Loans Receivable and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2024

Loans Receivable and Allowance for Credit Losses [Abstract]

Loans Receivable and Allowance for Credit Losses

Note 7 - Loans Receivable and Allowance for Credit Losses

The following tables present the recorded investment in loans receivable as of September 30, 2024 and December 31, 2023 by segment and class:



	September 30, 2024		December 31, 2023
		(In Thousands)
Residential one-to-four family	$	241,050	$	248,295
Commercial and multi-family		2,296,886		2,434,115
Construction		146,471		192,816
Commercial business		272,408		269,274
Business express		98,957		102,928
Home equity⁽¹⁾		67,566		66,331
Consumer		2,309		3,643
		3,125,647		3,317,402

Less:
Deferred loan fees, net		(3,040)		(4,086)
Allowance for credit losses		(34,693)		(33,608)

Total Loans, net	$	3,087,914	$	3,279,708

(1) Includes home equity lines of credit.
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Note 7 – Loans Receivable and Allowance for Credit Losses (Continued)

Allowance for Credit Losses

The Company engages a third-party vendor to assist in the CECL calculation and has established a robust internal governance framework to oversee the quarterly estimation process for the allowance for credit losses (“ACL”). The ACL calculation methodology relies on regression-based discounted cash flow (“DCF”) models that correlate relationships between certain financial metrics and external market and macroeconomic variables. Following are some of the key factors and assumptions that are used in the Company’s CECL calculations:

methods based on probability of default and loss given default which are modeled based on macroeconomic scenarios;

a reasonable and supportable forecast period determined based on management’s current review of macroeconomic environment;

a reversion period after the reasonable and supportable forecast period;

estimated prepayment rates based on the Company’s historical experience and future macroeconomic environment;

estimated credit utilization rates based on the Company’s historical experience and future macroeconomic environment; and

incorporation of qualitative factors not captured within the modeled results. The qualitative factors include but are not limited to changes in lending policies, business conditions, changes in the nature and size of the portfolio, portfolio concentrations, and external factors such as competition.

Allowance for credit losses are aggregated for the major loan segments, with similar risk characteristics, summarized below. However, for the purposes of calculating the reserves, these segments may be further broken down into loan classes by risk characteristics that include but are not limited to regulatory call codes, industry type, geographic location, and collateral type.

Residential one-to-four family real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower.

Commercial and multi-family real estate lending entails additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as general economic conditions.

Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence.

Commercial business lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In many cases, any repossessed collateral for a defaulted commercial business loan will not provide an adequate source of repayment of the outstanding loan balance. The Bank has further segregated its commercial business portfolio into commercial business express loans that carry higher risk relative to other commercial business loans. The Bank had originated commercial business express loans to support small business owners coming out of the COVID crisis. The portfolio consists of a large number of loans with majority of the loans carrying a balance of $250,000 or lower.

Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral value securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default.

Other consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2024, and the related portion of the allowance for credit losses that is allocated to each loan class, as of September 30, 2024 (in thousands):


	Residential			Commercial & Multi-family	Construction		Commercial Business		Business Express		Home Equity ⁽¹⁾		Consumer		Total
Allowance for credit losses:
Beginning Balance, July 1, 2024	$	2,039	$	14,907	$	2,872	$	8,323	$	6,444	$	635	$	23	$	35,243

Charge-offs:		-		-		-		-		(3,471)		-		-		(3,471)
Recoveries:		8		-		-		22		1		-		-		31
Provision (benefit):		30		(1,371)		(496)		531		4,168		10		18		2,890
Ending Balance, September 30, 2024		2,077		13,536		2,376		8,876		7,142		645		41		34,693

Ending Balance attributable to loans:
Individually evaluated		-		971		-		2,025		3,052		-		20		6,068
Collectively evaluated		2,077		12,565		2,376		6,851		4,090		645		21		28,625
Ending Balance, September 30, 2024		2,077		13,536		2,376		8,876		7,142		645		41		34,693

Loans Receivables:
Individually evaluated		235		56,869		586		4,993		3,052		293		20		66,048
Collectively evaluated		240,815		2,240,017		145,885		267,415		95,905		67,273		2,289		3,059,599
Total Gross Loans:	$	241,050	$	2,296,886	$	146,471	$	272,408	$	98,957	$	67,566	$	2,309	$	3,125,647

(1) Includes home equity lines of credit.


