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Note 3 - Loans Receivable and Allowance for Credit Losses - Loans - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Assets [Abstract]

Interest Receivable

$ 13,792

$ 14,005

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE 3 – LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES – LOANS

The composition of the loan portfolio was as follows at the dates indicated:

		June 30,				December 31,
REAL ESTATE LOANS		2024				2023
Commercial ("CRE")		$	359,404			$	366,328
Construction and development			274,209				303,054
Home equity			73,749				69,488
One-to-four-family (excludes loans held for sale)			588,966				567,742
Multi-family			239,675				223,769
Total real estate loans			1,536,003				1,530,381
CONSUMER LOANS
Indirect home improvement			563,621				569,903
Marine			74,627				73,310
Other consumer			3,440				3,540
Total consumer loans			641,688				646,753
COMMERCIAL BUSINESS LOANS
Commercial and industrial ("C&I")			285,183				238,301
Warehouse lending			25,548				17,580
Total commercial business loans			310,731				255,881
Total loans receivable, gross			2,488,422				2,433,015
ACL on loans			(31,238	)			(31,534	)
Total loans receivable, net		$	2,457,184			$	2,401,481

Loan amounts are net of unearned loan fees in excess of unamortized costs and premiums of $7.2 million as of June 30, 2024 and $8.4 million as of December 31, 2023. Net loans include unamortized net discounts on acquired loans of $2.2 million and $2.6 million as of June 30, 2024 and December 31, 2023, respectively. Net loans do not include accrued interest receivable. Accrued interest receivable on loans was $11.8 million and $11.5 million as of June 30, 2024 and December 31, 2023, respectively, and was reported in “Accrued interest receivable” on the Consolidated Balance Sheets.

Most of the Company’s CRE and multi-family real estate, construction, residential, and/or commercial business lending activities are with customers located in Western Washington, the Oregon Coast, and near our loan production offices in Vancouver 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 New Hampshire. 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 June 30, 2024, the Bank held approximately $1.11 billion in loans that are pledged as collateral for FHLB advances, compared to approximately $1.07 billion at December 31, 2023. The Bank held approximately $627.1 million in loans that are pledged as collateral for the Federal Reserve Bank of San Francisco (the “FRB”) line of credit at June 30, 2024, compared to approximately $631.1 million at December 31, 2023.

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, (b) consumer, and (c) commercial business. 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

CRE 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 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

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 C&I loans purchased by the Company are outside of the greater Puget Sound market area. C&I loans are made based on the borrower’s ability to make repayment from the cash flow of the borrower’s business. Certain C&I loans also include SBA/USDA guaranteed certificates of $35.2 million at June 30, 2024, compared to $10.6 million at December 31, 2023.

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 the first six months of 2024 were increases in the loan portfolio, as well as an increase in nonperforming loans, and higher net charge-offs.

The following tables detail activity in the ACL on loans by loan categories at or for the three and six months ended June 30, 2024 and 2023:

		At or For the Three Months Ended June 30, 2024
		Real								Commercial
ACL ON LOANS		Estate				Consumer				Business				Unallocated				Total
Beginning balance		$	14,253			$	12,933			$	4,293			$	—			$	31,479
(Reversal of) provision for credit losses on loans			(165	)			914				252				—				1,001
Charge-offs			—				(1,015	)			(733	)			—				(1,748	)
Recoveries			—				421				85				—				506
Net charge-offs			—				(594	)			(648	)			—				(1,242	)
Total ending ACL balance		$	14,088			$	13,253			$	3,897			$	—			$	31,238

		At or For the Three Months Ended June 30, 2023
		Real								Commercial
ACL ON LOANS		Estate				Consumer				Business				Unallocated				Total
Beginning balance		$	12,572			$	13,401			$	3,964			$	—			$	29,937
(Reversal of) provision for credit losses on loans			(265	)			1,266				62				—				1,063
Charge-offs			—				(876	)			—				—				(876	)
Recoveries			—				226				—				—				226
Net charge-offs			—				(650	)			—				—				(650	)
Total ending ACL balance		$	12,307			$	14,017			$	4,026			$	—			$	30,350

