
Financial Performance - Net income for the quarter ended September 30, 2023, was $1,762 thousand, down from $2,090 thousand in the same quarter of 2022, reflecting a decrease of about 15.7%[13]. - Basic earnings per share decreased from $0.29 in the quarter ended September 30, 2022, to $0.25 in the quarter ended September 30, 2023, a decline of approximately 13.8%[13]. - Total non-interest income for the quarter ended September 30, 2023, was $751 thousand, a decrease of 25.1% from $1,003 thousand in the same quarter of 2022[13]. - Total non-interest expense was $6,856 million, a slight decrease from $6,941 million year-over-year[13]. - Cash dividends of $0.14 per share were paid in the quarter ended September 30, 2023[16]. Asset and Liability Changes - Total assets decreased from $1,332,948 thousand as of June 30, 2023, to $1,313,115 thousand as of September 30, 2023, representing a decline of approximately 1.5%[10]. - Total liabilities decreased to $1,183,910,000 as of September 30, 2023, compared to $1,203,261,000 as of June 30, 2023, a decrease of 1.6%[10]. - Total stockholders' equity decreased from $129,687 thousand as of June 30, 2023, to $129,205 thousand as of September 30, 2023, a decline of about 0.4%[10]. - Total deposits decreased from $950,571 thousand as of June 30, 2023, to $931,131 thousand as of September 30, 2023, a decline of approximately 2.0%[10]. Interest Income and Expenses - Total interest income increased to $13,342 thousand for the quarter ended September 30, 2023, compared to $9,898 thousand for the same quarter in 2022, marking a growth of approximately 34.9%[13]. - Net interest income after provision for credit losses was $8,594 thousand for the quarter ended September 30, 2023, compared to $8,895 thousand for the same quarter in 2022, a decrease of about 3.4%[13]. Credit Loss Provisions - The provision for credit losses increased to $545 thousand for the quarter ended September 30, 2023, compared to $70 thousand for the same quarter in 2022, indicating a significant rise in credit loss provisions[13]. - The allowance for credit losses (ACL) on loans increased by $1,197,000 due to the adoption of the current expected credit loss (CECL) methodology[29]. - The ACL as a percentage of gross loans held for investment rose to 0.72% in Q3 2023 from 0.57% in Q3 2022[68]. - The provision for credit losses for Q3 2023 was $536,000, compared to $70,000 in Q3 2022, indicating a significant increase in provisions[68]. Loan Portfolio - Total loans held for investment, net, decreased from $1.077629 billion on June 30, 2023, to $1.072170 billion on September 30, 2023, a decrease of about 0.5%[48]. - The total gross loans held for investment amounted to $1.070468 billion as of September 30, 2023[49]. - Single-family mortgage loans increased slightly from $518.821 million to $521.576 million, reflecting a growth of approximately 0.5%[48]. - Multi-family mortgage loans decreased from $461.113 million to $457.351 million, a decline of about 0.6%[48]. Investment Securities - The total investment securities held to maturity amounted to $147,574,000, with an estimated fair value of $126,851,000, indicating a significant unrealized loss[37]. - The total fair value of investment securities decreased from $137.696 million to $128.941 million, a decrease of approximately 6.3%[47]. - The Corporation held investments with an unrealized loss position of $20.8 million as of September 30, 2023, compared to $18.9 million at June 30, 2023[40]. - The fair value of investment securities available for sale totaled $2.09 million as of September 30, 2023, compared to $2.155 million as of June 30, 2023[103]. Non-Performing Loans - Non-performing loans totaled $1,408,000 as of September 30, 2023, down from $1,422,000 as of June 30, 2023[70]. - The average recorded investment in non-performing loans for the quarter ended September 30, 2023, was $1.4 million, compared to $1.1 million for the same quarter in 2022[80]. - The total single-family loans with a related allowance were $1,433,000, with a net recorded investment of $1,361,000 after accounting for charge-offs[76]. - The total current period charge-offs were reported as zero across all loan categories[53]. Cash Flow and Financing Activities - Net cash provided by operating activities increased to $3,364,000, up from $2,262,000 year-over-year[21]. - Net cash used for financing activities was $(20,916,000), a significant decrease from $58,076,000 in the previous year, indicating a shift in financing strategy[21]. - The net decrease in cash and cash equivalents for the quarter was $(7,871,000), contrasting with an increase of $15,287,000 in the same quarter of the previous year[21]. Regulatory and Methodological Changes - The Corporation adopted ASC 326 on July 1, 2023, which impacted the ACL calculation methodology, transitioning to the Current Expected Credit Loss (CECL) model[68]. - The transition from LIBOR to SOFR indices for loans held for investment was completed by September 30, 2023[25]. - The qualitative portion of reserves on collectively evaluated loans is determined using management judgment, reflecting various risk factors[60].