Sound Financial Bancorp (SFBC) 10-Q 11 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 09, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-35633
Entity Registrant Name	Sound Financial Bancorp, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	45-5188530
Entity Address, Address Line One	2400 3rd Avenue,
Entity Address, Address Line Two	Suite 150,
Entity Address, City or Town	Seattle,
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98121
City Area Code	206
Local Phone Number	448-0884
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	SFBC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,570,811
Entity Central Index Key	0001541119
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 100,169	$ 57,836
Available-for-sale securities, at fair value	8,398	10,207
Held-to-maturity securities, at amortized cost	2,182	2,199
Loans held-for-sale	1,716	0
Loans held-for-portfolio	855,429	865,981
Allowance for credit losses on loans	(8,217)	(7,599)
Total loans held-for-portfolio, net	847,212	858,382
Accrued interest receivable	3,100	3,083
Bank-owned life insurance (“BOLI”), net	21,550	21,314
Other real estate owned (“OREO”) and repossessed assets, net	575	659
Mortgage servicing rights, at fair value	4,726	4,687
Federal Home Loan Bank (“FHLB”) stock, at cost	3,583	2,832
Premises and equipment, net	5,321	5,513
Right of use assets	4,966	5,102
Other assets	7,276	4,537
Total assets	1,010,774	976,351
Deposits
Interest-bearing	663,765	635,567
Noninterest-bearing demand	158,488	173,196
Total deposits	822,253	808,763
Borrowings	60,000	43,000
Accrued interest payable	619	395
Lease liabilities	5,306	5,448
Other liabilities	10,243	8,318
Advance payments from borrowers for taxes and insurance	732	1,046
Subordinated notes, net	11,697	11,676
Total liabilities	910,850	878,646
COMMITMENTS AND CONTINGENCIES (NOTE 7)	0	0
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.01 par value, 40,000,000 shares authorized, 2,573,223 and 2,583,619 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	25	26
Additional paid-in capital	28,070	28,004
Retained earnings	72,923	70,792
Accumulated other comprehensive loss, net of tax	(1,094)	(1,117)
Total stockholders’ equity	99,924	97,705
Total liabilities and stockholders’ equity	$ 1,010,774	$ 976,351

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
STOCKHOLDERS’ EQUITY
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	2,573,223	2,583,619
Common stock, shares outstanding (in shares)	2,573,223	2,583,619

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
INTEREST INCOME
Loans, including fees	$ 11,551	$ 8,697	$ 22,932	$ 16,772
Interest and dividends on investments, cash and cash equivalents	861	289	1,654	427
Total interest income	12,412	8,986	24,586	17,199
INTEREST EXPENSE
Deposits	2,953	414	5,088	841
Borrowings	547	12	1,046	12
Subordinated notes	168	168	336	336
Total interest expense	3,668	594	6,470	1,189
Net interest income	8,744	8,392	18,116	16,010
(RELEASE OF) PROVISION FOR CREDIT LOSSES	(331)	592	(321)	748
Net interest income after (release of) provision for credit losses	9,075	7,800	18,437	15,262
NONINTEREST INCOME
Service charges and fee income	670	596	1,251	1,146
Earnings on bank-owned life insurance	718	(35)	868	(14)
Mortgage servicing income	297	313	596	633
Fair value adjustment on mortgage servicing rights	96	57	(44)	325
Net gain on sale of loans	110	84	187	450
Total noninterest income	1,891	1,015	2,858	2,540
NONINTEREST EXPENSE
Salaries and benefits	4,700	3,969	9,185	8,137
Operations	1,491	1,436	2,933	2,720
Regulatory assessments	154	99	307	200
Occupancy	435	439	894	872
Data processing	788	849	1,780	1,670
Net (gain) loss on OREO and repossessed assets	(71)	0	13	0
Total noninterest expense	7,497	6,792	15,112	13,599
Income before provision for income taxes	3,469	2,023	6,183	4,203
Provision for income taxes	577	409	1,124	867
Net income	$ 2,892	$ 1,614	$ 5,059	$ 3,336
Earnings per common share:
Basic (in dollars per share)	$ 1.12	$ 0.62	$ 1.95	$ 1.28
Diluted (in dollars per share)	$ 1.11	$ 0.61	$ 1.94	$ 1.26
Weighted-average number of common shares outstanding:
Basic (in shares)	2,574,677	2,584,179	2,576,545	2,593,173
Diluted (in shares)	2,591,233	2,615,299	2,597,486	2,627,789

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 2,892	$ 1,614	$ 5,059	$ 3,336
Available for sale securities:
Unrealized (losses) gains arising during the period	(76)	(607)	29	(1,377)
Income tax benefit (expense) related to unrealized (losses) gains	16	127	(6)	289
Other comprehensive (loss) income, net of tax	(60)	(480)	23	(1,088)
Comprehensive income	$ 2,832	$ 1,134	$ 5,082	$ 2,248

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Impact of adoption of Accounting Standards Update (“ASU”) 2016-13	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Impact of adoption of Accounting Standards Update (“ASU”) 2016-13	Accumulated Other Comprehensive Income/(Loss), net of tax
Beginning balance (in shares) at Dec. 31, 2021			2,613,768
Beginning balance at Dec. 31, 2021	$ 93,358		$ 26	$ 27,956	$ 65,237		$ 139
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,336				3,336
Other comprehensive income (loss), net of tax	(1,088)						(1,088)
Share-based compensation	294			294
Restricted stock awards issued (in shares)			9,700
Cash dividends paid on common stock	(1,152)				(1,152)
Common stock repurchased (in shares)			(46,799)
Common stock repurchased	(1,734)			(516)	(1,218)
Common stock surrendered (in shares)			(1,110)
Common stock surrendered	(38)			(38)
Restricted shares forfeited (in shares)			(835)
Common stock options exercised (in shares)			3,871
Common stock options exercised	81			81
Ending balance (in shares) at Jun. 30, 2022			2,578,595
Ending balance at Jun. 30, 2022	93,057		$ 26	27,777	66,203	$ 0	(949)
