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Loans Receivable Held for Investment (Tables)

9 Months Ended

Sep. 30, 2022

Loans Receivable Held for Investment [Abstract]

Loans receivable held for investment were as follows as of the dates indicated:

	September 30, 2022			December 31, 2021
	(In thousands)
Real estate:
Single family	$	30,781		$	45,372
Multi-family		459,234			393,704
Commercial real estate		91,576			93,193
Church		16,683			22,503
Construction		57,845			32,072
Commercial – other		66,516			46,539
SBA loans⁽¹⁾		3,654			18,837
Consumer		9			–
Gross loans receivable before deferred loan costs and premiums		726,298			652,220
Unamortized net deferred loan costs and premiums		1,564			1,526
Gross loans receivable		727,862			653,746
Credit and interest marks on purchased loans, net		(1,194	)		(1,842	)
Allowance for loan losses		(3,983	)		(3,391	)
Loans receivable, net	$	722,685		$	648,513

Carrying Amount of Purchased Credit Impaired Loans

The carrying amount of those loans as of September 30, 2022, and December 31, 2021, was as follows:

	September 30, 2022		December 31, 2021
	(In thousands)
Real estate:
Single family	$	67	$	558
Commercial real estate		–		221
Commercial – other		26		104
	$	93	$	883

Accretable yield on Purchased Credit Impaired Loans

The following table summarizes the accretable yield on the PCI loans for the three and nine months ended September 30, 2022 and September 30, 2021:

	Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022
	(In thousands)

Balance at the beginning of the period	$	160		$	883
Deduction due to payoffs		(71	)		(810	)
Accretion		(4	)		(20	)
Balance at the end of the period	$	93		$	93

	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
	(In thousands)

Balance at the beginning of the period	$	327	$	–
Additions		–		346
Accretion		19		38
Balance at the end of the period	$	308	$	308

Activity in Allowance for Loan Losses by Loan Type

The following tables present the activity in the allowance for loan losses by loan type for the periods indicated:

	For the Three Months Ended September 30, 2022
	Real Estate
	Single Family			Multi- Family		Commercial Real Estate		Church		Construction		Commercial - Other		Consumer		Total
Beginning balance	$	120		$	2,278	$	153	$	48	$	221	$	138	$	4	$	2,962
Provision for (recapture of) loan losses		(8	)		641		142		6		187		53		–		1,021
Recoveries		–			–		–		–		–		–		–		–
Loans charged off		–			–		–		–		–		–		–		–
Ending balance	$	112		$	2,919	$	295	$	54	$	408	$	191	$	4	$	3,983

	For the Three Months Ended September 30, 2021
	Real Estate
	Single Family			Multi- Family		Commercial Real Estate		Church			Construction		Commercial - Other		Consumer		Total
Beginning balance	$	170		$	2,606	$	227	$	208		$	81	$	4	$	–	$	3,296
Provision for (recapture of) loan losses		(10	)		325		32		(18	)		35		–		1		365
Recoveries		–			–		–		–			–		–		–		–
Loans charged off		–			–		–		–			–		–		–		–
Ending balance	$	160		$	2,931	$	259	$	190		$	116	$	4	$	1	$	3,661

	For the Nine Months Ended September 30, 2022
	Real Estate
	Single Family			Multi- Family		Commercial Real Estate		Church			Construction		Commercial - Other		Consumer			Total
Beginning balance	$	145		$	2,657	$	236	$	103		$	212	$	23	$	15		$	3,391
Provision for (recapture of) loan losses		(33	)		262		59		(49	)		196		168		(11	)		592
Recoveries		–			–		–		–			–		–		–			–
Loans charged off		–			–		–		–			–		–		–			–
Ending balance	$	112		$	2,919	$	295	$	54		$	408	$	191	$	4		$	3,983

	For the Nine Months Ended September 30, 2021
	Real Estate
	Single Family			Multi- Family		Commercial Real Estate		Church			Construction		Commercial - Other		Consumer		Total
Beginning balance	$	296		$	2,433	$	222	$	237		$	22	$	4	$	1	$	3,215
Provision for (recapture of) loan losses		(136	)		498		37		(47	)		94		–		–		446
Recoveries		–			–		–		–			–		–		–		–
Loans charged off		–			–		–		–			–		–		–		–
Ending balance	$	160		$	2,931	$	259	$	190		$	116	$	4	$	1	$	3,661

Allowance for Loan Losses and Recorded Investment in Loans by Type of Loans and Based on Impairment Method

The following tables present the balance in the allowance for loan losses and the recorded investment (unpaid contractual principal balance less charge-offs, less interest applied to principal, plus unamortized deferred costs and premiums) by loan type and based on impairment method as of the dates indicated:

	September 30, 2022
	Real Estate
	Single Family		Multi- Family		Commercial Real Estate		Church		Construction		Commercial - Other		Consumer		Total
	(In thousands)
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	3	$	–	$	–	$	4	$	–	$	–	$	–	$	7
Collectively evaluated for impairment		109		2,919		295		50		408		191		4		3,976
Total ending allowance balance	$	112	$	2,919	$	295	$	54	$	408	$	191	$	4	$	3,983
Loans:
Loans individually evaluated for impairment	$	58	$	268	$	–	$	2,135	$	–	$	–	$	–	$	2,461
Loans collectively evaluated for impairment		21,607		422,731		40,946		7,030		53,813		30,447		9		576,583
Subtotal		21,665		422,999		40,946		9,165		53,813		30,447		9		579,044
Loans acquired in the Merger		9,116		37,799		50,630		7,518		4,032		39,723		–		148,818
Total ending loans balance	$	30,781	$	460,798	$	91,576	$	16,683	$	57,845	$	70,170	$	9	$	727,862

