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Loans Receivable Held for Investment (Tables)

9 Months Ended

Sep. 30, 2024

Loans Receivable Held for Investment [Abstract]

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

	September 30, 2024			December 31, 2023
	(In thousands)
Real estate:
Single-family	$	23,845		$	24,702
Multi-family		625,662			561,447
Commercial real estate		163,258			119,436
Church		9,543			12,717
Construction		79,396			89,887
Commercial – other		71,236			63,450
SBA loans⁽¹⁾		895			14,954
Consumer		20			13
Gross loans receivable before deferred loan costs and premiums		973,855			886,606
Unamortized net deferred loan costs and premiums		1,896			1,971
Gross loans receivable		975,751			888,577
Credit and interest marks on purchased loans, net		(436	)		(772	)
Allowance for credit losses		(8,527	)		(7,348	)
Loans receivable, net	$	966,788		$	880,457

(1)	Including Paycheck Protection Program (“PPP”) loans.

Activity in Allowance for Credit Losses on Loans

The following tables summarize the activity in the allowance for credit losses on loans for the periods indicated:

	Three Months Ended September 30, 2024
	Beginning Balance			Charge-offs			Recoveries			Provision (Recapture) ⁽¹⁾				Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family		$	301		$	–		$	–		$	(87	)		$	214
Multi-family			4,690			–			–			46				4,736
Commercial real estate			1,171			–			–			122				1,293
Church			84			–			–			(24	)			60
Construction			1,110			–			–			271				1,381
Commercial - other			618			–			–			141				759
SBA loans			130			–			–			(46	)			84
Consumer			–			–			–			–				–
Total		$	8,104		$	–		$	–		$	423			$	8,527

	Nine Months Ended September 30, 2024
	Beginning Balance			Charge-offs			Recoveries			Provision (Recapture) ⁽¹⁾				Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single family		$	260		$	–		$	–		$	(46	)		$	214
Multi-family			4,413			–			–			323				4,736
Commercial real estate			1,094			–			–			199				1,293
Church			72			–			–			(12	)			60
Construction			932			–			–			449				1,381
Commercial - other			529			–			–			230				759
SBA loans			48			–			–			36				84
Consumer			–			–			–			–				–
Total		$	7,348		$	–		$	–		$	1,179			$	8,527

(1)	The Bank also recorded a recovery of provision for off-balance sheet loan commitments of $24 thousand and $26 thousand for the three and nine months ended September 30, 2024, respectively.

	Three Months Ended September 30, 2023
	Beginning Balance			Charge-offs			Recoveries			Provision (Recapture) ⁽¹⁾				Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family		$	247		$	–		$	–		$	(6	)		$	241
Multi-family			4,255			–			–			(8	)			4,247
Commercial real estate			1,012			–			–			9				1,021
Church			83			–			–			(4	)			79
Construction			788			–			–			59				847
Commercial - other			546			–			–			(121	)			425
SBA loans			39			–			–			–				39
Consumer			–			–			–			–				–
Total		$	6,970		$	–		$	–		$	(71	)		$	6,899

	Nine Months Ended September 30, 2023
	Beginning Balance		Impact of CECL Adoption			Charge-offs		Recoveries		Provision (Recapture) ⁽¹⁾			Ending Balance
	(In thousands)
Loans receivable held for investment:
Real estate:
Single family	$	109	$	214		$	–	$	–	$	(82	)	$	241
Multi-family		3,273		603			–		–		371			4,247
Commercial real estate		449		466			–		–		106			1,021
Church		65		37			–		–		(23	)		79
Construction		313		219			–		–		315			847
Commercial - other		175		254			–		–		(4	)		425
SBA loans		–		20			–		–		19			39
Consumer		4		(4	)		–		–		–			–
Total	$	4,388	$	1,809		$	–	$	–	$	702		$	6,899

(1)	The Bank also recorded a provision for off-balance sheet loan commitments of $69 thousand and $106 thousand for the three and nine months ended September 30, 2023, respectively.