	Residential			Commercial & Multi-family	Construction		Commercial Business			Business Express		Home Equity⁽¹⁾	Consumer		Total
Allowance for credit losses:
Beginning Balance, January 1, 2024	$	2,344	$	16,301	$	3,841	$	5,811	$	4,542	$	691	$	78	$	33,608

Charge-offs:		-		-		-		(567)		(5,387)		-		(446)		(6,400)
Recoveries:		33		-		-		27		9		-		-		69
Provision (benefit):		(300)		(2,765)		(1,465)		3,605		7,978		(46)		409		7,416
Ending Balance, September 30, 2024	$	2,077	$	13,536	$	2,376	$	8,876	$	7,142	$	645	$	41	$	34,693

(1) Includes home equity lines of credit.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table sets forth the activity in the Company’s allowance for credit losses for the three and nine months ended September 30, 2023, and the related portion of the allowance for credit losses that is allocated to each loan class, as of September 30, 2023 (in thousands):


	Residential			Commercial & Multi-family	Construction		Commercial Business		Business Express		Home Equity ⁽¹⁾		Consumer		Total
Allowance for credit losses:
Beginning Balance, July 1, 2023	$	2,453	$	15,045	$	4,090	$	5,379	$	2,485	$	722	$	31	$	30,205

Charge-offs:		-		-		-		-		(515)		-		-		(515)
Recoveries:		14		-		-		5		-		-		-		19
Provision (benefit):		(23)		(595)		573		2,782		(485)		(54)		7		2,205
Ending Balance, September 30, 2023		2,444		14,450		4,663		8,166		1,485		668		38		31,914

Ending Balance attributable to loans:
Individually evaluated		-		-		608		1,914		250		-		-		2,772
Collectively evaluated		2,444		14,450		4,055		6,252		1,235		668		38		29,142
Ending Balance, September 30, 2023		2,444		14,450		4,663		8,166		1,485		668		38		31,914

Loans Receivables:
Individually evaluated		355		23,843		4,931		6,277		250		212		-		35,868
Collectively evaluated		251,490		2,421,044		180,271		262,977		101,008		65,834		3,647		3,286,271
Total Gross Loans:	$	251,845	$	2,444,887	$	185,202	$	269,254	$	101,258	$	66,046	$	3,647	$	3,322,139

(1) Includes home equity lines of credit.


	Residential			Commercial & Multi-family	Construction		Commercial Business			Business Express		Home Equity⁽¹⁾	Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance December 31, 2022		2,474		21,749		2,094		4,495		872		485		24		180		32,373
Effect of adopting ASU No. 2016-13 ("CECL")		144		(7,123)		1,387		1,734		(316)		182		7		(180)		(4,165)
Beginning Balance, January 1, 2023	$	2,618	$	14,626	$	3,481	$	6,229	$	556	$	667	$	31	$	-	$	28,208

Charge-offs:		-		-		-		(1)		(554)		-		-		-		(555)
Recoveries:		38		-		-		30		-		16		-		-		84
Provision (benefit):		(212)		(176)		1,182		1,908		1,483		(15)		7		-		4,177
Ending Balance, September 30, 2023	$	2,444	$	14,450	$	4,663	$	8,166	$	1,485	$	668	$	38	$	-	$	31,914

(1) Includes home equity lines of credit.

