Loans, Allowance for Credit Losses and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Loans

Loans consisted of the following as of the dates indicated:

	At September 30,						At December 31,
	2024						2023
	Amount			Percent			Amount			Percent
	(Dollars in thousands)
Real estate loans:
One-to-four family residential	$	419,373			37.3	%	$	410,131			39.1	%
Multi-family		326,975			29.1	%		287,361			27.4	%
Commercial		222,680			19.8	%		196,365			18.7	%
Home equity lines of credit and loans		39,413			3.5	%		33,357			3.2	%
Construction		101,401			9.0	%		112,000			10.7	%
Other loans:
Commercial		14,508			1.3	%		9,219			0.9	%
Consumer		141			0.0	%		173			0.0	%
Total loans, gross		1,124,491			100.0	%		1,048,606			100.0	%
Less:
Net deferred loan fees		(480	)					(226	)
Allowance for credit losses		(9,068	)					(8,591	)
Total loans, net	$	1,114,943					$	1,039,789

Schedule of Information Regarding Allowance for Loan Losses

The following tables set forth information regarding the allowance for credit losses on loans as of and for the three and nine months ended September 30, 2024 and 2023:

	For the three months ended September 30, 2024
	(in thousands)
	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)			Ending Balance(1)
Real estate loans:
One-to-four family residential	$	3,604	$	-	$	-	$	81		$	3,685
Multi-family		1,304		-		-		53			1,357
Commercial		1,740		-		-		95			1,835
Home equity lines of credit and loans		363		-		-		19			382
Construction		1,814		-		-		(211	)		1,603
Other loans:
Commercial		199		-		-		6			205
Consumer		1		-		-		-			1
Total	$	9,025	$	-	$	-	$	43		$	9,068

	For the nine months ended September 30, 2024
	(in thousands)
	Beginning Balance		Charge-offs			Recoveries		Provision			Ending Balance(1)
Real estate loans:
One-to-four family residential	$	3,555	$	-		$	-	$	130		$	3,685
Multi-family		1,190		-			-		167			1,357
Commercial		1,636		-			-		199			1,835
Home equity lines of credit and loans		321		-			-		61			382
Construction		1,757		-			-		(154	)		1,603
Other loans:												-
Commercial		131		-			-		74			205
Consumer		1		(3	)		-		3			1
Total	$	8,591	$	(3	)	$	-	$	480		$	9,068

	For the three months ended September 30, 2023
	(in thousands)
	Beginning Balance		Charge-offs			Recoveries		Provision			Ending Balance(1)
Real estate loans:
One-to-four family residential	$	1,980	$	-		$	-	$	40		$	2,020
Multi-family		2,150		-			-		79			2,229
Commercial		2,348		-			-		(154	)		2,194
Home equity lines of credit and loans		203		-			-		4			207
Construction		1,570		-			-		(126	)		1,444
Other loans:
Commercial		218		-			-		(21	)		197
Consumer		1		(1	)		1		-			1
Total	$	8,470	$	(1	)	$	1		(178	)	$	8,292

	For the nine months ended September 30, 2023
	(in thousands)
	Beginning Balance		Cumulative effect accounting adjustment(2)			Charge-offs			Recoveries		Provision		Ending Balance(1)
Real estate loans:
One-to-four family residential	$	1,703	$	130		$	-		$	-	$	187	$	2,020
Multi-family		1,839		77			-			-		313		2,229
Commercial		1,797		145			-			-		252		2,194
Home equity lines of credit and loans		194		(20	)		-			-		33		207
Construction		1,286		136			-			-		22		1,444
Other loans:
Commercial		60		34			-			-		103		197
Consumer		1		-			(1	)		1		-		1
Unallocated		320		(320	)		-			-		-		-
Total	$	7,200	$	182		$	(1	)	$	1	$	910	$	8,292

(1) Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $3.5 million and $2.9 million as of September 30, 2024 and September 30, 2023.

