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Loans
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Loans Loans
Loans-held-for portfolio (which excludes loans held-for-sale) at the dates indicated were as follows (in thousands):
 March 31,
2025		December 31,
2024
Real estate loans:  
One-to-four family$262,457 $269,684 
Home equity28,112 26,686 
Commercial and multifamily392,798 371,516 
Construction and land42,492 73,077 
Total real estate loans725,859 740,963 
Consumer loans:
Manufactured homes42,448 41,128 
Floating homes86,626 86,411 
Other consumer18,224 17,720 
Total consumer loans147,298 145,259 
Commercial business loans14,690 15,605 
Total loans held-for-portfolio887,847 901,827 
Premiums for purchased loans(1)
688 718 
Deferred fees, net(2,309)(2,374)
Total loans held-for-portfolio, gross886,226 900,171 
Allowance for credit losses — loans(8,393)(8,499)
Total loans held-for-portfolio, net$877,833 $891,672 
(1)Includes premiums resulting from purchased loans of $386 thousand related to one-to-four family loans, $236 thousand related to commercial and multifamily loans, and $66 thousand related to commercial business loans as of March 31, 2025. Includes premiums resulting from purchased loans of $404 thousand related to one-to-four family loans, $244 thousand related to commercial and multifamily loans, and $70 thousand related to commercial business loans as of December 31, 2024.
As of March 31, 2025, there was one collateral dependent consumer mortgage loan, totaling $260 thousand, that was in process of foreclosure
The following table presents a summary of activity in the ACL on loans and the reserve for unfunded loan commitments for the periods indicated (in thousands):
Three Months Ended March 31,
20252024
ACL - LoansReserve for Unfunded Loan CommitmentsACL ACL - LoansReserve for Unfunded Loan CommitmentsACL
Balance at beginning of period$8,499 $234 $8,733 $8,760 $193 $8,953 
(Release of) provision for credit losses during the period(85)(118)(203)(106)73 (33)
Net charge-offs during the period(21)— (21)(56)— (56)
Balance at end of period$8,393 $116 $8,509 $8,598 $266 $8,864 
Accrued interest receivable on loans receivable totaled $3.3 million at March 31, 2025 and $3.4 million at December 31, 2024, in the accompanying Condensed Consolidated Balance Sheets. Accrued interest receivable is excluded from the ACL.
The ACL is measured using the current expected credit losses (“CECL”) approach for financial instruments measured at amortized cost and for other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable forecasts. We estimate the ACL using relevant information from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast. The ACL is measured on a collective (segment) basis when similar risk characteristics exist. Historical credit loss experience for both the Company and segment-specific peers provides the basis for the estimate of expected credit losses. Segments are based upon federal call report segmentation. The reserve was applied on a loan-by-loan basis and condensed into the applicable segments reported below. The ACL is determined using quantitative and qualitative analysis. The quantitative analysis utilizes macroeconomic variables to establish a quantitative relationship between economic conditions and loan performance through an economic cycle. Qualitative adjustments include but are not limited to changes in lending policies; changes in nature and volume of the portfolio; change in staff experience level; changes in the volume or trends of classified loans, delinquencies, and nonaccrual loans; concentration risk; value of underlying collateral; competitive, legal, and regulatory factors; changes in the loan review system; and economic conditions. We evaluate our ACL policy and judgments on an ongoing basis and update them as necessary based on changing conditions. See “Note 1—Organization and Significant Accounting Policies” in the Company’s 2024 Form 10-K for further information on the Company’s ACL accounting policy.
The following tables summarize the activity in the ACL - loans for the periods indicated (in thousands):
Three Months Ended March 31, 2025
 Beginning
Allowance		Charge-offsRecoveriesProvision for (Release of) Credit LossesEnding
Allowance
One-to-four family$3,025 $— $— $303 $3,328 
Home equity307 — — 55 362 
Commercial and multifamily1,218 — — (37)1,181 
Construction and land992 — — (713)279 
Manufactured homes(1)
1,172 (19)— 150 1,303 
Floating homes1,282 — — 127 1,409 
Other consumer(2)
401 (8)6 49 448 
Commercial business102 — — (19)83 
Total$8,499 $(27)$6 $(85)$8,393 
(1)During the three months ended March 31, 2025, there was one manufactured home loan originated in 2022 that was charged off and then subsequently foreclosed upon.
(2)During the three months ended March 31, 2025, the gross charge-offs of other consumer loans related entirely to deposit overdrafts that were charged off.