The following table sets forth the activity in the allowance for credit losses and amount recorded in loans receivable at and for the year ended December 31, 2023. The table also details the amount of total loans receivable that are evaluated individually and collectively, and the related portion of the allowance for credit losses that is allocated to each loan class (in thousands):


	Residential		Commercial & Multi-family		Construction		Commercial Business		Business Express		Home Equity ⁽¹⁾		Consumer		Unallocated		Total
Allowance for credit losses:
Ending Balance, December 31, 2022	$	2,474	$	21,749	$	2,094	$	4,495	$	872	$	485	$	24	$	180	$	32,373
Effect of adopting ASU No. 2016-13 ("CECL")		144		(7,123)		1,387		1,734		(316)		182		7		(180)		(4,165)
Beginning Balance, January 1, 2023	$	2,618	$	14,626	$	3,481	$	6,229	$	556	$	667	$	31	$	-	$	28,208

Charge-offs:		-		-		-		-		(805)		-		-		-		(805)
Recoveries:		45		-		-		29		11		16		-		-		101
Provision (benefit):		(319)		1,675		360		(447)		4,780		8		47		-		6,104
Ending Balance, December 31, 2023	$	2,344	$	16,301	$	3,841	$	5,811	$	4,542	$	691	$	78	$	-	$	33,608

Ending Balance attributable to loans:
Individually evaluated	$	-	$	990	$	310	$	2,132	$	797	$	-	$	-	$	-	$	4,229
Collectively evaluated		2,344		15,311		3,531		3,679		3,745		691		78		-		29,379
Ending Balance, December 31, 2023	$	2,344	$	16,301	$	3,841	$	5,811	$	4,542	$	691	$	78	$	-	$	33,608

Loans Receivables:
Individually evaluated	$	444	$	42,259	$	4,292	$	6,015	$	797	$	212	$	-	$	-	$	54,019
Collectively evaluated		247,851		2,391,856		188,524		263,259		102,131		66,119		3,643		-		3,263,383
Total Gross Loans	$	248,295	$	2,434,115	$	192,816	$	269,274	$	102,928	$	66,331	$	3,643	$	-	$	3,317,402

(1) Includes home equity lines of credit.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following tables present the activity in the allowance for credit losses on off-balance sheet exposures for the three and nine months ended September 30, 2024 and 2023 (in thousands):


		Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Allowance for Credit Losses:
Beginning Balance	$	759	$	694
Benefit for credit losses		(288)		(223)
Balance at September 30, 2024	$	471	$	471


		Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
Allowance for Credit Losses:
Beginning Balance	$	254	$	-
Impact of adopting ASU No. 2016-13 ("CECL") effective January 1, 2023		-		1,266
Provision (benefit) for credit losses		148		(864)
Balance at September 30, 2023	$	402	$	402

The following table sets forth the delinquency status of total loans receivable as of September 30, 2024:



													Loans Receivable
					Greater Than								>90 Days
	30-59 Days		60-90 Days		90 Days		Total Past				Total Loans		Past Due
	Past Due		Past Due		Past Due		Due		Current		Receivable		and Accruing
		(In Thousands)

Residential one-to-four family	$	4,972	$	391	$	312	$	5,675	$	235,375	$	241,050	$	-
Commercial and multi-family		10,905		308		29,391		40,604		2,256,282		2,296,886		5,520
Construction		-		-		586		586		145,885		146,471		313
Commercial business		5,512		155		2,946		8,613		263,794		272,407
Business express		9,776		3,750		387		13,913		85,044		98,957		387
Home equity ⁽¹⁾		2,285		41		81		2,407		65,159		67,566		-
Consumer		-		-		2		2		2,307		2,309		-
Total	$	33,450	$	4,645	$	33,705	$	71,800	$	3,053,847	$	3,125,647	$	6,220

(1) Includes home equity lines of credit.

