Loans Receivable and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Summary of Loans

Loans receivable at March 31, 2024 and December 31, 2023 are summarized as follows:

	March 31,			December 31,
	2024			2023
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	339,331		$	343,689
Owner-Occupied		150,842			152,311
Multifamily residential		545,825			550,559
Nonresidential properties		327,350			342,343
Construction and land		608,665			503,925
Total mortgage loans		1,972,013			1,892,827
Nonmortgage loans:
Business loans		26,664			19,779
Consumer loans (1)		6,741			8,966
Total non-mortgage loans		33,405			28,745
Total loans, gross		2,005,418			1,921,572
Net deferred loan origination costs		674			468
Allowance for Credit Losses		(24,664	)		(26,154	)
Loans receivable, net	$	1,981,428		$	1,895,886

(1)As of March 31, 2024 and December 31, 2023, consumer loans include $5.7 million and $8.0 million, respectively, of microloans originated by the Bank pursuant to its arrangement with Grain.

Schedule of Credit Risk Ratings by Loan Segment

The following tables present credit risk ratings by loan segment as of March 31, 2024 and December 31, 2023:

	March 31, 2024
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	480,635	$	540,088	$	324,319	$	602,489	$	26,434	$	6,741	$	1,980,706
Special mention		1,855		—		2,517		—		230		—		4,602
Substandard		7,683		5,737		514		6,176		—		—		20,110
Total	$	490,173	$	545,825	$	327,350	$	608,665	$	26,664	$	6,741	$	2,005,418

	December 31, 2023
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	485,747	$	546,471	$	339,726	$	497,266	$	19,759	$	8,966	$	1,897,935
Special mention		2,150		1,109		2,527		—		—		—		5,786
Substandard		8,103		2,979		90		6,659		20		—		17,851
Total	$	496,000	$	550,559	$	342,343	$	503,925	$	19,779	$	8,966	$	1,921,572

Schedule of Aging Analysis of Loans

An aging analysis of loans, as of March 31, 2024 and December 31, 2023, is as follows:

	March 31, 2024
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	338,650	$	—	$	281	$	400	$	339,331	$	400	$	—
Owner-Occupied		148,969		—		—		1,873		150,842		1,873		—
Multifamily residential		540,088		—		1,639		4,098		545,825		4,098		—
Nonresidential properties		324,392		2,517		—		441		327,350		441		—
Construction and land		602,488		—		—		6,177		608,665		6,177		—
Nonmortgage loans:
Business		26,005		274		9		376		26,664		146		230
Consumer		5,983		364		394		—		6,741		—		—
Total	$	1,986,575	$	3,155	$	2,323	$	13,365	$	2,005,418	$	13,135	$	230

	December 31, 2023
			30-59		60-89		90 Days						90 Days
			Days		Days		or More				Nonaccrual		or More
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	342,896	$	—	$	—	$	793	$	343,689	$	793	$	—
Owner-Occupied		150,181		—		—		2,130		152,311		2,130		—
Multifamily residential		546,471		1,109		—		2,979		550,559		2,979		—
Nonresidential properties		342,343		—		—		—		342,343		—		—
Construction and land		497,266		—		—		6,659		503,925		6,659		—
Nonmortgage loans:
Business		19,240		366		8		165		19,779		165		—
Consumer		7,423		536		1,007		—		8,966		—		—
Total	$	1,905,820	$	2,011	$	1,015	$	12,726	$	1,921,572	$	12,726	$	—

Schedule of Composition of Allowance for Loan Losses and Related Recorded Investment

The following schedules detail the composition of the allowance for credit losses on loans and the related recorded investment in loans as of and for the three months ended March 31, 2024 and 2023, and as of and for the year ended December 31, 2023:

