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Note 4 - Loans Receivable

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 4 - LOANS RECEIVABLE

The summary of loans receivable by class of loans is as follows:

		September 30, 2024				December 31, 2023
One-to-four family residential real estate		$	15,634			$	18,945
Multi-family residential real estate			524,340				527,460
Nonresidential real estate			109,799				118,016
Commercial loans and leases			280,218				393,321
Consumer			1,847				1,364
			931,838				1,059,106
Allowance for credit losses			(7,899	)			(8,345	)
Loans, net		$	923,939			$	1,050,761

Net deferred loan origination costs included in the table above were $1.4 million and  $1.7 million as of September 30, 2024 and  December 31, 2023, respectively.

Allowance for Credit Losses - Loans

The following table represents the activity in the Allowance for Credit Losses (“ACL”) by class of loans:

		One-to-four family residential real estate				Multi-family residential real estate				Nonresidential real estate				Commercial loans and leases				Consumer				Total
For the three months ended
September 30, 2024
Beginning balance		$	324			$	4,843			$	1,397			$	1,524			$	54			$	8,142
Provision for (recovery of) credit losses			(52	)			(44	)			18				536				14				472
Loans charged off			—				—				—				(731	)			(12	)			(743	)
Recoveries			22				6				—				—				—				28
		$	294			$	4,805			$	1,415			$	1,329			$	56			$	7,899
September 30, 2023
Beginning balance		$	326			$	4,679			$	1,245			$	2,943			$	33			$	9,226
Provision for (recovery of) credit losses			(62	)			(136	)			(95	)			461				12				180
Loans charged off			—				—				—				(889	)			(14	)			(903	)
Recoveries			32				4				—				20				—				56
		$	296			$	4,547			$	1,150			$	2,535			$	31			$	8,559

		One-to-four family residential real estate				Multi-family residential real estate				Nonresidential real estate				Commercial loans and leases				Consumer				Total
For the nine months ended
September 30, 2024
Beginning balance		$	295			$	4,549			$	1,166			$	2,303			$	32			$	8,345
Provision for (recovery of) credit losses			(28	)			240				249				(87	)			61				435
Loans charged off			—				—				—				(899	)			(37	)			(936	)
Recoveries			27				16				—				12				—				55
		$	294			$	4,805			$	1,415			$	1,329			$	56			$	7,899
September 30, 2023
Beginning balance, prior to adoption of ASC 326		$	281			$	4,017			$	1,234			$	2,548			$	49			$	8,129
Impact of adopting ASC 326			99				630				66				1,122				(10	)			1,907
Beginning balance, after adoption of ASC 326			380				4,647				1,300				3,670				39				10,036
Provision for (recovery of) credit losses			(128	)			(115	)			(150	)			444				34				85
Loans charged off			—				—				—				(1,606	)			(43	)			(1,649	)
Recoveries			44				15				—				27				1				87
		$	296			$	4,547			$	1,150			$	2,535			$	31			$	8,559

As of  September 30, 2024 and  December 31, 2023 we had $274,000 and $335,000, respectively, recorded as an unfunded commitment reserve, included in other liabilities on the Consolidated Statements of Financial Condition.

The following tables present the balance in the ACL and loans receivable by class of loans based on evaluation method.  Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories:

		One-to-four family residential real estate				Multi-family residential real estate				Nonresidential real estate				Commercial loans and leases				Consumer				Total
September 30, 2024
Loans:
Loans individually evaluated		$	57			$	1,458			$	393			$	20,565			$	—			$	22,473
Loans collectively evaluated			15,577				522,882				109,406				259,653				1,847				909,365
		$	15,634			$	524,340			$	109,799			$	280,218			$	1,847			$	931,838
ACL:
Loans individually evaluated		$	—			$	—			$	—			$	—			$	—			$	—
Loans collectively evaluated			294				4,805				1,415				1,329				56				7,899
		$	294			$	4,805			$	1,415			$	1,329			$	56			$	7,899

