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Loans

9 Months Ended

Sep. 30, 2024

5. Loans

The following represents the composition of loans as of the dates indicated:


	September 30,		December 31,
	2024		2023

	(In thousands)
Multi-family residential	$	2,638,863	$	2,658,205
Commercial real estate		1,929,093		1,958,252
One-to-four family ― mixed-use property		515,511		530,243
One-to-four family ― residential		252,293		220,213
Construction		63,674		58,673
Small Business Administration		19,368		20,205
Commercial business and other		1,387,965		1,452,518
Net unamortized premiums and unearned loan fees		9,377		9,590
Total loans, net of fees and costs excluding portfolio layer basis adjustments		6,816,144		6,907,899
Unallocated portfolio layer basis adjustments ⁽¹⁾		2,184		(949)
Total loans, net of fees and costs	$	6,818,328	$	6,906,950

(1) This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans, certain market value adjustments related to hedging and unamortized premiums or discounts on purchased loans. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Interest on loans is recognized on an accrual basis. Accrued interest receivable totaled $45.5 million and $45.0 million at September 30, 2024 and December 31, 2023, respectively, and was reported in “Interest and dividends receivable” on the Consolidated Statements of Financial Condition. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.

Allowance for credit losses

The allowance for credit losses (“ACL”) is an estimate that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. Loans are charged off against that ACL when management believes that a loan balance is uncollectable based on quarterly analysis of credit risk.

The amount of the ACL is based upon a loss rate model that considers multiple factors which reflects management’s assessment of the credit quality of the loan portfolio. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The factors are both quantitative and qualitative in nature including, but not limited to, historical losses, economic conditions, trends in delinquencies, value and adequacy of underlying collateral, volume and portfolio mix, and internal loan processes. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans.

The Company recorded a provision for credit losses on loans totaling $1.7 million and $0.6 million for the three months ended September 30, 2024 and 2023, respectively. The Company recorded a provision for credit losses on loans totaling $3.1 million and $9.5 million for the nine months ended September 30, 2024 and 2023, respectively. The provision recorded during the nine months ended September 30, 2024, was driven by increased reserves on two commercial business relationships and one multi-family relationship and by an increase in the qualitative reserve to capture additional risk related to credit concentrations. The ACL - loans totaled $40.3 million on September 30, 2024 compared to $40.2 million on December 31, 2023. On September 30, 2024, the ACL - loans represented 0.59% of gross loans and 117.7% of non-performing loans. On December 31, 2023, the ACL - loans represented 0.58% of gross loans and 159.6% of non-performing loans.

The Company may modify loans to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. When modifying a loan, an assessment of whether a borrower is experiencing financial difficulty is made on the date of modification. This modification may include reducing the loan interest rate, extending the loan term, any other-than-insignificant payment delay, principal forgiveness or any combination of these types of modifications. When such modifications are performed, a change to the allowance for credit losses is generally not required as the methodologies used to estimate the allowance already capture the effect of borrowers experiencing financial difficulty. On September 30, 2024, there were no commitments to lend additional funds to borrowers who have received a loan modification due to financial difficulty.

The following tables show loan modifications made to borrowers experiencing financial difficulty by type of modification granted during the periods indicated:


	For the three and nine months ended September 30, 2024
(Dollars in thousands)	Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate	1	$	29,890	1.5	%	Provided payment deferral to be collected at maturity (January 2027)
Total	1	$	29,890


	For the three and nine months ended September 30, 2024
(Dollars in thousands)	Term Extension and Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Commercial real estate	1	$	2,793	0.1	%	Extended Maturity to January 2027 (32 months) and provided payment deferral to be collected at maturity
Total	1	$	2,793


	For the nine months ended September 30, 2024
(Dollars in thousands)	Term Extension and Reduced Interest Rate
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Commercial business and other	1	$	378	—	%	Extended Maturity to August 2026 (3 months) and reduced rate to zero percent
Total	1	$	378


	For the three and nine months ended September 30, 2023
(Dollars in thousands)	Term Extension
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Commercial business and other	3	$	1,638	0.1	%	Extended Maturity to June 2025 (20 months)
Total	3	$	1,638