(2) Represents an adjustment needed to reflect the cumulative day one impact pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment for the nine months ended September 30, 2023 represents a $182,000 increase to the allowance for credit losses attributable to the change in accounting methodology for estimating the allowance for credit losses on loans resulting from the Company's adoption of the standard.

Schedule of Information Regarding Past Due Loans

The following tables show the age analysis of past due loans as of the dates indicated:

	30–59 Days		60–89 Days		90 Days or More		Total Past Due		Total Current		Total Loans		90 days or more past due and accruing		Loans on Non-accrual
	(in thousands)
As of September 30, 2024
Real estate loans:
One-to-four family residential	$	1,545	$	—	$	—	$	1,545	$	417,828	$	419,373	$	—	$	1,012
Multi-family		—		—		—		—		326,975		326,975		—		—
Commercial		—		—		—		—		222,680		222,680		—		—
Home equity lines of credit and loans		220		258		—		478		38,935		39,413		—		85
Construction		—		—		—		—		101,401		101,401		—		—
Other loans:
Commercial		—		—		—		—		14,508		14,508		—		—
Consumer		1		1		—		2		139		141		—		1
	$	1,766	$	259	$	—	$	2,025	$	1,122,466	$	1,124,491	$	—	$	1,098

	30–59 Days		60–89 Days		90 Days or More		Total Past Due		Total Current		Total Loans		90 days or more past due and accruing		Loans on Non-accrual
	(in thousands)
As of December 31, 2023
Real estate loans:
One-to-four family residential	$	722	$	225	$	809	$	1,756	$	408,375	$	410,131	$	—	$	1,191
Multi-family		—		—		—		—		287,361		287,361		—		—
Commercial		—		—		—		—		196,365		196,365		—		—
Home equity lines of credit and loans		360		—		8		368		32,989		33,357		—		22
Construction		—		—		—		—		112,000		112,000		—		—
Other loans:
Commercial		—		—		—		—		9,219		9,219		—		—
Consumer		1		—		—		1		172		173		—		—
	$	1,083	$	225	$	817	$	2,125	$	1,046,481	$	1,048,606	$	—	$	1,213

During the three months ended September 30, 2024 and 2023, interest income recognized on nonaccrual loans amounted to $13,000 and $12,000, respectively. During the nine months ended September 30, 2024 and 2023, interest income recognized on nonaccrual loans amounted to $49,000 and $26,000, respectively.

Schedule of Information Regarding Nonacccrual Loans

The following tables show information regarding nonaccrual loans as of the dates indicated:

	As of September 30, 2024
	With an Allowance for Credit Losses		Without an Allowance for Credit Losses		Total
	(in thousands)
Real estate loans:
One-to-four family residential	$	—	$	1,012	$	1,012
Home equity lines of credit and loans		—		85		85
Consumer		—		1		1
Total nonaccrual loans	$	—	$	1,098	$	1,098

	As of December 31, 2023
	With an Allowance for Credit Losses		Without an Allowance for Credit Losses		Total
	(in thousands)
Real estate loans:
One-to-four family residential	$	—	$	1,191	$	1,191
Home equity lines of credit and loans		—		22		22
Total nonaccrual loans	$	—	$	1,213	$	1,213