The following table sets forth the delinquency status of total loans receivable at December 31, 2023:


													Loans Receivable
					Greater Than								>90 Days
	30-59 Days		60-90 Days		90 Days		Total Past				Total Loans		Past Due
	Past Due		Past Due		Past Due		Due		Current		Receivable		and Accruing
		(In Thousands)

Residential one-to-four family	$	4,701	$	-	$	270	$	4,971	$	243,324	$	248,295	$	-
Commercial and multi-family		1,853		7,876		6,842		16,571		2,417,544		2,434,115		-
Construction		3,641		-		586		4,227		188,589		192,816		-
Commercial business		2,314		362		1,081		3,757		265,517		269,274		-
Business Express		1,922		249		50		2,221		100,707		102,928
Home equity ⁽¹⁾		907		-		-		907		65,424		66,331		-
Consumer		-		-		-		-		3,643		3,643		-
Total	$	15,338	$	8,487	$	8,829	$	32,654	$	3,284,748	$	3,317,402	$	-

(1) Includes home equity lines of credit.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

Modifications

The Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty.

The following table shows the amortized cost basis of loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of concession granted for the three and nine months ended September 30, 2024.


	For the three Months Ended September 30, 2024
	(In Thousands)
	Number		Payment Delay		Term Extension		Total Principal	% of Total Class of Financing Receivable
Business Express	114	$	-	$	25,688	$	25,688	25.96	%


	For the Nine Months Ended September 30, 2024
	(In Thousands)
	Number		Payment Delay		Term Extension		Total Principal	% of Total Class of Financing Receivable
Residential one-to-four family	1	$	174	$	-	$	174	0.07	%
Business Express	194		-		43,027		43,027	43.48
	195	$	174	$	43,027	$	43,201	1.38	%

The following table presents loan modifications made during 2024 by payment status as of September 30, 2024.


	For the Nine Months Ended September 30, 2024
	(In Thousands)
		Current		30-59 Days Past Due		60-90 Days Past Due		Non-accrual		Total
Residential one-to-four family	$	174	$	-	$	-	$	-	$	174
Business Express		42,581		249		-		197		43,027
	$	42,755	$	249	$	-	$	197	$	43,201

The Company monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts.

The Company did not have any loans that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023.

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The tables below set forth the amounts and types of non-accrual loans in the Bank’s loan portfolio at September 30, 2024 and December 31, 2023, respectively. Loans are placed on non-accrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful.

As of September 30, 2024 and December 31, 2023, non-accrual loans differed from the amount of total loans past due 90 days due to loans that were previously 90 days past due both of which are maintained on non-accrual status for a minimum of six months until the borrower has demonstrated their ability to satisfy the terms of the loan.


	As of September 30, 2024
	(in Thousands)
		Non-accrual loans with an Allowance for Credit Losses		Non-accrual loans without an Allowance for Credit Losses		Total Non-accrual loans		Amortized Cost of Loans Past due 90 days and Still Accruing
Residential one-to-four family	$	174	$	236	$	410	$	-
Commercial and multi-family		5,853		21,840		27,693		5,520
Construction		-		586		586		313
Commercial business		5,766		535		6,301		-
Business express loans		-		197		197		387
Home equity ⁽¹⁾		42		81		123		-
Consumer		20		-		20		-
Total	$	11,855	$	23,475	$	35,330	$	6,220

(1) Includes home equity lines of credit.


	As of December 31, 2023
	(in Thousands)
		Non-accrual loans with an Allowance for Credit Losses		Non-accrual loans without an Allowance for Credit Losses		Total Non-accrual loans		Amortized Cost of Loans Past due 90 days and Still Accruing
Residential one-to-four family	$	-	$	270	$	270	$	-
Commercial and multi-family		2,029		6,655		8,684		-
Construction		2,312		1,980		4,292		-
Commercial business		2,050		2,892		4,942		-
Business express loans		549		-		549		-
Home equity ⁽¹⁾		-		46		46		-
Total	$	6,940	$	11,843	$	18,783	$	-

(1) Includes home equity lines of credit.

