Loans Held for Investment (Tables)

3 Months Ended

Sep. 30, 2023

Loans Held for Investment

Schedule of loans held for investment

	September 30,		June 30,
(In Thousands)	2023		2023
Mortgage loans:
Single-family	$	521,576	$	518,821
Multi-family		457,351		461,113
Commercial real estate		87,954		90,558
Construction		2,100		1,936
Other		104		106
Commercial business loans		1,321		1,565
Consumer loans		62		65
Total loans held for investment, gross		1,070,468		1,074,164
Advance payments of escrows		125		148
Deferred loan costs, net		9,256		9,263
ACL on loans		(7,679)		(5,946)
Total loans held for investment, net	$	1,072,170	$	1,077,629

Schedule of loans held for investment, contractual repricing

	Adjustable Rate
			After		After		After
		Within	One Year		3 Years		5 Years
(In Thousands)	One Year		Through 3 Years		Through 5 Years		Through 10 Years		Fixed Rate		Total
Mortgage loans:
Single-family	$	55,866	$	25,584	$	78,271	$	249,761	$	112,094	$	521,576
Multi-family		160,821		153,088		111,204		32,119		119		457,351
Commercial real estate		38,446		13,573		34,666		—		1,269		87,954
Construction		2,100		—		—		—		—		2,100
Other		—		—		—		—		104		104
Commercial business loans		1,321		—		—		—		—		1,321
Consumer loans		62		—		—		—		—		62
Total loans held for investment, gross	$	258,616	$	192,245	$	224,141	$	281,880	$	113,586	$	1,070,468

Schedule of gross loans held for investment by loan types and risk category

September 30, 2023	Term Loans by Year of Origination												Revolving
(In Thousands)	2023		2022		2021		2020		2019		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	61,583	$	213,223	$	156,078	$	20,591	$	11,729	$	56,862	$	29	$	520,095
Special Mention		-		-		-		-		-		73		-		73
Substandard		-		-		-		250		-		1,158		-		1,408
Total single-family		61,583		213,223		156,078		20,841		11,729		58,093		29		521,576
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family:
Pass		22,501		77,566		90,408		63,897		58,850		143,622		-		456,844
Special Mention		-		-		507		-		-		-		-		507
Substandard		-		-		-		-		-		-		-		-
Total multi-family		22,501		77,566		90,915		63,897		58,850		143,622		-		457,351
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate:
Pass		9,407		23,690		5,489		6,486		9,916		32,420		-		87,408
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		546		-		546
Total commercial real estate		9,407		23,690		5,489		6,486		9,916		32,966		-		87,954
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction:
Pass		160		438		1,502		-		-		-		-		2,100
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction		160		438		1,502		-		-		-		-		2,100
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Other:
Pass		-		-		-		104		-		-		-		104
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total other		-		-		-		104		-		-		-		104
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial business loans:
Pass		-		161		-		-		-		-		1,160		1,321
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total commercial business loans		-		161		-		-		-		-		1,160		1,321
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans:
Not graded		17		-		-		-		-		-		-		17
Pass		-		-		-		-		-		-		45		45
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		17		-		-		-		-		-		45		62
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total loans held for investment, gross	$	93,668	$	315,078	$	253,984	$	91,328	$	80,495	$	234,681	$	1,234	$	1,070,468
Total current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

June 30, 2023	Term Loans by Year of Origination												Revolving
(In Thousands)	2023		2022		2021		2020		2019		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	51,378	$	216,989	$	157,015	$	20,741	$	11,793	$	59,451	$	32	$	517,399
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		251		-		1,171		-		1,422
Total single-family		51,378		216,989		157,015		20,992		11,793		60,622		32		518,821
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family:
Pass		17,429		77,956		90,926		65,127		59,709		149,456		-		460,603
Special Mention		-		-		510		-		-		-		-		510
Substandard		-		-		-		-		-		-		-		-
Total multi-family		17,429		77,956		91,436		65,127		59,709		149,456		-		461,113
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial real estate:
Pass		8,586		23,815		5,527		6,525		9,981		35,577		-		90,011
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		547		-		547
Total commercial real estate		8,586		23,815		5,527		6,525		9,981		36,124		-		90,558
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction:
Pass		94		726		1,116		-		-		-		-		1,936
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction		94		726		1,116		-		-		-		-		1,936
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Other:
Pass		-		-		-		106		-		-		-		106
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total other		-		-		-		106		-		-		-		106
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial business loans:
Pass		-		171		-		-		-		-		1,394		1,565
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total commercial business loans		-		171		-		-		-		-		1,394		1,565
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans:
Not graded		15		-		-		-		-		-		-		15
Pass		-		-		-		-		-		-		50		50
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		15		-		-		-		-		-		50		65
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total loans held for investment, gross	$	77,502	$	319,657	$	255,094	$	92,750	$	81,483	$	246,202	$	1,476	$	1,074,164
Total current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of allowance for credit losses

	For the Quarter Ended
	September 30,
(Dollars in Thousands)	2023			2022
Allowance at beginning of period	$	5,946		$	5,564
Impact of ASC 326 CECL adoption(1)		1,197			—
Provision for credit losses		536			70
Recoveries:
Mortgage loans:
Single-family		—			4
Total recoveries		—			4
Total charge-offs		—			—
Net recoveries (charge-offs)		—			4
Allowance at end of period	$	7,679		$	5,638
ACL as a percentage of gross loans held for investment		0.72	%		0.57	%
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized)		(0.00)	%		(0.00)	%
ACL as a percentage of gross non-performing loans at the end of the period		545.38	%		537.98	%

(1) Represents the impact of adopting ASC 326 on July 1, 2023. Since that date, as a result of adopting ASC 326, the methodology to compute the ACL has been based on CECL methodology, rather than the previously applied incurred loss methodology.

