LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Sep. 30, 2023

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Schedule of loans and financing receivable

	September 30,		March 31,
	2023		2023
Commercial and construction
Commercial business	$	242,041	$	232,868
Commercial real estate		561,377		564,496
Land		6,558		6,437
Multi-family		56,671		55,836
Real estate construction		50,785		47,762
Total commercial and construction		917,432		907,399
Consumer
Real estate one-to-four family		96,351		99,673
Other installment		1,842		1,784
Total consumer		98,193		101,457
Total loans		1,015,625		1,008,856
Less: Allowance for credit losses (1)		15,346		15,309
Loans receivable, net	$	1,000,279	$	993,547

(1) All amounts prior to April 1, 2023 were calculated using the previous incurred loss methodology to compute our allowance for loan losses, which is not directly comparable to the current expected credit losses (“CECL”) methodology.

Schedule of risk category of bank loans by year of origination

	Term Loans Amortized Cost Basis by Origination Fiscal Year
															Total
													Revolving		Loans
	2024		2023		2022		2021		2020		Prior		Loans		Receivable
Commercial business
Risk rating
Pass	$	6,242	$	64,468	$	89,457	$	32,201	$	18,026	$	14,329	$	8,821	$	233,544
Special Mention		—		820		945		86		623		295		5,625		8,394
Substandard		—		—		—		—		—		103		—		103
Total commercial business	$	6,242	$	65,288	$	90,402	$	32,287	$	18,649	$	14,727	$	14,446	$	242,041
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Risk rating
Pass	$	13,180	$	60,424	$	140,446	$	91,021	$	54,318	$	175,051	$	—	$	534,440
Special Mention		—		3,807		3,146		—		—		19,069		—		26,022
Substandard		—		—		—		—		—		915		—		915
Total commercial real estate	$	13,180	$	64,231	$	143,592	$	91,021	$	54,318	$	195,035	$	—	$	561,377
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Land
Risk rating
Pass	$	—	$	2,381	$	1,404	$	1,828	$	115	$	470	$	—	$	6,198
Special Mention		—		360		—		—		—		—		—		360
Total land	$	—	$	2,741	$	1,404	$	1,828	$	115	$	470	$	—	$	6,558
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family
Risk rating
Pass	$	526	$	6,369	$	32,402	$	5,270	$	9,139	$	2,868	$	—	$	56,574
Special Mention		—		—		—		—		35		32		—		67
Substandard		—		—		—		—		—		30		—		30
Total multi-family	$	526	$	6,369	$	32,402	$	5,270	$	9,174	$	2,930	$	—	$	56,671
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	Term Loans Amortized Cost Basis by Origination Fiscal Year
															Total
													Revolving		Loans
	2024		2023		2022		2021		2020		Prior		Loans		Receivable
Real estate construction
Risk rating
Pass	$	7,597	$	24,147	$	18,801	$	—	$	—	$	—	$	—	$	50,545
Special Mention		240		—		—		—		—		—		—		240
Total real estate construction	$	7,837	$	24,147	$	18,801	$	—	$	—	$	—	$	—	$	50,785
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate one-to-four family
Risk rating
Pass	$	—	$	—	$	61,417	$	4,223	$	4,464	$	15,524	$	10,683	$	96,311
Substandard		—		—		—		—		—		40		—		40
Total real estate one-to-four family	$	—	$	—	$	61,417	$	4,223	$	4,464	$	15,564	$	10,683	$	96,351
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other installment
Risk rating
Pass	$	282	$	655	$	268	$	107	$	48	$	27	$	455	$	1,842
Total other installment	$	282	$	655	$	268	$	107	$	48	$	27	$	455	$	1,842
Current period gross write-offs	$	—	$	11	$	—	$	—	$	—	$	—	$	—	$	11
Total loans receivable, gross
Risk rating
Pass	$	27,827	$	158,444	$	344,195	$	134,650	$	86,110	$	208,269	$	19,959	$	979,454
Special Mention		240		4,987		4,091		86		658		19,396		5,625		35,083
Substandard		—		—		—		—		—		1,088		—		1,088
Total loans receivable, gross	$	28,067	$	163,431	$	348,286	$	134,736	$	86,768	$	228,753	$	25,584	$	1,015,625
Total current period gross write-offs	$	—	$	11	$	—	$	—	$	—	$	—	$	—	$	11

Schedule of reconciliation of the allowance for loan losses

The following tables detail activity in the ACL for loans at or for the three and six months ended September 30, 2023 under the CECL methodology, and in the allowance for loan losses under the incurred loss methodology for the three and six months ended September 30, 2022, by loan category (in thousands):

