	December 31,			December 31,
	2021			2020
	(in thousands)
Mortgage loans:
1-4 family residential
Investor-Owned	$	317,304		$	319,596
Owner-Occupied		96,947			98,795
Multifamily residential		348,300			307,411
Nonresidential properties		239,691			218,929
Construction and land		134,651			105,858
Total mortgage loans		1,136,893			1,050,589
Nonmortgage loans:
Business loans ⁽¹⁾		150,512			94,947
Consumer loans ⁽²⁾		34,693			26,517
Total nonmortgage loans		185,205			121,464
Total loans, gross		1,322,098			1,172,053
Net deferred loan origination costs		(668	)		1,457
Allowance for loan losses		(16,352	)		(14,870	)
Loans receivable, net	$	1,305,078		$	1,158,640

The Company's lending activities are conducted principally in New York City. The Company primarily grants loans secured by real estate to individuals and businesses pursuant to an established credit policy applicable to each type of lending activity in which it engages. Although collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrowers' ability to generate continuing cash flows. The Company also evaluates the collateral and creditworthiness of each customer. The credit policy provides that depending on the borrowers’ creditworthiness and type of collateral, credit may be extended up to predetermined percentages of the market value of the collateral or on an unsecured basis. Real estate is the primary form of collateral. Other important forms of collateral are time deposits and marketable securities.

For disclosures related to the allowance for loan losses and credit quality, the Company does not have any disaggregated classes of loans below the segment level.

Credit-Quality Indicators: Internally assigned risk ratings are used as credit-quality indicators, which are reviewed by management on a quarterly basis.

The objectives of the Company’s risk-rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for loan losses.

Strong Pass – Loans to new or existing borrowers collateralized at least 90 percent by an unimpaired deposit account at the Company.

Good Pass – Loans to a new or existing borrower in a well-established enterprise in excellent financial condition with strong liquidity and a history of consistently high level of earnings, cash flow and debt service capacity.

Satisfactory Pass – Loans to a new or existing borrower of average strength with acceptable financial condition, satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.

Performance Pass – Loans that evidence strong payment history but document less than average strength, financial condition, record of earnings, or projected cash flows with which to service debt.

Special Mention – Loans in this category are currently protected but show one or more potential weaknesses and risks which may inadequately protect collectability or borrower’s ability to meet repayment terms at some future date if the weakness or weaknesses are not monitored or remediated.

Substandard – Loans that are inadequately protected by the repayment capacity of the borrower or the current sound net worth of the collateral pledged, if any. Loans in this category have well defined weaknesses and risks that jeopardize their repayment. They are characterized by the distinct possibility that some loss may be sustained if the deficiencies are not remedied.

Doubtful – Loans that have all the weaknesses of loans classified as “Substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.

Loans within the top four categories above are considered pass rated, as commonly defined. Risk ratings are assigned as necessary to differentiate risk within the portfolio. Risk ratings are reviewed on an ongoing basis and revised to reflect changes in the borrowers’ financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage as well as other considerations.

The following tables present credit risk ratings by loan segment as of December 31, 2021 and 2020:

	December 31, 2021
	Mortgage Loans								Nonmortgage Loans
	1-4						Construction						Total
	Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	402,276	$	339,047	$	237,371	$	127,084	$	150,512	$	34,693	$	1,290,983
Special mention		1,820		5,328		—		6,650		—		—		13,798
Substandard		10,155		3,925		2,320		917		—		—		17,317
Total	$	414,251	$	348,300	$	239,691	$	134,651	$	150,512	$	34,693	$	1,322,098

	December 31, 2020
	Mortgage Loans								Nonmortgage Loans
	1-4						Construction						Total
	Family		Multifamily		Nonresidential		and Land		Business		Consumer		Loans
	(in thousands)
Risk Rating:
Pass	$	406,993	$	301,015	$	213,882	$	88,645	$	94,947	$	26,517	$	1,131,999
Special mention		2,333		—		—		17,213		—		—		19,546
Substandard		9,065		6,396		5,047		—		—		—		20,508
Total	$	418,391	$	307,411	$	218,929	$	105,858	$	94,947	$	26,517	$	1,172,053

	December 31, 2021
			30-59		60-89		Over						Over
			Days		Days		90 Days				Nonaccrual		90 Days
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgages:
1-4 Family
Investor-Owned	$	312,918	$	321	$	2,969	$	1,096	$	317,304	$	3,583	$	—
Owner-Occupied		91,568		2,961		471		1,947		96,947		3,480		—
Multifamily residential		346,409		1,704		187		—		348,300		1,200		—
Nonresidential properties		237,589		934		1,168		—		239,691		2,262		—
Construction and land		134,651		—		—		—		134,651		917		—
Nonmortgage Loans:
Business		145,919		4,036		544		13		150,512		—		—
Consumer		30,359		2,570		1,759		5		34,693		—		—
Total	$	1,299,413	$	12,526	$	7,098	$	3,061	$	1,322,098	$	11,442	$	—