Schedule of past due status of gross loans held for investment, net of fair value adjustments

	September 30, 2023
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Performing		Investment, Gross
Mortgage loans:
Single-family	$	520,095	$	73	$	1,408	$	521,576
Multi-family		457,351		—		—		457,351
Commercial real estate		87,954		—		—		87,954
Construction		2,100		—		—		2,100
Other		104		—		—		104
Commercial business loans		1,321		—		—		1,321
Consumer loans		61		1		—		62
Total loans held for investment, gross	$	1,068,986	$	74	$	1,408	$	1,070,468

	June 30, 2023
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Performing		Investment, Gross
Mortgage loans:
Single-family	$	517,399	$	—	$	1,422	$	518,821
Multi-family		461,113		—		—		461,113
Commercial real estate		90,558		—		—		90,558
Construction		1,936		—		—		1,936
Other		106		—		—		106
Commercial business loans		1,565		—		—		1,565
Consumer loans		64		1		—		65
Total loans held for investment, gross	$	1,072,741	$	1	$	1,422	$	1,074,164

Schedule of allowance for loan losses and recorded investment

	Quarter Ended September 30, 2023
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other			Business			Consumer			Total
ACL:
Allowance at beginning of period	$	1,720		$	3,270		$	868		$	15		$	2		$	67		$	4		$	5,946
Adjustment to allowance for adoption of ASC 326		4,605			(2,614)			(786)			47			3			(54)			(4)			1,197
Provision for (reversal of) credit losses		550			3			(6)			(8)			(1)			(2)			—			536
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	6,875		$	659		$	76		$	54		$	4		$	11		$	—		$	7,679
ACL:
Individually evaluated for impairment	$	37		$	—		$	—		$	—		$	—		$	—		$	—		$	37
Collectively evaluated for impairment		6,838			659			76			54			4			11			—			7,642
ACL, end of period	$	6,875		$	659		$	76		$	54		$	4		$	11		$	—		$	7,679
Loans held for investment:
Individually evaluated for impairment	$	990		$	—		$	—		$	—		$	—		$	—		$	—		$	990
Collectively evaluated for impairment		520,586			457,351			87,954			2,100			104			1,321			62			1,069,478
Total loans held for investment, gross	$	521,576		$	457,351		$	87,954		$	2,100		$	104		$	1,321		$	62		$	1,070,468
ACL as a percentage of gross loans held for investment		1.32	%		0.14	%		0.09	%		2.57	%		3.85	%		0.83	%		—	%		0.72	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%

	Quarter Ended September 30, 2022
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other			Business			Consumer			Total
ACL:
Allowance at beginning of period	$	1,383		$	3,282		$	816		$	23		$	3		$	52		$	5		$	5,564
Provision for (reversal of) credit losses		63			23			(10)			(1)			—			(4)			(1)			70
Recoveries		4			—			—			—			—			—			—			4
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	1,450		$	3,305		$	806		$	22		$	3		$	48		$	4		$	5,638
ACL:
Individually evaluated for impairment	$	38		$	—		$	—		$	—		$	—		$	—		$	—		$	38
Collectively evaluated for impairment		1,412			3,305			806			22			3			48			4			5,600
ACL, end of period	$	1,450		$	3,305		$	806		$	22		$	3		$	48		$	4		$	5,638
Loans held for investment:
Individually evaluated for impairment	$	819		$	—		$	—		$	—		$	—		$	—		$	—		$	819
Collectively evaluated for impairment		428,756			468,031			89,339			3,151			118			1,117			70			990,582
Total loans held for investment, gross	$	429,575		$	468,031		$	89,339		$	3,151		$	118		$	1,117		$	70		$	991,401
ACL as a percentage of gross loans held for investment		0.34	%		0.71	%		0.90	%		0.70	%		2.54	%		4.30	%		5.71	%		0.57	%
Net (recoveries) charge-offs to average loans receivable, net during the period		(0.01)	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%

Schedule of recorded investment in restructured loans

	At September 30, 2023
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance(1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	1,158	$	—	$	1,158	$	(47)	$	1,111
Without a related allowance(2)		275		(25)		250		—		250
Total single-family loans		1,433		(25)		1,408		(47)		1,361
Total non-performing loans	$	1,433	$	(25)	$	1,408	$	(47)	$	1,361

(1) Consists of an ACL, specifically assigned to the individual loan.

(2) There was no related ACL because the loans were charged-off to their fair value or the fair value of the collateral was higher than the loan balance.

	At June 30, 2023
	Unpaid		Related						Net
	Principal		Charge-offs		Recorded				Recorded
(In Thousands)	Balance		Related		Investment		Allowance(1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	1,171	$	—	$	1,171	$	(122)	$	1,049
Without a related allowance(2)		276		(25)		251		—		251
Total single-family loans		1,447		(25)		1,422		(122)		1,300
Total non-performing loans	$	1,447	$	(25)	$	1,422	$	(122)	$	1,300

(1) Consists of an ACL, specifically assigned to the individual loan.

(2) There was no related ACL because the loans were charged-off to their fair value or the fair value of the collateral was higher than the loan balance.

Schedule of recorded investment in non-performing loans

		Quarter Ended September 30,
	2023				2022
		Average	Interest		Average		Interest
		Recorded	Income		Recorded		Income
(In Thousands)		Investment	Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	250	$	—	$	127	$	—
		250		—		127		—
With related allowances:
Mortgage loans:
Single-family		1,163		18		991		5
		1,163		18		991		5
Total	$	1,413	$	18	$	1,118	$	5