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LOANS (Tables)

3 Months Ended

Mar. 31, 2024

LOANS

Major Classifications of Loans


(in thousands)	March 31, 2024			December 31, 2023
Residential real estate	$	756,896		$	714,843
Multi-family		568,043			572,849
Commercial real estate		546,572			548,012
Commercial and industrial		123,419			107,912
Construction and land development		10,136			13,170
Consumer		449			413
Total loans		2,005,515			1,957,199
Allowance for credit losses		(19,873)			(19,658)
Total loans, net	$	1,985,642		$	1,937,541

Activity in Allowance for Loan Losses by Portfolio Segment


		Three Months Ended March 31, 2024
											Commercial			Construction
		Residential			Multi-			Commercial			and			and Land
		Real Estate			Family			Real Estate			Industrial			Development			Consumer
		Loans			Loans			Loans			Loans			Loans			Loans			Total
(in thousands)
Allowance for credit losses:
Beginning balance		$	5,001		$	4,671		$	8,390		$	1,419		$	122		$	55		$	19,658
Charge-offs			—			—			(30)			(60)			—			—			(90)
Recoveries			—			—			—			5			—			—			5
Provision for credit losses			276			(454)			219			279			(25)			5			300
Ending balance		$	5,277		$	4,217		$	8,579		$	1,643		$	97		$	60		$	19,873


		Three Months Ended March 31, 2023
											Commercial			Construction
		Residential			Multi-			Commercial			and			and Land
		Real Estate			Family			Real Estate			Industrial			Development			Consumer
		Loans			Loans			Loans			Loans			Loans			Loans			Total
(in thousands)
Allowance for loan losses:
Beginning balance		$	4,508		$	5,697		$	3,234		$	852		$	104		$	9		$	14,404
Charge-offs			—			—			—			(457)			—			—			(457)
Recoveries			—			—			—			—			—			—			—
Provision for loan losses			156			(382)			10			1,130			9			9			932
Ending balance		$	4,664		$	5,315		$	3,244		$	1,525		$	113		$	18		$	14,879

Allowance for Credit Loss for unfunded Commitments


		Three Months Ended March 31,
(in thousands)		2024			2023
Balance at beginning of period		$	124		$	170
Provision for credit losses on unfunded commitments			140			—
Balance at end of period		$	264		$	170

Recorded Investment of Loans on Nonaccrual Status and Loans Past Due


		March 31, 2024
		Nonaccrual						Loans Past
		With No						Due Over
		Allowance						89 Days
(in thousands)		for Credit Loss			Nonaccrual			Still Accruing
Residential real estate		$	4,385		$	4,385		$	—
Multi-family			3,383			3,383			—
Commercial real estate			6,086			6,110			3,010
Commercial and industrial			1,000			1,000			—
Construction and land development			—			—			—
Consumer			—			—			—
Total		$	14,854		$	14,878		$	3,010


		December 31, 2023
		Nonaccrual						Loans Past
		With No						Due Over
		Allowance						89 Days
(in thousands)		for Credit Loss			Nonaccrual			Still Accruing
Residential real estate		$	4,369		$	4,369		$	—
Multi-family			1,794			3,374			—
Commercial real estate			5,976			6,000			—
Commercial and industrial			708			708			—
Construction and land development			—			—			—
Consumer			—			—			—
Total		$	12,847		$	14,451		$	—

Amortized Cost Basis and Related Allowance for Credit Loss of Individually Analyzed Loans Considered as Collateral Dependent


		March 31, 2024
(in thousands)		Amortized Cost Basis			Related Allowance

Residential real estate ⁽¹⁾		$	4,222		$	—
Multi-family⁽²⁾			3,358			—
Commercial real estate ⁽²⁾			6,071			24
Commercial and industrial ^{(1) (2)}			388			—
Total		$	14,039		$	24

(1)	Secured by residential real estate

(2)	Secured by commercial real estate


		December 31, 2023
(in thousands)		Amortized Cost Basis			Related Allowance

Residential real estate ⁽¹⁾		$	4,226		$	—
Multi-family⁽²⁾			3,356			397
Commercial real estate ⁽²⁾			5,986			24
Commercial and industrial ⁽¹⁾			272			—
Total		$	13,840		$	421

(1)	Secured by residential real estate

(2)	Secured by commercial real estate

Aging of Recorded Investment in Past Due and Non-accrual Loans by Portfolio Segment


(in thousands)		30 - 59			60 - 89			Greater than
		Days			Days			89 Days			Total			Loans Not
March 31, 2024		Past Due			Past Due			Past Due			Past Due			Past Due			Total
Residential real estate		$	4,638		$	2,591		$	3,654		$	10,883		$	746,013		$	756,896
Multi-family			—			—			3,383			3,383			564,660			568,043
Commercial real estate			3,706			1,429			9,120			14,255			532,317			546,572
Commercial and industrial			2,086			540			314			2,940			120,479			123,419
Construction and land development			—			—			—			—			10,136			10,136
Consumer			—			—			—			—			449			449
Total		$	10,430		$	4,560		$	16,471		$	31,461		$	1,974,054		$	2,005,515


(in thousands)		30 - 59			60 - 89			Greater than
		Days			Days			89 Days			Total			Loans Not
December 31, 2023		Past Due			Past Due			Past Due			Past Due			Past Due			Total
Residential real estate		$	4,508		$	2,360		$	4,369		$	11,237		$	703,606		$	714,843
Multi-family			—			—			3,374			3,374			569,475			572,849
Commercial real estate			2,666			3,212			6,000			11,878			536,134			548,012
Commercial and industrial			755			555			211			1,521			106,391			107,912
Construction and land development			—			—			—			—			13,170			13,170
Consumer			—			—			—			—			413			413
Total		$	7,929		$	6,127		$	13,954		$	28,010		$	1,929,189		$	1,957,199