	December 31, 2020
			30-59		60-89		Over						Over
			Days		Days		90 Days				Nonaccrual		90 Days
	Current		Past Due		Past Due		Past Due		Total		Loans		Accruing
	(in thousands)
Mortgages:
1-4 Family
Investor-Owned	$	313,960	$	2,222	$	1,507	$	1,907	$	319,596	$	3,058	$	—
Owner-Occupied		95,775		1,572		348		1,100		98,795		3,250		—
Multifamily residential		305,325		1,140		—		946		307,411		946		—
Nonresidential properties		215,657		—		—		3,272		218,929		4,429		—
Construction and land		105,858		—		—		—		105,858		—		—
Nonmortgage Loans:
Business		94,847		100		—		—		94,947		—		—
Consumer		25,529		497		316		175		26,517		—		—
Total	$	1,156,951	$	5,531	$	2,171	$	7,400	$	1,172,053	$	11,683	$	—

The following schedules detail the composition of the allowance for loan losses and the related recorded investment in loans as of December 31, 2021, 2020, and 2019, respectively.

	For the Year Ended December 31, 2021

	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)
Allowances for loan losses:
Balance, beginning of period	$	3,850		$	1,260		$	5,214		$	2,194		$	1,820	$	254		$	278		$	14,870
Provision charged to expense		(318	)		(127	)		508			(29	)		204		(32	)		2,511			2,717
Losses charged-off		—			—			(38	)		—			—		—			(1,342	)		(1,380	)
Recoveries		8			45			—			—			—		84			8			145
Balance, end of period	$	3,540		$	1,178		$	5,684		$	2,165		$	2,024	$	306		$	1,455		$	16,352
Ending balance: individually evaluated for impairment	$	91		$	114		$	—		$	38		$	—	$	—		$	—		$	243
Ending balance: collectively evaluated for impairment		3,449			1,064			5,684			2,127			2,024		306			1,455			16,109
Total	$	3,540		$	1,178		$	5,684		$	2,165		$	2,024	$	306		$	1,455		$	16,352
Loans:
Ending balance: individually evaluated for impairment	$	6,672		$	5,854		$	1,200		$	2,995		$	917	$	13		$	—		$	17,651
Ending balance: collectively evaluated for impairment		310,632			91,093			347,100			236,696			133,734		150,499			34,693			1,304,447
Total	$	317,304		$	96,947		$	348,300		$	239,691		$	134,651	$	150,512		$	34,693		$	1,322,098

	For the Year Ended December 31, 2020

	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)
Allowances for loan losses:
Balance, beginning of period	$	3,503	$	1,067	$	3,865	$	1,849	$	1,782	$	254		$	9		$	12,329
Provision charged to expense		347		193		1,349		341		38		(95	)		270			2,443
Losses charged-off		—		—		—		—		—		—			(6	)		(6	)
Recoveries		—		—		—		4		—		95			5			104
Balance, end of period	$	3,850	$	1,260	$	5,214	$	2,194	$	1,820	$	254		$	278		$	14,870
Ending balance: individually evaluated for impairment	$	118	$	134	$	—	$	40	$	—	$	—		$	—		$	292
Ending balance: collectively evaluated for impairment		3,732		1,126		5,214		2,154		1,820		254			278			14,578
Total	$	3,850	$	1,260	$	5,214	$	2,194	$	1,820	$	254		$	278		$	14,870
Loans:
Ending balance: individually evaluated for impairment	$	7,468	$	5,754	$	946	$	5,184	$	—	$	—		$	—		$	19,352
Ending balance: collectively evaluated for impairment		312,128		93,041		306,465		213,745		105,858		94,947			26,517			1,152,701
Total	$	319,596	$	98,795	$	307,411	$	218,929	$	105,858	$	94,947		$	26,517		$	1,172,053

	For the Year Ended December 31, 2019
	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)
Allowances for loan losses:
Balance, beginning of year	$	3,799		$	1,208		$	3,829	$	1,925		$	1,631	$	260		$	7	$	12,659
Provision charged to expense		(311	)		(141	)		36		(85	)		151		608			—		258
Losses charged-off		(8	)		—			—		—			—		(724	)		—		(732	)
Recoveries		23			—			—		9			—		110			2		144
Balance, end of year	$	3,503		$	1,067		$	3,865	$	1,849		$	1,782	$	254		$	9	$	12,329
Ending balance: individually evaluated for impairment	$	265		$	149		$	—	$	31		$	—	$	14		$	—	$	459
Ending balance: collectively evaluated for impairment		3,238			918			3,865		1,818			1,782		240			9		11,870
Total	$	3,503		$	1,067		$	3,865	$	1,849		$	1,782	$	254		$	9	$	12,329
Loans:
Ending balance: individually evaluated for impairment	$	6,973		$	5,572		$	—	$	5,548		$	1,125	$	14		$	—	$	19,232
Ending balance: collectively evaluated for impairment		298,299			86,371			250,239		201,677			98,184		10,863			1,231		946,864
Total	$	305,272		$	91,943		$	250,239	$	207,225		$	99,309	$	10,877		$	1,231	$	966,096

Loans are considered impaired when current information and events indicate all amounts due may not be collectable according to the contractual terms of the related loan agreements. Impaired loans, including troubled debt restructurings, are identified by applying normal loan review procedures in accordance with the allowance for loan losses methodology. Management periodically assesses loans to determine whether impairment exists. Any loan that is, or will potentially be, no longer performing in accordance with the terms of the original loan contract is evaluated to determine impairment.

