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Note 4 - Loans Receivable and Allowance for Credit Losses on Loans | 12 Months Ended
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Dec. 31, 2023
Notes to Financial Statements |
Financing Receivables [Text Block] | NOTE 4 – LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS The composition of the loan portfolio was as follows at the dates indicated:
|  | December 31, |
REAL ESTATE LOANS |  | 2023 |  |  | 2022 |
Commercial |  | $ | 366,328 |  |  | $ | 334,059 |
Construction and development |  |  | 303,054 |  |  |  | 342,591 |
Home equity |  |  | 69,488 |  |  |  | 55,387 |
One-to-four-family (excludes loans held for sale) |  |  | 567,742 |  |  |  | 469,485 |
Multi-family |  |  | 223,769 |  |  |  | 219,738 |
Total real estate loans |  |  | 1,530,381 |  |  |  | 1,421,260 |
CONSUMER LOANS |  |  |  |  |  |  |  |
Indirect home improvement |  |  | 569,903 |  |  |  | 495,941 |
Marine |  |  | 73,310 |  |  |  | 70,567 |
Other consumer |  |  | 3,540 |  |  |  | 3,064 |
Total consumer loans |  |  | 646,753 |  |  |  | 569,572 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 238,301 |  |  |  | 196,791 |
Warehouse lending |  |  | 17,580 |  |  |  | 31,229 |
Total commercial business loans |  |  | 255,881 |  |  |  | 228,020 |
Total loans receivable, gross |  |  | 2,433,015 |  |  |  | 2,218,852 |
ACL on loans |  |  | (31,534 | ) |  |  | (27,992 | )
Total loans receivable, net |  | $ | 2,401,481 |  |  | $ | 2,190,860 |
Loan amounts are net of unearned loan fees in excess of unamortized costs and premiums of $8.4 million as of December 31, 2023 and $7.8 million as of December 31, 2022. Net loans include unamortized net discounts on acquired loans of $2.6 million and $437,000 as of December 31, 2023 and 2022, respectively. Net loans do not include accrued interest receivable. Accrued interest receivable on loans was $11.5 million as of December 31, 2023 and $9.6 million as of December 31, 2022 and was reported in “Accrued interest receivable” on the Consolidated Balance Sheets. Most of the Company’s commercial and multi-family real estate, construction, residential, and commercial business lending activities are with customers located in Western Washington, the Oregon Coast, and near our loan production offices in Vancouver, Washington and the Tri-Cities, Washington. The Company originates real estate, consumer and commercial business loans and has concentrations in these areas, however, indirect home improvement loans, including solar-related home improvement loans, are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, Arizona, Minnesota, Nevada, Texas, Utah, Massachusetts, Montana, and recently New Hampshire. Management reviewed dealer concentrations and determined as of December 31, 2023, any dealer owned by the same corporate entity will be included under that corporate entity and not as a separate dealer. Loans are generally secured by collateral and rights to collateral vary and are legally documented to the extent practicable. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. At December 31, 2023, the Bank held approximately $1.07 billion in loans that are pledged as collateral for FHLB advances, compared to approximately $840.2 million at December 31, 2022. The Bank held approximately $631.1 million in loans that are pledged as collateral for the FRB line of credit at December 31, 2023, compared to approximately $579.8 million at December 31, 2022. The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the way management monitors performance and credit quality. The three loan portfolio segments are: (a) Real Estate Loans, (b) Consumer Loans and (c) Commercial Business Loans. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans Commercial Lending. Loans originated by the Company primarily secured by income producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending. Loans originated by the Company for the construction of, and secured by, commercial real estate, one-to-four-family, and multi-family residences and tracts of land for development that are not pre-sold. A portion of the one-to-four-family construction portfolio is custom construction loans to the intended occupant of the residence. Home Equity Lending. Loans originated by the Company secured by second mortgages on one-to-four-family residences, including home equity lines of credit in our market areas. One-to-Four-Family Real Estate Lending. One-to-four-family residential loans include owner-occupied properties (including second homes), and non-owner-occupied properties with four or less units. These loans originated by the Company or periodically purchased from banks are secured by first mortgages on one-to-four-family residences in our market areas that the Company intends to hold (excludes loans held for sale). Multi-family Lending. Apartment term lending (five or more units) to current banking customers and community reinvestment loans for low to moderate income individuals in the Company’s footprint. Consumer Loans Indirect Home Improvement. Fixture secured loans for home improvement are originated by the Company through its network of home improvement contractors and dealers and are secured by the personal property installed in, on, or at the borrower’s real property, and may be perfected with a UCC‑2 financing statement filed in the county of the borrower’s residence. These indirect home improvement loans include replacement windows, siding, roofing, spas, and other home fixture installations, including solar related home improvement projects. Marine. Loans originated by the Company, secured by boats, to borrowers primarily located in the states where the Company originates consumer loans. Other Consumer. Loans originated by the Company to consumers in our retail branch footprint, including automobiles, recreational vehicles, direct home improvement loans, loans on deposits, and other consumer loans, primarily consisting of personal lines of credit and credit cards. Commercial Business Loans Commercial and Industrial (“C&I”) Lending. C&I loans originated by the Company to local small- and mid-sized businesses in our Puget Sound market area are secured primarily