LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 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):

	September 30,			December 31,
	2024			2023
1-4 Family residential real estate	$	71,279		$	61,645
Commercial		120,510			50,169
Consumer and other		902			698
Construction		30,630			34,538
Non-Owner Occupied (NOO) CRE		259,966			167,203
Owner Occupied (OO) CRE		157,184			82,228
Multifamily		62,664			60,546
Loans held for investment		703,135			457,027
Less: allowance for credit losses		(10,523	)		(5,860	)
Loans, net	$	692,612		$	451,167

Schedule of Loan Category and Aging Analysis of Loans

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 and nine months ended September 30, 2024, and September 30, 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 September 30, 2024
Beginning balance	$	977		$	2,688		$	9	$	729		$	3,374	$	2,245		$	779		$	10,801
Provision (credit) for loan losses		(49	)		194			—		(215	)		258		(134	)		(54	)		—
Loans charged off		—			(350	)		—		—			—		—			—			(350	)
Recoveries		2			70			—		—			—		—			—			72
Balance on September 30, 2024	$	930		$	2,602		$	9	$	514		$	3,632	$	2,111		$	725		$	10,523

	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 nine months ended September 30, 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		152		1,260			2			(256	)		1,690		899		105		3,852
Loans charged off		—		(558	)		(2	)		—			—		—		—		(560	)
Recoveries		8		199			—			—					—		—		207
Balance on September 30, 2024	$	930	$	2,602		$	9		$	514		$	3,632	$	2,111	$	725	$	10,523

	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 September 30, 2023
Beginning balance	$	452	$	476		$	7	$	745		$	2,043	$	926	$	571		$	5,220
Provision (credit) for loan losses		34		213			—		(167	)		2,880		216		(1	)		3,175
Loans charged off		—		(6	)		—		—			—		—		—			(6	)
Recoveries		2		—			—		—			—		—		—			2
Balance on September 30, 2023	$	488	$	683		$	7	$	578		$	4,923	$	1,142	$	570		$	8,391

	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 nine months ended September 30, 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		62			(71	)		1			(85	)		2,972		445		1		3,325
Loans charged off		—			(321	)		—			—			—		—		—		(321	)
Recoveries		5			—			—			—			—		—		—		5
Balance on September 30, 2023	$	488		$	683		$	7		$	578		$	4,923	$	1,142	$	570	$	8,391

The following tables present the aging of the recorded investment in contractually past due loans, as of September 30, 2024, and December 31, 2023. It is shown by class of loans (dollars in thousands):

	Loans Contractually Past Due
	30–59		60–89		Over 90				Loans Not
September 30, 2024	Days		Days		Days		Total		Past Due		Total
1-4 Family residential real estate	$	—	$	200	$	—	$	200	$	71,079	$	71,279
Commercial		2,110		—		1,875		3,985		116,525		120,510
Consumer and other		—		—		—		—		902		902
Construction		2,263		—		—		2,263		28,367		30,630
NOO CRE		—		—		—		—		259,966		259,966
OO CRE		—		—		—		—		157,184		157,184
Multifamily		—		—		129		—		62,535		62,664
Total	$	4,373	$	200	$	2,004	$	6,577	$	696,558	$	703,135

	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 Aging Analysis of Loans

The following tables present the aging of the recorded investment in contractually past due loans, as of September 30, 2024, and December 31, 2023. It is shown by class of loans (dollars in thousands):

	Loans Contractually Past Due
	30–59		60–89		Over 90				Loans Not
September 30, 2024	Days		Days		Days		Total		Past Due		Total
1-4 Family residential real estate	$	—	$	200	$	—	$	200	$	71,079	$	71,279
Commercial		2,110		—		1,875		3,985		116,525		120,510
Consumer and other		—		—		—		—		902		902
Construction		2,263		—		—		2,263		28,367		30,630
NOO CRE		—		—		—		—		259,966		259,966
OO CRE		—		—		—		—		157,184		157,184
Multifamily		—		—		129		—		62,535		62,664
Total	$	4,373	$	200	$	2,004	$	6,577	$	696,558	$	703,135