Beginning balance (in shares) at Mar. 31, 2022			2,621,531
Beginning balance at Mar. 31, 2022	93,850		$ 26	28,154	66,139		(469)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,614				1,614
Other comprehensive income (loss), net of tax	(480)						(480)
Share-based compensation	91			91
Cash dividends paid on common stock	(444)				(444)
Common stock repurchased (in shares)			(42,791)
Common stock repurchased	(1,574)			(468)	(1,106)
Common stock surrendered (in shares)			(1,010)
Common stock surrendered	(38)			(38)
Restricted shares forfeited (in shares)			(585)
Common stock options exercised (in shares)			1,450
Common stock options exercised	38			38
Ending balance (in shares) at Jun. 30, 2022			2,578,595
Ending balance at Jun. 30, 2022	$ 93,057		$ 26	27,777	66,203	0	(949)
Beginning balance (in shares) at Dec. 31, 2022	2,583,619		2,583,619
Beginning balance at Dec. 31, 2022	$ 97,705	$ (1,149)	$ 26	28,004	70,792	(1,149)	(1,117)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,059				5,059
Other comprehensive income (loss), net of tax	23						23
Share-based compensation	279			279
Restricted stock awards issued (in shares)			8,850
Cash dividends paid on common stock	(936)				(936)
Common stock repurchased (in shares)			(31,681)
Common stock repurchased	(1,170)		$ (1)	(326)	(843)
Common stock surrendered (in shares)			(4,750)
Common stock surrendered	(190)			(190)
Restricted shares forfeited (in shares)			(425)
Common stock options exercised (in shares)			17,610
Common stock options exercised	$ 303			303
Ending balance (in shares) at Jun. 30, 2023	2,573,223		2,573,223
Ending balance at Jun. 30, 2023	$ 99,924		$ 25	28,070	72,923	(1,149)	(1,094)
Beginning balance (in shares) at Mar. 31, 2023			2,601,443
Beginning balance at Mar. 31, 2023	98,605	$ 0	$ 26	28,251	71,362		(1,034)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,892				2,892
Other comprehensive income (loss), net of tax	(60)						(60)
Share-based compensation	87			87
Cash dividends paid on common stock	(494)				(494)
Common stock repurchased (in shares)			(31,477)
Common stock repurchased	(1,162)		$ (1)	(324)	(837)
Common stock options exercised (in shares)			3,257
Common stock options exercised	$ 56			56
Ending balance (in shares) at Jun. 30, 2023	2,573,223		2,573,223
Ending balance at Jun. 30, 2023	$ 99,924		$ 25	$ 28,070	$ 72,923	$ (1,149)	$ (1,094)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Accounting Standards Update [Extensible Enumeration]		Accounting Standards Update 2016-13 [Member]				Accounting Standards Update 2016-13 [Member]
Cash dividends paid on common stock (in dollars per share)	$ 0.19		$ 0.17	$ 0.36	$ 0.44

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,059	$ 3,336
Adjustments to reconcile net income to net cash from operating activities:
Amortization of net discounts on investments	39	47
(Release of) provision for credit losses	(321)	748
Depreciation and amortization	354	354
Compensation expense related to stock options and restricted stock	279	294
Fair value adjustment on mortgage servicing rights	44	(325)
Right of use assets amortization	470	263
Change in lease liabilities	(476)	(262)
Change in cash surrender value of BOLI	(301)	14
Net gain on BOLI death benefit	(567)	0
Net change in advances from borrowers for taxes and insurance	(314)	(444)
Net gain on sale of loans	(187)	(450)
Proceeds from sale of loans held-for-sale	10,362	15,412
Originations of loans held-for-sale	(11,974)	(13,856)
Net loss on OREO and repossessed assets	13	0
Change in operating assets and liabilities:
Accrued interest receivable	(17)	(133)
Other assets	(2,811)	(111)
Accrued interest payable	224	(6)
Other liabilities	1,925	639
Net cash provided by operating activities	1,801	5,520
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of available-for-sale securities	0	(2,803)
Proceeds from principal payments, maturities and sales of available-for-sale securities	1,820	437
Purchase of held-to-maturity securities	0	(2,226)
Proceeds from principal payments of held-to-maturity securities	17	10
Net decrease (increase) in loans	10,408	(117,862)
Proceeds from death benefit on BOLI	632	0
Purchases of premises and equipment, net	(162)	(167)
Proceeds from sale of OREO and other repossessed assets	71	0
Net cash provided by (used in) investing activities	12,786	(122,611)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits	13,490	(12,334)
Proceeds from borrowings	40,000	30,000
Repayment of borrowings	(23,000)	0
FHLB stock purchased	(751)	(1,271)
Common stock repurchases	(1,170)	(1,734)
Purchase of stock surrendered to pay tax liability	(190)	(38)
Dividends paid on common stock	(936)	(1,152)
Proceeds from common stock option exercises	303	81
Net cash provided by financing activities	27,746	13,552
Net change in cash and cash equivalents	42,333	(103,539)
Cash and cash equivalents, beginning of period	57,836	183,590
Cash and cash equivalents, end of period	100,169	80,051
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	1,580	910
Interest paid on deposits and borrowings	6,246	1,195
ROU assets obtained in exchange for new operating lease liabilities	334	0
Impact of adoption of ASU 2016-13 on retained earnings	99,924	93,057
Retained Earnings
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	5,059	3,336
Impact of adoption of ASU 2016-13 on retained earnings	72,923	66,203
Impact of adoption of ASU 2016-13 on retained earnings | Retained Earnings
Impact of adoption of ASU 2016-13 on retained earnings	$ (1,149)	$ 0

