XML 22 R12.htm IDEA: XBRL DOCUMENT v3.24.3
ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Sep. 30, 2024
Credit Loss [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses - Loans
The allowance for credit losses on loans is summarized in the following table:
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2024202320242023
(In thousands)
Balance at beginning of period$13,027 $14,413 $14,154 $13,400 
Impact of adopting ASU 2016-13 and ASU 2022-02— — — 668 
Charge-offs(12)(29)(45)(47)
Recoveries2 2 10 3 
Net charge-offs(10)(27)(35)(44)
Recovery of credit loss on loans(5)(514)(1,107)(152)
Balance at end of period$13,012 $13,872 $13,012 $13,872 
The following tables present the activity in the Company’s allowance for credit losses by class of loans based on the analysis performed for the three months ended September 30, 2024 and 2023:
Balance at June 30, 2024
Charge-offsRecoveries(Recovery of) Provision for Credit Loss - Loans
Balance at September 30, 2024
(In thousands)
Residential$1,825 $— $— $17 $1,842 
Multifamily6,677 — — (84)6,593 
Commercial real estate3,696 — — (36)3,660 
Construction636 — — 14 650 
Junior liens84 — — 4 88 
Commercial and industrial108 — — 45 153 
Consumer and other1 (12)2 35 26 
Total$13,027 $(12)$2 $(5)$13,012 
Consumer and other charge-offs relate to overdrafts in the three months ended September 30, 2024, which originated in the second or third quarter of 2024, as it is our policy to charge these off within 60 days of occurrence.
Balance at June 30, 2023
Charge-offsRecoveries(Recovery of) Provision for Loan Loss
Balance at September 30, 2023
(In thousands)
Residential$1,994 $(18)$— $(10)$1,966 
Multifamily7,017 — — (194)6,823 
Commercial real estate3,813 — — (85)3,728 
Construction1,428 — — (261)1,167 
Junior liens50 — — 4 54 
Commercial and industrial111 — — 23 134 
Consumer and other— (11)2 9 — 
Total$14,413 $(29)$2 $(514)$13,872 
Consumer and other charge-offs relate to overdrafts in the three months ended September 30, 2023, which originated in the second or third quarter of 2023, as it is our policy to charge these off within 60 days of occurrence.
The following tables present the activity in the Company’s allowance for credit losses by class of loans based on the analysis performed for the nine months ended September 30, 2024 and 2023:
Balance at December 31, 2023
Charge-offsRecoveries(Recovery of) Provision for Credit Loss - Loans
Balance at September 30, 2024
(In thousands)
Residential$1,968 $— $— $(126)$1,842 
Multifamily7,046 — — (453)6,593 
Commercial real estate3,748 — — (88)3,660 
Construction1,222 — — (572)650 
Junior liens76 — — 12 88 
Commercial and industrial94 — — 59 153 
Consumer and other— (45)10 61 26 
Total$14,154 $(45)$10 $(1,107)$13,012 
Consumer and other charge-offs relate to overdrafts in the nine months ended September 30, 2024, which originated in the last quarter of 2023 or the first or third quarter of 2024, as it is our policy to charge these off within 60 days of occurrence.
Balance at December 31, 2022
Impact of adopting ASU 2016-13Charge-offsRecoveries(Recovery of) Provision for Loan Loss
Balance at September 30, 2023
(In thousands)
Residential$2,264 $(183)$(18)$— $(97)$1,966 
Multifamily5,491 2,057 — — (725)6,823 
Commercial real estate3,357 146 — — 225 3,728 
Construction1,697 (832)— — 302 1,167 
Junior liens451 (405)— — 8 54 
Commercial and industrial47 (23)— — 110 134 
Consumer and other— 1 (29)3 25 — 
Unallocated93 (93)— — — — 
Total$13,400 $668 $(47)$3 $(152)$13,872 
Consumer and other charge-offs relate to overdrafts in the nine months ended September 30, 2023, which originated in the last quarter of 2022 or the second or third quarter of 2023, as it is our policy to charge these off within 60 days of occurrence.
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 September 30, 2024 and December 31, 2023:
LoansAllowance for Credit Losses on Loans
September 30, 2024Individually EvaluatedCollectively EvaluatedTotalIndividually EvaluatedCollectively EvaluatedTotal
(In thousands)
Residential$4,240 $512,514 $516,754 $— $1,842 $1,842 
Multifamily125 666,179 666,304 — 6,593 6,593 
Commercial real estate— 241,711 241,711 — 3,660 3,660 
Construction— 80,081 80,081 — 650 650 
Junior liens44 24,130 24,174 — 88 88 
Commercial and industrial (1)701 13,527 14,228 — 153 153 
Consumer and other— 7,731 7,731 — 26 26 
Total$5,110 $1,545,873 $1,550,983 $— $13,012 $13,012 
(1) Includes PPP loans which carry the federal guarantee of the SBA and do not have an allowance for credit losses.
LoansAllowance for Credit Losses on Loans
December 31, 2023Individually EvaluatedCollectively EvaluatedTotalIndividually EvaluatedCollectively EvaluatedTotal
(In thousands)
Residential$5,721 $545,208 $550,929 $— $1,968 $1,968 
Multifamily146 682,418 682,564 — 7,046 7,046 
Commercial real estate— 232,505 232,505 — 3,748 3,748 
Construction— 60,414 60,414 — 1,222 1,222 
Junior liens49 22,454 22,503 — 76 76 
Commercial and industrial (1)— 11,768 11,768 — 94 94 
Consumer and other— 47 47 — — — 
Unallocated— — — — — — 
Total$5,916 $1,554,814 $1,560,730 $— $14,154 $14,154 
(1) Includes PPP loans which carry the federal guarantee of the SBA and do not have an allowance for credit losses.
Allowance for Credit Losses - Securities
At September 30, 2024 and December 31, 2023, the balance of the allowance of credit losses on securities was $122 thousand and $158 thousand, respectively. The Company recorded a decrease in provision for credit losses on held-to-maturity securities of $11 thousand and $36 thousand for the three and nine months ended September 30, 2024, respectively, and a provision for credit losses on held-to-maturity securities of $2 thousand for both the three and nine months ended September 30, 2023. In addition, the Company recorded an allowance of credit losses on securities of $170 thousand upon adoption of ASU 2016-13 on January 1, 2023. Accrued interest receivable on securities is reported as a component of accrued interest receivable on the consolidated balance sheets and totaled $1.9 million and $1.5 million at September 30, 2024 and December 31, 2023, respectively. The Company made the election to exclude accrued interest receivable from the estimate of credit losses on securities.
Allowance for Credit Losses - Off-Balance-Sheet Exposures
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.
At September 30, 2024 and December 31, 2023, the balance of the allowance for credit losses for off-balance-sheet exposures was $397 thousand and $303 thousand, respectively. The Company recorded a provision for credit loss on off-balance-sheet exposures of $264 thousand and $94 thousand for the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2023, the Company recorded a recovery of provision for credit loss on off-balance-sheet exposures of $201 thousand and $443 thousand, respectively. The Company also recorded a decrease in the allowance for credit losses for off-balance-sheet exposures of $811 thousand upon adoption of ASU 2016-13 on January 1, 2023.