by accounts receivable, inventory, or personal property, plant and equipment. Some of the C&I loans purchased by the Company are outside of the greater Puget Sound market area. C&I loans are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. Warehouse Lending. Loans originated to non-depository financial institutions and secured by notes originated by the non-depository financial institution. The Company has two distinct warehouse lending divisions: commercial warehouse re-lending secured by notes on construction loans and mortgage warehouse re-lending secured by notes on one-to-four-family loans. The Company’s commercial construction warehouse lines are secured by notes on construction loans and typically guaranteed by principals with experience in construction lending. Mortgage warehouse lending loans are funded through third-party residential mortgage bankers. Under this program, the Company provides short-term funding to the mortgage banking companies for the purpose of originating residential mortgage loans for sale into the secondary market. Allowance for Credit Losses The main drivers of the provision for credit losses on loans recorded in 2023 were increases in outstanding loans, net charge-offs, and specific reserves on individually evaluated loans. The following tables detail activity in the ACL on loans and the allowance for loan losses by loan categories, at or for the years indicated:
|  | At or For the Year Ended December 31, 2023 |
|  | Real |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |
ACL ON LOANS |  | Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance |  | $ | 12,123 |  |  | $ | 12,109 |  |  | $ | 3,760 |  |  | $ | — |  |  | $ | 27,992 |
Provision for credit losses on loans |  |  | 1,994 |  |  |  | 3,465 |  |  |  | 311 |  |  |  | — |  |  |  | 5,770 |
Charge-offs |  |  | (10 | ) |  |  | (3,465 | ) |  |  | (1 | ) |  |  | — |  |  |  | (3,476 | )
Recoveries |  |  | — |  |  |  | 1,248 |  |  |  | — |  |  |  | — |  |  |  | 1,248 |
Net charge-offs |  |  | (10 | ) |  |  | (2,217 | ) |  |  | (1 | ) |  |  | — |  |  |  | (2,228 | )
Total ending ACL balance |  | $ | 14,107 |  |  | $ | 13,357 |  |  | $ | 4,070 |  |  | $ | — |  |  | $ | 31,534 |
|  | At or For the Year Ended December 31, 2022 |
|  | Real |  |  |  |  |  | Commercial |  |  |  |  |  |  |
ACL ON LOANS |  | Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance, prior to adoption of ASC 326 |  | $ | 14,798 |  |  | $ | 4,280 |  |  | $ | 6,536 |  |  | $ | 21 |  |  | $ | 25,635 |
Impact of adopting ASC 326 |  |  | (5,234 | ) |  |  | 6,078 |  |  |  | (3,682 | ) |  |  | (21 | ) |  |  | (2,859 | )
Provision for credit losses on loans |  |  | 2,559 |  |  |  | 3,158 |  |  |  | 906 |  |  |  | — |  |  |  | 6,623 |
Charge-offs |  |  | — |  |  |  | (2,465 | ) |  |  | — |  |  |  | — |  |  |  | (2,465 | )
Recoveries |  |  | — |  |  |  | 1,058 |  |  |  | — |  |  |  | — |  |  |  | 1,058 |
Net charge-offs |  |  | — |  |  |  | (1,407 | ) |  |  | — |  |  |  | — |  |  |  | (1,407 | )
Total ending ACL balance |  | $ | 12,123 |  |  | $ | 12,109 |  |  | $ | 3,760 |  |  | $ | — |  |  | $ | 27,992 |
The allowance for loan losses is reported using the incurred loss method at or for the year ended December 31, 2021:
|  | At or For the Year Ended December 31, 2021 |
|  |  |  |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |
ALLOWANCE FOR LOAN LOSSES |  | Real Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance |  | $ | 13,846 |  |  | $ | 6,696 |  |  | $ | 4,939 |  |  | $ | 691 |  |  | $ | 26,172 |
Provision for (recapture of) loan losses |  |  | 952 |  |  |  | (1,417 | ) |  |  | 1,635 |  |  |  | (670 | ) |  |  | 500 |
Charge-offs |  |  | — |  |  |  | (1,755 | ) |  |  | (38 | ) |  |  | — |  |  |  | (1,793 | )
Recoveries |  |  | — |  |  |  | 756 |  |  |  | — |  |  |  | — |  |  |  | 756 |
Net charge-offs |  |  | — |  |  |  | (999 | ) |  |  | (38 | ) |  |  | — |  |  |  | (1,037 | )
Total ending allowance for loan losses balance |  | $ | 14,798 |  |  | $ | 4,280 |  |  | $ | 6,536 |  |  | $ | 21 |  |  | $ | 25,635 |
Period end amount allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 23 |  |  | $ | 219 |  |  | $ | 921 |  |  | $ | — |  |  | $ | 1,163 |
Loans collectively evaluated for impairment |  |  | 14,775 |  |  |  | 4,061 |  |  |  | 5,615 |  |  |  | 21 |  |  |  | 24,472 |
Ending balance |  | $ | 14,798 |  |  | $ | 4,280 |  |  | $ | 6,536 |  |  | $ | 21 |  |  | $ | 25,635 |
LOANS RECEIVABLE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 781 |  |  | $ | 629 |  |  | $ | 4,419 |  |  | $ | — |  |  | $ | 5,829 |
Loans collectively evaluated for impairment |  |  | 1,089,522 |  |  |  | 421,414 |  |  |  | 237,410 |  |  |  | — |  |  |  | 1,748,346 |
Ending balance |  | $ | 1,090,303 |  |  | $ | 422,043 |  |  | $ | 241,829 |  |  | $ | — |  |  | $ | 1,754,175 |
Nonaccrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are automatically placed on nonaccrual once the loan is 90 days past due or sooner if, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, or as required by regulatory authorities. Loan Modifications to Borrowers Experiencing Financial Difficulty The Company may modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies. These modifications may result in an interest rate reduction, term extension, payment deferral, or a combination thereof. The Company typically does not offer principal forgiveness. The following tables present the amortized basis of loans that were modified to borrowers experiencing financial difficulty during the period by loan class and modification type.
|  | Payment Deferral
|  | Amortized Cost |  |  | % of Total Loan |  |  |
December 31, 2023 |  | Basis |  |  | Type |  |  | Financial Effect
Commercial real estate |  | $ | 1,088 |  |  |  | 0.3 | % |  | Deferred payments and capitalized interest for a weighted-average period of 1.5 years.
|  | Combination - Term Extension and Interest Rate Reduction
|  | Amortized Cost |  |  | % of Total Loan |  |  |
December 31, 2023 |  | Basis |  |  | Type |  |  | Financial Effect
C&I |  | $ | 2,940 |  |  |  | 1.2 | % |  | Reduced weighted-average contractual interest rate from 7.5% to 4.1%, and added a weighted-average 5 years to the life of the loans.