		At or For the Six Months Ended June 30, 2024
		Real								Commercial
ACL ON LOANS		Estate				Consumer				Business				Unallocated				Total
Beginning balance		$	14,107			$	13,357			$	4,070			$	—			$	31,534
(Reversal of) provision for credit losses on loans			(19	)			1,558				883				—				2,422
Charge-offs			—				(2,501	)			(1,141	)			—				(3,642	)
Recoveries			—				839				85				—				924
Net Charge-offs			—				(1,662	)			(1,056	)			—				(2,718	)
Total ending ACL balance		$	14,088			$	13,253			$	3,897			$	—			$	31,238

		At or For the Six Months Ended June 30, 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			194				2,957				267				—				3,418
Charge-offs			(10	)			(1,585	)			(1	)			—				(1,596	)
Recoveries			—				536				—				—				536
Net charge-offs			(10	)			(1,049	)			(1	)			—				(1,060	)
Total ending ACL balance		$	12,307			$	14,017			$	4,026			$	—			$	30,350

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, an other-than-insignificant payment delay, or a combination thereof. The Company typically does not offer principal forgiveness. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans because of the measurement methodologies used to estimate the allowance.

The following tables present the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty at the end of the reporting periods by loan class and modification type.

		Payment Deferral
		Amortized Cost				% of Total Loan
June 30, 2024		Basis				Type			Financial Effect
CRE		$	1,116				0.3	%	Deferred payments and capitalized interest for a weighted-average period of 2.0 years.

December 31, 2023
CRE		$	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.

At June 30, 2024 and December 31, 2023, the loans were in compliance with their modified terms and were classified as current. For the three and six months ended June 30, 2024 and 2023, no loans experienced a default subsequent to being granted a modification in the last twelve months. There were no unfunded commitments associated with loans modified for borrowers experiencing financial distress as of June 30, 2024.

Nonaccrual and Past Due Loans

The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans at June 30, 2024 and December 31, 2023:

		June 30, 2024
		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⁾
CRE		$	—			$	323			$	—			$	323			$	359,081			$	359,404			$	1,116
Construction and development			—				—				4,737				4,737				269,472				274,209				4,737
Home equity			24				—				156				180				73,569				73,749				156
One-to-four-family			78				—				—				78				588,888				588,966				170
Multi-family			—				—				—				—				239,675				239,675				—
Total real estate loans			102				323				4,893				5,318				1,530,685				1,536,003				6,179
CONSUMER LOANS
Indirect home improvement			2,265				1,041				901				4,207				559,414				563,621				2,319
Marine			181				239				85				505				74,122				74,627				327
Other consumer			5				5				5				15				3,425				3,440				6
Total consumer loans			2,451				1,285				991				4,727				636,961				641,688				2,652
COMMERCIAL BUSINESS LOANS
C&I			—				—				1,701				1,701				283,482				285,183				2,575
Warehouse lending			—				—				—				—				25,548				25,548				—
Total commercial business loans			—				—				1,701				1,701				309,030				310,731				2,575
Total loans		$	2,553			$	1,608			$	7,585			$	11,746			$	2,476,676			$	2,488,422			$	11,406

		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⁾
CRE		$	—			$	—			$	—			$	—			$	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

(1)

Includes loans less than 90 days past due as applicable.

There were no loans 90 days or more past due and still accruing interest at both June 30, 2024 and December 31, 2023.

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) non-performing 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”)” or “Special Mention” 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 and Account Management Policy, loans that are current or less than 90 days past due are graded “Pass” and risk rated “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” and 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.

CRE, 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 CRE 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 and total current period gross charge-offs by category, as of the dates indicated. Term loans that were renewed or extended for periods longer than 90 days are presented as new originations in the year of the most recent renewal or extension.