	For the Three Months Ended March 31, 2024
	Mortgage Loans														Nonmortgage Loans						Total
	1-4 Family Investor Owned			1-4 Family Owner Occupied			Multifamily			Nonresidential			Construction and Land		Business			Consumer			For the Period
	(in thousands)
Allowance for Credit Losses:
Balance, beginning of period	$	4,415		$	2,012		$	4,365		$	3,176		$	4,807	$	531		$	6,848		$	26,154
Provision (benefit) charged to expense		(158	)		(49	)		(151	)		(940	)		1,596		82			(635	)		(255	)
Charge-offs		—			—			—			—			—		(52	)		(1,302	)		(1,354	)
Recoveries		—			—			—			—			—		—			119			119
Balance, end of period	$	4,257		$	1,963		$	4,214		$	2,236		$	6,403	$	561		$	5,030		$	24,664
Ending balance: individually    evaluated for impairment	$	—		$	75		$	—		$	—		$	—	$	142		$	—		$	217
Ending balance: collectively    evaluated for impairment		4,257			1,888			4,214			2,236			6,403		419			5,030			24,447
Total	$	4,257		$	1,963		$	4,214		$	2,236		$	6,403	$	561		$	5,030		$	24,664
Loans:
Ending balance: individually    evaluated for impairment	$	399		$	1,874		$	4,098		$	441		$	6,177	$	146		$	—		$	13,135
Ending balance: collectively    evaluated for impairment		338,932			148,968			541,727			326,909			602,488		26,518			6,741			1,992,283
Total	$	339,331		$	150,842		$	545,825		$	327,350		$	608,665	$	26,664		$	6,741		$	2,005,418

	For the Three Months Ended March 31, 2023
	Mortgage Loans												Nonmortgage Loans					Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied		Multifamily			Nonresidential		Construction and Land			Business		Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of period	$	3,863	$	1,723	$	8,021		$	2,724	$	2,683		$	120	$	15,458		$	34,592
Provision (benefit) charged to expense		135		182		455			16		750			1		(1,860	)		(321	)
Impact of CECL adoption		766		146		(3,962	)		578		(911	)		236		57			(3,090	)
Charge-offs		—		—		—			—		—			—		(2,569	)		(2,569	)
Recoveries		—		—		—			—		—			—		363			363
Balance, end of period	$	4,764	$	2,051	$	4,514		$	3,318	$	2,522		$	357	$	11,449		$	28,975
Ending balance: individually    evaluated for impairment	$	60	$	100	$	—		$	37	$	—		$	40	$	—		$	237
Ending balance: collectively    evaluated for impairment		4,704		1,951		4,514			3,281		2,522			317		11,449			28,738
Total	$	4,764	$	2,051	$	4,514		$	3,318	$	2,522		$	357	$	11,449		$	28,975
Loans:
Ending balance: individually    evaluated for impairment	$	5,234	$	5,576	$	1,439		$	792	$	11,905		$	40	$	—		$	24,986
Ending balance: collectively    evaluated for impairment		349,325		143,905		551,991			313,768		223,252			19,850		14,227			1,616,318
Total	$	354,559	$	149,481	$	553,430		$	314,560	$	235,157		$	19,890	$	14,227		$	1,641,304

	For the Year Ended December 31, 2023
	Mortgage Loans														Nonmortgage Loans						Total
	1-4 Family Investor Owned			1-4 Family Owner Occupied		Multifamily			Nonresidential			Construction and Land			Business			Consumer			For the Period
	(in thousands)
Allowance for loan losses:
Balance, beginning of year	$	3,863		$	1,723	$	8,021		$	2,724		$	2,683		$	120		$	15,458		$	34,592
Provision (benefit) charged to expense		(214	)		143		306			(126	)		3,035			235			(2,142	)		1,237
Impact of CECL adoption		766			146		(3,962	)		578			(911	)		236			57			(3,090	)
Charge-offs		—			—		—			—			—			(63	)		(7,227	)		(7,290	)
Recoveries		—			—		—			—			—			3			702			705
Balance, end of year	$	4,415		$	2,012	$	4,365		$	3,176		$	4,807		$	531		$	6,848		$	26,154
Ending balance: individually    evaluated for impairment	$	—		$	72	$	—		$	—		$	—		$	161		$	—		$	233
Ending balance: collectively    evaluated for impairment		4,415			1,940		4,365			3,176			4,807			370			6,848			25,921
Total	$	4,415		$	2,012	$	4,365		$	3,176		$	4,807		$	531		$	6,848		$	26,154
Loans:
Ending balance: individually    evaluated for impairment	$	793		$	2,130	$	2,979		$	—		$	6,659		$	165		$	—		$	12,726
Ending balance: collectively    evaluated for impairment		342,896			150,181		547,580			342,343			497,266			19,614			8,966			1,908,846
Total	$	343,689		$	152,311	$	550,559		$	342,343		$	503,925		$	19,779		$	8,966		$	1,921,572

