Loans Receivable and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Summary of Loans

Loans receivable at June 30, 2024 and December 31, 2023 are summarized as follows:

	June 30,			December 31,
	2024			2023
	(in thousands)
Mortgage loans:
1-4 Family residential
Investor-Owned	$	337,292		$	343,689
Owner-Occupied		147,485			152,311
Multifamily residential		545,323			550,559
Nonresidential properties		337,583			342,343
Construction and land		641,879			503,925
Total mortgage loans		2,009,562			1,892,827
Nonmortgage loans:
Business loans		30,222			19,779
Consumer loans (1)		5,305			8,966
Total non-mortgage loans		35,527			28,745
Total loans, gross		2,045,089			1,921,572
Net deferred loan origination costs		1,145			468
Allowance for Credit Losses		(24,061	)		(26,154	)
Loans receivable, net	$	2,022,173		$	1,895,886

(1)As of June 30, 2024 and December 31, 2023, consumer loans include $4.3 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 June 30, 2024 and December 31, 2023:

	June 30, 2024
	Mortgage Loans								Nonmortgage Loans
							Construction						Total
	1-4 Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	475,570	$	539,570	$	334,287	$	637,072	$	29,722	$	5,305	$	2,021,526
Special mention		1,843		—		2,428		—		250		—		4,521
Substandard		7,364		5,753		868		4,807		250		—		19,042
Total	$	484,777	$	545,323	$	337,583	$	641,879	$	30,222	$	5,305	$	2,045,089

	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 June 30, 2024 and December 31, 2023, is as follows:

	June 30, 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	$	336,856	$	—	$	—	$	436	$	337,292	$	436	$	—
Owner-Occupied		145,614		—		—		1,871		147,485		1,871		—
Multifamily residential		539,569		—		—		5,754		545,323		5,754		—
Nonresidential properties		334,327		2,428		—		828		337,583		828		—
Construction and land		637,072		—		—		4,807		641,879		4,807		—
Nonmortgage loans:
Business		29,628		169		29		396		30,222		396		—
Consumer		4,740		287		278		—		5,305		—		—
Total	$	2,027,806	$	2,884	$	307	$	14,092	$	2,045,089	$	14,092	$	—

	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 six months ended June 30, 2024 and 2023, and as of and for the year ended December 31, 2023:

	For the Six Months Ended June 30, 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		(227	)		(66	)		(180	)		(879	)		1,989		500			(1,512	)		(375	)
Charge-offs		—			—			—			—			—		(52	)		(2,049	)		(2,101	)
Recoveries		—			—			—			—			—		8			375			383
Balance, end of period	$	4,188		$	1,946		$	4,185		$	2,297		$	6,796	$	987		$	3,662		$	24,061
Ending balance: individually    evaluated for impairment	$	—		$	81		$	—		$	—		$	—	$	396		$	—		$	477
Ending balance: collectively    evaluated for impairment		4,188			1,865			4,185			2,297			6,796		591			3,662			23,584
Total	$	4,188		$	1,946		$	4,185		$	2,297		$	6,796	$	987		$	3,662		$	24,061
Loans:
Ending balance: individually    evaluated for impairment	$	436		$	1,870		$	5,754		$	828		$	4,807	$	396		$	—		$	14,091
Ending balance: collectively    evaluated for impairment		336,856			145,615			539,569			336,755			637,072		29,826			5,305			2,030,998
Total	$	337,292		$	147,485		$	545,323		$	337,583		$	641,879	$	30,222		$	5,305		$	2,045,089
	For the Three Months Ended June 30, 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 loan losses:
Balance, beginning of period	$	4,257		$	1,963		$	4,214		$	2,236		$	6,403	$	561		$	5,030		$	24,664
Provision (benefit) charged to expense		(69	)		(17	)		(29	)		61			393		418			(877	)		(120	)
Losses charged-off		—			—			—			—			—		—			(747	)		(747	)
Recoveries		—			—			—			—			—		8			256			264
Balance, end of period	$	4,188		$	1,946		$	4,185		$	2,297		$	6,796	$	987		$	3,662		$	24,061