	For the nine months ended September 30, 2023
(Dollars in thousands)	Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Small Business Administration	1	$	1,494	6.8	%	Provided twelve months payment deferral to be collected at maturity
Total	1	$	1,494

The following table shows the payment status at September 30, 2024 of borrowers experiencing financial difficulty for which a modification was granted:


		Payment Status of Borrowers Experiencing Financial Difficulty (Amortized Cost Basis)
(In thousands)		Current		30-89 Days Past Due		90+ Days Past Due		Total Modified
Commercial real estate	$	32,683	$	—	$	—	$	32,683
Commercial business and other		—		20		303		323
Total	$	32,683	$	20	$	303	$	33,006

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty:


		Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted
(In thousands)		Rate Reduction		Term Extension		Principal Forgiveness		Other-than-insignificant payment delay		Combination - Term Extension and Interest Rate Reduction
Commercial business and other	$	—	$	—	$	—	$	—	$	303
Total	$	—	$	—	$	—	$	—	$	303

The following tables show our non-accrual loans at amortized cost with no related allowance and interest income recognized for loans ninety days or more past due and still accruing for the periods shown below:


	At or for the nine months September 30, 2024
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income (loss) recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	3,640	$	10,047	$	10,047	$	5	$	—
Commercial real estate		—		6,722		6,722		—		—
One-to-four family - mixed-use property		1,005		371		371		1		—
One-to-four family - residential		4,670		889		889		2		—
Small Business Administration		2,576		2,532		2,532		—		—
Commercial business and other		11,768		14,148		8,230		2		—
Total	$	23,659	$	34,709	$	28,791	$	10	$	—


	At or for the year ended December 31, 2023
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income (loss) recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	3,547	$	3,640	$	3,640	$	2	$	1,463
Commercial real estate		254		—		—		—		—
One-to-four family - mixed-use property		1,045		1,005		1,005		3		—
One-to-four family - residential		3,953		4,670		4,670		3		—
Small Business Administration		950		2,576		2,576		—		—
Commercial business and other		20,193		11,768		3,242		17		—
Total	$	29,942	$	23,659	$	15,133	$	25	$	1,463

The following is a summary of interest foregone on non-accrual loans for the periods indicated.


	For the three months ended				For the nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	900	$	425	$	2,246	$	1,405
Less: Interest income included in the results of operations		(5)		(2)		(10)		(20)
Total foregone interest	$	895	$	423	$	2,236	$	1,385

The following tables show the aging analysis of the amortized cost basis of loans at the period indicated by class of loans:


	At September 30, 2024
(In thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans ⁽¹⁾
Multi-family residential	$	14,919	$	—	$	10,047	$	24,966	$	2,617,875	$	2,642,841
Commercial real estate		171		—		6,722		6,893		1,923,484		1,930,377
One-to-four family - mixed-use property		1,435		118		371		1,924		516,380		518,304
One-to-four family - residential		1,928		781		889		3,598		248,808		252,406
Construction		—		—		—		—		63,318		63,318
Small Business Administration		31		—		2,532		2,563		17,052		19,615
Commercial business and other		3,297		919		8,543		12,759		1,376,524		1,389,283
Total	$	21,781	$	1,818	$	29,104	$	52,703	$	6,763,441	$	6,816,144

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $2.2 million related to loans hedged in a closed pool at September 30, 2024. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.


	At December 31, 2023
(In thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans ⁽¹⁾
Multi-family residential	$	2,722	$	539	$	5,103	$	8,364	$	2,653,862	$	2,662,226
Commercial real estate		8,090		1,099		—		9,189		1,950,435		1,959,624
One-to-four family - mixed-use property		1,708		124		1,005		2,837		530,247		533,084
One-to-four family - residential		1,715		—		4,670		6,385		215,134		221,519
Construction		—		—		—		—		58,261		58,261
Small Business Administration		—		—		2,576		2,576		17,769		20,345
Commercial business and other		420		1,061		7,585		9,066		1,443,774		1,452,840
Total	$	14,655	$	2,823	$	20,939	$	38,417	$	6,869,482	$	6,907,899

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $0.9 million related to loans hedged in a closed pool at December 31, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