Three Months Ended March 31, 2024
 Beginning
Allowance		Charge-offsRecoveriesProvision for (Release of) Credit LossesEnding
Allowance
One-to-four family$2,630 $— $— $280 $2,910 
Home equity185 — — (6)179 
Commercial and multifamily1,070 — — 36 1,106 
Construction and land1,349 — — (20)1,329 
Manufactured homes(1)
971 (23)— (115)833 
Floating homes2,022 — — (223)1,799 
Other consumer(2)
426 (39)6 (60)333 
Commercial business107 — — 2 109 
Total$8,760 $(62)$6 $(106)$8,598 
(1)During the three months ended March 31, 2024, there was one manufactured home loan originated in 2020 that was charged off and then subsequently foreclosed upon.
(2)During the three months ended March 31, 2024, the gross charge-offs of other consumer loans related entirely to deposit overdrafts that were charged off.
Credit Quality Indicators. Federal regulations provide for the classification of lower quality loans and other assets (such as OREO and repossessed assets), as well as debt and equity securities considered as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. Assets classified as "doubtful" have all of the weaknesses in those classified "substandard," with the added characteristic that the weaknesses present make "collection or liquidation in full," on the basis of currently existing facts, conditions and values, "highly questionable and improbable." Assets classified as "loss" are those considered "uncollectible" and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted.
Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading. The grades for watch and special mention loans are used by the Company to identify and track potential problem loans which do not rise to the levels described for substandard, doubtful, or loss. These are loans which have been criticized and deserve management's close attention based upon known characteristics such as periodic payment delinquency, failure to comply with contractual terms of the loan, or collateral concerns. Loans identified as watch, special mention, substandard, doubtful, or loss are subject to additional problem loan reporting to management every three months.
When we classify problem assets as either substandard or doubtful, we may determine that these assets should be individually analyzed if they no longer share common risk characteristics with the rest of the portfolio. When we classify problem assets as a loss, we are required to charge off those assets in the period in which they are deemed uncollectible. Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the FDIC (the Bank’s federal regulator) and the Washington Department of Financial Institutions (the Bank’s state banking regulator), which can order the establishment of additional credit loss allowances. Assets which do not currently expose us to sufficient risk to warrant classification as substandard or doubtful but possess weaknesses are required to be designated as special mention. There were no loans classified as doubtful or loss as of March 31, 2025 and December 31, 2024.
The following tables present the internally assigned grades as of March 31, 2025 and December 31, 2024, by type of loan and origination year (in thousands):
At March 31, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis Converted to Term
20252024202320222021PriorTotal
One-to-four family:
Pass$2,112 $23,262 $22,393 $74,764 $96,929 $42,317 $— $— $261,777 
Substandard— — — 491 101 209 — — 801 
Total one-to-four family$2,112 $23,262 $22,393 $75,255 $97,030 $42,526 $— $— $262,578 
Home equity:
Pass$59 $2,996 $2,911 $2,359 $862 $1,468 $16,278 $967 $27,900 
Substandard— — — — — 55 309 62 426 
Total home equity$59 $2,996 $2,911 $2,359 $862 $1,523 $16,587 $1,029 $28,326 
Commercial and multifamily:
Pass$23,140 $34,755 $24,960 $88,745 $109,532 $84,509 $— $— $365,641 
Substandard— — — — 6,453 19,443 — — 25,896 
Total commercial and multifamily$23,140 $34,755 $24,960 $88,745 $115,985 $103,952 $— $— $391,537 
Construction and land:
Pass$753 $17,844 $18,856 $2,143 $849 $1,742 $— $— $42,187 
Substandard— — — 69 — 23 — — 92 
Total construction and land$753 $17,844 $18,856 $2,212 $849 $1,765 $— $— $42,279 
Manufactured homes:
Pass$2,631 $9,202 $11,976 $6,610 $3,678 $7,563 $— $— $41,660 
Substandard— — 305 141 — 195 — — 641 
Total manufactured homes$2,631 $9,202 $12,281 $6,751 $3,678 $7,758 $— $— $42,301 
Floating homes:
Pass$1,986 $20,256 $6,367 $15,165 $23,734 $16,353 $— $— $83,861 
Substandard— — — 2,350 — — — — 2,350 
Total floating homes$1,986 $20,256 $6,367 $17,515 $23,734 $16,353 $— $— $86,211 
Other consumer:
Pass$1,250 $2,131 $2,911 $379 $3,562 $7,224 $704 $— $18,161 
Substandard— — 74 — 9 — — — 83 
Total other consumer$1,250 $2,131 $2,985 $379 $3,571 $7,224 $704 $— $18,244 
Commercial business:
Pass$— $292 $1,148 $1,636 $2,901 $3,849 $4,700 $— $14,526 
Substandard— 37 — — — — 187 — 224 
Total commercial business$— $329 $1,148 $1,636 $2,901 $3,849 $4,887 $— $14,750 
Total loans
Pass$31,931 $110,738 $91,522 $191,801 $242,047 $165,025 $21,682 $967 $855,713 
Substandard— 37 379 3,051 6,563 19,925 496 62 30,513 
Total loans$31,931 $110,775 $91,901 $194,852 $248,610 $184,950 $22,178 $1,029 $886,226 
At December 31, 2024
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term
20242023202220212020PriorTotal
One-to-four family:
Pass$26,327 $22,470 $78,427 $98,379 $14,095 $29,534 $— $— $269,232 
Substandard— — 259 104 — 214 — — 577 
Total one-to-four family$26,327 $22,470 $78,686 $98,483 $14,095 $29,748 $— $— $269,809 
Home equity:
Pass$3,084 $2,951 $2,420 $908 $210 $1,320 $14,578 $1,069 $26,540 
Substandard— — — — — 56 234 66 356 
Total home equity$3,084 $2,951 $2,420 $908 $210 $1,376 $14,812 $1,135 $26,896 
Commercial and multifamily:
Pass$34,844 $20,736 $90,067 $111,601 $21,240 $67,336 $— $— $345,824 
Special mention— — — — — 1,375 — — 1,375 
Substandard— — — 5,775 2,165 15,143 — — 23,083 
Total commercial and multifamily$34,844 $20,736 $90,067 $117,376 $23,405 $83,854 $— $— $370,282 
Construction and land:
Pass$26,458 $22,846 $2,166 $968 $593 $2,338 $— $— $55,369 
Special mention— — 17,349 — — — — — 17,349 
Substandard— — 70 — — 24 — — 94 
Total construction and land$26,458 $22,846 $19,585 $968 $593 $2,362 $— $— $72,812 
Manufactured homes:
Pass$9,396 $12,095 $7,039 $3,822 $1,816 $6,180 $— $— $40,348 
Substandard— 427 — — — 205 — — 632 
Total manufactured homes$9,396 $12,522 $7,039 $3,822 $1,816 $6,385 $— $— $40,980 
Floating homes:
Pass$20,587 $6,395 $16,225 $23,902 $6,059 $10,472 $— $— $83,640 
Substandard— — 2,350 — — — — — 2,350 
Total floating homes$20,587 $6,395 $18,575 $23,902 $6,059 $10,472 $— $— $85,990 
Other consumer:
Pass$2,273 $3,297 $622 $3,615 $5,387 $1,925 $618 $— $17,737 
Substandard— — — 1 — — — — 1 
Total other consumer$2,273 $3,297 $622 $3,616 $5,387 $1,925 $618 — $17,738 
Commercial business:
Pass$314 $1,256 $1,811 $3,032 $257 $3,895 $4,862 $— $15,427 
Substandard38 — — — — 11 188 — 237 
Total commercial business$352 $1,256 $1,811 $3,032 $257 $3,906 $5,050 $— $15,664 
Total loans
Pass$123,283 $92,046 $198,777 $246,227 $49,657 $123,000 $20,058 $1,069 $854,117 
Special mention— — 17,349 — — 1,375 — — 18,724 
Substandard38 427 2,679 5,880 2,165 15,653 422 66 27,330 
Total loans$123,321 $92,473 $218,805 $252,107 $51,822 $140,028 $20,480 $1,135 $900,171 
Nonaccrual and Past Due Loans.  Loans are considered past due if the required principal and interest payments were not received as of the dates such payments were due.