	December 31, 2021
	Real Estate
	Single Family		Multi- Family		Commercial Real Estate		Church		Construction		Commercial - Other		SBA		Total

Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	3	$	–	$	–	$	4	$	–	$	–	$	–	$	7
Collectively evaluated for impairment		142		2,657		236		99		212		23		15		3,384
Total ending allowance balance	$	145	$	2,657	$	236	$	103	$	212	$	23	$	15	$	3,391
Loans:
Loans individually evaluated for impairment	$	65	$	282	$	–	$	1,954	$	–	$	–	$	–	$	2,301
Loans collectively evaluated for impairment		32,599		353,179		25,507		9,058		24,225		3,124		–		447,692
Subtotal		32,664		353,461		25,507		11,012		24,225		3,124		–		449,993
Loans acquired in the Merger		12,708		41,769		67,686		11,491		7,847		43,415		18,837		203,753
Total ending loans balance	$	45,372	$	395,230	$	93,193	$	22,503	$	32,072	$	46,539	$	18,837	$	653,746

Loans Individually Evaluated for Impairment by Loan Type

The following table presents information related to loans individually evaluated for impairment by loan type as of the dates indicated:

	September 30, 2022						December 31, 2021
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(In thousands)
With no related allowance recorded:
Multi-family	$	267	$	267	$	–	$	282	$	282	$	–
Church		2,049		2,049		–		1,854		1,854		–
With an allowance recorded:
Single family		58		58		3		65		65		3
Church		87		87		4		100		100		4
Total	$	2,461	$	2,461	$	7	$	2,301	$	2,301	$	7

Average of Loans Individually Evaluated for Impairment by Loan Type and Related Interest Income

The following tables present the monthly average of loans individually evaluated for impairment by loan type and the related interest income for the periods indicated:

	Three Months Ended September 30, 2022				Three Months Ended September 30, 2021
	Average Recorded Investment		Cash Basis Interest Income Recognized		Average Recorded Investment		Cash Basis Interest Income Recognized
	(In thousands)
Single family	$	60	$	1	$	65	$	4
Multi-family		268		5		288		5
Church		2,172		25		3,614		64
Commercial - other		–		–		–		–
Total	$	2,500	$	31	$	3,967	$	73

	Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
	Average Recorded Investment		Cash Basis Interest Income Recognized		Average Recorded Investment		Cash Basis Interest Income Recognized
	(In thousands)
Single family	$	63	$	3	$	318	$	14
Multi-family		274		14		292		15
Church		2,197		76		3,710		190
Commercial - other		–		–		18		1
Total	$	2,534	$	93	$	4,338	$	220

Aging of Recorded Investment in Past Due Loans by Loan Type

The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:

	September 30, 2022
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Single family	$	–	$	–	$	–	$	–	$	30,781	$	30,781
Multi-family		4,316		5,864		–		10,180		450,618		460,798
Commercial real estate		–		–		–		–		91,576		91,576
Church		–		–		–		–		16,683		16,683
Construction		–		–		–		–		57,845		57,845
Commercial - other		41		12		–		53		66,463		66,516
SBA loans		–		–		–		–		3,654		3,654
Consumer		–		–		–		–		9		9
Total	$	4,357	$	5,876	$	–	$	10,233	$	717,629	$	727,862

	December 31, 2021
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Single family	$	–	$	–	$	–	$	–	$	45,372	$	45,372
Multi-family		–		–		–		–		395,230		395,230
Commercial real estate		–		–		2,423		2,423		90,770		93,193
Church		–		–		–		–		22,503		22,503
Construction		–		–		–		–		32,072		32,072
Commercial - other		–		–		–		–		46,539		46,539
Consumer		–		–		–		–		18,837		18,837
Total	$	–	$	–	$	2,423	$	2,423	$	651,323	$	653,746

Recorded Investment in Non-accrual Loans by Loan Type

The following table presents the recorded investment in non-accrual loans by loan type as of the dates indicated:

	September 30, 2022		December 31, 2021
	(In thousands)
Loans receivable held for investment:
Church	$	608	$	684
Total non-accrual loans	$	608	$	684

Risk Categories of Loans by Loan Type

Based on the most recent analysis performed, the risk categories of loans by loan type as of the dates indicated were as follows:

	September 30, 2022
	Pass		Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Single family	$	30,422	$	359	$	–	$	–	$	–	$	–	$	30,781
Multi-family		448,183		1,735		7,162		3,718		–		–		460,798
Commercial real estate		90,142		–		–		1,434		–		–		91,576
Church		14,934		–		–		1,749		–		–		16,683
Construction		23,504		34,341		–		–		–		–		57,845
Commercial - others		61,426		5,090		–		–		–		–		66,516
SBA		3,022		632		–		–		–		–		3,654
Consumer		9		–		–		–		–		–		9
Total	$	671,642	$	42,157	$	7,162	$	6,901	$	–	$	–	$	727,862

	December 31, 2021
	Pass		Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(In thousands)
Single family	$	42,454	$	1,343	$	271	$	1,304	$	–	$	–	$	45,372
Multi-family		378,141		7,987		575		8,527		–		–		395,230
Commercial real estate		69,257		7,034		9,847		7,055		–		–		93,193
Church		20,021		–		–		2,482		–		–		22,503
Construction		10,522		21,550		–		–		–		–		32,072
Commercial - other		33,988		12,551		–		–		–		–		46,539
SBA		18,665		–		172		–		–		–		18,837
Total	$	573,048	$	50,465	$	10,865	$	19,368	$	–	$	–	$	653,746