The following tables show the activity in the ACL on loans for the three-month periods ended:


	September 30, 2024
					One-to-four		One-to-four						Commercial
	Multi-family		Commercial		family - mixed-		family -		Construction		Small Business		business and
(In thousands)	residential		real estate		use property		residential		loans		Administration		other		Total
Beginning balance	$	10,829	$	9,043	$	1,577	$	796	$	766	$	1,126	$	17,511	$	41,648
Charge-offs		—		—		—		—		—		(7)		(3,103)		(3,110)
Recoveries		—		—		—		58		—		8		8		74
Provision (benefit)		457		90		(46)		(46)		(130)		302		1,103		1,730
Ending balance	$	11,286	$	9,133	$	1,531	$	808	$	636	$	1,429	$	15,519	$	40,342


	September 30, 2023
					One-to-four		One-to-four						Commercial
	Multi-family		Commercial		family - mixed-		family -		Construction		Small Business		business and
(In thousands)	residential		real estate		use property		residential		loans		Administration		other		Total
Beginning balance	$	9,718	$	8,206	$	1,615	$	654	$	132	$	2,162	$	16,106	$	38,593
Charge-offs		—		—		—		—		—		—		(21)		(21)
Recoveries		—		—		—		6		—		48		9		63
Provision (benefit)		917		562		10		57		32		(194)		(791)		593
Ending balance	$	10,635	$	8,768	$	1,625	$	717	$	164	$	2,016	$	15,303	$	39,228

The following tables show the activity in the ACL on loans for the nine-month periods ended:


	September 30, 2024
					One-to-four		One-to-four						Commercial
	Multi-family		Commercial		family - mixed-		family -		Construction		Small Business		business and
(In thousands)	residential		real estate		use property		residential		loans		Administration		other		Total
Beginning balance	$	10,373	$	8,665	$	1,610	$	668	$	158	$	1,626	$	17,061	$	40,161
Charge-offs		—		—		—		(14)		—		(7)		(3,158)		(3,179)
Recoveries		1		—		2		61		—		104		63		231
Provision (benefit)		912		468		(81)		93		478		(294)		1,553		3,129
Ending balance	$	11,286	$	9,133	$	1,531	$	808	$	636	$	1,429	$	15,519	$	40,342


	September 30, 2023
					One-to-four		One-to-four						Commercial
	Multi-family		Commercial		family - mixed-		family -		Construction		Small Business		business and
(In thousands)	residential		real estate		use property		residential		loans		Administration		other		Total
Beginning balance	$	9,552	$	8,184	$	1,875	$	901	$	261	$	2,198	$	17,471	$	40,442
Charge-offs		—		(8)		—		(12)		—		(7)		(11,023)		(11,050)
Recoveries		1		—		—		50		—		219		28		298
Provision (benefit)		1,082		592		(250)		(222)		(97)		(394)		8,827		9,538
Ending balance	$	10,635	$	8,768	$	1,625	$	717	$	164	$	2,016	$	15,303	$	39,228

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans.” If a loan does not fall within one of the previously mentioned categories and management believes weakness is evident then we designate the loan as “Watch;” all other loans would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize the orderly liquidation of the debt. We designate a loan as Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does not hold any loans designated as Loss, as loans that are designated as Loss are charged to the Allowance for Credit Losses. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications but does contain a potential weakness that deserves closer attention.

The following tables summarize the various risk categories of mortgage and non-mortgage loans by loan portfolio segments and by class of loans by year of origination at the periods indicated below:


