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Loans Receivable and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable at September 30, 2023 and December 31, 2022 are summarized as follows:


	September 30,		December 31,
	2023		2022
	(In thousands)
Real estate loans:
One-to-four family	$	2,791,939	$	2,860,184
Multifamily	1,417,233		1,239,207
Commercial real estate	2,374,488		2,413,394
Construction	390,940		336,553
Commercial business loans	546,750		497,469
Consumer loans:
Home equity loans and advances	267,016		274,302
Other consumer loans	2,586		3,425
Total gross loans	7,790,952		7,624,534
Purchased credit-deteriorated ("PCD") loans	15,228		17,059
Net deferred loan costs, fees and purchased premiums and discounts	34,360		35,971
Loans receivable	$	7,840,540	$	7,677,564

Financing Receivable, Past Due

The following tables summarize the aging of loans receivable by portfolio segment, including non-accrual loans and excluding PCD loans at September 30, 2023 and December 31, 2022:


	September 30, 2023
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	7,807	$	2,982	$	1,611	$	12,400	$	4,305	$	2,779,539	$	2,791,939
Multifamily	—		—		—		—		—		1,417,233		1,417,233
Commercial real estate	6,463		—		4,063		10,526		4,063		2,363,962		2,374,488
Construction	—		—		—		—		—		390,940		390,940
Commercial business loans	—		5,000		6,602		11,602		6,602		535,148		546,750
Consumer loans:
Home equity loans and advances	393		63		89		545		180		266,471		267,016
Other consumer loans	—		—		—		—		—		2,586		2,586
Total loans	$	14,663	$	8,045	$	12,365	$	35,073	$	15,150	$	7,755,879	$	7,790,952


	December 31, 2022
	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Non-accrual		Current		Total
	(In thousands)
Real estate loans:
One-to-four family	$	4,063	$	1,149	$	1,808	$	7,020	$	2,730	$	2,853,164	$	2,860,184
Multifamily	—		—		—		—		—		1,239,207		1,239,207
Commercial real estate	—		853		2,892		3,745		2,892		2,409,649		2,413,394
Construction	5,218		—		—		5,218		—		331,335		336,553
Commercial business loans	220		—		474		694		801		496,775		497,469
Consumer loans:
Home equity loans and advances	465		33		286		784		286		273,518		274,302
Other consumer loans	3		1		12		16		12		3,409		3,425
Total loans	$	9,969	$	2,036	$	5,472	$	17,477	$	6,721	$	7,607,057	$	7,624,534

Financing Receivable, Allowance for Credit Loss

The following tables summarize loans receivable (including PCD loans) and allowance for credit losses by portfolio segment and impairment method at September 30, 2023 and December 31, 2022:


	September 30, 2023
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually analyzed loans	$	186	$	2	$	307	$	—	$	107	$	29	$	—	$	631
Collectively analyzed loans	11,681		9,507		15,311		6,945		7,704		2,160		7		53,315
Loans acquired with deteriorated credit quality	4		—		140		—		23		—		—		167
Total	$	11,871	$	9,509	$	15,758	$	6,945	$	7,834	$	2,189	$	7	$	54,113

Total loans:
Individually analyzed loans	$	3,967	$	401	$	16,768	$	—	$	11,692	$	611	$	—	$	33,439
Collectively analyzed loans	2,787,972		1,416,832		2,357,720		390,940		535,058		266,405		2,586		7,757,513
Loans acquired with deteriorated credit quality	1,913		—		11,749		1,039		388		139		—		15,228
Total loans	$	2,793,852	$	1,417,233	$	2,386,237	$	391,979	$	547,138	$	267,155	$	2,586	$	7,806,180

9. Loans Receivable and Allowance for Credit Losses (continued)


	December 31, 2022
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Total
	(In thousands)
Allowance for credit losses:
Individually analyzed loans	$	201	$	3	$	99	$	—	$	10	$	26	$	—	$	339
Collectively analyzed loans	11,591		7,874		17,961		6,415		6,876		1,654		10		52,381
Loans acquired with deteriorated credit quality	10		—		51		10		11		1		—		83
Total	$	11,802	$	7,877	$	18,111	$	6,425	$	6,897	$	1,681	$	10	$	52,803

Total loans:
Individually analyzed loans	$	4,164	$	457	$	16,729	$	—	$	1,173	$	697	$	—	$	23,220
Collectively analyzed loans	2,856,020		1,238,750		2,396,665		336,553		496,296		273,605		3,425		7,601,314
Loans acquired with deteriorated credit quality	2,158		—		13,116		1,040		496		249		—		17,059
Total loans	$	2,862,342	$	1,239,207	$	2,426,510	$	337,593	$	497,965	$	274,551	$	3,425	$	7,641,593