		June 30, 2024
																														Revolving Loans
REAL ESTATE LOANS		Term Loans by Year of Origination																												Converted
CRE		2024				2023				2022				2021				2020				Prior				Revolving Loans				to Term				Total Loans
Pass		$	13,315			$	47,571			$	84,920			$	58,041			$	44,659			$	76,866			$	—			$	769			$	326,141
Watch			—				3,168				10,793				12,776				—				2,199				—				—				28,936
Special mention			—				—				—				—				—				401				—				—				401
Substandard			—				—				—				—				1,631				2,295				—				—				3,926
Total CRE			13,315				50,739				95,713				70,817				46,290				81,761				—				769				359,404
Construction and development
Pass			67,600				111,041				45,515				33,272				747				508				10,311				—				268,994
Watch			—				—				—				478				—				—				—				—				478
Substandard			—				—				4,737				—				—				—				—				—				4,737
Total construction and development			67,600				111,041				50,252				33,750				747				508				10,311				—				274,209
Home equity
Pass			6,570				2,796				374				1,561				6,089				1,806				54,328				69				73,593
Substandard			—				—				—				—				—				15				141				—				156
Total home equity			6,570				2,796				374				1,561				6,089				1,821				54,469				69				73,749
One-to-four-family
Pass			33,629				103,630				175,294				118,545				79,405				75,609				—				—				586,112
Substandard			—				—				792				—				—				2,062				—				—				2,854
Total one-to-four-family			33,629				103,630				176,086				118,545				79,405				77,671				—				—				588,966
Multi-family
Pass			93				7,069				20,253				90,611				60,311				61,338				—				—				239,675
Total multi-family			93				7,069				20,253				90,611				60,311				61,338				—				—				239,675
Total real estate loans		$	121,207			$	275,275			$	342,678			$	315,284			$	192,842			$	223,099			$	64,780			$	838			$	1,536,003

		June 30, 2024
																														Revolving Loans
CONSUMER LOANS		Term Loans by Year of Origination																												Converted
Indirect home improvement		2024				2023				2022				2021				2020				Prior				Revolving Loans				to Term				Total Loans
Pass		$	58,842			$	150,237			$	189,391			$	83,787			$	31,830			$	47,213			$	2			$	—			$	561,302
Substandard			42				534				795				515				214				219				—				—				2,319
Total indirect home improvement			58,884				150,771				190,186				84,302				32,044				47,432				2				—				563,621
Indirect home improvement gross charge-offs			38				480				721				219				225				306				—				—				1,989
Marine
Pass			7,798				12,440				21,823				9,240				12,119				10,880				—				—				74,300
Substandard			—				—				—				—				41				286				—				—				327
Total marine			7,798				12,440				21,823				9,240				12,160				11,166				—				—				74,627
Marine gross charge-offs			—				21				128				51				83				105				—				—				388
Other consumer
Pass			120				186				433				105				51				139				2,400				—				3,434
Substandard			—				—				1				—				—				—				5				—				6
Total other consumer			120				186				434				105				51				139				2,405				—				3,440
Other consumer gross charge-offs			—				33				6				—				—				24				61				—				124
Total consumer loans		$	66,802			$	163,397			$	212,443			$	93,647			$	44,255			$	58,737			$	2,407			$	—			$	641,688

		June 30, 2024
COMMERCIAL																														Revolving Loans
BUSINESS LOANS		Term Loans by Year of Origination																												Converted
C&I		2024				2023				2022				2021				2020				Prior				Revolving Loans				to Term				Total Loans
Pass		$	32,106			$	22,395			$	31,209			$	17,593			$	10,159			$	11,716			$	128,359			$	744			$	254,281
Watch			—				4,978				—				743				2,082				502				10,711				—				19,016
Special mention			—				—				—				565				—				654				713				—				1,932
Substandard			—				2,718				—				2,280				1,290				1,552				2,114				—				9,954
Total C&I			32,106				30,091				31,209				21,181				13,531				14,424				141,897				744				285,183
C&I gross charge-offs			—				—				—				—				—				380				761				—				1,141
Warehouse lending
Pass			—				—				—				—				—				—				22,287				—				22,287
Special mention			—				—				—				—				—				—				3,261				—				3,261
Total warehouse lending			—				—				—				—				—				—				25,548				—				25,548
Total commercial business loans		$	32,106			$	30,091			$	31,209			$	21,181			$	13,531			$	14,424			$	167,445			$	744			$	310,731