	September 30, 2024
														Revolving Loans		Revolving Loans
														Amortized Cost		converted to
(In thousands)		2024		2023		2022		2021		2020		Prior		Basis		term loans		Total
Multi-family Residential
Pass	$	90,888	$	248,775	$	438,930	$	284,920	$	200,202	$	1,313,039	$	5,168	$	—	$	2,581,922
Watch		—		—		12,000		—		1,882		31,112		—		—		44,994
Special Mention		—		—		—		—		—		5,141		—		—		5,141
Substandard		—		—		5		715		2,772		6,846		446		—		10,784
Total Multi-family Residential	$	90,888	$	248,775	$	450,935	$	285,635	$	204,856	$	1,356,138	$	5,614	$	—	$	2,642,841
Commercial Real Estate
Pass	$	112,915	$	199,439	$	312,288	$	151,237	$	129,706	$	945,155	$	—	$	—	$	1,850,740
Watch		—		—		432		4,081		6,734		61,668		—		—		72,915
Substandard		—		—		—		—		—		6,722		—		—		6,722
Total Commercial Real Estate	$	112,915	$	199,439	$	312,720	$	155,318	$	136,440	$	1,013,545	$	—	$	—	$	1,930,377
1-4 Family Mixed-Use Property
Pass	$	10,516	$	23,692	$	45,880	$	40,935	$	28,193	$	362,711	$	—	$	—	$	511,927
Watch		—		—		—		—		—		5,355		—		—		5,355
Special Mention		—		—		—		—		—		533		—		—		533
Substandard		—		—		—		—		—		489		—		—		489
Total 1-4 Family Mixed-Use Property	$	10,516	$	23,692	$	45,880	$	40,935	$	28,193	$	369,088	$	—	$	—	$	518,304
1-4 Family Residential
Pass	$	2,141	$	54,837	$	23,104	$	7,522	$	16,142	$	126,345	$	6,575	$	8,350	$	245,016
Watch		—		—		498		258		—		2,580		—		1,534		4,870
Special Mention		—		—		—		—		—		1,431		—		157		1,588
Substandard		—		—		—		—		—		492		—		440		932
Total 1-4 Family Residential	$	2,141	$	54,837	$	23,602	$	7,780	$	16,142	$	130,848	$	6,575	$	10,481	$	252,406
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14
Construction
Pass	$	—	$	602	$	2	$	18,209	$	—	$	—	$	39,122	$	—	$	57,935
Watchlist		—		—		—		—		—		—		—		—		—
Special Mention		—		5,383		—		—		—		—		—		—		5,383
Total Construction	$	—	$	5,985	$	2	$	18,209	$	—	$	—	$	39,122	$	—	$	63,318
Small Business Administration
Pass	$	6,008	$	1,928	$	3,230	$	1,238	$	1,791	$	1,507	$	—	$	—	$	15,702
Watch		—		—		—		—		—		840		—		—		840
Special Mention		—		—		—		—		—		335		—		—		335
Substandard		—		—		—		1,692		—		1,046		—		—		2,738
Total Small Business Administration	$	6,008	$	1,928	$	3,230	$	2,930	$	1,791	$	3,728	$	—	$	—	$	19,615
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial Business
Pass	$	58,225	$	93,799	$	75,357	$	40,303	$	21,531	$	97,995	$	232,452	$	—	$	619,662
Watch		—		4,610		4,970		3,089		4,382		5,619		2,183		—		24,853
Special Mention		730		—		—		—		—		18		—		—		748
Substandard		—		467		2,424		4,670		—		3,360		3,856		—		14,777
Doubtful		—		462		—		—		—		—		577		—		1,039
Total Commercial Business	$	58,955	$	99,338	$	82,751	$	48,062	$	25,913	$	106,992	$	239,068	$	—	$	661,079
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	43	$	3,081	$	—	$	3,124
Commercial Business - Secured by RE
Pass	$	42,243	$	46,188	$	172,138	$	126,782	$	100,757	$	207,800	$	189	$	—	$	696,097
Watch		8,704		—		288		—		3,752		399		—		—		13,143
Special Mention		—		—		—		—		—		14,886		—		—		14,886
Substandard		—		—		—		—		—		3,884		—		—		3,884
Total Commercial Business - Secured by RE	$	50,947	$	46,188	$	172,426	$	126,782	$	104,509	$	226,969	$	189	$	—	$	728,010
Other
Pass	$	—	$	—	$	—	$	—	$	—	$	78	$	116	$	—	$	194
Total Other	$	—	$	—	$	—	$	—	$	—	$	78	$	116	$	—	$	194
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	34	$	—	$	—	$	34
Total by Loan Type
Total Pass	$	322,936	$	669,260	$	1,070,929	$	671,146	$	498,322	$	3,054,630	$	283,622	$	8,350	$	6,579,195
Total Watch		8,704		4,610		18,188		7,428		16,750		107,573		2,183		1,534		166,970
Total Special Mention		730		5,383		—		—		—		22,344		—		157		28,614
Total Substandard		—		467		2,429		7,077		2,772		22,839		4,302		440		40,326
Total Doubtful		—		462		—		—		—		—		577		—		1,039
Total Loans ⁽¹⁾	$	332,370	$	680,182	$	1,091,546	$	685,651	$	517,844	$	3,207,386	$	290,684	$	10,481	$	6,816,144
Total Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	98	$	3,081	$	—	$	3,179