The following table presents the amortized cost of nonaccrual loans as of the dates indicated, by type of loan (in thousands):
 March 31, 2025December 31, 2024
Total
Nonaccrual
Loans		Total
Nonaccrual
Loans
with no ACL		Total
Nonaccrual
Loans		Total
Nonaccrual
Loans
with no ACL
One-to-four family$762 $762 $537 $537 
Home equity368 368 298 298 
Commercial and multifamily5,627 5,627 3,734 3,734 
Construction and land22 22 24 24 
Manufactured homes501 501 521 521 
Floating homes2,363 2,363 2,363 2,363 
Other consumer10 9 3 1 
Commercial business— — 11 11 
Total$9,653 $9,652 $7,491 $7,489 
The following tables present the aging of past due loans, based on amortized cost, as of the dates indicated, by type of loan (in thousands):
March 31, 2025
 30-59 Days
Past Due		60-89 Days
Past Due		90 Days and Greater Past Due90 Days and Greater Past Due and AccruingTotal Past
Due		CurrentTotal Loans
One-to-four family$668 $49 $351 $— $1,068 $261,510 $262,578 
Home equity35 — 138 — 173 28,153 28,326 
Commercial and multifamily967 — 5,621 — 6,588 384,949 391,537 
Construction and land— — — — — 42,279 42,279 
Manufactured homes770 — 200 — 970 41,331 42,301 
Floating homes— — 2,350 — 2,350 83,861 86,211 
Other consumer5 3 9 — 17 18,227 18,244 
Commercial business— — — — — 14,750 14,750 
Total$2,445 $52 $8,669 $— $11,166 $875,060 $886,226 
December 31, 2024
 30-59 Days
Past Due		60-89 Days
Past Due		90 Days and Greater Past Due90 Days and Greater Past Due and AccruingTotal Past
Due		CurrentTotal Loans
One-to-four family$34 $339 $352 $— $725 $269,084 $269,809 
Home equity249 — 66 — 315 26,581 26,896 
Commercial and multifamily— — 3,733 — 3,731 366,551 370,282 
Construction and land24 — — — 24 72,788 72,812 
Manufactured homes402 287 394 — 1,083 39,897 40,980 
Floating homes— — 2,350 — 2,350 83,640 85,990 
Other consumer6 12 — — 18 17,720 17,738 
Commercial business— — — — — 15,664 15,664 
Total$715 $638 $6,895 $— $8,246 $891,925 $900,171 
Loan Modifications to Borrowers Experiencing Financial Difficulty. The Company has granted modifications which can generally be described in the following categories:
Principal Forgiveness:  A modification in which the principal is reduced.
Rate Modification:  A modification in which the interest rate is changed.
Term Modification:  A modification in which the maturity date, timing of payments or frequency of payments is changed.
Payment Modification:  A modification in which the dollar amount of the payment is changed.  Interest only modifications in which a loan is converted to interest only payments for a period of time are included in this category.
Combination Modification:  Any other type of modification, including the use of multiple categories above.
At March 31, 2025, the Company had no commitments to extend additional credit to borrowers owing loan receivables with modified terms.
There were no loans modified within the three months ended March 31, 2025 and 2024.
At March 31, 2025 and December 31, 2024, we had no loan receivables that defaulted subsequent to their modification.
Troubled debt restructurings (“TDRs”). Prior to the adoption of ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, the Company had granted a variety of concessions to borrowers in the form of loan modifications that were considered TDRs. Loans classified as legacy TDRs totaled $1.3 million at both March 31, 2025 and December 31, 2024.
Collateral Dependent Loans. Loans that have been classified as collateral dependent are loans where substantially all repayment of the loan is expected to come from the operation of or eventual liquidation of the collateral. Collateral dependent loans are evaluated individually for purposes of determining the ACL, which is determined based on the estimated fair value of the collateral. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated fair value of the collateral exceeds the amortized cost of the loan, no ACL is recorded.
The following tables summarize collateral dependent loans by collateral type as of the dates indicated (in thousands):
March 31, 2025
Commercial Real EstateResidential Real EstateLandOther ResidentialRVs/AutomobilesBusiness Assets Total
Real estate loans:
One- to four- family$— $305 $— $594 $— $— $899 
Home equity— 368 — — — — 368 
Commercial and multifamily4,561 — — — — 1,065 5,626 
Construction and land— — 22 — — — 22 
Total real estate loans4,561 673 22 594 — 1,065 6,915 
Consumer loans:
Manufactured homes— — — 501 — — 501 
Floating homes— — — 2,363 — — 2,363 
Other consumer— — — — 9 — 9 
Total consumer loans— — — 2,864 9 — 2,873 
Commercial business loans— — — — — — — 
Total loans$4,561 $673 $22 $3,458 $9 $1,065 $9,789 
December 31, 2024
Commercial Real EstateResidential Real EstateLandOther ResidentialRVs/AutomobilesBusiness AssetsTotal
Real estate loans:
One- to four- family$— $311 $— $364 $— $— $675 
Home equity— 298 — — — — 298 
Commercial and multifamily3,734 — — — — — 3,734 
Construction and land— — 24 — — — 24 
Total real estate loans3,734 609 24 364 — — 4,731 
Consumer loans:
Manufactured homes— — — 521 — — 521 
Floating homes— — — 2,363 — — 2,363 
Other consumer— — — — 1 — 1 
Total consumer loans— — — 2,884 1 — 2,885 
Commercial business loans— — — — — 11 11 
Total loans$3,734 $609 $24 $3,248 $1 $11 $7,627