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Loans Receivable Held for Investment (Tables)

6 Months Ended

Jun. 30, 2024

Loans Receivable Held for Investment [Abstract]

Loans receivable held for investment were as follows as of the dates indicated:

	June 30, 2024			December 31, 2023
	(In thousands)
Real estate:
Single-family	$	27,265		$	24,702
Multi-family		614,014			561,447
Commercial real estate		125,789			119,436
Church		11,775			12,717
Construction		93,951			89,887
Commercial – other		59,538			63,450
SBA loans⁽¹⁾		12,886			14,954
Consumer		1			13
Gross loans receivable before deferred loan costs and premiums		945,219			886,606
Unamortized net deferred loan costs and premiums		2,216			1,971
Gross loans receivable		947,435			888,577
Credit and interest marks on purchased loans, net		(595	)		(772	)
Allowance for credit losses		(8,104	)		(7,348	)
Loans receivable, net	$	938,736		$	880,457

(1)	Including Paycheck Protection Program (“PPP”) loans.

Activity in Allowance for Credit Losses on Loans and Activity in Allowance for Loan Losses by Loan Type

The following tables summarize the activity in the allowance for credit losses on loans for the periods indicated:

	Three Months Ended June 30, 2024
	Beginning Balance			Charge-offs			Recoveries			Provision (Recapture) ⁽¹⁾				Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family		$	298		$	–		$	–		$	3			$	301
Multi-family			4,325			–			–			365				4,690
Commercial real estate			1,109			–			–			62				1,171
Church			90			–			–			(6	)			84
Construction			956			–			–			154				1,110
Commercial - other			722			–			–			(104	)			618
SBA loans			52			–			–			78				130
Consumer			–			–			–			–				–
Total		$	7,552		$	–		$	–		$	552			$	8,104

	Six Months Ended June 30, 2024
	Beginning Balance		Charge-offs		Recoveries		Provision (Recapture) ⁽¹⁾		Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single family	$	260	$	–	$	–	$	41	$	301
Multi-family		4,413		–		–		277		4,690
Commercial real estate		1,094		–		–		77		1,171
Church		72		–		–		12		84
Construction		932		–		–		178		1,110
Commercial - other		529		–		–		89		618
SBA loans		48		–		–		82		130
Consumer		–		–		–		–		–
Total	$	7,348	$	–	$	–	$	756	$	8,104

(1)	The bank also recorded a recovery of provision for off-balance sheet loan commitments of $58 thousand and $2 thousand for the three and six months ended June 30, 2024, respectively.

	Three Months Ended June 30, 2023
	Beginning Balance			Charge-offs			Recoveries			Provision (Recapture) (1)				Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family		$	261		$	–		$	–		$	(14	)		$	247
Multi-family			3,932			–			–			323				4,255
Commercial real estate			1,012			–			–			–				1,012
Church			92			–			–			(9	)			83
Construction			593			–			–			195				788
Commercial - other			357			–			–			189				546
SBA loans			38			–			–			1				39
Consumer			–			–			–			–				–
Total		$	6,285		$	–		$	–		$	685			$	6,970

	Six Months Ended June 30, 2023
	Beginning Balance		Impact of CECL Adoption			Charge-offs		Recoveries		Provision (Recapture) ⁽¹⁾			Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single family	$	109	$	214		$	–	$	–	$	(76	)	$	247
Multi-family		3,273		603			–		–		379			4,255
Commercial real estate		449		466			–		–		97			1,012
Church		65		37			–		–		(19	)		83
Construction		313		219			–		–		256			788
Commercial - other		175		254			–		–		117			546
SBA loans		–		20			–		–		19			39
Consumer		4		(4	)		–		–		–			–
Total	$	4,388	$	1,809		$	–	$	–	$	773		$	6,970

(1)	The bank also recorded a provision for off-balance sheet loan commitments of $83 thousand and $37 thousand for the three and six months ended June 30, 2023, respectively.