There were no loans that were modified on or after January 1, 2023, the date the Company adopted ASU 2022–02, through December 31, 2023 that subsequently defaulted during the period presented. Troubled Debt Restructurings (“TDRs”) At December 31, 2022, the Company had two TDRs, both of which were commercial business loans, on nonaccrual totaling $3.7 million. The Company had no commitments to lend additional funds on these TDRs. The Company has not forgiven any principal on these loans. There were no TDRs which incurred a payment default within twelve months of the restructure date during the year ended December 31, 2022. Nonaccrual and Past Due Loans The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans at the dates indicated:
|  | December 31, 2023 |
|  | 30-59 |  |  | 60-89 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Days |  |  | Days |  |  | 90 Days |  |  | Total |  |  |  |  |  |  | Total |  |  |  |  |
|  | Past |  |  | Past |  |  | or More |  |  | Past |  |  |  |  |  |  | Loans |  |  | Non- |
REAL ESTATE LOANS |  | Due |  |  | Due |  |  | Past Due |  |  | Due |  |  | Current |  |  | Receivable |  |  | Accrual (1) |
Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 366,328 |  |  | $ | 366,328 |  |  | $ | 1,088 |
Construction and development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 303,054 |  |  |  | 303,054 |  |  |  | 4,699 |
Home equity |  |  | 79 |  |  |  | 25 |  |  |  | 136 |  |  |  | 240 |  |  |  | 69,248 |  |  |  | 69,488 |  |  |  | 173 |
One-to-four-family |  |  | — |  |  |  | 96 |  |  |  | — |  |  |  | 96 |  |  |  | 567,646 |  |  |  | 567,742 |  |  |  | 96 |
Multi-family |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 223,769 |  |  |  | 223,769 |  |  |  | — |
Total real estate loans |  |  | 79 |  |  |  | 121 |  |  |  | 136 |  |  |  | 336 |  |  |  | 1,530,045 |  |  |  | 1,530,381 |  |  |  | 6,056 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | 1,759 |  |  |  | 1,248 |  |  |  | 777 |  |  |  | 3,784 |  |  |  | 566,119 |  |  |  | 569,903 |  |  |  | 1,863 |
Marine |  |  | 373 |  |  |  | 243 |  |  |  | 137 |  |  |  | 753 |  |  |  | 72,557 |  |  |  | 73,310 |  |  |  | 342 |
Other consumer |  |  | 57 |  |  |  | 18 |  |  |  | 6 |  |  |  | 81 |  |  |  | 3,459 |  |  |  | 3,540 |  |  |  | 8 |
Total consumer loans |  |  | 2,189 |  |  |  | 1,509 |  |  |  | 920 |  |  |  | 4,618 |  |  |  | 642,135 |  |  |  | 646,753 |  |  |  | 2,213 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | — |  |  |  | — |  |  |  | 2,514 |  |  |  | 2,514 |  |  |  | 235,787 |  |  |  | 238,301 |  |  |  | 2,683 |
Warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,580 |  |  |  | 17,580 |  |  |  | — |
Total commercial business loans |  |  | — |  |  |  | — |  |  |  | 2,514 |  |  |  | 2,514 |  |  |  | 253,367 |  |  |  | 255,881 |  |  |  | 2,683 |
Total loans |  | $ | 2,268 |  |  | $ | 1,630 |  |  | $ | 3,570 |  |  | $ | 7,468 |  |  | $ | 2,425,547 |  |  | $ | 2,433,015 |  |  | $ | 10,952 |
|  | December 31, 2022 |
|  | 30-59 |  |  | 60-89 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Days |  |  | Days |  |  | 90 Days |  |  | Total |  |  |  |  |  |  | Total |  |  |  |  |
|  | Past |  |  | Past |  |  | or More |  |  | Past |  |  |  |  |  |  | Loans |  |  | Non- |
REAL ESTATE LOANS |  | Due |  |  | Due |  |  | Past Due |  |  | Due |  |  | Current |  |  | Receivable |  |  | Accrual (1) |
Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 334,059 |  |  | $ | 334,059 |  |  | $ | — |
Construction and development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 342,591 |  |  |  | 342,591 |  |  |  | — |
Home equity |  |  | 29 |  |  |  | 104 |  |  |  | 16 |  |  |  | 149 |  |  |  | 55,238 |  |  |  | 55,387 |  |  |  | 46 |
One-to-four-family |  |  | — |  |  |  | — |  |  |  | 463 |  |  |  | 463 |  |  |  | 469,022 |  |  |  | 469,485 |  |  |  | 920 |
Multi-family |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 219,738 |  |  |  | 219,738 |  |  |  | — |
Total real estate loans |  |  | 29 |  |  |  | 104 |  |  |  | 479 |  |  |  | 612 |  |  |  | 1,420,648 |  |  |  | 1,421,260 |  |  |  | 966 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | 2,298 |  |  |  | 685 |  |  |  | 532 |  |  |  | 3,515 |  |  |  | 492,426 |  |  |  | 495,941 |  |  |  | 1,076 |
Marine |  |  | 650 |  |  |  | 385 |  |  |  | 86 |  |  |  | 1,121 |  |  |  | 69,446 |  |  |  | 70,567 |  |  |  | 267 |
Other consumer |  |  | 32 |  |  |  | 37 |  |  |  | 5 |  |  |  | 74 |  |  |  | 2,990 |  |  |  | 3,064 |  |  |  | 9 |
Total consumer loans |  |  | 2,980 |  |  |  | 1,107 |  |  |  | 623 |  |  |  | 4,710 |  |  |  | 564,862 |  |  |  | 569,572 |  |  |  | 1,352 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | 1 |  |  |  | — |  |  |  | 2,617 |  |  |  | 2,618 |  |  |  | 194,173 |  |  |  | 196,791 |  |  |  | 6,334 |
Warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,229 |  |  |  | 31,229 |  |  |  | — |
Total commercial business loans |  |  | 1 |  |  |  | — |  |  |  | 2,617 |  |  |  | 2,618 |  |  |  | 225,402 |  |  |  | 228,020 |  |  |  | 6,334 |
Total loans |  | $ | 3,010 |  |  | $ | 1,211 |  |  | $ | 3,719 |  |  | $ | 7,940 |  |  | $ | 2,210,912 |  |  | $ | 2,218,852 |  |  | $ | 8,652 |
______________________________
| (1) | Includes past due loans as applicable.