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying financial information is unaudited and has been prepared from the consolidated financial statements of Sound Financial Bancorp, Inc., and its wholly owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc. References in this document to Sound Financial Bancorp refer to Sound Financial Bancorp, Inc. and references to the “Bank” refer to Sound Community Bank. References to “we,” “us,” and “our” or the “Company” refers to Sound Financial Bancorp and its wholly-owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc., unless the context otherwise requires. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 14, 2023 (“2022 Form 10-K”). The results for the interim periods are not necessarily indicative of results for a full year or any other future period. Certain amounts in the prior period’s consolidated financial statements have been reclassified to conform to the current presentation. These classifications do not have an impact on previously reported consolidated net income, stockholders’ equity or earnings per share. We have not made any changes in our significant accounting policies from those disclosed in the 2022 Form 10-K, except for the accounting for debt securities, the allowance for credit losses (“ACL”) on loans and unfunded commitments, and loan modifications, as described below. Allowance for Credit Losses on Investment Securities . The ACL on investment securities is determined for both the held-to-maturity and available-for-sale classifications of the investment portfolio in accordance with Accounting Standards Codification (“ASC”) 326 - Financial Instruments - Credit Losses . For available-for-sale investment securities, we perform a quarterly qualitative evaluation for securities in an unrealized loss position to determine if, for those investments in an unrealized loss position, the decline in fair value is credit related or non-credit related. In determining whether a security’s decline in fair value is credit related, we consider a number of factors including, but not limited to: (i) the extent to which the fair value of the investment is less than its amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) downgrades in credit ratings; (iv) payment structure of the security, (v) the ability of the issuer of the security to make scheduled principal and interest payments and (vi) general market conditions, which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. If it is determined that the unrealized loss can be attributed to credit loss, we record the amount of credit loss through a charge to provision for credit losses in current period earnings. However, the amount of credit loss recorded in current period earnings is limited to the amount of the total unrealized loss on the security, which is measured as the amount by which the security’s fair value is below its amortized cost. If it is likely we will be required to sell the security in an unrealized loss position, the total amount of the loss is recognized in current period earnings. For unrealized losses deemed non-credit related, we record the loss, net of tax, through accumulated other comprehensive income. We determine expected credit losses on available-for-sale and held-to-maturity securities through a discounted cash flow approach, using the security’s effective interest rate. However, as previously mentioned, the measurement of credit losses on available-for-sale securities only occurs when, through our qualitative assessment, all or a portion of the unrealized loss is determined to be credit related. Our discounted cash flow approach incorporates assumptions about the collectability of future cash flows. The amount of credit loss is measured as the amount by which the security’s amortized cost exceeds the present value of expected future cash flows. Credit losses on available-for-sale securities are measured on an individual basis, while credit losses on held-to-maturity securities are measured on a collective basis according to shared risk characteristics. Credit losses on held-to-maturity securities are only recognized at the individual security level when we determine a security no longer possesses risk characteristics similar to others in the portfolio. We do not measure credit losses on an investment’s accrued interest receivable, but rather promptly reverse from current period earnings the amount of accrued interest that is no longer deemed collectable. Accrued interest receivable for investment securities is included in accrued interest receivable balances in the Condensed Consolidated Balance Sheets. Allowance for Credit Losses on Loans and Unfunded Loan Commitments. We maintain an ACL on loans and unfunded loan commitments in accordance with ASC 326. ASC 326 requires us to recognize estimates for lifetime credit losses on loans and unfunded loan commitments at the time of origination or acquisition. The recognition of credit losses at origination or acquisition represents our best estimate of lifetime expected credit losses, given the facts and circumstances associated with a particular loan or group of loans with similar risk characteristics. Determining the ACL involves the use of significant management judgement and estimates, which are subject to change based on management’s ongoing assessment of the credit quality of the loan portfolio and changes in economic forecasts used in the model. We use a historical loss rate model when determining estimates for the ACL for our loan portfolio. We also utilize proxy loan data in our ACL model where our own historical data is not sufficiently available. We do not measure credit losses on a loan’s accrued interest receivable, but rather promptly reverse from current period earnings the amount of accrued interest that is no longer deemed collectable. Accrued interest receivable for loans is included in accrued interest receivable balances in the Condensed Consolidated