Had non-accrual loans been performing in accordance with their original terms, the interest income recognized for the nine months ended September 30, 2024 and the twelve months ended December 31, 2023 would have been approximately $5.0 million and $1.9 million, respectively. Interest income recognized on loans returned to accrual was approximately $1.1 million and $314,000, respectively. The Bank has not committed to lend additional funds to the borrowers whose loans have been placed on non-accrual status. At September 30, 2024, there were $6.2 million loans more than ninety days past due and still accruing interest. At December 31, 2023 there were no loans more than ninety days past due and still accruing interest.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

Criticized and Classified Assets

Company policies provide for a classification system for problem assets. Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.”

The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list (risk ratings 1-5) are treated as “pass” for grading purposes. The “criticized” risk rating (6) and the “classified” risk ratings (7-9) are detailed below:

6 – Special Mention- Loans currently performing but with potential weaknesses including adverse trends in borrower’s operations, credit quality, financial strength, or possible collateral deficiency.

7 – Substandard- Loans that are inadequately protected by current sound worth, paying capacity, and collateral support. Loans on “non-accrual” status. The loan needs special and corrective attention.

8 – Doubtful- Weaknesses in credit quality and collateral support make full collection improbable, but pending reasonable factors remain sufficient to defer the loss status.

9 – Loss- Continuance as a bankable asset is not warranted. However, this does not preclude future attempts at partial recovery.

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Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating at September 30, 2024 and gross charge-offs for the nine months ended September 30, 2024.



Loans by Year of Origination at September 30, 2024
		2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	4,537	$	16,672	$	48,458	$	38,274	$	30,808	$	97,836	$	-	$	-	$	236,585
Special Mention		-		-		3,573		-		-		483		-		-		4,056
Substandard		-		-		-		174		-		235		-		-		409
Total one-to-four family	$	4,537	$	16,672	$	52,031	$	38,448	$	30,808	$	98,554	$	-	$	-	$	241,050

Commercial and multi-family
Pass	$	4,796	$	213,898	$	729,222	$	184,014	$	170,664	$	745,511	$	3,700	$	-	$	2,051,805
Special Mention		-		9,800		63,684		29,972		9,888		47,068		140		-		160,552
Substandard		-		-		15,631		7,418		9,134		52,346		-		-		84,529
Total Commercial and multi-family	$	4,796	$	223,698	$	808,537	$	221,404	$	189,686	$	844,925	$	3,840	$	-	$	2,296,886

Construction
Pass	$	4	$	36,722	$	36,031	$	25,143	$	-	$	-	$	5,710	$	-	$	103,610
Special Mention		-		834		1,716		31,304		6,571		1,850		-		-		42,275
Substandard		-		-		-		-		586		-		-		-		586
Total Construction	$	4	$	37,556	$	37,747	$	56,447	$	7,157	$	1,850	$	5,710	$	-	$	146,471

Commercial business
Pass	$	-	$	2,487		274		830	$	4,357	$	30,151	$	196,086	$	741	$	234,926
Special Mention		-		-		-		1,879		-		6,702		19,479		424		28,484
Substandard		-		-		-		-		-		4,507		3,494		-		8,001
Loss		-		-		-		-		-		-		997		-		997
Total Commercial business	$	-	$	2,487	$	274	$	2,709	$	4,357	$	41,360	$	220,056	$	1,165	$	272,408

Business express
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	50,282	$	40,617	$	90,899
Special Mention		-		-		-		-		-		-		3,595		1,166		4,761
Substandard		-		-		-		-		-		-		1,517		1,780		3,297
Total Business express	$	-	$	-	$	-	$	-	$	-	$	-	$	55,394	$	43,563	$	98,957

