LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Company's Loan

The following presents a summary of the Company’s loans at amortized cost as of the dates noted (dollars in thousands):

	March 31,			December 31,
	2024			2023
1-4 Family residential real estate	$	72,355		$	61,645
Commercial		127,957			50,169
Consumer and other		872			698
Construction		56,410			34,538
Non-Owner Occupied (NOO) CRE		262,623			167,203
Owner Occupied (OO) CRE		159,376			82,228
Multifamily		70,714			60,546
Loans held for investment		750,307			457,027
Less: allowance for credit losses		(10,675	)		(5,860	)
Loans, net	$	739,632		$	451,167

Schedule of Allowance for Credit Losses

Allocation of a portion of the allowance for credit losses to one category of loans does not preclude its availability to absorb losses in other categories. The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2024, and March 31, 2023, (dollars in thousands):

	1–4 Family									NOO		OO
	Residential					Consumer				Commercial		Commercial
	Real Estate		Commercial			and Other		Construction		Real Estate		Real Estate		Multifamily		Total
Changes in allowance for credit losses for the three months ended March 31, 2024
Beginning balance	$	736	$	924		$	8	$	512	$	1,859	$	1,201	$	620	$	5,860
Acquisition of CBOA Financial PCD Loans		34		777			1		258		83		11		—		1,164
Provision (credit) for loan losses		126		1,409			1		64		1,165		941		146		3,852
Loans charged off		—		(208	)		—		—		—		—		—		(208	)
Recoveries		2		5			—		—				—		—		7
Balance on March 31, 2024	$	898	$	2,907		$	10	$	834	$	3,107	$	2,153	$	766	$	10,675

	1–4 Family											NOO		OO
	Residential						Consumer					Commercial		Commercial
	Real Estate			Commercial			and Other			Construction		Real Estate		Real Estate		Multifamily		Total
Changes in allowance for loan losses for the three months ended March 31, 2023
Beginning balance	$	454		$	1,382		$	56		$	222	$	1,680	$	555	$	429	$	4,778
Impact of adopting of ASU 2016-13		(33	)		(307	)		(50	)		441		271		142		140		604
Provision (credit) for loan losses		—			—			—			—		—		—		—		—
Loans charged off		—			—			—			—		—		—		—		—
Recoveries		1			—			—			—		—		—		—		1
Balance on March 31, 2023	$	422		$	1,075		$	6		$	663	$	1,951	$	697	$	569	$	5,383

Schedule of Loan Category and Aging Analysis of Loans

The following table presents the aging of the recorded investment in contractually past due loans, as of March 31, 2024, and December 31, 2023. It is shown by class of loans (dollars in thousands):

	Loans Contractually Past Due
March 31, 2024	30–59 Days		60–89 Days		Over 90 Days		Total		Loans Not Past Due		Total
1-4 Family residential real estate	$	259	$	—	$	—	$	259	$	72,096	$	72,355
Commercial		2,813		885		350		4,048		123,909		127,957
Consumer and other		—		—		—		—		872		872
Construction		—		—		—		—		56,410		56,410
NOO CRE		—		—		—		—		262,623		262,623
OO CRE		—		—		—		—		159,376		159,376
Multifamily		337		—		—		337		70,377		70,714
Total	$	3,409	$	885	$	350	$	4,644	$	745,663	$	750,307

	Loans Contractually Past Due
December 31, 2023	30–59 Days		60–89 Days		Over 90 Days		Total		Loans Not Past Due		Total
1-4 Family residential real estate	$	409	$	—	$	—	$	409	$	61,236	$	61,645
Commercial		—		—		589		589		49,580		50,169
Consumer and other		—		—		—		—		698		698
Construction		—		—		—		—		34,538		34,538
NOO CRE		—		—		—		—		167,203		167,203
OO CRE		—		—		—		—		82,228		82,228
Multifamily		—		—		—		—		60,546		60,546
Total	$	409	$	—	$	589	$	998	$	456,029	$	457,027