Balance Sheets. Our ACL model forecasts primarily over a two-year time horizon, which we believe is a reasonable and supportable period. Beyond the two-year forecast time horizon, our ACL model reverts to historical long-term average loss rates. The duration of the forecast horizon, the period over which forecasts revert to long-term averages, the economic forecasts that management utilizes, as well as additional internal and external indicators of economic forecasts that management considers, may change over time depending on the nature and composition of our loan portfolio. We utilize a discounted cash flow ACL model for individually analyzed loans using internally derived estimates for prepayments in determining the amount and timing of future contractual cash flows we expect to collect, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less costs to sell. The estimate of future cash flows also incorporates estimates for contractual amounts we believe may not be collected, which are based on assumptions for our estimated exposure at default. Our estimated exposure at default is determined by the contractual payment schedule and expected payment profile of the loan, incorporating estimates for expected prepayments and future draws on revolving credit facilities. Our ACL methodology for unfunded loan commitments also includes assumptions concerning the probability an unfunded commitment will be drawn upon by the borrower. These assumptions are based on the historical experience of banks in an independent third party database. Expectations of future cash flows are discounted at the loan’s effective interest rate for individually analyzed loans. The effective interest rate represents the contractual rate on the loan, adjusted for any purchase premiums, or discounts, and deferred fees and costs associated with an originated loan. We have made an accounting policy election to adjust the effective interest rate to take into consideration the effects of estimated prepayments. The resulting ACL represents the amount by which the loan’s amortized cost exceeds the net present value of a loan’s discounted cash flows. The ACL is recorded through a charge to provision for credit losses and is reduced by charge-offs, net of recoveries on loans previously charged-off. It is our policy to charge-off loan balances at the time they are not expected to be collected. The historical loss rate model is derived from our loan portfolio credit history, as well as the comparable credit history for peer banks in Washington state. Key loan level attributes and economic drivers in determining the loss rate for loans include unemployment rates, changes to interest rates, changes in credit quality, changes to the consumer price index, and changes in real estate prices. In order to develop reasonable and supportable forecasts of future conditions, we estimate how those forecasts are expected to impact a borrower’s ability to satisfy their obligations to us and the ultimate collectability of future cash flows over the life of a loan. Management periodically evaluates appropriateness of economic scenarios and may decide that a particular economic scenario or a combination of probability-weighted economic scenarios should be used in our ACL model. Our ACL model at June 30, 2023 includes assumptions concerning the rising interest rate environment, ongoing inflationary pressures throughout the U.S. economy, higher energy prices, the potential impact of the ongoing war between Russia and Ukraine, general uncertainty concerning future economic conditions, and the potential for recessionary conditions. It is important to note that our ACL model relies on multiple economic variables, which are used in several economic scenarios. Although no one economic variable can fully demonstrate the sensitivity of the ACL calculation to changes in the economic variables used in the model, we have identified certain economic variables that have significant influence in our model for determining the ACL. These key economic variables include changes in the Washington state unemployment rate, residential real estate prices in the Seattle Metropolitan Statistical Area, and interest rates. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, we believe that the process to consider the available information and associated risks and uncertainties is appropriately governed and that estimates of expected credit losses were reasonable and appropriate upon adoption and for the three and six months ended June 30, 2023. Our ACL model also includes adjustments for qualitative factors, where appropriate. We recognize that historical information used as the basis for determining future expected credit losses may not always, by itself, provide a sufficient basis for determining future expected credit losses. We therefore consider the need for qualitative adjustments to the ACL on a quarterly basis. Qualitative adjustments may be related to and include, but are not limited to, factors such as: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions, (ii) organization specific risks such as credit concentrations, collateral specific risks, regulatory risks, and external factors that may ultimately impact credit quality, (iii) potential model limitations such as limitations identified through back-testing, and other limitations associated with factors such as underwriting changes, acquisition of new portfolios, and changes in portfolio segmentation, and (iv) management’s overall assessment of the adequacy of the ACL, including an assessment of model data inputs used to determine the ACL. Qualitative adjustments primarily relate to certain segments of the loan portfolio deemed by management to be of