There were no loans 90 days or more past due and still accruing interest at both December 31, 2023 and 2022. Credit Quality Indicators As part of the Company’s on-going monitoring of credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grading of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions in the Company’s markets. The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 reported as “Pass” and loans in risk grades 7 to 10 reported as classified loans in the Company’s ACL analysis. A description of the 10 risk grades is as follows:
● | Grades 1 and 2 - These grades include loans to very high-quality borrowers with excellent or desirable business credit.
● | Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk.
● | Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk.
● | Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term.
● | Grade 7 - This grade is for “Other Assets Especially Mentioned (OAEM)” in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected.
● | Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected.
● | Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable.
● | Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off.
Homogeneous loans are risk rated based upon the Federal Financial Institutions Examination Council’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification Policy, loans that are current or less than 90 days past due are graded “Pass” and risk graded “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” risk graded “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. Management may choose to conservatively risk rate credits even if paying in accordance with the loan’s repayment terms. Commercial real estate, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if current on their loan payment obligations. We regularly review our credits for accuracy of risk grades whenever we receive new information. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk, and complexity. In addition, nonowner-occupied commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly. The following tables summarize risk rated loan balances by category as of December 31, 2023 and 2022. Term loans that are renewed or extended for periods longer than 90 days are presented as new originations in the year of the most recent renewal or extension.
|  | December 31, 2023 |
|  |  |  |  |  |  |  |  | Revolving Loans |  |  |  |  |
REAL ESTATE LOANS |  | Term Loans by Year of Origination |  |  |  |  |  |  | Converted |  |  |  |  |
Commercial |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Revolving Loans |  |  | to Term |  |  | Total Loans |
Pass |  | $ | 48,551 |  |  | $ | 91,144 |  |  | $ | 61,689 |  |  | $ | 46,117 |  |  | $ | 27,957 |  |  | $ | 61,764 |  |  | $ | 499 |  |  | $ | — |  |  | $ | 337,721 |
Watch |  |  | 3,201 |  |  |  | 5,446 |  |  |  | 12,894 |  |  |  | — |  |  |  | 453 |  |  |  | 2,226 |  |  |  | 45 |  |  |  | — |  |  |  | 24,265 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 409 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 409 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,650 |  |  |  | — |  |  |  | 1,957 |  |  |  | — |  |  |  | 326 |  |  |  | 3,933 |
Total commercial |  |  | 51,752 |  |  |  | 96,590 |  |  |  | 74,583 |  |  |  | 47,767 |  |  |  | 28,819 |  |  |  | 65,947 |  |  |  | 544 |  |  |  | 326 |  |  |  | 366,328 |
Construction and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 120,155 |  |  |  | 106,168 |  |  |  | 46,989 |  |  |  | 15,219 |  |  |  | — |  |  |  | 540 |  |  |  | 9,284 |  |  |  | — |  |  |  | 298,355 |
Substandard |  |  | — |  |  |  | 4,699 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,699 |
Total construction and development |  |  | 120,155 |  |  |  | 110,867 |  |  |  | 46,989 |  |  |  | 15,219 |  |  |  | — |  |  |  | 540 |  |  |  | 9,284 |  |  |  | — |  |  |  | 303,054 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 4,583 |  |  |  | 398 |  |  |  | 1,584 |  |  |  | 6,525 |  |  |  | 11 |  |  |  | 2,137 |  |  |  | 54,077 |  |  |  | — |  |  |  | 69,315 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 137 |  |  |  | — |  |  |  | 173 |
Total home equity |  |  | 4,583 |  |  |  | 398 |  |  |  | 1,584 |  |  |  | 6,525 |  |  |  | 11 |  |  |  | 2,173 |  |  |  | 54,214 |  |  |  | — |  |  |  | 69,488 |
Home equity gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10 |  |  |  | — |  |  |  | 10 |
One-to-four-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 103,165 |  |  |  | 175,412 |  |  |  | 122,406 |  |  |  | 80,815 |  |  |  | 30,595 |  |  |  | 52,008 |  |  |  | — |  |  |  | 472 |  |  |  | 564,873 |