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2023 and 2022 are as follows:


	For the Three Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2023
Balance at beginning of period	$	11,026	$	9,392	$	16,212	$	6,935	$	7,690	$	2,193	$	8	$	53,456

Provision for (reversal of) credit losses	1,063		117		(454)		10		1,688		(53)		8		2,379
Recoveries	—		—		—		—		624		49		1		674
Charge-offs	(218)		—		—		—		(2,168)		—		(10)		(2,396)
Balance at end of period	$	11,871	$	9,509	$	15,758	$	6,945	$	7,834	$	2,189	$	7	$	54,113

2022
Balance at beginning of period	$	10,836	$	10,932	$	14,480	$	5,570	$	7,284	$	1,471	$	10	$	50,583


Provision for (reversal of) credit losses	1,394		(3,683)		3,219		70		120		385		11		1,516
Recoveries	—		—		—		—		76		18		—		94
Charge-offs	(284)		—		—		—		—		(6)		(12)		(302)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891

9. Loans Receivable and Allowance for Credit Losses (continued)


	For the Nine Months Ended September 30,
	One-to-Four Family		Multifamily		Commercial Real Estate		Construction		Commercial Business		Home Equity Loans and Advances		Other Consumer Loans		Totals
	(In thousands)
2023
Balance at beginning of period	$	11,802	$	7,877	$	18,111	$	6,425	$	6,897	$	1,681	$	10	$	52,803


Provision for (reversal of) credit losses	421		1,632		(2,203)		520		2,725		460		77		3,632
Recoveries	—		—		—		—		830		73		6		909
Charge-offs	(352)		—		(150)		—		(2,618)		(25)		(86)		(3,231)
Balance at end of period	$	11,871	$	9,509	$	15,758	$	6,945	$	7,834	$	2,189	$	7	$	54,113

2022
Balance at beginning of period	$	8,798	$	7,741	$	16,114	$	8,943	$	20,214	$	873	$	6	$	62,689
Initial adoption -CECL	(2,308)		(2,030)		(4,227)		(2,346)		(5,302)		(229)		(1)		(16,443)
Initial allowance related to PCD loans	131		—		474		3		19		6		—		633
Provision for (reversal of) credit losses	5,364		1,538		5,338		(960)		(7,520)		1,225		19		5,004
Recoveries	338		—		—		—		131		26		—		495
Charge-offs	(377)		—		—		—		(62)		(33)		(15)		(487)
Balance at end of period	$	11,946	$	7,249	$	17,699	$	5,640	$	7,480	$	1,868	$	9	$	51,891

The following table presents the activity in the allowance for credit losses on off-balance-sheet exposures for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	6,330	$	8,358	$	6,970	$	524
Impact of adopting ASU 2016-13 ("CECL") effective January 1, 2022	—		—		—		7,674
(Reversal of) provision for credit losses	(520)		(1,747)		(1,160)		(1,587)
Balance at end of period	$	5,810	$	6,611	$	5,810	$	6,611

Financing Receivable, Modified

The following tables presents the modifications of loans to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2023:


	Three Months Ended September 30, 2023
	Amortized Cost		Term Extension		Combination of Term Extension, Interest Rate Reduction, and Principal Forgiveness		% of Total Class of Loans Receivable
	(In thousands)

Commercial real estate	$	1,038	$	1,038	$	—	—	%

Commercial business	5,000		—		5,000		0.9
Total loans	$	6,038	$	1,038	$	5,000	0.1	%


	Nine Months Ended September 30, 2023
	Amortized Cost		Term Extension		Combination of Term Extension, Interest Rate Reduction, and Principal Forgiveness		% of Total Class of Loans Receivable
	(In thousands)

Commercial real estate	$	1,038	$	1,038	$	—	—	%
Construction	2,317		2,317		—		0.6
Commercial business	5,240		240		5,000		1.0
Total loans	$	8,595	$	3,595	$	5,000	0.1	%

For the three and nine months ended September 30, 2022 there were no modifications.

The following tables describes the types of modifications of loans to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023:


Three Months Ended September 30, 2023
						Type of Modifications

Commercial real estate						12 month term extension

Commercial business						12 month term extension, interest rate reduction, and/or principal forgiveness.


Nine Months Ended September 30, 2023
						Type of Modifications

Commercial real estate						12 month term extension
Construction						12 month term extension
Commercial business						12 month term extension, interest rate reduction, and/or principal forgiveness.