a higher-risk profile or other factors where management believes the quantitative component of our ACL model may not be fully reflective of levels deemed adequate in the judgement of management. Certain qualitative adjustments also relate to heightened uncertainty as to future macroeconomic conditions and the related impact on certain loan segments. Management reviews the need for an appropriate level of qualitative adjustments on a quarterly basis, and as such, the amount and allocation of qualitative adjustments may change in future periods. Modified Loans to Borrowers Experiencing Financial Difficulty . We occasionally modify loans to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize our potential losses. We refer to these modifications as modified loans to troubled borrowers. Modifications may include: changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and, in very limited cases, reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been in default for a period of 90 days or more. Such loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt. We typically measure the ACL on modified loans to troubled borrowers on an individual basis when the loans are deemed to no longer share risk characteristics that are similar with other loans in the portfolio. The determination of the ACL for these loans is based on a discounted cash flow approach for loans measured individually, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated fair value of the underlying collateral, less estimated costs to sell. GAAP requires us to make certain disclosures related to these loans, including certain types of modifications, as well as how such loans have performed since their modifications. Refer to Note 4 – Loans for additional information concerning modified loans to troubled borrowers.

Accounting Pronouncements Recen

Accounting Pronouncements Recently Issued or Adopted	6 Months Ended
	Jun. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Pronouncements Recently Issued or Adopted	Accounting Pronouncements Recently Issued or Adopted On March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, " Reference Rate Reform" ("Topic 848"). This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update apply to modifications to eligible contracts (e.g., loans, debt securities, derivatives, borrowings) that replace a reference rate affected by reference rate reform (including rates referenced in fallback provisions) and contemporaneous modifications of other contract terms related to the replacement of the reference rate (including contract modifications to add or change fallback provisions). The following optional expedients for applying the requirements of certain Topics or Industry Subtopics in the related Codification are permitted for contracts that are modified because of reference rate reform and that meet certain scope guidance: 1) Modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, should be accounted for by prospectively adjusting the effective interest rate; 2) Modifications of contracts within the scope of Topics 840, Leases, and 842, Leases, should be accounted for as a continuation of the existing contracts with no reassessments of the lease classification and the discount rate (for example, the incremental borrowing rate) or remeasurements of lease payments that otherwise would be required under those Topics for modifications not accounted for as separate contracts; and 3) Modifications of contracts do not require an entity to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Subtopic 815-15, Derivatives and Hedging— Embedded Derivatives. In January 2021, ASU 2021-01 updated amendments in the new ASU to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification. The amendments in this ASU have differing effective dates, beginning with interim periods including and subsequent to March 12, 2020 through December 31, 2022. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, and March 2020, ASU 2020-03, all of which clarifies codification and corrects unintended application of the guidance. This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The income statement would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach, and recorded a net decrease of approximately $1.1 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL of $1.5 million, net of related deferred tax assets arising from temporary differences of $305 thousand, commonly referred to as the “Day 1” adjustment. The Day 1 adjustment to the ACL is reflective of expected lifetime credit losses associated with the composition of financial assets within in the scope of ASC 326 as of January 1, 2023, which is comprised of loans held for investment and off-balance sheet credit exposures at January 1, 2023, as well as management’s current expectation of future economic conditions. The following table presents the impact of adopting ASU 2016-13 on January 1, 2023: (dollars in thousands) As Reported Prior to Adopting Impact of ASC 326 Allowance for credit losses - loans Real estate loans: One- to four- family $ 2,126 $ 1,771 $ 355 Home equity 201 132 69 Commercial and multifamily 2,181 2,501 (320) Construction and land 2,568 1,209 1,359 Total real estate loans 7,075 5,613 1,462 Consumer loans: Manufactured homes 282 462 (180) Floating homes 622 456 166 Other consumer 161 324 (163) Total consumer loans 1,065 1,242 (177) Commercial business loans 221 256 (35) Unallocated (3) 488 (491) Total loans 8,359 7,599 760 Allowance for credit losses - unfunded commitments Reserve for unfunded commitments 1,030 335 695 Total $ 9,389 $ 7,934 $ 1,455 In March 2022, the FASB issued ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The ASU eliminates the accounting guidance for troubled debt restructured loans (“TDRs”) by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, upon the Company’s adoption of the amendments in ASU 2016-13, which is commonly referred to as the current expected credit loss methodology. The Company adopted ASU 2022-02 on January 1, 2023 using the prospective transition guidance which allows the entity to continue estimating expected credit losses in accordance with legacy U.S. GAAP for receivables modified in a TDR until the receivables are subsequently modified or settled. Once a legacy TDR is modified after adoption of ASU 2022-02, the

