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Note 4 - Loans Receivable

3 Months Ended

Mar. 31, 2025

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:

		*March 31, 2025*				*December 31, 2024*
One-to-four family residential real estate		$	14,090			$	14,829
Multi-family residential real estate			506,498				521,957
Nonresidential real estate			104,610				108,153
Commercial loans and leases			221,403				248,595
Consumer			1,733				1,623
			848,334				895,157
Allowance for credit losses			(7,279	)			(7,571	)
Loans, net		$	841,055			$	887,586

Net deferred loan origination costs included in the table above were $1.2 million as of March 31, 2025 and December 31, 2024.

Allowance for Credit Losses - Loans

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

		*Beginning balance*				*Provision for (recovery of) credit losses*				*Loans charged off*				*Recoveries*				*Ending balance*
For the three months ended

March 31, 2025
One-to-four family residential real estate:
Home equity and junior liens		$	54			$	(4	)		$	—			$	—			$	50
One-to-four family first liens			217				(8	)			—				2				211
Multi-family residential real estate:
Senior notes			4,320				(133	)			—				2				4,189
Junior notes			444				(5	)			—				—				439
Nonresidential real estate:
Owner occupied			180				(7	)			—				—				173
Non-owner occupied			1,162				(27	)			—				—				1,135
Commercial loans and leases:
Commercial			944				(68	)			(36	)			10				850
Equipment finance - Government			60				(10	)			—				—				50
Equipment finance - Corporate Investment-grade			142				(8	)			—				—				134
Consumer			48				9				(10	)			1				48
		$	7,571			$	(261	)		$	(46	)		$	15			$	7,279

March 31, 2024
One-to-four family residential real estate:
Home equity and junior liens		$	75			$	(12	)		$	—			$	—			$	63
One-to-four family first liens			220				45				—				3				268
Multi-family residential real estate:
Senior notes			4,178				186				—				6				4,370
Junior notes			371				78				—				—				449
Nonresidential real estate:
Owner occupied			144				34				—				—				178
Non-owner occupied			1,022				244				—				—				1,266
Commercial loans and leases:
Commercial			1,964				(468	)			(158	)			5				1,343
Equipment finance - Government			148				(36	)			—				—				112
Equipment finance - Corporate Investment-grade			191				(25	)			—				—				166
Consumer			32				15				(13	)			—				34
		$	8,345			$	61			$	(171	)		$	14			$	8,249

As of March 31, 2025, December 31, 2024 and March 31, 2024 we had $244,000, $279,000 and $286,000, 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*
March 31, 2025
Loans:
Loans individually evaluated		$	126			$	1,395			$	—			$	14,941			$	—			$	16,462
Loans collectively evaluated			13,964				505,103				104,610				206,462				1,733				831,872
		$	14,090			$	506,498			$	104,610			$	221,403			$	1,733			$	848,334
ACL:
Loans individually evaluated		$	—			$	—			$	—			$	—			$	—			$	—
Loans collectively evaluated			261				4,628				1,308				1,034				48				7,279
		$	261			$	4,628			$	1,308			$	1,034			$	48			$	7,279

		*One-to-four family residential real estate*				*Multi-family residential real estate*				*Nonresidential real estate*				*Commercial loans and leases*				*Consumer*				*Total*
December 31, 2024
Loans:
Loans individually evaluated		$	148			$	1,453			$	393			$	15,018			$	—			$	17,012
Loans collectively evaluated			14,681				520,504				107,760				233,577				1,623				878,145
		$	14,829			$	521,957			$	108,153			$	248,595			$	1,623			$	895,157
ACL:
Loans individually evaluated		$	—			$	—			$	—			$	—			$	—			$	—
Loans collectively evaluated			271				4,764				1,342				1,146				48				7,571
		$	271			$	4,764			$	1,342			$	1,146			$	48			$	7,571

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 $2.4 million and $3.0 million of collateral dependent loans secured by real estate or business assets as of March 31, 2025 and December 31, 2024, respectively.

Individually Evaluated Loans

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

																		*Three Months Ended*
																		*March 31, 2025*
		*Loan Balance*				*Recorded Investment*				*Partial Charge-off*				*Allowance for Credit Losses Allocated*				*Average Investment*				*Interest Income Recognized*
March 31, 2025
With no related allowance recorded:
One-to-four family residential real estate		$	123			$	126			$	—			$	—			$	127			$	—
Multi-family residential real estate			1,342				1,395				—				—				1,439				—
Commercial loans and leases			20,169				14,941				5,227				—				15,027				1
		$	21,634			$	16,462			$	5,227			$	—			$	16,593			$	1