	For the Six Months Ended June 30, 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		147		283		679			(64	)		1,417			94		(1,943	)		613
Impact of CECL adoption		766		146		(3,962	)		578			(911	)		236		57			(3,090	)
Charge-offs		—		—		—			—			—			—		(4,500	)		(4,500	)
Recoveries		—		—		—			—			—			—		558			558
Balance, end of period	$	4,776	$	2,152	$	4,738		$	3,238		$	3,189		$	450	$	9,630		$	28,173
Ending balance: individually    evaluated for impairment	$	—	$	73	$	—		$	—		$	—		$	—	$	—		$	73
Ending balance: collectively    evaluated for impairment		4,776		2,079		4,738			3,238			3,189			450		9,630			28,100
Total	$	4,776	$	2,152	$	4,738		$	3,238		$	3,189		$	450	$	9,630		$	28,173
Loans:
Ending balance: individually    evaluated for impairment	$	296	$	2,692	$	1,435		$	—		$	7,621		$	—	$	—		$	12,044
Ending balance: collectively    evaluated for impairment		351,458		151,424		548,598			317,416			308,222			21,041		11,958			1,710,117
Total	$	351,754	$	154,116	$	550,033		$	317,416		$	315,843		$	21,041	$	11,958		$	1,722,161
	For the Three Months Ended June 30, 2023
	Mortgage Loans													Nonmortgage Loans					Total
	1-4 Family Investor Owned		1-4 Family Owner Occupied		Multifamily			Nonresidential			Construction and Land			Business		Consumer			Total
	(in thousands)
Allowance for loan losses:
Balance, beginning of period	$	4,764	$	2,051	$	4,514		$	3,318		$	2,522		$	357	$	11,449		$	28,975
Provision (benefit) charged to expense		12		101		224			(80	)		667			93		(83	)		934
Losses charged-off		—		—		—			—			—			—		(1,931	)		(1,931	)
Recoveries		—		—		—			—			—			—		195			195
Balance, end of period	$	4,776	$	2,152	$	4,738		$	3,238		$	3,189		$	450	$	9,630		$	28,173

	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 six months ended June 30, 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 Six Months Ended  June 30, 2024	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	2,286	$	1,858	$	448	$	2,306	$	81	$	2,501	$	15
Multifamily residential		5,703		5,754		—		5,754		—		4,277		60
Nonresidential properties		824		828		—		828		—		423		7
Construction and land		4,807		4,807		—		4,807		—		5,881		1,059
Nonmortgage loans:
Business		396		—		396		396		396		277		5
Consumer		—		—		—		—		—		—		—
Total	$	14,016	$	13,247	$	844	$	14,091	$	477	$	13,359	$	1,146
	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
As of and For the Six Months Ended   June 30, 2023	Balance		Allowance		Allowance		Investment		Allowance		Investment		on a Cash Basis
	(in thousands)
Mortgage loans:
1-4 Family residential	$	2,990	$	2,533	$	455	$	2,988	$	73	$	7,794	$	43
Multifamily residential		1,435		1,435		—		1,435		—		958		—
Nonresidential properties		—		—		—		—		—		531		—
Construction and land		7,567		7,621		—		7,621		—		9,031		—
Nonmortgage loans:
Business		—		—		—		—		—		20		—
Consumer		—		—		—		—		—		—		—
Total	$	11,992	$	11,589	$	455	$	12,044	$	73	$	18,334	$	43

	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 June 30, 2024
(in thousands)
Receivable from Grain
Microloans originated - put back to Grain (inception-to-June 30, 2024)	$	23,986
Write-downs, net of recoveries (inception-to-date as of June 30, 2024)		(15,341	)
Cash receipts from Grain (inception-to-June 30, 2024)		(6,819	)
Grant/reserve (inception-to-June 30, 2024)		(1,826	)
Net receivable as of June 30, 2024	$	—
Microloan receivables from Grain borrowers
Grain originated loans receivable as of June 30, 2024	$	4,277
Allowance for credit losses as of June 30, 2024 (1)		(3,623	)
Microloans, net of allowance for credit losses as of June 30, 2024	$	654
Investments
Investment in Grain	$	1,000
Investment in Grain write-off		(1,000	)
Investment in Grain as of June 30, 2024	$	—
Total exposure to Grain as of June 30, 2024 (2)	$	654

(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 Six
	Months Ended			For the Year Ended
	June 30, 2024			December 31, 2023
	(in thousands)
Allowance for credit losses on unfunded commitment at beginning of period	$	3,613		$	354
Impact on CECL adoption		—			948
(Benefit) provision for credit losses		(329	)		2,311
Allowance for credit losses on unfunded commitment at end of period	$	3,284		$	3,613