Investments

Investments	6 Months Ended
	Jun. 30, 2023
Investments [Abstract]
Investments	Investments At June 30, 2023, the Company did not own any debt securities classified as trading or any equity investment securities. The amortized cost and fair value of our AFS securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Gross Gross Estimated June 30, 2023 Municipal bonds $ 6,414 $ 17 $ (1,000) $ 5,431 Agency mortgage-backed securities 3,369 1 (403) 2,967 Total $ 9,783 $ 18 $ (1,403) $ 8,398 December 31, 2022 Treasury bills $ 1,596 $ — $ (2) $ 1,594 Municipal bonds 6,434 16 (1,029) 5,421 Agency mortgage-backed securities 3,591 1 (400) 3,192 Total $ 11,621 $ 17 $ (1,431) $ 10,207 The amortized cost and fair value of our HTM securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Gross Gross Estimated June 30, 2023 Municipal bonds $ 705 $ — $ (175) $ 530 Agency mortgage-backed securities 1,477 — (210) 1,267 Total $ 2,182 $ — $ (385) $ 1,797 December 31, 2022 Municipal bonds $ 705 $ — $ (169) $ 536 Agency mortgage-backed securities 1,494 — (219) 1,275 Total $ 2,199 $ — $ (388) $ 1,811 The amortized cost and fair value of AFS and HTM securities at June 30, 2023, by contractual maturity, are shown below (in thousands). Expected maturities of AFS securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments not due at a single maturity date, consisting of agency mortgage-backed securities, are shown separately. June 30, 2023 Available-for-sale Held-to-maturity Amortized Fair Amortized Fair Due within one year $ — $ — $ — $ — Due after one year through five years 150 150 — — Due after five years through ten years 1,227 1,239 — — Due after ten years 5,037 4,042 705 530 Agency mortgage-backed securities 3,369 2,967 1,477 1,267 Total $ 9,783 $ 8,398 $ 2,182 $ 1,797 There were no pledged securities at June 30, 2023 or December 31, 2022. There were no sales of AFS or HTM securities during the three and six months ended June 30, 2023 or 2022. Accrued interest receivable on securities totaled $49 thousand and $54 thousand at June 30, 2023 and December 31, 2022, respectively, in the accompanying Condensed Consolidated Balance Sheets. Accrued interest receivable is excluded from the estimate of expected credit losses. The following table summarizes the aggregate fair value and gross unrealized loss by length of time of those investments for which an allowance for credit losses has not been recorded that have been in a continuous unrealized loss position at the dates indicated (in thousands): June 30, 2023 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities Municipal bonds $ — $ — $ 3,761 $ (1,000) $ 3,761 $ (1,000) Agency mortgage-backed securities 137 (5) 2,614 (398) 2,751 (403) Total available-for-sale securities $ 137 $ (5) $ 6,375 $ (1,398) $ 6,512 $ (1,403) Held-to-maturity securities Municipal bonds $ — $ — $ 530 $ (175) $ 530 $ (175) Agency mortgage-backed securities — — 1,267 (210) 1,267 (210) Total held-to-maturity securities $ — $ — $ 1,797 $ (385) $ 1,797 $ (385) December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities Treasury bills $ 1,594 $ (2) $ — $ — $ 1,594 $ (2) Municipal bonds 2,506 (641) 1,246 (388) 3,752 (1,029) Agency mortgage-backed securities 2,666 (314) 292 (86) 2,958 (400) Total $ 6,766 $ (957) $ 1,538 $ (474) $ 8,304 $ (1,431) Held-to-maturity securities Municipal bonds $ 536 $ (169) $ — $ — $ 536 $ (169) Agency mortgage-backed securities 1,274 (219) — — 1,274 (219) Total held-to-maturity securities $ 1,810 $ (388) $ — $ — $ 1,810 $ (388) There was no allowance for credit losses on securities at June 30, 2023 or December 31, 2022. At June 30, 2023, the total securities portfolio consisted of 12 agency mortgage-backed securities and 11 municipal bonds, with a total portfolio fair value of $10.2 million. At December 31, 2022, the total securities portfolio consisted of one treasury bill security, 11 agency mortgage-backed securities and 12 municipal bonds, with a fair value of $12.0 million. At June 30, 2023, there were two securities in an unrealized loss position for less than 12 months, and 16 securities in an unrealized loss position for more than 12 months. Of the two securities in an unrealized loss position for less than 12 months, both were classified as AFS. At December 31, 2022, there were 16 securities in an unrealized loss position for less than 12 months, and three securities in an unrealized loss position for more than 12 months. The unrealized losses were caused by changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities, and not related to the underlying credit of the issuers or the underlying collateral. It is expected that these securities will not be settled at a price less than the amortized cost of each investment. There was no provision for credit losses recognized for investment securities during the three or six months ended June 30, 2023, because the declines in fair value were not attributable to credit quality and because we do not intend, and it is not likely that we will be required, to sell these securities before recovery of their amortized cost basis .