Substandard |  |  | — |  |  |  | 866 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,003 |  |  |  | — |  |  |  | — |  |  |  | 2,869 |
Total one-to-four-family |  |  | 103,165 |  |  |  | 176,278 |  |  |  | 122,406 |  |  |  | 80,815 |  |  |  | 30,595 |  |  |  | 54,011 |  |  |  | — |  |  |  | 472 |  |  |  | 567,742 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 7,106 |  |  |  | 20,404 |  |  |  | 91,047 |  |  |  | 42,511 |  |  |  | 37,990 |  |  |  | 24,711 |  |  |  | — |  |  |  | — |  |  |  | 223,769 |
Total multi-family |  |  | 7,106 |  |  |  | 20,404 |  |  |  | 91,047 |  |  |  | 42,511 |  |  |  | 37,990 |  |  |  | 24,711 |  |  |  | — |  |  |  | — |  |  |  | 223,769 |
Total real estate loans |  | $ | 286,761 |  |  | $ | 404,537 |  |  | $ | 336,609 |  |  | $ | 192,837 |  |  | $ | 97,415 |  |  | $ | 147,382 |  |  | $ | 64,042 |  |  | $ | 798 |  |  | $ | 1,530,381 |
|  | December 31, 2023 |
|  |  |  |  |  |  |  |  | Revolving Loans |  |  |  |  |
CONSUMER LOANS |  | Term Loans by Year of Origination |  |  |  |  |  |  | Converted |  |  |  |  |
Indirect home improvement |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Revolving Loans |  |  | to Term |  |  | Total Loans |
Pass |  | $ | 171,208 |  |  | $ | 212,661 |  |  | $ | 93,664 |  |  | $ | 36,032 |  |  | $ | 23,977 |  |  | $ | 30,492 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 568,040 |
Substandard |  |  | 212 |  |  |  | 663 |  |  |  | 448 |  |  |  | 141 |  |  |  | 258 |  |  |  | 141 |  |  |  | — |  |  |  | — |  |  |  | 1,863 |
Total indirect home improvement |  |  | 171,420 |  |  |  | 213,324 |  |  |  | 94,112 |  |  |  | 36,173 |  |  |  | 24,235 |  |  |  | 30,633 |  |  |  | 6 |  |  |  | — |  |  |  | 569,903 |
Indirect home improvement gross charge-offs |  |  | 204 |  |  |  | 1,386 |  |  |  | 567 |  |  |  | 290 |  |  |  | 145 |  |  |  | 336 |  |  |  | — |  |  |  | — |  |  |  | 2,928 |
Marine |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 13,619 |  |  |  | 23,963 |  |  |  | 9,987 |  |  |  | 13,082 |  |  |  | 5,267 |  |  |  | 7,050 |  |  |  | — |  |  |  | — |  |  |  | 72,968 |
Substandard |  |  | — |  |  |  | — |  |  |  | 52 |  |  |  | 85 |  |  |  | — |  |  |  | 205 |  |  |  | — |  |  |  | — |  |  |  | 342 |
Total marine |  |  | 13,619 |  |  |  | 23,963 |  |  |  | 10,039 |  |  |  | 13,167 |  |  |  | 5,267 |  |  |  | 7,255 |  |  |  | — |  |  |  | — |  |  |  | 73,310 |
Marine gross charge-offs |  |  | — |  |  |  | 47 |  |  |  | 93 |  |  |  | — |  |  |  | 7 |  |  |  | 256 |  |  |  | — |  |  |  | — |  |  |  | 403 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 309 |  |  |  | 559 |  |  |  | 175 |  |  |  | 69 |  |  |  | 3 |  |  |  | 159 |  |  |  | 2,258 |  |  |  | — |  |  |  | 3,532 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8 |  |  |  | — |  |  |  | 8 |
Total other consumer |  |  | 309 |  |  |  | 559 |  |  |  | 175 |  |  |  | 69 |  |  |  | 3 |  |  |  | 159 |  |  |  | 2,266 |  |  |  | — |  |  |  | 3,540 |
Other consumer gross charge-offs |  |  | — |  |  |  | 2 |  |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 120 |  |  |  | — |  |  |  | 134 |
Total consumer loans |  | $ | 185,348 |  |  | $ | 237,846 |  |  | $ | 104,326 |  |  | $ | 49,409 |  |  | $ | 29,505 |  |  | $ | 38,047 |  |  | $ | 2,272 |  |  | $ | — |  |  | $ | 646,753 |
|  | December 31, 2023 |
COMMERCIAL |  |  |  |  |  |  |  |  | Revolving Loans |  |  |  |  |
BUSINESS LOANS |  | Term Loans by Year of Origination |  |  |  |  |  |  | Converted |  |  |  |  |
C&I |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Revolving Loans |  |  | to Term |  |  | Total Loans |
Pass |  | $ | 13,971 |  |  | $ | 32,334 |  |  | $ | 19,634 |  |  | $ | 11,537 |  |  | $ | 5,122 |  |  | $ | 9,707 |  |  | $ | 119,844 |  |  | $ | 145 |  |  | $ | 212,294 |
Watch |  |  | 2,322 |  |  |  | — |  |  |  | 1,382 |  |  |  | 2,366 |  |  |  | — |  |  |  | 953 |  |  |  | 5,754 |  |  |  | — |  |  |  | 12,777 |
Special mention |  |  | 143 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 498 |  |  |  | 253 |  |  |  | 1,345 |  |  |  | — |  |  |  | 2,239 |
Substandard |  |  | 2,940 |  |  |  | — |  |  |  | 2,321 |  |  |  | 1,391 |  |  |  | 1,766 |  |  |  | 169 |  |  |  | 2,005 |  |  |  | — |  |  |  | 10,592 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 399 |  |  |  | — |  |  |  | 399 |
Total C&I |  |  | 19,376 |  |  |  | 32,334 |  |  |  | 23,337 |  |  |  | 15,294 |  |  |  | 7,386 |  |  |  | 11,082 |  |  |  | 129,347 |  |  |  | 145 |  |  |  | 238,301 |