The following information relates to impaired loans as of and for the years ended December 31, 2021, 2020, and 2019:

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
December 31, 2021	Balance		Allowance		Allowance		Investment		Allowance		Investment		on Cash Basis
	(in thousands)
Mortgages:
1-4 Family	$	13,333	$	10,535	$	1,991	$	12,526	$	205	$	12,145	$	189
Multifamily residential		1,200		1,200		—		1,200		—		1,139		63
Nonresidential properties		3,494		2,637		358		2,995		38		3,941		38
Construction and land		917		917		—		917		—		307		17
Nonmortgage Loans:
Business		13		13		—		13		—		13		—
Consumer		—		—		—		—		—		24		—
Total	$	18,957	$	15,302	$	2,349	$	17,651	$	243	$	17,569	$	307

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
December 31, 2020	Balance		Allowance		Allowance		Investment		Allowance		Investment		on Cash Basis
	(in thousands)
Mortgages:
1-4 Family	$	14,118	$	10,613	$	2,609	$	13,222	$	252	$	12,306	$	321
Multifamily residential		946		946		—		946		—		231		34
Nonresidential properties		5,632		4,813		371		5,184		40		5,339		33
Construction and land		—		—		—		—		—		405		—
Nonmortgage Loans:
Business		—		—		—		—		—		8		—
Consumer		—		—		—		—		—		—		—
Total	$	20,696	$	16,372	$	2,980	$	19,352	$	292	$	18,289	$	388

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average		Interest Income
	Principal		With No		With		Recorded		Related		Recorded		Recognized
December 31, 2019	Balance		Allowance		Allowance		Investment		Allowance		Investment		on Cash Basis
	(in thousands)
Mortgages:
1-4 Family	$	13,566	$	8,390	$	4,155	$	12,545	$	414	$	12,995	$	361
Multifamily residential		—		—		—		—		—		6		—
Nonresidential properties		5,640		5,173		375		5,548		31		3,988		121
Construction and land		1,465		1,125		—		1,125		—		1,219		6
Nonmortgage Loans:
Business		16		—		14		14		14		195		—
Consumer		—		—		—		—		—		1		—
Total	$	20,687	$	14,688	$	4,544	$	19,232	$	459	$	18,404	$	488

The loan portfolio also includes certain loans that have been modified to troubled debt restructurings. Under applicable standards, loans are modified to troubled debt restructurings when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider, unless it results in a delay in payment that is insignificant. These concessions could include a reduction of interest rate on the loan, payment and maturity extensions, forbearance, or other actions intended to maximize collections. When a loan is modified to a troubled debt restructuring, management evaluates for any possible impairment using either the discounted cash flows method, where the value of the modified loan is based on the present value of expected cash flows, discounted at the contractual interest rate of the original loan agreement, or by using the fair value of the collateral less selling costs if repayment under the modified terms becomes doubtful. If management determines that the value of the modified loan in a troubled debt restructuring is less than the recorded investment in the loan, impairment is recognized through a specific allowance estimate or charge-off to the allowance for loan losses.

During the year ended December 31, 2021 and 2020, there were no loans restructured as a troubled debt restructuring.

At December 31, 2021, there were 30 troubled debt restructured loans totaling $8.7 million of which $6.2 million are on accrual status. At December 31, 2020, there were 32 troubled debt restructured loans totaling $9.7 million of which $6.6 million are on accrual status. There were no commitments to lend additional funds to borrowers whose loans have been modified in a troubled debt restructuring. The financial impact from the concessions made represents specific impairment reserves on these loans, which aggregated to $243,000 and $292,000 at December 31, 2021 and 2020, respectively.

Loan modifications and payment deferrals as a result of the COVID-19 pandemic that met the criteria established under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators were excluded from evaluation of TDR classification and reported as current during the payment deferral period. The Company’s policy was to accrue interest during the deferral period. Loans that did not meet the CARES Act or regulatory guidance criteria were evaluated for TDR and non-accrual treatment under the Company’s existing policies and procedures. The permitted use of this relief expired on January 1, 2022 and the Bank has made appropriate adjustments, which are not material.

At December 31, 2021 and 2020, 27 loans and 70 loans related to Mortgage World in the amount of $15.5 million and $34.4 million, respectively, were held for sale and accounted for under the fair value option accounting guidance for financial assets and financial liabilities. At December 31, 2020, there was one loan in the amount of $1.0 million held for sale related to the Bank. Refer to Note 13 Fair Value for additional information.