Loans

Loans	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Loans	90 Days and Accruing Total Past Current Total Loans One-to-four family $ — $ 168 $ 365 $ — $ 533 $ 273,519 $ 274,052 Home equity 270 — 88 — 358 19,688 20,046 Commercial and multifamily — — 322 — 322 300,573 300,895 Construction and land 2,866 — — — 2,866 113,881 116,747 Manufactured homes — 177 78 — 255 31,278 31,533 Floating homes — — — — — 70,233 70,233 Other consumer 9 6 — — 15 17,893 17,908 Commercial business — 46 — — 46 23,969 24,015 Total $ 3,145 $ 397 $ 853 $ — $ 4,394 $ 851,035 $ 855,429 December 31, 2022 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 393 $ 289 $ 1,934 $ — $ 2,616 $ 272,022 $ 274,638 Home equity 115 — 116 — 231 19,317 19,548 Commercial and multifamily 7,198 — — — 7,198 306,160 313,358 Construction and land 1,210 — 296 — 1,506 115,372 116,878 Manufactured homes 261 155 52 — 468 26,485 26,953 Floating homes — — — — — 74,443 74,443 Other consumer 360 5 — — 365 17,558 17,923 Commercial business 4 — — — 4 23,811 23,815 Total $ 9,542 $ 449 $ 2,398 $ — $ 12,389 $ 855,167 $ 867,556 Nonperforming Loans. Loans are considered nonperforming when they are placed on nonaccrual. The following table presents the credit risk profile of our loan portfolio based on payment activity as of the date indicated, by type of loan (in thousands): December 31, 2022 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 272,503 $ 19,406 $ 313,358 $ 116,554 $ 26,857 $ 74,443 $ 17,661 $ 23,815 $ 864,597 Nonperforming 2,135 142 — 324 96 — 262 — 2,959 Total $ 274,638 $ 19,548 $ 313,358 $ 116,878 $ 26,953 $ 74,443 $ 17,923 $ 23,815 $ 867,556 Loan Modifications to Borrowers Experiencing Financial Difficulty. Loans modified to borrowers experiencing financial difficulty totaled $2.0 million at June 30, 2023. The Company has granted modifications which can generally be described in the following categories: Principal Forgiveness : A modification in which the principal is reduced. Rate Modification : A modification in which the interest rate is changed. Term Modification : A modification in which the maturity date, timing of payments or frequency of payments is changed. Payment Modification : A modification in which the dollar amount of the payment is changed. Interest only modifications in which a loan is converted to interest only payments for a period of time are included in this category. Combination Modification : Any other type of modification, including the use of multiple categories above. The Company had no commitments to extend additional credit to borrowers owing loan receivables whose terms have been modified at June 30, 2023. During the six months ended June 30, 2023, there was one one-to-four family loan modified to borrowers experiencing financial difficulty that was in current status as of June 30, 2023. This loan received a term extension for 90 days, with an amortized cost basis of $90 thousand representing 0.03% of the total class of loans. There were no loans modified within the three months ended June 30, 2023. We have no modified loan receivables that have subsequently defaulted at June 30, 2023. Troubled debt restructurings. Prior to the adoption of ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , the Company had granted a variety of concessions to borrowers in the form of loan modifications that were considered TDRs. Loans classified as TDRs totaled $2.0 million at December 31, 2022, and were previously included in impaired loans. Collateral Dependent Loans . Loans that have been classified as collateral dependent are loans where substantially all repayment of the loan is expected to come from the operation of or eventual liquidation of the collateral. Collateral dependent loans are evaluated individually for purposes of determining the ACL, which is determined based on the estimated fair value of the collateral. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded. The following tables summarize collateral dependent loans by collateral type as of the dates indicated (in thousands): June 30, 2023 Commercial Real Estate Residential Real Estate Land Other Residential Total Real estate loans: One- to four- family $ — $ 1,075 $ — $ 292 $ 1,367 Home equity — 88 — — 88 Commercial and multifamily 323 — — — 323 Construction and land — — 25 — 25 Total real estate loans 323 1,163 25 292 1,803 Consumer loans: Manufactured homes — — — 156 156 Total consumer loans — — — 156 156 Total loans $ 323 $ 1,163 $ 25 $ 448 $ 1,959 Impaired Loans. Prior to the adoption of ASC 326 on January 1, 2023, we classified loans as impaired when we determined