		One-to-four family residential real estate				Multi-family residential real estate				Nonresidential real estate				Commercial loans and leases				Consumer				Total
December 31, 2023
Loans:
Loans individually evaluated		$	67			$	—			$	—			$	21,982			$	—			$	22,049
Loans collectively evaluated			18,878				527,460				118,016				371,339				1,364				1,037,057
		$	18,945			$	527,460			$	118,016			$	393,321			$	1,364			$	1,059,106
ACL:
Loans individually evaluated		$	—			$	—			$	—			$	—			$	—			$	—
Loans collectively evaluated			295				4,549				1,166				2,303				32				8,345
		$	295			$	4,549			$	1,166			$	2,303			$	32			$	8,345

Collateral Dependent Loans

Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of the underlying collateral, less estimated costs to sell. The Company had $3.2 million of collateral dependent loans secured by real estate or business assets as of September 30, 2024 and December 31, 2023.

Individually Evaluated Loans

The following tables present loans individually evaluated by class of loans:

																		Three Months Ended								Nine Months Ended
																		September 30, 2024								September 30, 2024
		Loan Balance				Recorded Investment				Partial Charge-off				Allowance for Credit Losses Allocated				Average Investment				Interest Income Recognized				Average Investment				Interest Income Recognized
September 30, 2024
With no related allowance recorded:
One-to-four family residential real estate		$	51			$	57			$	—			$	—			$	58			$	1			$	60			$	2
Multi-family residential real estate			1,416				1,458				—				—				972				—				324				27
Nonresidential real estate			366				393				—				—				393				—				173				3
Commercial loans and leases			21,758				20,565				1,193				—				20,629				2				20,763				11
		$	23,591			$	22,473			$	1,193			$	—			$	22,052			$	3			$	21,320			$	43

																		Year ended
																		December 31, 2023
		Loan Balance				Recorded Investment				Partial Charge-off				Allowance for Credit Losses Allocated				Average Investment				Interest Income Recognized
December 31, 2023
With no related allowance recorded:
One-to-four family residential real estate		$	66			$	67			$	—			$	—			$	76			$	4
Commercial loans and leases			23,954				21,982				450				—				16,542				35
		$	24,020			$	22,049			$	450			$	—			$	16,618			$	39

Nonaccrual Loans

The following tables present the recorded investment in nonaccrual loans and loans 90 days or more past due still on accrual by class of loans:

		Nonaccrual				Loans Past Due Over 90 Days Still Accruing
September 30, 2024
One-to-four family residential real estate		$	34			$	—
Multi-family residential real estate			1,458				—
Nonresidential real estate			393				—
Commercial loans and leases			20,446				—
		$	22,331			$	—
December 31, 2023
One-to-four family residential real estate		$	37			$	—
Commercial loans and leases			21,294				1,007
		$	21,331			$	1,007

Nonaccrual loans and individually evaluated loans are defined differently. Some loans may be included in both categories, and some loans may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated and loans individually evaluated.

The Company’s reserve for uncollected loan interest was $2.2 million and $1.4 million at September 30, 2024 and December 31, 2023, respectively. When a loan is on nonaccrual status and the ultimate collectability of the total principal of a loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on nonaccrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported.

Past Due Loans

The following tables present the aging of the recorded investment of loans by portfolio segment:

		30-59 Days Past Due				60-89 Days Past Due				Greater Than 89 Days Past Due				Total Past Due				Nonaccrual				Current				Total
September 30, 2024
One-to-four family residential real estate loans		$	—			$	93			$	—			$	93			$	34			$	15,507			$	15,634
Multi-family residential real estate:
Senior notes			—				—				—				—				1,242				483,349				484,591
Junior notes			—				—				—				—				216				39,533				39,749
Nonresidential real estate:
Owner occupied			—				—				—				—				—				17,154				17,154
Non-owner occupied			—				—				—				—				393				92,252				92,645
Commercial loans and leases:
Commercial			204				52				—				256				1,221				156,184				157,661
Equipment finance - Government			802				—				—				802				19,225				64,781				84,808
Equipment finance - Corporate Investment-grade			—				—				—				—				—				37,749				37,749
Consumer			4				3				—				7				—				1,840				1,847
		$	1,010			$	148			$	—			$	1,158			$	22,331			$	908,349			$	931,838