	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
September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family
Pass	$	2,690	$	4,465	$	26,695	$	11,763	$	7,317	$	11,578	$	6,274	$	—	$	70,782
Special Mention		—		—		—		437		—		—		—		—		437
Substandard		—		—		—		—		—		60		—		—		60
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family		2,690		4,465		26,695		12,200		7,317		11,638		6,274		—		71,279
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Commercial
Pass		11,427		34,091		20,270		8,221		3,121		3,181		33,700		—		114,011
Special Mention		—		33		1,062		460		1,835		155		274		—		3,819
Substandard		—		—		1,920		—		524		236		—		—		2,680
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial		11,427		34,124		23,252		8,681		5,480		3,572		33,974		—		120,510
Current year-to-date gross write-offs		—		—		350		—		208		—		—		—		558
Consumer and other
Pass		80		—		61		—		—		100		641		—		902
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other		80		—		61		—		—		100		641		—		902
Current year-to-date gross write-offs		—		—		—		—		—		2		—		—		2
Construction
Pass		4,809		8,149		10,088		2,026		22		2,134		18		—		27,246
Special Mention		—		—		1,651		613		—		—		—		—		2,264
Substandard		—		—		—		—		—		1,120		—		—		1,120
Doubtful		—		—		—		—		—		—		—		—		—
Total Construction		4,809		8,149		11,739		2,639		22		3,254		18		—		30,630
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
NOO CRE
Pass		1,237		37,448		48,184		72,951		32,612		55,145		6,058		—		253,635
Special Mention		—		—		4,683		—		—		—		—		—		4,683
Substandard		—		—		1,648		—		—		—		—		—		1,648
Doubtful		—		—		—		—		—		—		—		—		—
Total NOO CRE		1,237		37,448		54,515		72,951		32,612		55,145		6,058		—		259,966
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
OO CRE
Pass		1,603		36,647		36,414		44,571		12,238		22,102		549		—		154,124
Special Mention		—		225		—		—		—		1,647		—		—		1,872
Substandard		—		—		—		—		33		1,155		—		—		1,188
Doubtful		—		—		—		—		—		—		—		—		—
Total OO CRE		1,603		36,872		36,414		44,571		12,271		24,904		549		—		157,184
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Multi Family
Pass		—		499		19,850		22,947		6,367		10,263		1,004		—		60,930
Special Mention		—		—		—		—		1,012		—		—		—		1,012
Substandard		—		—		—		722		—		—		—		—		722
Doubtful		—		—		—		—		—		—		—		—		—
Total Multi Family		—		499		19,850		23,669		7,379		10,263		1,004		—		62,664
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Total	$	21,866	$	121,557	$	172,526	$	164,711	$	65,081	$	108,876	$	48,518	$	—	$	703,135
Total year-to-date gross write-offs	$	—	$	—	$	350	$	—	$	208	$	2	$	—	$	—	$	560

	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	$	3,382	$	—	$	—	$	—	$	321	$	—	$	—	$	—	$	3,703

Schedule of Nonaccrual Loans

	As of September 30, 2024
	Non-accrual loans				Loans past due
	with		Total non-accrual		over 89 days and
	no ACL		loans		still accruing
1-4 Family residential real estate	$	60	$	60	$	—
Commercial		432		2,509		—
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		—		—		—
OO CRE		—		—		—
Multifamily		722		722		—
Total	$	1,214	$	3,291	$	—
	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 September 30, 2024 Collateral Dependent Loans
	Secured by		Secured by
	Real Estate		Other		Total
1-4 Family residential real estate	$	60	$	—	$	60
Commercial		—		2,509		2,509
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		—		—		—
OO CRE		—		—		—
Multifamily		722		—		722
Total	$	782	$	2,509	$	3,291