																		*Year ended*
																		*December 31, 2024*
		*Loan Balance*				*Recorded Investment*				*Partial Charge-off*				*Allowance for Credit Losses Allocated*				*Average Investment*				*Interest Income Recognized*
December 31, 2024
With no related allowance recorded:
One-to-four family residential real estate		$	138			$	148			$	—			$	—			$	66			$	7
Multi-family residential real estate			1,416				1,453				—				—				607				28
Nonresidential real estate			366				393				—				—				228				3
Commercial loans and leases			20,210				15,018				5,192				—				20,225				9
		$	22,130			$	17,012			$	5,192			$	—			$	21,126			$	47

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*
March 31, 2025
One-to-four family residential real estate		$	107			$	—
Multi-family residential real estate			1,395				—
Commercial loans and leases			14,911				—
Consumer			—				1
		$	16,413			$	1
December 31, 2024
One-to-four family residential real estate		$	126			$	—
Multi-family residential real estate			1,453				—
Nonresidential real estate			393				—
Commercial loans and leases			14,960				—
Consumer			2				—
		$	16,934			$	—

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 $2.7 million and $2.4 million at March 31, 2025 and December 31, 2024, 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 class of loans:

		*30-59 Days Past Due*				*60-89 Days Past Due*				*Greater Than 89 Days Past Due*				*Total Past Due*				*Nonaccrual*				*Current*				*Total*
March 31, 2025
One-to-four family residential real estate		$	209			$	—			$	—			$	209			$	107			$	13,774			$	14,090
Multi-family residential real estate			816				—				—				816				1,395				504,287				506,498
Nonresidential real estate			—				—				—				—				—				104,610				104,610
Commercial loans and leases			2,855				63				—				2,918				14,911				203,574				221,403
Consumer			1				2				1				4				—				1,729				1,733
		$	3,881			$	65			$	1			$	3,947			$	16,413			$	827,974			$	848,334

		*30-59 Days Past Due*				*60-89 Days Past Due*				*Greater Than 89 Days Past Due*				*Total Past Due*				*Nonaccrual*				*Current*				*Total*
December 31, 2024
One-to-four family residential real estate		$	181			$	—			$	—			$	181			$	126			$	14,522			$	14,829
Multi-family residential real estate			654				—				—				654				1,453				519,850				521,957
Nonresidential real estate			—				—				—				—				393				107,760				108,153
Commercial loans and leases			2,044				1,929				—				3,973				14,960				229,662				248,595
Consumer			4				5				—				9				2				1,612				1,623
		$	2,883			$	1,934			$	—			$	4,817			$	16,934			$	873,406			$	895,157

At March 31, 2025 and December 31, 2024, the Company had no loan modifications that meet the definition described in ASC 326 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments” 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*
March 31, 2025
One-to-four family residential real estate		$	13,808			$	—			$	175			$	107			$	14,090
Multi-family residential real estate			496,103				—				9,000				1,395				506,498
Nonresidential real estate			103,752				425				433				—				104,610
Commercial loans and leases			204,196				66				2,230				14,911				221,403
Consumer			1,728				2				3				—				1,733
		$	819,587			$	493			$	11,841			$	16,413			$	848,334

		*Pass*				*Special Mention*				*Substandard*				*Substandard Nonaccrual*				*Total*
December 31, 2024
One-to-four family residential real estate		$	14,485			$	—			$	218			$	126			$	14,829
Multi-family residential real estate			515,478				3,858				1,168				1,453				521,957
Nonresidential real estate			106,891				428				441				393				108,153
Commercial loans and leases			227,851				3,156				2,628				14,960				248,595
Consumer			1,613				4				4				2				1,623
		$	866,318			$	7,446			$	4,459			$	16,934			$	895,157

		*Term Loans Amortized Cost Basis by Origination Year*
		*2025*				*2024*				*2023*				*2022*				*2021*				*Prior*				*Revolving loans*				*Total*
March 31, 2025