		30-59 Days Past Due				60-89 Days Past Due				Greater Than 89 Days Past Due				Total Past Due				Nonaccrual				Current				Total
December 31, 2023
One-to-four family residential real estate loans		$	12			$	18			$	—			$	30			$	37			$	18,878			$	18,945
Multi-family residential real estate:
Senior notes			—				—				—				—				—				485,281				485,281
Junior notes			—				—				—				—				—				42,179				42,179
Nonresidential real estate:
Owner occupied			—				—				—				—				—				20,901				20,901
Non-owner occupied			—				—				—				—				—				97,115				97,115
Commercial loans and leases:
Commercial			234				26				666				926				2,285				208,770				211,981
Equipment finance - Government			3,147				5,028				—				8,175				18,956				105,134				132,265
Equipment finance - Corporate Investment-grade			7				—				341				348				53				48,674				49,075
Consumer			8				5				—				13				—				1,351				1,364
		$	3,408			$	5,077			$	1,007			$	9,492			$	21,331			$	1,028,283			$	1,059,106

At  September 30, 2024 and  December 31, 2023, the Company had no loan modifications that meet the definition described in ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” for additional reporting. 

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk.  Risk ratings are updated any time the situation warrants. The Company uses the following definitions for risk ratings:

Pass. This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards.

Special Mention. A “Special Mention” asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans categorized as “Substandard” continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. The risk rating guidance published by the Office of the Comptroller of the Currency clarifies that a loan with a well-defined weakness does not have to present a probability of default for the loan to be rated Substandard, and that an individual loan’s loss potential does not have to be distinct for the loan to be rated Substandard.

Nonaccrual. An asset classified “Nonaccrual” has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

		Pass				Special Mention				Substandard				Substandard Nonaccrual				Total
September 30, 2024
One-to-four family residential real estate		$	15,436			$	—			$	164			$	34			$	15,634
Multi-family residential real estate			522,196				—				686				1,458				524,340
Nonresidential real estate			108,527				430				449				393				109,799
Commercial loans and leases			249,774				5,298				4,700				20,446				280,218
Consumer			1,841				3				3				—				1,847
		$	897,774			$	5,731			$	6,002			$	22,331			$	931,838

		Pass				Special Mention				Substandard				Substandard Nonaccrual				Total
December 31, 2023
One-to-four family residential real estate		$	18,636			$	—			$	272			$	37			$	18,945
Multi-family residential real estate			526,127				1,333				—				—				527,460
Nonresidential real estate			118,016				—				—				—				118,016
Commercial loans and leases			357,384				10,587				4,056				21,294				393,321
Consumer			1,356				5				3				—				1,364
		$	1,021,519			$	11,925			$	4,331			$	21,331			$	1,059,106

		Term Loans Amortized Cost Basis by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving loans				Total
September 30, 2024
One-to-four family residential real estate loans:
Risk-rating
Pass		$	—			$	486			$	—			$	—			$	58			$	11,790			$	3,102			$	15,436
Substandard			—				—				—				—				—				25				139				164
Nonaccrual			—				—				—				—				—				19				15				34
		$	—			$	486			$	—			$	—			$	58			$	11,834			$	3,256			$	15,634
One-to-four family residential real estate loans:
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	27			$	—			$	27
Multi-family residential real estate:
Risk rating
Pass		$	24,789			$	38,045			$	205,905			$	109,415			$	55,552			$	82,380			$	6,110			$	522,196
Substandard			—				—				—				—				—				686				—				686
Nonaccrual			—				216				1,242				—				—				—				—				1,458
		$	24,789			$	38,261			$	207,147			$	109,415			$	55,552			$	83,066			$	6,110			$	524,340
Multi-family residential real estate:
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	16			$	—			$	16
Nonresidential real estate:
Risk rating
Pass		$	15,299			$	14,994			$	47,565			$	14,994			$	7,449			$	7,412			$	814			$	108,527
Special mention			—				—				430				—				—				—				—				430
Substandard			449				—				—				—				—				—				—				449
Nonaccrual			—				—				393				—				—				—				—				393
		$	15,748			$	14,994			$	48,388			$	14,994			$	7,449			$	7,412			$	814			$	109,799
Commercial loans and leases:
Risk rating
Pass		$	20,069			$	35,761			$	85,127			$	39,359			$	14,519			$	1,133			$	53,806			$	249,774
Special mention			—				—				—				—				—				—				5,298				5,298
Substandard			—				—				119				—				13				—				4,568				4,700
Nonaccrual			—				139				19,619				—				688				—				—				20,446
		$	20,069			$	35,900			$	104,865			$	39,359			$	15,220			$	1,133			$	63,672			$	280,218
Commercial loans and leases:
Current period gross charge-offs		$	—			$	(292	)		$	(127	)		$	(43	)		$	(437	)		$	—			$	—			$	(899	)
Current period recoveries			—				—				—				5				7				—				—				12
		$	—			$	(292	)		$	(127	)		$	(38	)		$	(430	)		$	—			$	—			$	(887	)
Consumer:
Risk rating
Pass		$	791			$	200			$	3			$	53			$	49			$	38			$	707			$	1,841
Special mention			—				—				—				—				—				—				3				3
Substandard			—				—				—				—				—				—				3				3
		$	791			$	200			$	3			$	53			$	49			$	38			$	713			$	1,847
Consumer:
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	(37	)		$	(37	)