Schedule of loan category and loan by risk categories

	Term Loans Amortized Cost by Origination
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
1-4 Family
Pass	$	1,517	$	5,870	$	27,070	$	12,402	$	7,842	$	13,501	$	3,738	$	—	$	71,940
Special Mention		—		—		—		—		—		350		—		—		350
Substandard		—		—		—		—		—		65		—		—		65
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Familly		1,517		5,870		27,070		12,402		7,842		13,916		3,738		—		72,355
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Commercial
Pass		708		35,204		31,210		10,140		3,546		4,501		35,597		—		120,907
Special Mention		—		—		147		—		1,944		88		101		—		2,280
Substandard		—		571		2,365		491		653		97		341		—		4,518
Doubtful		—		—		—		—		252		—		—		—		252
Total Commercial		708		35,775		33,722		10,631		6,395		4,686		36,039		—		127,957
Current year-to-date gross write-offs		—		—		—		—		208		—		—		—		208
Consumer and other
Pass		—		—		129		—		3		40		700		—		872
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other		—		—		129		—		3		40		700		—		872
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		1,855		15,914		26,371		6,439		723		2,318		18		—		53,639
Special Mention		—		1,681		—		—		—		—		—		—		1,681
Substandard		—		—		—		—		—		1,090		—		—		1,090
Doubtful		—		—		—		—		—		—		—		—		—
Total Construction		1,855		17,595		26,371		6,439		723		3,408		18		—		56,410
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
NOO CRE
Pass		587		34,328		52,822		72,306		32,988		63,014		6,206		—		262,252
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		371		—		—		371
Doubtful		—		—		—		—		—		—		—		—		—
Total NOO CRE		587		34,328		52,822		72,306		32,988		63,385		6,206		—		262,623
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
OO CRE
Pass		879		37,994		30,487		38,286		12,414		28,899		199		—		149,158
Special Mention		—		226		—		7,099		—		1,676		—		—		9,001
Substandard		—		—		—		—		37		1,180		—		—		1,217
Doubtful		—		—		—		—		—		—		—		—		—
Total OO CRE		879		38,220		30,487		45,385		12,451		31,755		199		—		159,376
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Multi Family
Pass		—		500		19,853		24,811		6,478		16,238		860		—		68,739
Special Mention		—		—		—		—		1,023		—		—		—		1,023
Substandard		—		—		—		952		—		—		—		—		952
Doubtful		—		—		—		—		—		—		—		—		—
Total Multi Family		—		500		19,853		25,763		7,501		16,238		860		—		70,714
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Total	$	5,547	$	132,289	$	190,455	$	172,925	$	67,903	$	133,428	$	47,760	$	—	$	750,307
Total year-to-date gross write-offs	$	—	$	—	$	—	$	—	$	208	$	—	$	—	$	—	$	208

	Term Loans Amortized Cost by Origination
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family
Pass	$	4,244	$	24,009	$	12,236	$	7,928	$	1,466	$	9,622	$	1,717	$	—	$	61,222
Special Mention		—		—		—		—		—		357		—		—		357
Substandard		—		—		—		—		—		67		—		—		67
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family		4,244		24,009		12,236		7,928		1,466		10,045		1,717		—		61,645
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Commercial
Pass		13,150		15,405		3,234		3,176		87		1,546		10,139		779		46,737
Special Mention		—		163		—		2,018		—		—		—		—		2,181
Substandard		—		—		—		903		96		—		—		—		999
Doubtful		—		—		—		—		252		—		—		—		252
Total Commercial		13,150		15,568		3,234		6,097		435		1,546		10,139		779		50,169
Current year-to-date gross write-offs		—		—		—		—		321		—		—		—		321
Consumer and other
Pass		43		138		—		5		10		3		499		—		698
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other		43		138		—		5		10		3		499		—		698
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		7,788		21,551		3,938		38		310		592		321		—		34,538
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Construction		7,788		21,551		3,938		38		310		592		321		—		34,538
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
NOO CRE
Pass		7,187		35,899		52,241		21,091		13,491		30,911		6,140		—		166,960
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		243		—		—		—		—		243
Doubtful		—		—		—		—		—		—		—		—		—
Total NOO CRE		7,187		35,899		52,241		21,334		13,491		30,911		6,140		—		167,203
Current year-to-date gross write-offs		3,382		—		—		—		—		—		—		—		3,382
OO CRE
Pass		20,726		12,365		20,807		7,966		5,806		4,214		—		—		71,884
Special Mention		228		—		7,196		—		—		1,690		—		—		9,114
Substandard		—		—		—		37		1,193		—		—		—		1,230
Doubtful		—		—		—		—		—		—		—		—		—
Total OO CRE		20,954		12,365		28,003		8,003		6,999		5,904		—		—		82,228
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Multi Family
Pass		500		15,652		22,007		7,572		6,369		7,105		371		—		59,575
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		970		—		—		—		—		—		970
Doubtful		—		—		—		—		—		—		—		—		—
Total Multi Family		500		15,652		22,977		7,572		6,369		7,105		371		—		60,546
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Total	$	53,866	$	125,182	$	122,629	$	50,977	$	29,080	$	56,106	$	19,187	$	779	$	457,027
Current year-to-date gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of Nonaccrual Loans

	As of March 31, 2024
	Non-accrual loans with no ACL		Total non-accrual loans		Loans past due over 89 days and still accruing
1-4 Family residential real estate	$	65	$	65	$	—
Commercial		1,412		2,046		—
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		371		371		—
OO CRE		—		—		—
Multifamily		953		953		—
Total	$	2,801	$	3,435	$	—
	As of December 31, 2023
	Non-accrual loans with no ACL		Total non-accrual loans		Loans past due over 89 days and still accruing
1-4 Family residential real estate	$	66	$	66	$	—
Commercial		847		1,208		—
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		—		—		—
OO CRE		—		—		—
Multifamily		970		970		—
Total	$	1,883	$	2,244	$	—

Schedule of Collateral Dependent Loans

	As of March 31, 2024 Collateral Dependent Loans
	Secured by Real Estate		Secured by Other		Total
1-4 Family residential real estate	$	65	$	—	$	65
Commercial		—		2,046		2,046
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		371		—		371
OO CRE		—		—		—
Multifamily		953		—		953
Total	$	1,389	$	2,046	$	3,435