The Company adopted ASU 2016-13, which requires the measurement of expected credit losses for financial assets measured at amortized cost, including loans and certain off-balance-sheet credit exposures and ASU 2022-02, which eliminates the recognition and measurement guidance of TDRs, so that creditors will apply the same guidance to all modifications when determining whether a modification results in a new receivable or continuation of an existing receivable.. See Note 1 - Summary of Significant Accounting Policies for a description of the adoption of ASU 2016-13 and the Company’s allowance methodology.

Under ASU 2016-13, the Company’s methodology for determining the allowance for credit losses on loans is based upon key assumptions, including the lookback period, historical loss experience, economic forecasts over a reasonable and supportable forecast period, reversion period, prepayments and qualitative adjustments. The allowance is measured on a pool basis when similar risk characteristics exist. Loans that do not share common risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation.


	For the Three Months Ended
		March 31, 2023		March 31, 2022
		(In thousands)
Balance at beginning of period		$	13,400	$	14,425
Impact of adopting ASU 2016-13 and ASU 2022-02		668		—
Charge-offs		(5)		(10)
Recoveries		1		2
Net charge-offs		(4)		(8)
Provision for (recovery of) credit loss on loans		89		(952)
Balance at end of period		$	14,153	$	13,465

The following tables presents the activity in the Company’s allowance for credit losses by class of loans based on the most recent analysis performed for the three months ended March 31, 2023, and 2022:


	Balance at December 31, 2022		Impact of adopting ASU 2016-13 and ASU 2022-02		Charge-offs (1)		Recoveries		(Recovery of) Provision for Credit Loss - Loans		Balance at March 31, 2023
	(In thousands)
Residential one-to-four family	$	2,264	$	(183)	$	—	$	—	$	(25)	$	2,056
Multifamily	5,491		2,057		—		—		(357)		7,191
Non-residential	3,357		146		—		—		67		3,570
Construction	1,697		(832)		—		—		325		1,190
Commercial and industrial (including PPP)	47		(23)		—		—		76		100
Junior liens	451		(405)		—		—		—		46
Consumer and other	—		1		(5)		1		3		—
Unallocated	93		(93)		—		—		—		—
Total	$	13,400	$	668	$	(5)	$	1	$	89	$	14,153


	Balance at December 31, 2021		Charge-offs		Recoveries		(Recovery of) Provision for Loan Loss		Balance at March 31, 2022
	(In thousands)
Residential one-to-four family	$	2,822	$	—	$	—	$	(212)	$	2,610
Multifamily	5,263		—		—		(487)		4,776
Non-residential	2,846		—		—		619		3,465
Construction	2,678		—		—		(773)		1,905
Commercial and industrial (including PPP)	51		—		—		20		71
Junior liens	636		—		—		(87)		549
Consumer and other	38		(10)		2		(30)		—
Unallocated	91		—		—		(2)		89
Total	$	14,425	$	(10)	$	2	$	(952)	$	13,465

The following table represents the allocation of allowance for loan losses and the related recorded investment, including deferred fees and costs, in loans by loan portfolio segment, disaggregated based on the impairment methodology at March 31, 2023 and December 31, 2022:


	Loans						Allowance for Credit Losses on Loans
March 31, 2023	Individually Evaluated		Collectively Evaluated		Total		Individually Evaluated		Collectively Evaluated		Total
	(In thousands)
Residential one-to-four family	$	6,672	$	586,137	$	592,809	$	—	$	2,275	$	2,275
Multifamily	168		695,039		695,207		—		6,146		6,146
Non-residential	—		239,844		239,844		—		4,565		4,565
Construction	—		28,141		28,141		—		1,048		1,048
Commercial and industrial (including PPP)	—		10,357		10,357		—		32		32
Junior liens	—		19,644		19,644		—		87		87
Consumer and other	—		58		58		—		—		—
Unallocated	—		—		—		—		—		—
Total	$	6,840	$	1,579,220	$	1,586,060	$	—	$	14,153	$	14,153


	Loans						Allowance for Loan Losses
December 31, 2022	Individually Evaluated		Collectively Evaluated		Total		Individually Evaluated		Collectively Evaluated		Total
	(In thousands)
Residential one-to-four family	$	8,418	$	588,836	$	597,254	$	27	$	2,237	$	2,264
Multifamily	516		690,174		690,690		—		5,491		5,491
Non-residential	2,671		213,390		216,061		—		3,357		3,357
Construction	—		17,799		17,799		—		1,697		1,697
Commercial and industrial (including PPP)	—		4,653		4,653		—		47		47
Junior liens	52		18,579		18,631		—		451		451
Consumer and other	—		39		39		—		—		—
Unallocated	—		—		—		—		93		93
Total	$	11,657	$	1,533,470	$	1,545,127	$	27	$	13,373	$	13,400

The Company recorded an allowance of credit losses on securities of $170 thousand upon adoption of ASU 2016-13 on January 1, 2023. Prior year disclosures have not been restated. For the three months ended March 31, 2023, the Company recorded provision for credit losses on held-to-maturity securities of $17 thousand. Accrued interest receivable on securities is reported as a component of accrued interest receivable on the consolidated balance sheets and totaled $1.2 million and $1.0 million at March 31, 2023 and December 31, 2022, respectively. The Company made the election to exclude accrued interest receivable from the estimate of credit losses on securities.

The allowance for credit losses on off-balance-sheet exposures is reported in other liabilities in the consolidated balance sheets. The liability represents an estimate of expected credit losses arising from off-balance-sheet exposures such as letters of credit, guarantees and unfunded loan commitments. The process for measuring lifetime expected credit losses on these exposures is consistent with that for loans as discussed above, but is subject to an additional estimate reflecting the likelihood that funding will occur. No liability is recognized for off-balance-sheet credit exposures that are unconditionally cancellable by the Company. Adjustments to the liability are reported as a component of provision for credit losses.

The Company recorded a decrease in the allowance for credit losses for off-balance-sheet exposures of $811 thousand upon adoption on January 1, 2023. Prior year disclosures have not been restated. At March 31, 2023 and December 31, 2022, the balance of the allowance for credit losses for off-balance-sheet exposures was $748 thousand and $1.7 million, respectively. The Company recorded a recovery of provision for credit loss on off-balance-sheet exposures of $130 thousand for the three months ended March 31, 2023. In the three months ended March 31, 2022, the Company recorded a recovery of provision on unfunded lending commitments of $170 thousand in other non-interest expense.