C&I gross charge-offs |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Warehouse lending |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,003 |  |  |  | — |  |  |  | 17,003 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 577 |  |  |  | — |  |  |  | 577 |
Total warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,580 |  |  |  | — |  |  |  | 17,580 |
Total commercial business loans |  | $ | 19,376 |  |  | $ | 32,334 |  |  | $ | 23,337 |  |  | $ | 15,294 |  |  | $ | 7,386 |  |  | $ | 11,082 |  |  | $ | 146,927 |  |  | $ | 145 |  |  | $ | 255,881 |
TOTAL LOANS RECEIVABLE, GROSS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 482,667 |  |  | $ | 663,043 |  |  | $ | 447,175 |  |  | $ | 251,907 |  |  | $ | 130,922 |  |  | $ | 188,568 |  |  | $ | 202,971 |  |  | $ | 617 |  |  | $ | 2,367,870 |
Watch |  |  | 5,523 |  |  |  | 5,446 |  |  |  | 14,276 |  |  |  | 2,366 |  |  |  | 453 |  |  |  | 3,179 |  |  |  | 6,376 |  |  |  | — |  |  |  | 37,619 |
Special mention |  |  | 143 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 907 |  |  |  | 253 |  |  |  | 1,345 |  |  |  | — |  |  |  | 2,648 |
Substandard |  |  | 3,152 |  |  |  | 6,228 |  |  |  | 2,821 |  |  |  | 3,267 |  |  |  | 2,024 |  |  |  | 4,511 |  |  |  | 2,150 |  |  |  | 326 |  |  |  | 24,479 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 399 |  |  |  | — |  |  |  | 399 |
Total loans receivable, gross |  | $ | 491,485 |  |  | $ | 674,717 |  |  | $ | 464,272 |  |  | $ | 257,540 |  |  | $ | 134,306 |  |  | $ | 196,511 |  |  | $ | 213,241 |  |  | $ | 943 |  |  | $ | 2,433,015 |
Total gross charge-offs |  | $ | 204 |  |  | $ | 1,435 |  |  | $ | 673 |  |  | $ | 290 |  |  | $ | 152 |  |  | $ | 592 |  |  | $ | 130 |  |  | $ | — |  |  | $ | 3,476 |
|  | December 31, 2022 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving Loans |  |  |  |  |
REAL ESTATE LOANS |  | Term Loans by Year of Origination |  |  |  |  |  |  | Converted |  |  |  |  |
Commercial |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Revolving Loans |  |  | to Term |  |  | Total Loans |
Pass |  | $ | 86,189 |  |  | $ | 76,030 |  |  | $ | 46,125 |  |  | $ | 38,930 |  |  | $ | 14,101 |  |  | $ | 55,271 |  |  | $ | — |  |  | $ | — |  |  | $ | 316,646 |
Watch |  |  | 9,504 |  |  |  | — |  |  |  | 373 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,877 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,113 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,113 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 581 |  |  |  | 4,842 |  |  |  | — |  |  |  | — |  |  |  | 5,423 |
Total commercial |  |  | 95,693 |  |  |  | 76,030 |  |  |  | 46,498 |  |  |  | 41,043 |  |  |  | 14,682 |  |  |  | 60,113 |  |  |  | — |  |  |  | — |  |  |  | 334,059 |
Construction and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 193,084 |  |  |  | 118,724 |  |  |  | 21,966 |  |  |  | 8,379 |  |  |  | — |  |  |  | 438 |  |  |  | — |  |  |  | — |  |  |  | 342,591 |
Total construction and development |  |  | 193,084 |  |  |  | 118,724 |  |  |  | 21,966 |  |  |  | 8,379 |  |  |  | — |  |  |  | 438 |  |  |  | — |  |  |  | — |  |  |  | 342,591 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 4,978 |  |  |  | 1,696 |  |  |  | 6,818 |  |  |  | 11 |  |  |  | 1,203 |  |  |  | 1,572 |  |  |  | 39,063 |  |  |  | — |  |  |  | 55,341 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 13 |  |  |  | 33 |  |  |  | — |  |  |  | — |  |  |  | 46 |
Total home equity |  |  | 4,978 |  |  |  | 1,696 |  |  |  | 6,818 |  |  |  | 11 |  |  |  | 1,216 |  |  |  | 1,605 |  |  |  | 39,063 |  |  |  | — |  |  |  | 55,387 |
One-to-four-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 166,388 |  |  |  | 129,282 |  |  |  | 82,461 |  |  |  | 31,878 |  |  |  | 15,837 |  |  |  | 40,526 |  |  |  | — |  |  |  | 199 |  |  |  | 466,571 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,941 |  |  |  | 973 |  |  |  | — |  |  |  | — |  |  |  | 2,914 |
Total one-to-four-family |  |  | 166,388 |  |  |  | 129,282 |  |  |  | 82,461 |  |  |  | 31,878 |  |  |  | 17,778 |  |  |  | 41,499 |  |  |  | — |  |  |  | 199 |  |  |  | 469,485 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 41,041 |  |  |  | 63,353 |  |  |  | 48,376 |  |  |  | 38,805 |  |  |  | 4,176 |  |  |  | 23,987 |  |  |  | — |  |  |  | — |  |  |  | 219,738 |
Total multi-family |  |  | 41,041 |  |  |  | 63,353 |  |  |  | 48,376 |  |  |  | 38,805 |  |  |  | 4,176 |  |  |  | 23,987 |  |  |  | — |  |  |  | — |  |  |  | 219,738 |