Collateral Dependent Loans By Collateral Type

The following table presents collateral dependent loans by collateral type as of the date indicated:

	June 30, 2024
	Single-Family		Multi-Family Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single-family	$	39	$	–	$	–	$	–	$	39
Commercial real estate		–		–		55		–		55
Church		–		–		387		–		387
Total	$	39	$	–	$	442	$	–	$	481

	December 31, 2023
	Single-Family		Multi-Family Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single-family	$	45	$	–	$	–	$	–	$	45
Multi-family		–		5,672		–		–		5,672
Commercial real estate		–		–		65		–		65
Church		–		–		391		–		391
Commercial – other		–		–		–		268		268
Total	$	45	$	5,672	$	456	$	268	$	6,441

Aging of Recorded Investment in Past Due Loans by Loan Type

The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:

	June 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Single-family	$	–	$	–	$	–	$	–	$	27,265	$	27,265
Multi-family		–		–		–		–		616,230		616,230
Commercial real estate		–		–		–		–		125,789		125,789
Church		387		–		–		387		11,388		11,775
Construction		–		–		–		–		93,951		93,951
Commercial - other		–		–		–		–		59,538		59,538
SBA loans		–		323		5		328		12,558		12,886
Consumer		–		–		–		–		1		1
Total	$	387	$	323	$	5	$	715	$	946,720	$	947,435

	December 31, 2023
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Single-family	$	–	$	–	$	–	$	–	$	24,702	$	24,702
Multi-family		–		401		–		401		563,017		563,418
Commercial real estate		–		–		–		–		119,436		119,436
Church		–		–		–		–		12,717		12,717
Construction		–		–		–		–		89,887		89,887
Commercial - other		–		–		–		–		63,450		63,450
SBA loans		379		–		–		379		14,575		14,954
Consumer		–		–		–		–		13		13
Total	$	379	$	401	$	–	$	780	$	887,797	$	888,577

Recorded Investment in Non-accrual Loans by Loan Type

The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated:

	June 30, 2024		December 31, 2023
	(In thousands)
Loans receivable held for investment:
SBA loans	$	328		$	–
Total non-accrual loans	$	328		$	–

Loans Held for Investment Portfolio By Internal Risk Grading and By Year of Origination

The following tables stratify the loans held for investment portfolio by the Company’s internal risk grading and by year of origination as of June 30, 2024 and December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	549	$	4,112	$	1,836	$	2,033	$	14,294	$	–	$	22,824
Watch		–		–		–		740		862		194		–		1,796
Special Mention		–		–		–		1,186		–		113		–		1,299
Substandard		–		–		–		–		1,346		–		–		1,346
Total	$	–	$	549	$	4,112	$	3,762	$	4,241	$	14,601	$	–	$	27,265

Multi-family:
Pass	$	55,871	$	86,086	$	180,799	$	130,893	$	27,029	$	88,504	$	–	$	569,182
Watch		–		–		8,528		14,485		–		9,707		–		32,720
Special Mention		–		–		–		3,155		–		2,007		–		5,162
Substandard		–		–		–		888		–		8,278		–		9,166
Total	$	55,871	$	86,086	$	189,327	$	149,421	$	27,029	$	108,496	$	–	$	616,230

Commercial real estate:
Pass	$	21,500	$	1,742	$	21,258	$	25,758	$	14,851	$	20,140	$	–	$	105,249
Watch		–		–		437		–		13,203		2,557		–		16,197
Special Mention		–		880		–		–		–		–		–		880
Substandard		–		–		–		–		–		3,463		–		3,463
Total	$	21,500	$	2,622	$	21,695	$	25,758	$	28,054	$	26,160	$	–	$	125,789

Church:
Pass	$	–	$	2,861	$	–	$	2,182	$	1,722	$	2,559	$	–	$	9,324
Watch		–		–		–		–		–		850		–		850
Special Mention		–		–		–		–		–		643		–		643
Substandard		–		–		–		–		–		958		–		958
Total	$	–	$	2,861	$	–	$	2,182	$	1,722	$	5,010	$	–	$	11,775

Construction:
Pass	$	–	$	–	$	–	$	–	$	–	$	–	$	–	$	–
Watch		2,725		45,611		22,937		5,870		–		1,714		–		78,857
Special Mention		–		252		10,761		–		–		–		–		11,013
Substandard		–		1,561		–		2,520		–		–		–		4,081
Total	$	2,725	$	47,424	$	33,698	$	8,390	$	–	$	1,714	$	–	$	93,951

Commercial – other:
Pass	$	–	$	15,000	$	8,052	$	–	$	2,841	$	7,399	$	–	$	33,292
Watch		17,594		–		718		–		–		2,250		–		20,562
Special Mention		–		–		351		–		927		4,300		–		5,578
Substandard		–		–		–		106		–		–		–		106
Total	$	17,594	$	15,000	$	9,121	$	106	$	3,768	$	13,949	$	–	$	59,538