Three months ended	Commercial		Commercial				Multi-		Real Estate
September 30, 2023	Business		Real Estate		Land		Family		Construction		Consumer		Unallocated		Total
Beginning balance	$	5,215	$	7,205	$	123	$	293	$	830	$	1,677	$	—	$	15,343
Provision for (recapture of) credit losses		124		(67)		(11)		—		30		(76)		—		—
Charge-offs		—		—		—		—		—		—		—		—
Recoveries		—		—		—		—		—		3		—		3
Ending balance	$	5,339	$	7,138	$	112	$	293	$	860	$	1,604	$	—	$	15,346
Six months ended
September 30, 2023
Beginning balance	$	3,123	$	8,894	$	93	$	798	$	764	$	1,127	$	510	$	15,309
Impact of adopting CECL (ASU 2016-13)		1,884		(1,494)		40		(492)		131		483		(510)		42
Provision for (recapture of) credit losses		332		(262)		(21)		(13)		(35)		(1)		—		—
Charge-offs		—		—		—		—		—		(11)		—		(11)
Recoveries		—		—		—		—		—		6		—		6
Ending balance	$	5,339	$	7,138	$	112	$	293	$	860	$	1,604	$	—	$	15,346
Three months ended
September 30, 2022
Beginning balance	$	2,495	$	8,542	$	149	$	862	$	518	$	1,236	$	757	$	14,559
Provision for (recapture of) loan losses		294		(312)		(25)		(6)		120		(4)		(67)		—
Charge-offs		—		—		—		—		—		(10)		—		(10)
Recoveries		—		—		—		—		—		3		—		3
Ending balance	$	2,789	$	8,230	$	124	$	856	$	638	$	1,225	$	690	$	14,552
Six months ended
September 30, 2022
Beginning balance	$	2,422	$	9,037	$	168	$	845	$	393	$	943	$	715	$	14,523
Provision for (recapture of) loan losses		367		(807)		(44)		11		245		253		(25)		—
Charge-offs		—		—		—		—		—		(16)		—		(16)
Recoveries		—		—		—		—		—		45		—		45
Ending balance	$	2,789	$	8,230	$	124	$	856	$	638	$	1,225	$	690	$	14,552

Schedule of impaired financing receivables

The following table presents an analysis of loans receivable and the allowance for loan losses, based on impairment methodology as of March 31, 2023 (in thousands):

s
	Allowance for Loan Losses						Recorded Investment in Loans
	Individually		Collectively				Individually		Collectively
	Evaluated		Evaluated				Evaluated		Evaluated
	for		for				for		for
March 31, 2023	Impairment		Impairment		Total		Impairment		Impairment		Total
Commercial business	$	—	$	3,123	$	3,123	$	79	$	232,789	$	232,868
Commercial real estate		—		8,894		8,894		100		564,396		564,496
Land		—		93		93		—		6,437		6,437
Multi-family		—		798		798		—		55,836		55,836
Real estate construction		—		764		764		—		47,762		47,762
Consumer		6		1,121		1,127		450		101,007		101,457
Unallocated		—		510		510		—		—		—
Total	$	6	$	15,303	$	15,309	$	629	$	1,008,227	$	1,008,856

Schedule of analysis of loans by aging category

The following tables present an analysis of loans by aging category at the dates indicated (in thousands):

							Total
			90 Days				Past
			and				Due and				Total
	30-89 Days		Greater				Non-				Loans
September 30, 2023	Past Due		Past Due		Non-accrual		accrual		Current		Receivable
Commercial business	$	966	$	—	$	69	$	1,035	$	241,006	$	242,041
Commercial real estate		268		—		90		358		561,019		561,377
Land		—		—		—		—		6,558		6,558
Multi-family		—		—		—		—		56,671		56,671
Real estate construction		—		—		—		—		50,785		50,785
Consumer		—		—		39		39		98,154		98,193
Total	$	1,234	$	—	$	198	$	1,432	$	1,014,193	$	1,015,625
March 31, 2023
Commercial business	$	1,967	$	1,569	$	97	$	3,633	$	229,235	$	232,868
Commercial real estate		—		—		100		100		564,396		564,496
Land		—		—		—		—		6,437		6,437
Multi-family		—		—		—		—		55,836		55,836
Real estate construction		—		—		—		—		47,762		47,762
Consumer		11		—		86		97		101,360		101,457
Total	$	1,978	$	1,569	$	283	$	3,830	$	1,005,026	$	1,008,856

Schedule of credit quality indicators

The following table presents an analysis of loans by credit quality indicators as of March 31, 2023 (in thousands):

											Total
			Special								Loans
March 31, 2023	Pass		Mention		Substandard		Doubtful		Loss		Receivable
Commercial business	$	231,384	$	1,367	$	117	$	—	$	—	$	232,868
Commercial real estate		544,426		17,626		2,444		—		—		564,496
Land		6,437		—		—		—		—		6,437
Multi-family		55,694		142		—		—		—		55,836
Real estate construction		47,762		—		—		—		—		47,762
Consumer		101,371		—		86		—		—		101,457
Total	$	987,074	$	19,135	$	2,647	$	—	$	—	$	1,008,856

Schedule of total and average recorded investment in impaired loans

The following tables present the total and average recorded investment in impaired loans at the dates and for the periods indicated (in thousands):

	Recorded		Recorded
	Investment		Investment
	with		with						Related
	No Specific		Specific		Total		Unpaid		Specific
March 31, 2023	Valuation		Valuation		Recorded		Principal		Valuation
	Allowance		Allowance		Investment		Balance		Allowance
Commercial business	$	79	$	—	$	79	$	127	$	—
Commercial real estate		100		—		100		162		—
Consumer		355		95		450		442		6
Total	$	534	$	95	$	629	$	731	$	6

	Three months ended				Six months ended
	September 30, 2022				September 30, 2022
			Interest				Interest
			Recognized				Recognized
	Average		on		Average		on
	Recorded		Impaired		Recorded		Impaired
	Investment		Loans		Investment		Loans
Commercial business	$	92	$	—	$	95	$	—
Commercial real estate		114		—		117		—
Consumer		481		6		486		12
Total	$	687	$	6	$	698	$	12