Loan Portfolio Based on Internal Rating Category


																							Revolving
		Term Loans Amortized Cost by Origination Year																		Revolving			Loans to
(in thousands)		2024			2023			2022			2021			2020			Prior			Loans			Term Loans			Total
Residential real estate ⁽¹⁾
Pass		$	51,611		$	190,491		$	203,712		$	62,960		$	39,118		$	171,905		$	—		$	26,223		$	746,020
Special Mention			—			—			593			1,219			520			1,003			—			—			3,335
Substandard			—			—			731			—			683			5,110			—			656			7,180
Total Residential real estate			51,611			190,491			205,036			64,179			40,321			178,018			—			26,879			756,535
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Multi-family
Pass			804			3,429			297,120			161,824			36,386			65,098			—			—			564,661
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			1,585			1,797			—			—			—			3,382
Total Multi-family			804			3,429			297,120			163,409			38,183			65,098			—			—			568,043
Current period gross charge-offs			—			—			—			—			—			—			—			—			—

Commercial real estate
Pass			15,601			90,038			180,032			80,068			25,871			128,142			—			—			519,752
Special Mention			—			—			1,846			8,380			—			8,332			—			—			18,558
Substandard			—			—			—			—			497			7,765			—			—			8,262
Total Commercial real estate			15,601			90,038			181,878			88,448			26,368			144,239			—			—			546,572
Current period gross charge-offs			—			—			—			—			—			30			—			—			30

Commercial and industrial
Pass			22,401			69,998			11,045			9,791			3,206			4,870			—			—			121,311
Special Mention			—			—			—			925			—			—			—			—			925
Substandard			—			206			—			372			30			575			—			—			1,183
Total Commercial and industrial			22,401			70,204			11,045			11,088			3,236			5,445			—			—			123,419
Current period gross charge-offs			—			60			—			—			—			—			—			—			60

Construction and land development
Pass			4			855			—			9,277			—			—			—			—			10,136
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—			—
Total Construction and land development			4			855			—			9,277			—			—			—			—			10,136
Current period gross charge-offs			—			—			—			—			—			—			—			—			—

Consumer
Pass			48			317			84			—			—			—			—			—			449
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—			—
Total Consumer			48			317			84			—			—			—			—			—			449
Current period gross charge-offs			—			—			—			—			—			—			—			—			—

Total Loans		$	90,469		$	355,334		$	695,163		$	336,401		$	108,108		$	392,800		$	—		$	26,879		$	2,005,154

Gross charge-offs		$	—		$	60		$	—		$	—		$	—		$	30		$	—		$	—		$	90

(1)

Certain fixed residential mortgage loans are included in a fair value hedging relationship. The amortized cost excludes a contra asset of $361 thousand related to basis adjustments for loans in the closed portfolio under the portfolio layer method at March 31, 2024. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if hedge was dedesignated. See “Note 10 – Derivates” for more information on the fair value hedge.

The following table summarizes the Company’s loans by year of origination and internally assigned credit risk at December 31, 2023:


																							Revolving
		Term Loans Amortized Cost by Origination Year																		Revolving			Loans to
(in thousands)		2023			2022			2021			2020			2019			Prior			Loans			Term Loans			Total
Residential real estate ⁽¹⁾
Pass		$	191,238		$	207,166		$	64,906		$	39,772		$	79,581		$	98,150		$	—		$	24,975		$	705,788
Special Mention			—			—			—			522			230			—			—			—			752
Substandard			—			740			—			676			4,185			927			—			656			7,184
Total Residential real estate			191,238			207,906			64,906			40,970			83,996			99,077			—			25,631			713,724

Multi-family
Pass			3,533			299,217			162,678			36,592			10,854			56,601			—			—			569,475
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			1,580			1,794			—			—			—			—			3,374
Total Multi-family			3,533			299,217			164,258			38,386			10,854			56,601			—			—			572,849

Commercial real estate
Pass			86,834			187,570			80,761			26,300			42,476			95,265			—			—			519,206
Special Mention			—			1,852			8,433			293			3,647			6,427			—			—			20,652
Substandard			—			—			—			199			6,826			1,129			—			—			8,154
Total Commercial real estate			86,834			189,422			89,194			26,792			52,949			102,821			—			—			548,012

Commercial and industrial
Pass			74,352			11,392			10,015			4,407			126			5,274			—			—			105,566
Special Mention			—			—			913			—			—			540			—			—			1,453
Substandard			—			—			266			35			145			447			—			—			893
Total Commercial and industrial			74,352			11,392			11,194			4,442			271			6,261			—			—			107,912

Construction and land development
Pass			904			3,613			8,653			—			—			—			—			—			13,170
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—			—
Total Construction and land development			904			3,613			8,653			—			—			—			—			—			13,170

Consumer
Pass			326			87			—			—			—			—			—			—			413
Special Mention			—			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—			—
Total Consumer			326			87			—			—			—			—			—			—			413

Total Loans		$	357,187		$	711,637		$	338,205		$	110,590		$	148,070		$	264,760		$	—		$	25,631		$	1,956,080

(1)

Certain fixed residential mortgage loans are included in a fair value hedging relationship. The amortized cost excludes a contra asset of $1.1 million related to basis adjustments for loans in the closed portfolio under the portfolio layer method at December 31, 2023. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if hedge was dedesignated. See “Note 10 – Derivates” for more information on the fair value hedge.