⁽¹⁾The table above excludes the unallocated portfolio layer basis adjustments totaling $2.2 million related to loans hedged in a closed pool at September 30, 2024. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.


	December 31, 2023
														Revolving Loans		Revolving Loans
														Amortized Cost		converted to
(In thousands)		2023		2022		2021		2020		2019		Prior		Basis		term loans		Total
Multi-family Residential
Pass	$	254,340	$	465,069	$	276,483	$	215,561	$	300,822	$	1,099,271	$	5,209	$	—	$	2,616,755
Watch		—		870		720		1,935		—		34,899		—		—		38,424
Special Mention		—		—		—		—		—		1,193		—		—		1,193
Substandard		—		—		—		—		—		5,854		—		—		5,854
Total Multi-family Residential	$	254,340	$	465,939	$	277,203	$	217,496	$	300,822	$	1,141,217	$	5,209	$	—	$	2,662,226
Commercial Real Estate
Pass	$	199,420	$	322,446	$	175,045	$	147,871	$	216,964	$	862,641	$	—	$	—	$	1,924,387
Watch		—		—		1,415		—		9,239		23,484		—		—		34,138
Special Mention		—		—		—		—		—		1,099		—		—		1,099
Total Commercial Real Estate	$	199,420	$	322,446	$	176,460	$	147,871	$	226,203	$	887,224	$	—	$	—	$	1,959,624
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	8
1-4 Family Mixed-Use Property
Pass	$	22,852	$	43,579	$	41,604	$	30,984	$	60,308	$	326,246	$	—	$	—	$	525,573
Watch		—		—		—		—		233		4,777		—		—		5,010
Special Mention		—		—		—		—		720		564		—		—		1,284
Substandard		—		—		—		—		—		1,217		—		—		1,217
Total 1-4 Family Mixed-Use Property	$	22,852	$	43,579	$	41,604	$	30,984	$	61,261	$	332,804	$	—	$	—	$	533,084
1-4 Family Residential
Pass	$	6,289	$	23,197	$	8,451	$	16,482	$	36,779	$	102,293	$	7,424	$	10,067	$	210,982
Watch		—		507		270		—		1,561		695		—		1,130		4,163
Special Mention		—		—		—		—		—		—		—		169		169
Substandard		—		—		—		—		—		5,737		—		468		6,205
Total 1-4 Family Residential	$	6,289	$	23,704	$	8,721	$	16,482	$	38,340	$	108,725	$	7,424	$	11,834	$	221,519
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	23	$	—	$	—	$	23
Construction
Pass	$	5,809	$	3	$	5,793	$	—	$	—		—	$	46,656	$	—	$	58,261
Total Construction	$	5,809	$	3	$	5,793	$	—	$	—	$	—	$	46,656	$	—	$	58,261
Small Business Administration
Pass	$	1,984	$	3,283	$	2,883	$	3,443	$	606	$	2,121	$	—	$	—	$	14,320
Watch		—		—		—		—		47		2,847		—		—		2,894
Special Mention		—		—		—		—		—		348		—		—		348
Substandard		—		—		1,627		—		—		1,156		—		—		2,783
Total Small Business Administration	$	1,984	$	3,283	$	4,510	$	3,443	$	653	$	6,472	$	—	$	—	$	20,345
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial Business
Pass	$	115,740	$	116,452	$	53,315	$	31,637	$	30,913	$	53,289	$	244,143	$	—	$	645,489
Watch		342		9,792		3,822		2,426		14,483		18,495		8,582		—		57,942
Special Mention		—		—		—		—		25		—		495		—		520
Substandard		14,642		2,399		4,158		—		93		12,906		2,982		—		37,180
Doubtful		462		—		—		—		—		—		3,903		—		4,365
Total Commercial Business	$	131,186	$	128,643	$	61,295	$	34,063	$	45,514	$	84,690	$	260,105	$	—	$	745,496
Gross charge-offs	$	40	$	—	$	1,675	$	—	$	28	$	10	$	9,267	$	—	$	11,020
Commercial Business - Secured by RE
Pass	$	36,993	$	176,825	$	130,608	$	106,545	$	38,846	$	139,025	$	—	$	—	$	628,842
Watch		9,730		311		—		—		586		51,759		—		—		62,386
Special Mention		—		—		—		—		14,892		1,002		—		—		15,894
Total Commercial Business - Secured by RE	$	46,723	$	177,136	$	130,608	$	106,545	$	54,324	$	191,786	$	—	$	—	$	707,122
Other
Pass	$	—	$	—	$	—	$	—	$	—	$	133	$	89	$	—	$	222
Total Other	$	—	$	—	$	—	$	—	$	—	$	133	$	89	$	—	$	222
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	99	$	—	$	—	$	99
Total by Loan Type
Total Pass	$	643,427	$	1,150,854	$	694,182	$	552,523	$	685,238	$	2,585,019	$	303,521	$	10,067	$	6,624,831
Total Watch		10,072		11,480		6,227		4,361		26,149		136,956		8,582		1,130		204,957
Total Special Mention		—		—		—		—		15,637		4,206		495		169		20,507
Total Substandard		14,642		2,399		5,785		—		93		26,870		2,982		468		53,239
Total Doubtful		462		—		—		—		—		—		3,903		—		4,365
Total Loans ⁽¹⁾	$	668,603	$	1,164,733	$	706,194	$	556,884	$	727,117	$	2,753,051	$	319,483	$	11,834	$	6,907,899
Total Gross charge-offs	$	40	$	—	$	1,675	$	—	$	28	$	147	$	9,267	$	—	$	11,157