TOTAL LOANS RECEIVABLE, GROSS
Pass		$	220,073			$	457,365			$	569,212			$	412,755			$	245,370			$	286,075			$	217,687			$	1,582			$	2,410,119
Watch			—				8,146				10,793				13,997				2,082				2,701				10,711				—				48,430
Special mention			—				—				—				565				—				1,055				3,974				—				5,594
Substandard			42				3,252				6,325				2,795				3,176				6,429				2,260				—				24,279
Total loans receivable, gross		$	220,115			$	468,763			$	586,330			$	430,112			$	250,628			$	296,260			$	234,632			$	1,582			$	2,488,422
Total gross charge-offs		$	38			$	534			$	855			$	270			$	308			$	815			$	822			$	—			$	3,642

		December 31, 2023
																														Revolving Loans
REAL ESTATE LOANS		Term Loans by Year of Origination																												Converted
CRE		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 CRE			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

The following table presents the amortized cost basis of loans on nonaccrual status as of the dates indicated:

		June 30, 2024												December 31, 2023
		Nonaccrual with				Nonaccrual with				Total				Nonaccrual with				Nonaccrual with				Total
REAL ESTATE LOANS		No ACL				ACL				Nonaccrual				No ACL				ACL				Nonaccrual
CRE		$	1,116			$	—			$	1,116			$	1,088			$	—			$	1,088
Construction and development			—				4,737				4,737				—				4,699				4,699
Home equity			156				—				156				173				—				173
One-to-four-family			170				—				170				96				—				96
			1,442				4,737				6,179				1,357				4,699				6,056
CONSUMER LOANS
Indirect home improvement			—				2,319				2,319				—				1,863				1,863
Marine			—				327				327				—				342				342
Other consumer			—				6				6				—				8				8
			—				2,652				2,652				—				2,213				2,213
COMMERCIAL BUSINESS LOANS
C&I			263				2,312				2,575				—				2,683				2,683
Total		$	1,705			$	9,701			$	11,406			$	1,357			$	9,595			$	10,952

The Company recognized interest income on a cash basis for nonaccrual loans of $92,000 and $106,000 during the three months ended June 30, 2024 and 2023, and $203,000 and $168,000 during the six months ended June 30, 2024 and 2023,respectively.

The following table presents the amortized cost basis of collateral dependent loans by class of loans as of the dates indicated:

		June 30, 2024																December 31, 2023
		Commercial				Residential				Other								Commercial				Residential				Other
REAL ESTATE LOANS		Real Estate				Real Estate				Non-Real Estate				Total				Real Estate				Real Estate				Non-Real Estate				Total
CRE		$	1,116			$	—			$	—			$	1,116			$	1,088			$	—			$	—			$	1,088
Construction and development			4,737				—				—				4,737				4,699				—								4,699
Home equity			—				156				—				156				—				173				—				173
One-to-four-family			—				170				—				170				—				96				—				96
			5,853				326				—				6,179				5,787				269				—				6,056
CONSUMER LOANS
Indirect home improvement			—				—				2,319				2,319				—				—				1,863				1,863
Marine			—				—				327				327				—				—				342				342
			—				—				2,646				2,646				—				—				2,205				2,205
COMMERCIAL BUSINESS LOANS
C&I			—				—				2,575				2,575				—				—				2,683				2,683
Total		$	5,853			$	326			$	5,221			$	11,400			$	5,787			$	269			$	4,888			$	10,944