Schedule of Information Relates to Impaired Loans

The following information relates to impaired loans as of and for the three months ended March 31, 2024 and 2023 and as of and for the year ended December 31, 2023:

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Three Months Ended  March 31, 2024	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	2,256	$	1,825	$	448	$	2,273	$	75	$	2,598	$	4
Multifamily residential		4,069		4,098		—		4,098		—		3,539		35
Nonresidential properties		441		441		—		441		—		221		—
Construction and land		6,177		6,177		—		6,177		—		6,418		987
Nonmortgage loans:
Business		146		—		146		146		142		156		—
Consumer		—		—		—		—		—		—		—
Total	$	13,089	$	12,541	$	594	$	13,135	$	217	$	12,932	$	1,026
	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Three Months Ended   March 31, 2023	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	11,212	$	9,452	$	1,358	$	10,810	$	160	$	10,197	$	83
Multifamily residential		1,437		1,439		—		1,439		—		720		—
Nonresidential properties		833		452		340		792		37		796		7
Construction and land		11,905		11,905		—		11,905		—		9,736		—
Nonmortgage loans:
Business		40		—		40		40		40		20		—
Consumer		—		—		—		—		—		—		—
Total	$	25,427	$	23,248	$	1,738	$	24,986	$	237	$	21,469	$	90

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and for the Year Ended    December 31, 2023	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	2,906	$	2,475	$	448	$	2,923	$	72	$	4,812	$	82
Multifamily residential		2,966		2,979		—		2,979		—		1,463		151
Nonresidential properties		—		—		—		—		—		198		—
Construction and land		6,650		6,659		—		6,659		—		8,211		—
Nonmortgage loans:
Business		165		—		165		165		161		104		—
Consumer		—		—		—		—		—		—		—
Total	$	12,687	$	12,113	$	613	$	12,726	$	233	$	14,788	$	233

Schedule of Total Exposure

Grain Technology, Inc. ("Grain") Total Exposure as of March 31, 2024
(in thousands)
Receivable from Grain
Microloans originated - put back to Grain (inception-to-March 31, 2024)	$	24,051
Write-downs, net of recoveries (inception-to-date as of March 31, 2024)		(15,406	)
Cash receipts from Grain (inception-to-March 31, 2024)		(6,819	)
Grant/reserve (inception-to-March 31, 2024)		(1,826	)
Net receivable as of March 31, 2024	$	—
Microloan receivables from Grain borrowers
Grain originated loans receivable as of March 31, 2024	$	5,731
Allowance for credit losses as of March 31, 2024 (1)		(4,868	)
Microloans, net of allowance for credit losses as of March 31, 2024	$	863
Investments
Investment in Grain	$	1,000
Investment in Grain write-off		(1,000	)
Investment in Grain as of March 31, 2024	$	—
Total exposure to Grain as of March 31, 2024 (2)	$	863

(1) Excludes $1.6 million of security deposits by Grain originated borrowers reported in deposits in the accompanying Consolidated Statements of Financial Conditions.

(2) Total remaining exposure to Grain borrowers. These loans are now serviced by the Bank.

Summary of Allowance for Off-Balance-Sheet Credit Losses

The following table presents the activity in the allowance for off-balance-sheet credit losses:

	For the Three
	Months Ended		For the Year Ended
	March 31, 2024		December 31, 2023
Allowance for credit losses on unfunded commitment at beginning of period	$	3,613	$	354
Impact on CECL adoption		—		948
Provision for credit losses		164		2,311
Allowance for credit losses on unfunded commitment at end of period	$	3,777	$	3,613