Home equity
Pass	$	304	$	3,828	$	1,411	$	515	$	644	$	6,050	$	53,806	$	673	$	67,231
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		42		-		81		-		-		212		335
Total Home equity	$	304	$	3,828	$	1,453	$	515	$	725	$	6,050	$	53,806	$	885	$	67,566

Consumer
Pass	$	607	$	1,148	$	410	$	14	$	98	$	6	$	6	$	-	$	2,289
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		20		-		-		-		-		-		-		20
Total Consumer	$	607	$	1,168	$	410	$	14	$	98	$	6	$	6	$	-	$	2,309

Total Loans	$	10,248	$	285,409	$	900,452	$	319,537	$	232,831	$	992,745	$	338,812	$	45,613	$	3,125,647

Gross charge-offs	$	446	$	-	$	-	$	-	$	-	$	567	$	5,206	$	181	$	6,400

‎

Note 7 - Loans Receivable and Allowance for Credit Losses (Continued)

The following table summarizes the Company's loans by year of origination and internally assigned credit risk rating and gross charge-offs for the year ended December 31, 2023.


Loans by Year of Origination at December 31, 2023
		2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans to Term Loans		Total
Residential one-to-four family
Pass	$	17,080	$	53,623	$	38,178	$	31,420	$	12,067	$	93,764	$	-	$	-	$	246,132
Special Mention		-		492		91		-		-		-		-		-		583
Substandard		-		-		1,310		-		-		270		-		-		1,580
Total one-to-four family	$	17,080	$	54,115	$	39,579	$	31,420	$	12,067	$	94,034	$	-	$	-	$	248,295

Commercial and multi-family
Pass	$	222,435	$	778,076	$	224,823	$	214,768	$	50,755	$	824,375	$	1,922	$	-	$	2,317,154
Special Mention		9,908		34,375		-		-		529		4,453		140		-		49,405
Substandard		-		14,931		4,023		3,575		-		45,027		-		-		67,556
Total Commercial and multi-family	$	232,343	$	827,382	$	228,846	$	218,343	$	51,284	$	873,855	$	2,062	$	-	$	2,434,115

Construction
Pass	$	21,730	$	74,180	$	59,564	$	21,462	$	-	$	5,878	$	5,710	$	-	$	188,524
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		1,394		-		586		-		2,312		-		-		4,292
Total Construction	$	21,730	$	75,574	$	59,564	$	22,048	$	-	$	8,190	$	5,710	$	-	$	192,816

Commercial business
Pass	$	3,179	$	297	$	2,967	$	4,234	$	7,080	$	33,675	$	201,008	$	150	$	252,590
Special Mention		-		-		-		-		317		830		4,410		-		5,557
Substandard		-		-		-		-		-		4,703		6,424		-		11,127
Total Commercial business	$	3,179	$	297	$	2,967	$	4,234	$	7,397	$	39,208	$	211,842	$	150	$	269,274

Business express
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	101,531	$	-	$	101,531
Special Mention		-		-		-		-		-		-		600		-		600
Substandard		-		-		-		-		-		-		797		-		797
Total Business express	$	-	$	-	$	-	$	-	$	-	$	-	$	102,928	$	-	$	102,928

Home equity
Pass	$	5,022	$	1,487	$	553	$	769	$	1,280	$	6,181	$	50,111	$	553	$	65,956
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		46		-		-		-		-		117		212		375
Total Home equity	$	5,022	$	1,533	$	553	$	769	$	1,280	$	6,181	$	50,228	$	765	$	66,331

Consumer
Pass	$	1,497	$	471	$	1,521	$	109	$	39	$	-	$	6	$	-	$	3,643
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Total Consumer	$	1,497	$	471	$	1,521	$	109	$	39	$	-	$	6	$	-	$	3,643

Total Loans	$	280,851	$	959,372	$	333,030	$	276,923	$	72,067	$	1,021,468	$	372,776	$	915	$	3,317,402

Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	805	$	-	$	805