	1,860	$	2,036	$	216	$	1,591	$	1,807
Loans
One- to four-family residential	$	957	$	83,016	$	83,973	$	2,712	$	84,796	$	87,508
Commercial real estate		50		19,063		19,113		51		19,386		19,437
Construction and land		135		6,487		6,622		33		6,139		6,172
Multi-family residential		-		3,424		3,424		-		3,200		3,200
Commercial and industrial		-		19,634		19,634		-		13,843		13,843
Consumer		-		2,906		2,906		-		3,447		3,447
Total	$	1,142	$	134,530	$	135,672	$	2,796	$	130,811	$	133,607

Summary of current, past due and nonaccrual loans

	As of September 30, 2023
(Dollars in thousands)	Past Due 30-89 Days and Accruing		Past Due Over 90 Days and Accruing		Past Due Over 30 Days and Non-accruing		Total Past Due		Current and Accruing		Current and Non-accruing		Total Loans
One- to four-family residential	$	1,473	$	127	$	1,038	$	2,638	$	80,505	$	830	$	83,973
Commercial real estate		110		-		50		160		18,953		-		19,113
Construction and land		-		-		-		-		6,579		43		6,622
Multi-family residential		-		-		-		-		3,424		-		3,424
Commercial and industrial		113		-		-		113		19,521		-		19,634
Consumer		14		-		-		14		2,892		-		2,906
Total	$	1,710	$	127	$	1,088	$	2,925	$	131,874	$	873	$	135,672

	As of December 31, 2022
(Dollars in thousands)	Past Due 30-89 Days and Accruing		Past Due Over 90 Days and Accruing		Past Due Over 30 Days and Non-accruing		Total Past Due		Current and Accruing		Current and Non-accruing		Total Loans
One- to four-family residential	$	2,077	$	191	$	716	$	2,984	$	83,848	$	676	$	87,508
Commercial real estate		166		-		51		217		19,220		-		19,437
Construction and land		156		-		18		174		5,965		33		6,172
Multi-family residential		-		-		-		-		3,200		-		3,200
Commercial and industrial		-		-		-		-		13,843		-		13,843
Consumer		6		-		-		6		3,441		-		3,447
Total	$	2,405	$	191	$	785	$	3,381	$	129,517	$	709	$	133,607

Schedule of nonaccrual loans

							December 31,
	September 30, 2023						2022
(Dollars in thousands)	With Allowance for Credit Loss		Without Allowance for Credit Loss		Total		Total
Nonaccrual loans
One- to four-family residential	$	1,673	$	195	$	1,868	$	1,392
Commercial real estate		-		50		50		51
Construction and land		43		-		43		51
Multi-family residential		-		-		-		-
Commercial and industrial		-		-		-		-
Consumer		-		-		-		-
Total	$	1,716	$	245	$	1,961	$	1,494

Schedule of impaired loans

Information on impaired loans as of December 31, 2022 follows:

	December 31, 2022
(Dollars in thousands)	Recorded Investment Without an Allowance		Recorded Investment With an Allowance		Unpaid Principal		Related Allowance
One- to four-family residential	$	1,843	$	869	$	3,149	$	216
Commercial real estate		51		-		52		-
Construction and land		33		-		42		-
Multi-family residential		-		-		-		-
Commercial and industrial		-		-		-		-
Consumer		-		-		-		-
Total	$	1,927	$	869	$	3,243	$	216

The table below presents the average balances and interest income for impaired loans for the three and nine months ended September 30, 2022.

	Three Months Ended				Nine Months Ended
	September 30, 2022				September 30, 2022
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
One- to four-family residential	$	2,655	$	16	$	2,718	$	49
Commercial real estate		50		-		51		-
Construction and land		34		-		35		-
Multi-family residential		-		-		-		-
Commercial and industrial		-		-		-		-
Consumer		12		-		13		-
Total	$	2,751	$	16	$	2,817	$	49

Schedule of credit quality indicators

															Line-of-credit
															Arrangements
	Term Loans by Origination Year												Line-of-credit		Converted to
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Arrangements		Term Loans		Total
One- to four-family residential
Pass	$	1,695	$	11,175	$	3,308	$	2,994	$	3,230	$	55,100	$	1,603	$	2,031	$	81,136
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		24		-		12		126		13		2,662		-		-		2,837
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,719	$	11,175	$	3,320	$	3,120	$	3,243	$	57,762	$	1,603	$	2,031	$	83,973
Commercial real estate
Pass	$	1,790	$	2,067	$	2,049	$	4,396	$	3,470	$	4,445	$	33	$	355	$	18,605
Special Mention		-		110		106		-		-		-		-		-		216
Substandard		-		-		-		-		-		292		-		-		292
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,790	$	2,177	$	2,155	$	4,396	$	3,470	$	4,737	$	33	$	355	$	19,113
Construction and land
Pass	$	57	$	188	$	57	$	70	$	46	$	498	$	5,528	$	-	$	6,444
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		135		-		14		-		29		-		-		178
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	57	$	323	$	57	$	84	$	46	$	527	$	5,528	$	-	$	6,622
Multi-family residential
Pass	$	382	$	-	$	470	$	-	$	282	$	2,290	$	-	$	-	$	3,424
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	382	$	-	$	470	$	-	$	282	$	2,290	$	-	$	-	$	3,424
Commercial and industrial
Pass	$	5,989	$	2,490	$	853	$	326	$	303	$	70	$	9,603	$	-	$	19,634
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	5,989	$	2,490	$	853	$	326	$	303	$	70	$	9,603	$	-	$	19,634
Consumer
Pass	$	914	$	559	$	700	$	311	$	199	$	223	$	-	$	-	$	2,906
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	914	$	559	$	700	$	311	$	199	$	223	$	-	$	-	$	2,906
Total
Pass	$	10,827	$	16,479	$	7,437	$	8,097	$	7,530	$	62,626	$	16,767	$	2,386	$	132,149
Special Mention		-		110		106		-		-		-		-		-		216
Substandard		24		135		12		140		13		2,983		-		-		3,307
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	10,851	$	16,724	$	7,555	$	8,237	$	7,543	$	65,609	$	16,767	$	2,386	$	135,672

	December 31, 2022
(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
One- to four-family residential	$	84,219	$	171	$	3,118	$	-	$	87,508
Commercial real estate		19,334		-		103		-		19,437
Construction and land		5,822		291		59		-		6,172
Multi-family residential		3,200		-		-		-		3,200
Commercial and industrial		13,843		-		-		-		13,843
Consumer		3,447		-		-		-		3,447
Total	$	129,865	$	462	$	3,280	$	-	$	133,607

Schedule of gross charge-offs and recoveries

	Loan Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Charge-offs
One- to four-family residential	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Multi-family residential		-		-		-		-		-		-		-
Commercial and industrial		-		-		-		-		-		-		-
Consumer		4		5		9		1		2		5		26
Total	$	4	$	5	$	9	$	1	$	2	$	5	$	26
Recoveries
One- to four-family residential	$	-	$	-	$	-	$	-	$	-	$	98	$	98
Commercial real estate		-		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-		-
Multi-family residential		-		-		-		-		-		-		-
Commercial and industrial		-		-		-		-		-		1		1
Consumer		-		-		2		1		-		8		11
Total	$	-	$	-	$	2	$	1	$	-	$	107	$	110