The following tables presents the aging analysis of modifications of loans to borrowers experiencing financial difficulty at September 30, 2023:


	Current		30-59 Days		60-89 Days		90 Days or More		Non-accrual		Total
	(In thousands)
Commercial real estate	$	1,038	$	—	$	—	$	—	$	—	$	1,038
Construction	2,317		—		—		—		—		2,317
Commercial business	—		—		5,000		—		240		5,240
Total loans	$	3,355	$	—	$	5,000	$	—	$	240	$	8,595

Impaired Financing Receivables

The following tables present loans individually analyzed loans by segment, excluding PCD loans, at September 30, 2023 and December 31, 2022:


	At September 30, 2023
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,345	$	1,693	$	—
Multifamily	51		55		—
Commercial real estate	14,097		15,721		—

Commercial business loans	5,819		7,025		—
Consumer loans:
Home equity loans and advances	150		168		—
	21,462		24,662		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	2,622		2,641		186
Multifamily	350		350		2
Commercial real estate	2,671		2,673		307

Commercial business loans	5,873		5,873		107
Consumer loans:
Home equity loans and advances	461		461		29
	11,977		11,998		631
Total:
Real estate loans:
One-to-four family	3,967		4,334		186
Multifamily	401		405		2
Commercial real estate	16,768		18,394		307

Commercial business loans	11,692		12,898		107
Consumer loans:
Home equity loans and advances	611		629		29
Total loans	$	33,439	$	36,660	$	631

9. Loans Receivable and Allowance for Credit Losses (continued)


	At December 31, 2022
	Recorded Investment		Unpaid Principal Balance		Specific Allowance
	(In thousands)
With no allowance recorded:
Real estate loans:
One-to-four family	$	1,296	$	1,644	$	—
Multifamily	59		63		—
Commercial real estate	14,836		15,699		—

Commercial business loans	143		400		—
Consumer loans:
Home equity loans and advances	223		315		—
	16,557		18,121		—
With a specific allowance recorded:
Real estate loans:
One-to-four family	2,868		2,887		201
Multifamily	398		397		3
Commercial real estate	1,893		1,896		99

Commercial business loans	1,030		1,030		10
Consumer loans:
Home equity loans and advances	474		474		26
	6,663		6,684		339
Total:
Real estate loans:
One-to-four family	4,164		4,531		201
Multifamily	457		460		3
Commercial real estate	16,729		17,595		99

Commercial business loans	1,173		1,430		10
Consumer loans:
Home equity loans and advances	697		789		26
	$	23,220	$	24,805	$	339

The following table presents interest income recognized for individually analyzed loans by loan segment, excluding PCD loans, for the three and nine months ended September 30, 2023 and 2022:


	For the Three Months Ended September 30,
	2023				2022
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,329	$	54	$	4,251	$	45
Multifamily	411		5		598		6
Commercial real estate	16,653		214		16,086		163

Commercial business loans	7,657		78		1,269		22
Consumer loans:
Home equity loans and advances	626		15		777		9
Total loans	$	29,676	$	366	$	22,981	$	245


	For the Nine Months Ended September 30,
	2023				2022
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Real estate loans:
One-to-four family	$	4,394	$	154	$	4,640	$	146
Multifamily	429		15		675		28
Commercial real estate	16,452		516		16,254		568

Commercial business loans	4,780		148		1,447		66
Consumer loans:
Home equity loans and advances	657		32		787		29
Total loans	$	26,712	$	865	$	23,803	$	837

Financing Receivable Credit Quality Indicators

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating, excluding PCD loans, at September 30, 2023 and December 31, 2022:


	Loans by Year of Origination at September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	100,102	$	794,991	$	806,192	$	277,750	$	168,116	$	640,209	$	—	$	—	$	2,787,360
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		1,222		553		155		960		1,689		—		—		4,579


Total One-to-Four Family	100,102		796,213		806,745		277,905		169,076		641,898		—		—		2,791,939
Gross charge-offs	—		3		197		—		—		152		—		—		352

Multifamily
Pass	107,375		315,525		361,644		160,831		204,079		257,498		—		—		1,406,952
Special mention	—		—		—		—		—		4,525		—		—		4,525
Substandard	—		5,756		—		—		—		—		—		—		5,756


Total Multifamily	107,375		321,281		361,644		160,831		204,079		262,023		—		—		1,417,233
Gross charge-offs	—		—		—		—		—		—		—		—		—

Commercial Real Estate
Pass	167,016		417,317		368,522		174,970		240,513		967,119		—		—		2,335,457
Special mention	—		—		469		—		877		20,620		—		—		21,966
Substandard	—		—		911		3,094		—		13,060		—		—		17,065


Total Commercial Real Estate	167,016		417,317		369,902		178,064		241,390		1,000,799		—		—		2,374,488
Gross charge-offs	—		—		—		—		64		86		—		—		150