Summary of Loans by Risk Rating

The following tables detail the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year as of September 30, 2024 and December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
As of September 30, 2024	(in thousands)
One-to-four family residential
Pass	$	2,734	$	14,157	$	35,081	$	15,229	$	4,018	$	11,892	$	—	$	—	$	83,111
Special Mention		—		—		—		—		636		440		—		—		1,076
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		24,692		46,686		85,337		69,451		48,868		60,152		—		—		335,186
Total	$	27,426	$	60,843	$	120,418	$	84,680	$	53,522	$	72,484	$	—	$	—	$	419,373
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family
Pass	$	11,373	$	54,026	$	202,121	$	35,545	$	8,682	$	8,874	$	6,354	$	—	$	326,975
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		—		—		—		—		—		—		—		—		—
Total	$	11,373	$	54,026	$	202,121	$	35,545	$	8,682	$	8,874	$	6,354	$	—	$	326,975
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Pass	$	22,655	$	41,411	$	77,828	$	25,839	$	15,586	$	32,556	$	6,805	$	—		222,680
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		—		—		—		—		—		—		—		—		—
Total	$	22,655	$	41,411	$	77,828	$	25,839	$	15,586	$	32,556	$	6,805	$	—	$	222,680
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home equity lines of credit and loans
Pass	$	199	$	323	$	—	$	—	$	—	$	—	$	6,033	$	—	$	6,555
Special Mention		—		—		—		—		—		10		74		—		84
Substandard		—		—		—		—		—		—		99		—		99
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		127		390		27		8		—		75		31,452		596		32,675
Total	$	326	$	713	$	27	$	8	$	—	$	85	$	37,658	$	596	$	39,413
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction
Pass	$	19,615	$	32,207	$	39,820	$	4,516	$	—	$	2,988	$	—	$	—	$	99,146
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		459		1,796		—		—		—		—		—		—		2,255
Total	$	20,074	$	34,003	$	39,820	$	4,516	$	—	$	2,988	$	—	$	—	$	101,401
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	5,100	$	4,419	$	2,768	$	355	$	20	$	202	$	1,644	$	—	$	14,508
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		—		—		—		—		—		—		—		—		—
Total	$	5,100	$	4,419	$	2,768	$	355	$	20	$	202	$	1,644	$	—	$	14,508
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		8		17		31		41		—		8		36		—		141
Total	$	8	$	17	$	31	$	41	$	—	$	8	$	36	$	—	$	141
Current-period gross charge-offs	$	3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3

	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
	2023		2022		2021		2020		2019		Prior
As of December 31, 2023	(in thousands)
One-to-four family residential
Pass	$	9,689	$	36,662	$	15,529	$	4,476	$	4,230	$	9,224	$	—	$	—	$	79,810
Special Mention		—		—		—		809		—		451		—		—		1,260
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		48,688		90,827		72,463		51,035		7,129		58,919		—		—		329,061
Total	$	58,377	$	127,489	$	87,992	$	56,320	$	11,359	$	68,594	$	—	$	—	$	410,131
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family
Pass	$	45,188	$	194,999	$	26,820	$	8,873	$	—	$	9,798	$	1,683	$	—	$	287,361
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		—		—		—		—		—		—		—		—		—
Total	$	45,188	$	194,999	$	26,820	$	8,873	$	—	$	9,798	$	1,683	$	—	$	287,361
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Pass	$	43,639	$	72,671	$	24,138	$	16,407	$	4,054	$	31,132	$	4,324	$	—	$	196,365
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		—		—		—		—		—		—		—		—		—
Total	$	43,639	$	72,671	$	24,138	$	16,407	$	4,054	$	31,132	$	4,324	$	—	$	196,365
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home equity lines of credit and loans
Pass	$	326	$	—	$	—	$	—	$	—	$	—	$	4,986	$	—	$	5,312
Special Mention		—		—		—		—		—		14		8		—		22
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		410		36		12		—		65		22		26,970		508		28,023
Total	$	736	$	36	$	12	$	—	$	65	$	36	$	31,964	$	508	$	33,357
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction
Pass	$	33,707	$	55,170	$	17,228	$	—	$	786	$	2,988	$	—	$	—	$	109,879
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		2,121		—		—		—		—		—		—		—		2,121
Total	$	35,828	$	55,170	$	17,228	$	—	$	786	$	2,988	$	—	$	—	$	112,000
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	4,444	$	3,349	$	428	$	35	$	89	$	154	$	655	$	—	$	9,154
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		—		—		65		—		—		—		—		—		65
Total	$	4,444	$	3,349	$	493	$	35	$	89	$	154	$	655	$	—	$	9,219
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Loans not formally rated (1)		31		38		45		—		—		13		46		—		173
Total	$	31	$	38	$	45	$	—	$	—	$	13	$	46	$	—	$	173
Current-period gross charge-offs	$	2	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2

(1) All loans not formally rated were accruing as of September 30, 2024 and December 31, 2023.