SBA:
Pass	$	500	$	9,050	$	150	$	15	$	–	$	1,406	$	–	$	11,121
Substandard		–		–		–		–		405		1,360		–		1,765
Total	$	500	$	9,050	$	150	$	15	$	405	$	2,766	$	–	$	12,886

Consumer:
Pass	$	1	$	–	$	–	$	–	$	–	$	–	$	–	$	1
Total	$	1	$	–	$	–	$	–	$	–	$	–	$	–	$	1

Total loans:
Pass	$	77,872	$	115,288	$	214,371	$	160,684	$	48,476	$	134,302	$	–	$	750,993
Watch		20,319		45,611		32,620		21,095		14,065		17,272		–		150,982
Special Mention		–		1,132		11,112		4,341		927		7,063		–		24,575
Substandard		–		1,561		–		3,514		1,751		14,059		–		20,885
Total loans	$	98,191	$	163,592	$	258,103	$	189,634	$	65,219	$	172,696	$	–	$	947,435

	Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	2,474	$	1,862	$	2,940	$	1,485	$	12,374	$	–	$	21,135
Watch		–		–		750		–		–		999		–		1,749
Special Mention		–		–		–		–		–		116		–		116
Substandard		–		–		–		1,365		–		337		–		1,702
Total	$	–	$	2,474	$	2,612	$	4,305	$	1,485	$	13,826	$	–	$	24,702

Multi-family:
Pass	$	81,927	$	183,295	$	145,652	$	27,356	$	44,511	$	47,119	$	–	$	529,860
Watch		–		4,686		6,203		–		1,186		6,474		–		18,549
Special Mention		–		–		899		–		–		1,344		–		2,243
Substandard		–		–		–		–		363		12,403		–		12,766
Total	$	81,927	$	187,981	$	152,754	$	27,356	$	46,060	$	67,340	$	–	$	563,418

Commercial real estate:
Pass	$	9,881	$	22,131	$	26,019	$	24,684	$	6,718	$	15,106	$	–	$	104,539
Watch		–		442		–		5,286		–		2,599		–		8,327
Special Mention		–		–		–		–		325		–		–		325
Substandard		–		–		–		–		–		6,245		–		6,245
Total	$	9,881	$	22,573	$	26,019	$	29,970	$	7,043	$	23,950	$	–	$	119,436

Church:
Pass	$	2,923	$	–	$	2,210	$	1,748	$	–	$	2,704	$	–	$	9,585
Watch		–		–		–		–		636		1,525		–		2,161
Substandard		–		–		–		–		–		971		–		971
Total	$	2,923	$	–	$	2,210	$	1,748	$	636	$	5,200	$	–	$	12,717

Construction:
Pass	$	–	$	1,109	$	1,198	$	–	$	–	$	–	$	–	$	2,307
Watch		42,300		35,179		5,484		–		–		2,097		–		85,060
Special Mention		–		–		2,520		–		–		–		–		2,520
Total	$	42,300	$	36,288	$	9,202	$	–	$	–	$	2,097	$	–	$	89,887

Commercial – other:
Pass	$	15,000	$	9,077	$	87	$	5,600	$	–	$	25,154	$	–	$	54,918
Watch		–		312		–		1,500		6,550		–		–		8,362
Special Mention		–		–		170		–		–		–		–		170
Total	$	15,000	$	9,389	$	257	$	7,100	$	6,550	$	25,154	$	–	$	63,450

SBA:
Pass	$	11,809	$	109	$	2,453	$	–	$	16	$	100	$	–	$	14,487
Special Mention		–		–		–		467		–		–		–		467
Total	$	11,809	$	109	$	2,453	$	467	$	16	$	100	$	–	$	14,954

Consumer:
Pass	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13
Total	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13

Total loans:
Pass	$	121,553	$	218,195	$	179,481	$	62,328	$	52,730	$	102,557	$	–	$	736,844
Watch		42,300		40,619		12,437		6,786		8,372		13,694		–		124,208
Special Mention		–		–		3,589		467		325		1,460		–		5,841
Substandard		–		–		–		1,365		363		19,956		–		21,684
Total loans	$	163,853	$	258,814	$	195,507	$	70,946	$	61,790	$	137,667	$	–	$	888,577