Construction
Pass	61,208		252,894		68,281		4,933		440		3,184		—		—		390,940
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—


Total Construction	61,208		252,894		68,281		4,933		440		3,184		—		—		390,940
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

9. Loans Receivable and Allowance for Credit Losses (continued)


	Loans by Year of Origination at September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	56,079	$	52,324	$	30,412	$	28,374	$	16,834	$	42,735	$	294,125	$	—	$	520,883
Special mention	131		321		49		114		—		2,284		6,904		—		9,803
Substandard	—		76		123		7		1,035		5,689		9,134		—		16,064


Total Commercial Business	56,210		52,721		30,584		28,495		17,869		50,708		310,163		—		546,750
Gross charge-offs	—		—		31		34		2,249		304		—		—		2,618

Home Equity Loans and Advances
Pass	14,856		21,272		18,628		11,684		10,387		87,826		101,716		426		266,795
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		221		—		—		221


Total Home Equity Loans and Advances	14,856		21,272		18,628		11,684		10,387		88,047		101,716		426		267,016
Gross charge-offs	—		—		—		—		—		25		—		—		25

Other Consumer Loans
Pass	1,921		171		47		11		34		90		312		—		2,586
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—


Total Other Consumer Loans	1,921		171		47		11		34		90		312		—		2,586
Gross charge-offs	—		40		45		—		—		1		—		—		86

Total Loans	508,688		1,861,869		1,655,831		661,923		643,275		2,046,749		412,191		426		7,790,952
Total gross charge-offs	$	—	$	43	$	273	$	34	$	2,313	$	568	$	—	$	—	$	3,231

9. Loans Receivable and Allowance for Credit Losses (continued)


	Loans by Year of Origination at December 31, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
One-to-Four Family
Pass	$	829,363	$	836,355	$	294,721	$	177,114	$	125,057	$	595,097	$	—	$	—	$	2,857,707
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		641		—		681		320		835		—		—		2,477


Total One-to-Four family	829,363		836,996		294,721		177,795		125,377		595,932		—		—		2,860,184
Gross charge-offs	—		—		50		—		122		210		—		—		382

Multifamily
Pass	315,157		309,611		167,955		205,608		38,849		197,489		—		—		1,234,669
Special mention	—		—		—		—		—		4,538		—		—		4,538
Substandard	—		—		—		—		—		—		—		—		—


Total Multifamily	315,157		309,611		167,955		205,608		38,849		202,027		—		—		1,239,207
Gross charge-offs	—		—		—		—		—		—		—		—		—

Commercial Real Estate
Pass	448,313		392,689		170,125		260,268		231,868		852,104		—		—		2,355,367
Special mention	—		478		1,843		892		15,498		20,939		—		—		39,650
Substandard	—		—		1,286		1,607		—		15,484		—		—		18,377


Total Commercial Real Estate	448,313		393,167		173,254		262,767		247,366		888,527		—		—		2,413,394
Gross charge-offs	—		—		—		—		—		—		—		—		—

Construction
Pass	159,751		104,339		28,058		14,216		870		29,319		—		—		336,553
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—


Total Construction	159,751		104,339		28,058		14,216		870		29,319		—		—		336,553
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

9. Loans Receivable and Allowance for Credit Losses (continued)


	Loans by Year of Origination at December 31, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
	(In thousands)
Commercial Business
Pass	$	58,631	$	32,880	$	32,788	$	20,705	$	24,634	$	27,277	$	280,857	$	—	$	477,772
Special mention	—		110		63		1,137		1,030		38		10,761		—		13,139
Substandard	—		224		60		—		2,085		315		3,874		—		6,558


Total Commercial Business	58,631		33,214		32,911		21,842		27,749		27,630		295,492		—		497,469
Gross charge-offs	—		—		—		143		29		18		—		—		190

Home Equity Loans and Advances
Pass	22,903		20,476		13,770		12,070		11,126		88,251		105,005		457		274,058
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		188		56		—		244


Total Home Equity Loans and Advances	22,903		20,476		13,770		12,070		11,126		88,439		105,061		457		274,302
Gross charge-offs	—		—		—		—		—		33		—		—		33

Other Consumer Loans
Pass	2,669		87		100		102		30		96		341		—		3,425
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—


Total Other Consumer Loans	2,669		87		100		102		30		96		341		—		3,425
Gross charge-offs	10		18		—		—		—		5		—		—		33

Total Loans	1,836,787		1,697,890		710,769		694,400		451,367		1,831,970		400,894		457		7,624,534
Total gross charge-offs	$	10	$	18	$	50	$	143	$	151	$	266	$	—	$	—	$	638