⁽¹⁾ The table above excludes the unallocated portfolio layer basis adjustments totaling $0.9 million related to loans hedged in a closed pool at December 31, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

Included within net loans were $1.8 million and $4.8 million at September 30, 2024 and December 31, 2023, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents types of collateral-dependent loans by class of loans as of the periods indicated:



	Collateral Type
	September 30, 2024				December 31, 2023
(In thousands)		Real Estate		Business Assets		Real Estate		Business Assets
Multi-family residential	$	10,047	$	—	$	3,640	$	—
Commercial real estate		6,722		—		—		—
One-to-four family - mixed-use property		371		—		1,005		—
One-to-four family - residential		889		—		4,670		—
Small Business Administration		—		2,532		—		2,576
Commercial business and other		3,884		10,264		—		11,768
Total	$	21,913	$	12,796	$	9,315	$	14,344

Off-Balance Sheet Credit Losses

Also included within scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and commitments “in-process”. Commitments “in‐process” reflect loans not in the Company’s books but rather negotiated loan / line of credit terms and rates that the Company has offered to customers and is committed to honoring. In reference to “in‐process” credits, the Company defines an unfunded commitment as a credit that has been offered to and accepted by a borrower, which has not closed and by which the obligation is not unconditionally cancellable.

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) totaled $80.0 million and $397.7 million, respectively, on September 30, 2024.

The following table presents the activity in the allowance for off-balance sheet credit losses for the three and nine months ended:


	For the three months ended				For the nine months ended
	September 30,				September 30,
	2024		2023		2024		2023

	(In thousands)
Balance at beginning of period	$	1,002	$	813	$	1,102	$	970
Provision (benefit) ⁽¹⁾		56		120		(44)		(37)
Allowance for Off-Balance Sheet - Credit losses ⁽²⁾	$	1,058	$	933	$	1,058	$	933

(1) Included in “Other operating expenses” on the Consolidated Statements of Income.

(2) Included in “Other liabilities” on the Consolidated Statements of Financial Condition.