Total real estate loans |  | $ | 501,184 |  |  | $ | 389,085 |  |  | $ | 206,119 |  |  | $ | 120,116 |  |  | $ | 37,852 |  |  | $ | 127,642 |  |  | $ | 39,063 |  |  | $ | 199 |  |  | $ | 1,421,260 |
|  | December 31, 2022 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving Loans |  |  |  |  |
CONSUMER LOANS |  | Term Loans by Year of Origination |  |  |  |  |  |  | Converted |  |  |  |  |
Indirect home improvement |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Revolving Loans |  |  | to Term |  |  | Total Loans |
Pass |  | $ | 253,495 |  |  | $ | 123,264 |  |  | $ | 46,476 |  |  | $ | 31,251 |  |  | $ | 18,165 |  |  | $ | 22,205 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 494,865 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | 347 |  |  |  | 213 |  |  |  | 137 |  |  |  | 62 |  |  |  | 169 |  |  |  | 148 |  |  |  | — |  |  |  | — |  |  |  | 1,076 |
Total indirect home improvement |  |  | 253,842 |  |  |  | 123,477 |  |  |  | 46,613 |  |  |  | 31,313 |  |  |  | 18,334 |  |  |  | 22,353 |  |  |  | 9 |  |  |  | — |  |  |  | 495,941 |
Marine |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 27,904 |  |  |  | 11,762 |  |  |  | 15,139 |  |  |  | 6,224 |  |  |  | 5,415 |  |  |  | 3,856 |  |  |  | — |  |  |  | — |  |  |  | 70,300 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 151 |  |  |  | 61 |  |  |  | 55 |  |  |  | — |  |  |  | — |  |  |  | 267 |
Total marine |  |  | 27,904 |  |  |  | 11,762 |  |  |  | 15,139 |  |  |  | 6,375 |  |  |  | 5,476 |  |  |  | 3,911 |  |  |  | — |  |  |  | — |  |  |  | 70,567 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 792 |  |  |  | 754 |  |  |  | 116 |  |  |  | 48 |  |  |  | 14 |  |  |  | 80 |  |  |  | 1,251 |  |  |  | — |  |  |  | 3,055 |
Substandard |  |  | 1 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | 9 |
Total other consumer |  |  | 793 |  |  |  | 759 |  |  |  | 116 |  |  |  | 48 |  |  |  | 14 |  |  |  | 80 |  |  |  | 1,254 |  |  |  | — |  |  |  | 3,064 |
Total consumer loans |  | $ | 282,539 |  |  | $ | 135,998 |  |  | $ | 61,868 |  |  | $ | 37,736 |  |  | $ | 23,824 |  |  | $ | 26,344 |  |  | $ | 1,263 |  |  | $ | — |  |  | $ | 569,572 |
|  | December 31, 2022 |
COMMERCIAL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving Loans |  |  |  |  |
BUSINESS LOANS |  | Term Loans by Year of Origination |  |  |  |  |  |  | Converted |  |  |  |  |
C&I |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Revolving Loans |  |  | to Term |  |  | Total Loans |
Pass |  | $ | 24,337 |  |  | $ | 22,561 |  |  | $ | 12,461 |  |  | $ | 3,940 |  |  | $ | 3,074 |  |  | $ | 7,701 |  |  | $ | 104,524 |  |  | $ | — |  |  | $ | 178,598 |
Watch |  |  | — |  |  |  | 1,127 |  |  |  | 2,932 |  |  |  | — |  |  |  | — |  |  |  | 746 |  |  |  | 1,327 |  |  |  | — |  |  |  | 6,132 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 634 |  |  |  | — |  |  |  | — |  |  |  | 963 |  |  |  | — |  |  |  | 1,597 |
Substandard |  |  | — |  |  |  | 1,586 |  |  |  | 1,265 |  |  |  | 2,291 |  |  |  | 190 |  |  |  | 3,739 |  |  |  | 1,093 |  |  |  | 300 |  |  |  | 10,464 |
Total C&I |  |  | 24,337 |  |  |  | 25,274 |  |  |  | 16,658 |  |  |  | 6,865 |  |  |  | 3,264 |  |  |  | 12,186 |  |  |  | 107,907 |  |  |  | 300 |  |  |  | 196,791 |
Warehouse lending |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,227 |  |  |  | — |  |  |  | 31,227 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 2 |
Total warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,229 |  |  |  | — |  |  |  | 31,229 |
Total commercial business loans |  | $ | 24,337 |  |  | $ | 25,274 |  |  | $ | 16,658 |  |  | $ | 6,865 |  |  | $ | 3,264 |  |  | $ | 12,186 |  |  | $ | 139,136 |  |  | $ | 300 |  |  | $ | 228,020 |
TOTAL LOANS RECEIVABLE, GROSS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 798,208 |  |  | $ | 547,426 |  |  | $ | 279,938 |  |  | $ | 159,466 |  |  | $ | 61,985 |  |  | $ | 155,636 |  |  | $ | 176,074 |  |  | $ | 199 |  |  | $ | 2,178,932 |
Watch |  |  | 9,504 |  |  |  | 1,127 |  |  |  | 3,305 |  |  |  | — |  |  |  | — |  |  |  | 746 |  |  |  | 1,329 |  |  |  | — |  |  |  | 16,011 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,747 |  |  |  | — |  |  |  | — |  |  |  | 963 |  |  |  | — |  |  |  | 3,710 |
Substandard |  |  | 348 |  |  |  | 1,804 |  |  |  | 1,402 |  |  |  | 2,504 |  |  |  | 2,955 |  |  |  | 9,790 |  |  |  | 1,096 |  |  |  | 300 |  |  |  | 20,199 |
Total loans receivable, gross |  | $ | 808,060 |  |  | $ | 550,357 |  |  | $ | 284,645 |  |  | $ | 164,717 |  |  | $ | 64,940 |  |  | $ | 166,172 |  |  | $ | 179,462 |  |  | $ | 499 |  |  | $ | 2,218,852 |
