Loans

3 Months Ended

Mar. 31, 2025

Loans:

Loans

NOTE 3 — Loans

The composition of loans by class is summarized as follows:


		March 31,			December 31,
		2025			2024

		(In thousands)
Real estate:
Multifamily		$	364,877		$	355,165
Commercial real estate			86,797			87,038
1 – 4 family			10,974			14,665
Total real estate			462,648			456,868
Commercial			934,141			920,567
Consumer			18,705			19,339
Total loans held for investment			1,415,494			1,396,774
Deferred fees and unearned premiums, net			364			247
Allowance for credit losses			(19,461)			(20,979)
Loans held for investment, net		$	1,396,397		$	1,376,042

The following tables present the activity in the allowance for credit losses by class for the three months ending March 31, 2025 and March 31, 2024:


					Commercial
		Multifamily			Real Estate			1‑4 Family			Commercial			Consumer			Total

		(In thousands)
March 31, 2025
Allowance for credit losses:
Beginning balance		$	5,116		$	691		$	52		$	14,283		$	837		$	20,979
Provision (credit) for credit losses			2,031			(28)			72			(455)			(120)			1,500
Recoveries			—			—			—			—			19			19
Loans charged-off			(2,940)			—			(79)			—			(18)			(3,037)
Total ending allowance balance		$	4,207		$	663		$	45		$	13,828		$	718		$	19,461

March 31, 2024
Allowance for credit losses:
Beginning balance		$	3,236		$	823		$	58		$	12,056		$	458		$	16,631
Provision (credit) for credit losses			75			(32)			3			575			379			1,000
Recoveries			—			—			—			—			19			19
Loans charged-off			—			—			—			—			(127)			(127)
Total ending allowance balance		$	3,311		$	791		$	61		$	12,631		$	729		$	17,523

As of March 31, 2025 and December 31, 2024, there was one multifamily collateral dependent loan secured by real estate totaling $8.0 million and $10.9 million, respectively, with no associated specific reserve on the Consolidated Statements of Financial Condition.

The following tables present the aging of the past due loans measured at amortized cost, excluding deferred fees and unearned premiums, net, due to immateriality, by class of loans as of March 31, 2025 and December 31, 2024:


														Total Past
		30-59			60-89			90 Days						Due &
		Days			Days			or More			Nonaccrual			Nonaccrual			Loans Not
		Past Due			Past Due			Past Due			Loans			Loans			Past Due			Total

		(In thousands)
March 31, 2025
Multifamily		$	—		$	—		$	—		$	8,000		$	8,000		$	356,877		$	364,877
Commercial real estate			—			—			—			—			—			86,797			86,797
1 – 4 family			—			—			—			—			—			10,974			10,974
Commercial			2			—			—			—			2			934,139			934,141
Consumer			—			40			—			—			40			18,665			18,705
Total		$	2		$	40		$	—		$	8,000		$	8,042		$	1,407,452		$	1,415,494

														Total Past
		30-59			60-89			90 Days						Due &
		Days			Days			or More			Nonaccrual			Nonaccrual			Loans Not
		Past Due			Past Due			Past Due			Loans			Loans			Past Due			Total

		(In thousands)
December 31, 2024
Multifamily		$	—		$	—		$	—		$	10,940		$	10,940		$	344,225		$	355,165
Commercial real estate			—			—			—			—			—			87,038			87,038
1 – 4 family			—			—			—			—			—			14,665			14,665
Commercial			—			2			—			—			2			920,565			920,567
Consumer			—			—			—			—			—			19,339			19,339
Total		$	—		$	2		$	—		$	10,940		$	10,942		$	1,385,832		$	1,396,774

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: 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. This analysis is performed whenever a credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans.