Collateral Dependent Loans By Collateral Type

The following table presents collateral dependent loans by collateral type as of the dates indicated:

	September 30, 2024
	Single-Family		Multi-Family Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single-family	$	36	$	–	$	–	$	–	$	36
Total	$	36	$	–	$	–	$	–	$	36

	December 31, 2023
	Single-Family		Multi-Family Residential		Church		Business Assets		Total
Real estate:	(In thousands)
Single-family	$	45	$	–	$	–	$	–	$	45
Multi-family		–		5,672		–		–		5,672
Commercial real estate		–		–		65		–		65
Church		–		–		391		–		391
Commercial – other		–		–		–		268		268
Total	$	45	$	5,672	$	456	$	268	$	6,441

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, 2024
	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	$	–	$	–	$	–	$	–	$	23,869	$	23,869
Multi-family		–		–		–		–		628,591		628,591
Commercial real estate		–		1,374		–		1,374		159,434		160,808
Church		–		–		–		–		11,717		11,717
Construction		–		–		–		–		78,950		78,950
Commercial - other		–		–		–		–		70,901		70,901
SBA loans		–		291		–		291		604		895
Consumer		–		–		–		–		20		20
Total	$	–	$	1,665	$	–	$	1,665	$	974,086	$	975,751

	December 31, 2023
	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	$	–	$	–	$	–	$	–	$	24,702	$	24,702
Multi-family		–		401		–		401		563,017		563,418
Commercial real estate		–		–		–		–		119,436		119,436
Church		–		–		–		–		12,717		12,717
Construction		–		–		–		–		89,887		89,887
Commercial - other		–		–		–		–		63,450		63,450
SBA loans		379		–		–		379		14,575		14,954
Consumer		–		–		–		–		13		13
Total	$	379	$	401	$	–	$	780	$	887,797	$	888,577

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, 2024		December 31, 2023
	(In thousands)
Loans receivable held for investment:
SBA loans	$	291	$	–
Total non-accrual loans	$	291	$	–

Loans Held for Investment Portfolio By Internal Risk Grading and By Year of Origination

The following tables stratify the loans held for investment portfolio by the Company’s internal risk grading and by year of origination as of September 30, 2024 and December 31, 2023:

	Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	556	$	4,073	$	1,822	$	2,016	$	13,813	$	–	$	22,280
Watch		–		–		–		734		855		–		–		1,589
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		–		–		–
Total	$	–	$	556	$	4,073	$	2,556	$	2,871	$	13,813	$	–	$	23,869

Multi-family:
Pass	$	65,883	$	82,266	$	173,000	$	126,251	$	26,941	$	85,822	$	–	$	560,163
Watch		–		1,384		15,727		16,638		–		8,032		–		41,781
Special Mention		–		–		3,238		3,155		–		653		–		7,046
Substandard		–		1,549		–		4,487		–		13,565		–		19,601
Total	$	65,883	$	85,199	$	191,965	$	150,531	$	26,941	$	108,072	$	–	$	628,591

Commercial real estate:
Pass	$	31,882	$	13,695	$	20,982	$	29,797	$	14,695	$	18,944	$	–	$	129,995
Watch		14,886		–		435		–		13,120		1,498		–		29,939
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		874		–		–		–		–		–	$	874
Total	$	46,768	$	14,569	$	21,417	$	29,797	$	27,815	$	20,442	$	–	$	160,808

Church:
Pass	$	–	$	2,465	$	–	$	2,161	$	1,709	$	2,956	$	–	$	9,291
Watch		–		381		–		–		–		842		–		1,223
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		1,203		–		1,203
Total	$	–	$	2,846	$	–	$	2,161	$	1,709	$	5,001	$	–	$	11,717

Construction:
Pass	$	–	$	–	$	–	$	–	$	–	$	–	$	–	$	–
Watch		5,699		31,804		4,160		–		–		2,037		–		43,700
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		3,896		27,289		4,065		–		–		–		35,250
Total	$	5,699	$	35,700	$	31,449	$	4,065	$	–	$	2,037	$	–	$	78,950

Commercial – other:
Pass	$	–	$	4	$	7,867	$	–	$	2,799	$	6,054	$	–	$	16,724
Watch		8,606		28,147		717		–		–		2,250		–		39,720
Special Mention		8,832		–		351		–		–		–		–		9,183
Substandard		–		–		–		108		867		4,299		–		5,274
Total	$	17,438	$	28,151	$	8,935	$	108	$	3,666	$	12,603	$	–	$	70,901