The following table presents the amortized cost basis of loans on nonaccrual status at the dates indicated:
|  | December 31, 2023 |  |  | December 31, 2022 |
|  | Nonaccrual with |  |  | Nonaccrual with |  |  | Total |  |  | Nonaccrual with |  |  | Nonaccrual with |  |  | Total |
REAL ESTATE LOANS |  | No ACL |  |  | ACL |  |  | Nonaccrual |  |  | No ACL |  |  | ACL |  |  | Nonaccrual |
Commercial |  | $ | 1,088 |  |  | $ | — |  |  | $ | 1,088 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction and development |  |  | — |  |  |  | 4,699 |  |  |  | 4,699 |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | 173 |  |  |  | — |  |  |  | 173 |  |  |  | 46 |  |  |  | — |  |  |  | 46 |
One-to-four-family |  |  | 96 |  |  |  | — |  |  |  | 96 |  |  |  | 920 |  |  |  | — |  |  |  | 920 |
|  |  | 1,357 |  |  |  | 4,699 |  |  |  | 6,056 |  |  |  | 966 |  |  |  | — |  |  |  | 966 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | — |  |  |  | 1,863 |  |  |  | 1,863 |  |  |  | — |  |  |  | 1,076 |  |  |  | 1,076 |
Marine |  |  | — |  |  |  | 342 |  |  |  | 342 |  |  |  | — |  |  |  | 267 |  |  |  | 267 |
Other consumer |  |  | — |  |  |  | 8 |  |  |  | 8 |  |  |  | — |  |  |  | 9 |  |  |  | 9 |
|  |  | — |  |  |  | 2,213 |  |  |  | 2,213 |  |  |  | — |  |  |  | 1,352 |  |  |  | 1,352 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | — |  |  |  | 2,683 |  |  |  | 2,683 |  |  |  | — |  |  |  | 6,334 |  |  |  | 6,334 |
Total |  | $ | 1,357 |  |  | $ | 9,595 |  |  | $ | 10,952 |  |  | $ | 966 |  |  | $ | 7,686 |  |  | $ | 8,652 |
The Company recognized interest income on a cash basis for nonaccrual loans of $579,000, $506,000, and $351,000 during the years ended December 31, 2023, 2022, and 2021, respectively. The following table presents the amortized cost basis of collateral dependent loans by class of loans as of dates indicated:
|  | December 31, 2023 |  |  | December 31, 2022 |
|  |  |  |  |  |  |  |  |  | Other |  |  |  |  |  |  |  |  |  |  | Other |  |  |  |  |
|  | Commercial |  |  | Residential |  |  | Non-Real |  |  |  |  |  |  | Residential |  |  | Non-Real |  |  |  |  |
REAL ESTATE LOANS |  | Real Estate |  |  | Real Estate |  |  | Estate |  |  | Total |  |  | Real Estate |  |  | Estate |  |  | Total |
Commercial |  | $ | 1,088 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,088 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction and development |  |  | 4,699 |  |  |  | — |  |  |  | — |  |  |  | 4,699 |  |  |  | — |  |  |  | — |  |  |  | — |
Home equity |  |  | — |  |  |  | 173 |  |  |  | — |  |  |  | 173 |  |  |  | 46 |  |  | $ | — |  |  | $ | 46 |
One-to-four-family |  |  | — |  |  |  | 96 |  |  |  | — |  |  |  | 96 |  |  |  | 920 |  |  |  | — |  |  |  | 920 |
|  |  | 5,787 |  |  |  | 269 |  |  |  | — |  |  |  | 6,056 |  |  |  | 966 |  |  |  | — |  |  |  | 966 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | — |  |  |  | — |  |  |  | 1,863 |  |  |  | 1,863 |  |  |  | — |  |  |  | 1,076 |  |  |  | 1,076 |
Marine |  |  | — |  |  |  | — |  |  |  | 342 |  |  |  | 342 |  |  |  | — |  |  |  | 267 |  |  |  | 267 |
|  |  | — |  |  |  | — |  |  |  | 2,205 |  |  |  | 2,205 |  |  |  | — |  |  |  | 1,343 |  |  |  | 1,343 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | — |  |  |  | — |  |  |  | 2,683 |  |  |  | 2,683 |  |  |  | — |  |  |  | 6,334 |  |  |  | 6,334 |
Total |  | $ | 5,787 |  |  | $ | 269 |  |  | $ | 4,888 |  |  | $ | 10,944 |  |  | $ | 966 |  |  | $ | 7,677 |  |  | $ | 8,643 |
Related Party Loans Certain directors and executive officers or their related affiliates are customers of and have had banking transactions with the Company. Total loans to directors, executive officers, and their affiliates are subject to regulatory limitations. Outstanding loan balances of related party loans were as follows and were within regulatory limitations:
|  | At December 31, |
|  | 2023 |  |  | 2022 |
Beginning balance |  | $ | 3,445 |  |  | $ | 4,207 |
Additions |  |  | — |  |  |  | — |
Repayments |  |  | (102 | ) |  |  | (762 | )
Ending balance |  | $ | 3,343 |  |  | $ | 3,445 |
The aggregate maximum loan balance of extended credit to related parties was $3.7 million and $3.4 million at December 31, 2023 and 2022, respectively, and includes the ending balances from the tables above. These loans and lines of credit were made in compliance with applicable laws on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with unrelated third parties and do not involve more than the normal risk of collectability.

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