*One-to-four family residential real estate loans:*
Risk-rating
Pass		$	—			$	—			$	482			$	—			$	—			$	10,425			$	2,901			$	13,808
Substandard			73				—				—				—				—				80				22				175
Nonaccrual			—				—				—				—				—				93				14				107
		$	73			$	—			$	482			$	—			$	—			$	10,598			$	2,937			$	14,090
*One-to-four family residential real estate loans:*
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	2			$	—			$	2
*Multi-family residential real estate:*
Risk rating
Pass		$	2,432			$	33,583			$	38,022			$	190,752			$	101,536			$	124,545			$	5,233			$	496,103
Substandard			—				—				—				3,840				3,996				1,164				—				9,000
Nonaccrual			—				—				141				1,254				—				—				—				1,395
		$	2,432			$	33,583			$	38,163			$	195,846			$	105,532			$	125,709			$	5,233			$	506,498
*Multi-family residential real estate:*
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	2			$	—			$	2
Nonresidential real estate:
Risk rating
Pass		$	—			$	16,357			$	14,243			$	46,402			$	14,545			$	11,294			$	911			$	103,752
Special mention			—				—				—				425				—				—				—				425
Substandard			433				—				—				—				—				—				—				433
		$	433			$	16,357			$	14,243			$	46,827			$	14,545			$	11,294			$	911			$	104,610
Commercial loans and leases:
Risk rating
Pass		$	5,489			$	26,434			$	28,525			$	61,972			$	25,597			$	5,649			$	50,530			$	204,196
Special mention			—				—				—				66				—				—				—				66
Substandard			—				—				—				30				—				—				2,200				2,230
Nonaccrual			—				—				50				14,723				40				98				—				14,911
		$	5,489			$	26,434			$	28,575			$	76,791			$	25,637			$	5,747			$	52,730			$	221,403
Commercial loans and leases:
Current period gross charge-offs		$	—			$	—			$	(10	)		$	(26	)		$	—			$	—			$	—			$	(36	)
Current period recoveries			—				—				8				2				—				—				—				10
		$	—			$	—			$	(2	)		$	(24	)		$	—			$	—			$	—			$	(26	)
Consumer:
Risk rating
Pass		$	15			$	722			$	160			$	3			$	20			$	48			$	760			$	1,728
Special mention			—				—				—				—				—				—				2				2
Substandard			—				1				—				—				—				—				2				3
		$	15			$	723			$	160			$	3			$	20			$	48			$	764			$	1,733
Consumer:
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	(10	)		$	(10	)
Current period recoveries			—				—				—				—				—				—				1				1
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	—			$	(9	)		$	(9	)

		*Term Loans Amortized Cost Basis by Origination Year*
		*2024*				*2023*				*2022*				*2021*				*2020*				*Prior*				*Revolving loans*				*Total*
December 31, 2024

*One-to-four family residential real estate:*
Risk rating
Pass		$	—			$	484			$	—			$	—			$	34			$	10,897			$	3,070			$	14,485
Substandard			—				—				—				—				—				81				137				218
Nonaccrual			—				—				—				—				—				111				15				126
		$	—			$	484			$	—			$	—			$	34			$	11,089			$	3,222			$	14,829
*One-to-four family residential real estate:*
Current period recoveries		$	—			$	—			$	—			$	—			$	—			$	28			$	—			$	28
*Multi-family residential real estate:*
Risk rating
Pass		$	33,812			$	38,228			$	199,495			$	107,420			$	55,129			$	75,772			$	5,622			$	515,478
Special mention			—				—				3,858				—				—				—				—				3,858
Substandard			—				—				—				—				—				1,168				—				1,168
Nonaccrual			—				216				1,237				—				—				—				—				1,453
		$	33,812			$	38,444			$	204,590			$	107,420			$	55,129			$	76,940			$	5,622			$	521,957
*Multi-family residential real estate:*
Current period gross charge-offs		$	—			$	—			$	(5	)		$	—			$	—			$	—			$	—			$	(5	)
Current period recoveries			—				—				—				—				—				18				—				18
		$	—			$	—			$	(5	)		$	—			$	—			$	18			$	—			$	13
Nonresidential real estate:
Risk rating
Pass		$	16,760			$	14,355			$	46,759			$	14,771			$	7,335			$	5,998			$	913			$	106,891
Special mention			—				—				428				—				—				—				—				428
Substandard			441				—				—				—				—				—				—				441
Nonaccrual			—				—				393				—				—				—				—				393
		$	17,201			$	14,355			$	47,580			$	14,771			$	7,335			$	5,998			$	913			$	108,153
Commercial loans and leases :
Risk rating
Pass		$	27,360			$	32,517			$	72,546			$	30,764			$	9,973			$	723			$	53,968			$	227,851
Special mention			—				—				—				—				—				—				3,156				3,156
Substandard			—				—				103				40				—				—				2,485				2,628
Nonaccrual			—				55				14,747				—				158				—				—				14,960
		$	27,360			$	32,572			$	87,396			$	30,804			$	10,131			$	723			$	59,609			$	248,595
Commercial loans and leases :
Current period gross charge-offs		$	—			$	(332	)		$	(4,998	)		$	(44	)		$	(493	)		$	—			$	—			$	(5,867	)
Current period recoveries			—				—				1				5				7				1				—				14
		$	—			$	(332	)		$	(4,997	)		$	(39	)		$	(486	)		$	1			$	—			$	(5,853	)
Consumer:
Risk rating
Pass		$	788			$	169			$	3			$	20			$	49			$	—			$	584			$	1,613
Special mention			—				—				—				—				—				—				4				4
Substandard			—				—				—				—				—				—				4				4
Nonaccrual			2				—				—				—				—				—				—				2
		$	790			$	169			$	3			$	20			$	49			$	—			$	592			$	1,623
Consumer:
Current period gross charge-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	(44	)		$	(44	)
Current period recoveries			—				—				—				—				—				—				1				1
		$	—			$	—			$	—			$	—			$	—			$	—			$	(43	)		$	(43	)