The Company uses the following definitions for risk ratings:

Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as 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.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

The following is a summary of the credit risk profile of loans, measured at amortized cost, by internally assigned grade as of the periods indicated, the years represent the year of originations for non-revolving loans:


	March 31, 2025
	2025			2024			2023			2022			2021			2020 and Prior			Revolving			Revolving-Term			Total

	(In thousands)
Multifamily:
Pass	$	14,557		$	26,575		$	104,906		$	26,511		$	106,853		$	77,598		$	—		$	—		$	357,000
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			8,000			—			—			8,000
Doubtful		—			—			—			—			—			—			—			—			—
Total		14,557			26,575			104,906			26,511			106,853			85,598			—			—			365,000
Current period gross charge-offs		—			—			—			—			—			2,940			—			—			2,940

Commercial real estate:
Pass		340			1,826			2,940			57,349			10,251			14,054			—			—			86,760
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		340			1,826			2,940			57,349			10,251			14,054			—			—			86,760
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

1-4 family:
Pass		—			—			—			1,813			—			9,165			—			—			10,978
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		—			—			—			1,813			—			9,165			—			—			10,978
Current period gross charge-offs		—			—			—			—			—			79			—			—			79

Commercial:
Pass		29,566			45,499			29,289			16,212			1,831			536			804,301			3,189			930,423
Special Mention		—			—			—			—			—			—			3,986			—			3,986
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		29,566			45,499			29,289			16,212			1,831			536			808,287			3,189			934,409
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

Consumer:
Pass		454			1,857			3,510			1,758			—			1,250			9,882			—			18,711
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		454			1,857			3,510			1,758			—			1,250			9,882			—			18,711
Current period gross charge-offs		—			—			—			18			—			—			—			—			18

Total:
Pass		44,917			75,757			140,645			103,643			118,935			102,603			814,183			3,189			1,403,872
Special Mention		—			—			—			—			—			—			3,986			—			3,986
Substandard		—			—			—			—			—			8,000			—			—			8,000
Doubtful		—			—			—			—			—			—			—			—			—
Total loans	$	44,917		$	75,757		$	140,645		$	103,643		$	118,935		$	110,603		$	818,169		$	3,189		$	1,415,858
Total current period gross charge-offs	$	—		$	—		$	—		$	18		$	—		$	3,019		$	—		$	—		$	3,037


	December 31, 2024
	2024			2023			2022			2021			2020			2019 and Prior			Revolving			Revolving-Term			Total

	(In thousands)
Multifamily:
Pass	$	26,687		$	104,953		$	26,657		$	107,510		$	22,996		$	55,583		$	—		$	—		$	344,386
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			10,940			—			—			—			10,940
Doubtful		—			—			—			—			—			—			—			—			—
Total		26,687			104,953			26,657			107,510			33,936			55,583			—			—			355,326
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

Commercial real estate:
Pass		1,834			3,040			57,620			10,315			1,714			12,471			—			—			86,994
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		1,834			3,040			57,620			10,315			1,714			12,471			—			—			86,994
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

1-4 family:
Pass		—			—			1,823			—			—			12,846			—			—			14,669
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		—			—			1,823			—			—			12,846			—			—			14,669
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

Commercial:
Pass		59,298			41,051			17,473			2,167			239			378			792,851			3,240			916,697
Special Mention		—			—			—			—			—			—			3,987			—			3,987
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		59,298			41,051			17,473			2,167			239			378			796,838			3,240			920,684
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

Consumer:
Pass		2,251			3,964			2,285			—			296			993			9,559			—			19,348
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		2,251			3,964			2,285			—			296			993			9,559			—			19,348
Current period gross charge-offs		—			38			352			—			—			—			—			—			390

Total:
Pass		90,070			153,008			105,858			119,992			25,245			82,271			802,410			3,240			1,382,094
Special Mention		—			—			—			—			—			—			3,987			—			3,987
Substandard		—			—			—			—			10,940			—			—			—			10,940
Doubtful		—			—			—			—			—			—			—			—			—
Total loans	$	90,070		$	153,008		$	105,858		$	119,992		$	36,185		$	82,271		$	806,397		$	3,240		$	1,397,021
Total current period gross charge-offs	$	—		$	38		$	352		$	—		$	—		$	—		$	—		$	—		$	390

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For smaller dollar commercial and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

Loan Modifications

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. During the three months ended March 31, 2025 and 2024, the Company did not modify the terms of any loans or commitments to lend to borrowers experiencing financial difficulty in the form of an interest rate reduction, term extension, principal forgiveness or other-than-insignificant payment delay.

Pledged Loans

At March 31, 2025, loans totaling $304.0 million were pledged to the FHLB for borrowing capacity totaling $202.5 million. At December 31, 2024, loans totaling $297.8 million were pledged to the FHLB for borrowing capacity totaling $199.4 million.