SBA:
Pass	$	300	$	–	$	150	$	–	$	–	$	76	$	–	$	526
Substandard		–		–		–		–		369		–		–		369
Total	$	300	$	–	$	150	$	–	$	369	$	76	$	–	$	895

Consumer:
Pass	$	20	$	–	$	–	$	–	$	–	$	–	$	–	$	20
Total	$	20	$	–	$	–	$	–	$	–	$	–	$	–	$	20

Total loans:
Pass	$	98,085	$	98,986	$	206,072	$	160,031	$	48,160	$	127,665	$	–	$	738,999
Watch		29,191		61,716		21,039		17,372		13,975		14,659		–		157,952
Special Mention		8,832		–		3,589		3,155		–		653		–		16,229
Substandard		–		6,319		27,289		8,660		1,236		19,067		–		62,571
Total loans	$	136,108	$	167,021	$	257,989	$	189,218	$	63,371	$	162,044	$	–	$	975,751

	Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	2,474	$	1,862	$	2,940	$	1,485	$	12,374	$	–	$	21,135
Watch		–		–		750		–		–		999		–		1,749
Special Mention		–		–		–		–		–		116		–		116
Substandard		–		–		–		1,365		–		337		–		1,702
Total	$	–	$	2,474	$	2,612	$	4,305	$	1,485	$	13,826	$	–	$	24,702

Multi-family:
Pass	$	81,927	$	183,295	$	145,652	$	27,356	$	44,511	$	47,119	$	–	$	529,860
Watch		–		4,686		6,203		–		1,186		6,474		–		18,549
Special Mention		–		–		899		–		–		1,344		–		2,243
Substandard		–		–		–		–		363		12,403		–		12,766
Total	$	81,927	$	187,981	$	152,754	$	27,356	$	46,060	$	67,340	$	–	$	563,418

Commercial real estate:
Pass	$	9,881	$	22,131	$	26,019	$	24,684	$	6,718	$	15,106	$	–	$	104,539
Watch		–		442		–		5,286		–		2,599		–		8,327
Special Mention		–		–		–		–		325		–		–		325
Substandard		–		–		–	$	–	$	–		6,245	$	–	$	6,245
Total	$	9,881	$	22,573	$	26,019	$	29,970	$	7,043	$	23,950	$	–	$	119,436

Church:
Pass	$	2,923	$	–	$	2,210	$	1,748	$	–	$	2,704	$	–	$	9,585
Watch		–		–		–		–		636		1,525		–		2,161
Substandard		–		–		–		–		–		971		–		971
Total	$	2,923	$	–	$	2,210	$	1,748	$	636	$	5,200	$	–	$	12,717

Construction:
Pass	$	–	$	1,109	$	1,198	$	–	$	–	$	–	$	–	$	2,307
Watch		42,300		35,179		5,484		–		–		2,097		–		85,060
Special Mention		–		–		2,520		–		–		–		–		2,520
Total	$	42,300	$	36,288	$	9,202	$	–	$	–	$	2,097	$	–	$	89,887

Commercial – other:
Pass	$	15,000	$	9,077	$	87	$	5,600	$	–	$	25,154	$	–	$	54,918
Watch		–		312		–		1,500		6,550		–		–		8,362
Special Mention		–		–		170		–		–		–		–		170
Total	$	15,000	$	9,389	$	257	$	7,100	$	6,550	$	25,154	$	–	$	63,450

SBA:
Pass	$	11,809	$	109	$	2,453	$	–	$	16	$	100	$	–	$	14,487
Special Mention		–		–		–		467		–		–		–		467
Total	$	11,809	$	109	$	2,453	$	467	$	16	$	100	$	–	$	14,954

Consumer:
Pass	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13
Total	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13

Total loans:
Pass	$	121,553	$	218,195	$	179,481	$	62,328	$	52,730	$	102,557	$	–	$	736,844
Watch		42,300		40,619		12,437		6,786		8,372		13,694		–		124,208
Special Mention		–		–		3,589		467		325		1,460		–		5,841
Substandard		–		–		–		1,365		363		19,956		–		21,684
Total loans	$	163,853	$	258,814	$	195,507	$	70,946	$	61,790	$	137,667	$	–	$	888,577