		Term Loans Amortized Cost Basis by Origination Year
		2023				2022				2021				2020				2019				Prior				Revolving loans				Total
December 31, 2023
One-to-four family residential real estate loans:
Risk-rating
Pass		$	489			$	—			$	—			$	130			$	—			$	14,213			$	3,804			$	18,636
Substandard			—				—				—				—				—				127				145				272
Nonaccrual			—				—				—				—				—				16				21				37
		$	489			$	—			$	—			$	130			$	—			$	14,356			$	3,970			$	18,945
One-to-four family residential real estate loans:
Current-period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	(1	)		$	—			$	(1	)
Current period recoveries			—				—				—				—				—				45				—				45
		$	—			$	—			$	—			$	—			$	—			$	44			$	—			$	44
Multi-family residential real estate:
Risk rating
Pass		$	43,386			$	211,525			$	112,667			$	57,743			$	22,064			$	70,007			$	8,735			$	526,127
Special mention			118				1,215				—				—				—				—				—				1,333
		$	43,504			$	212,740			$	112,667			$	57,743			$	22,064			$	70,007			$	8,735			$	527,460
Multi-family residential real estate:
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	20			$	—			$	20
Nonresidential real estate:
Risk rating
Pass		$	17,618			$	53,256			$	21,939			$	7,787			$	9,024			$	8,288			$	104			$	118,016
Commercial loans and leases:
Risk rating
Pass		$	50,015			$	137,615			$	63,028			$	33,004			$	3,028			$	1,379			$	69,315			$	357,384
Special mention			—				—				—				—				—				—				10,587				10,587
Substandard			—				666				—				22				—				—				3,368				4,056
Nonaccrual			11				20,204				524				555				—				—				—				21,294
		$	50,026			$	158,485			$	63,552			$	33,581			$	3,028			$	1,379			$	83,270			$	393,321
Commercial loans and leases:
Current period gross charge-offs		$	(20	)		$	(1,850	)		$	—			$	(306	)		$	—			$	—			$	—			$	(2,176	)
Current period recoveries			—				—				37				40				—				—				—				77
		$	(20	)		$	(1,850	)		$	37			$	(266	)		$	—			$	—			$	—			$	(2,099	)
Consumer:
Risk rating
Pass		$	336			$	8			$	140			$	80			$	247			$	—			$	545			$	1,356
Special mention			—				—				—				—				—				—				5				5
Substandard			—				—				—				—				—				—				3				3
		$	336			$	8			$	140			$	80			$	247			$	—			$	553			$	1,364
Consumer:
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	(52	)		$	(52	)
Current period recoveries			—				—				—				—				—				—				1				1
		$	—			$	—			$	—			$	—			$	—			$	—			$	(51	)		$	(51	)

X

- References

No definition available.

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X

- Definition

The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/310-10/tableOfContent

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

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