that we may be unable to collect payments of principal or interest when due under the terms of the loan. In the process of identifying loans as impaired, we took into consideration factors which include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically did not result in a loan being classified as impaired. The significance of payment delays and shortfalls was considered on a case by case basis, after taking into consideration the totality of circumstances surrounding the loan and the borrower, including payment history. Impairment was measured on a loan by loan basis for all loans in the portfolio. All TDRs were also classified as impaired loans and were included in the loans individually evaluated for impairment in the calculation of the allowance for loan losses. Impaired loans at the dates indicated, by type of loan were as follows (in thousands): December 31, 2022 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,758 $ 3,038 $ 708 $ 3,746 $ 102 Home equity 210 142 68 210 5 Commercial and multifamily — — — — — Construction and land 358 324 34 358 3 Manufactured homes 187 93 94 187 52 Floating homes — — — — — Other consumer 343 261 82 343 22 Commercial business — — — — — Total $ 4,856 $ 3,858 $ 986 $ 4,844 $ 184 The following tables present the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Average Interest Income Average Interest Income One-to-four family $ 3,377 $ 19 $ 3,607 $ 44 Home equity 226 3 222 7 Commercial and multifamily 2,322 22 2,341 51 Construction and land 65 1 67 2 Manufactured homes 204 4 210 8 Floating homes — — 164 — Other consumer 341 6 263 10 Commercial business 85 (1) 115 — Total $ 6,620 $ 54 $ 6,989 $ 122 " id="sjs-B4" xml:space="preserve">Loans Loans-held-for portfolio at the dates indicated, excluding loans held-for-sale, were as follows (in thousands): June 30, December 31, Real estate loans: One-to-four family $ 273,720 $ 274,638 Home equity 19,760 19,548 Commercial and multifamily 301,828 313,358 Construction and land 117,382 116,878 Total real estate loans 712,690 724,422 Consumer loans: Manufactured homes 31,619 26,953 Floating homes 70,596 74,443 Other consumer 17,915 17,923 Total consumer loans 120,130 119,319 Commercial business loans 23,939 23,815 Total loans held-for-portfolio 856,759 867,556 Premiums for purchased loans (1) 884 973 Deferred fees, net (2,214) (2,548) Total loans held-for-portfolio, gross 855,429 865,981 Allowance for credit losses — loans (8,217) (7,599) Total loans held-for-portfolio, net $ 847,212 $ 858,382 (1) Includes premiums resulting from purchased loans of $492 thousand related to one-to-four family loans, $300 thousand related to commercial and multifamily loans, and $92 thousand related to commercial business loans as of June 30, 2023. Includes premiums resulting from purchased loans of $507 thousand related to one-to-four family loans, $320 thousand related to commercial and multifamily loans, and $146 thousand related to commercial business loans as of December 31, 2022. Three Months Ended June 30, 2023 2022 Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Balance at beginning of period $ 8,532 $ 795 $ 9,327 $ 6,407 $ 419 $ 6,826 (Release of) provision for credit losses during the period (242) (89) (331) 600 (8) 592 Net (charge-offs)/recoveries during the period (73) — (73) 110 — 110 Balance at end of period $ 8,217 $ 706 $ 8,923 $ 7,117 $ 411 $ 7,528 Six Months Ended June 30, 2023 2022 Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Balance at beginning of period $ 7,599 $ 335 $ 7,934 $ 6,306 $ 404 $ 6,710 Adoption of ASU 2016-13 (1) 760 695 1,455 — — — Provision for (release of) credit losses during the period 3 (324) (321) 725 7 732 Net (charge-offs)/recoveries during the period (145) — (145) 86 86 Balance at end of period $ 8,217 $ 706 $ 8,923 $ 7,117 $ 411 $ 7,528 (1) Represents the impact of adopting ASU 2016-13, Financial Instruments — Credit Losses on January 1, 2023. Since that date, as a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses has been based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology. Accrued interest receivable on loans receivable totaled $3.0 million at both June 30, 2023 and December 31, 2022 in the accompanying Condensed Consolidated Balance Sheets. Accrued interest receivable is excluded from the estimate of expected credit losses. The following tables summarize the activity in the allowance for credit losses - loans, excluding accrued interest, for the periods indicated (in thousands): Three Months Ended June 30, 2023 Beginning Charge-offs Recoveries Provision (Recapture) Ending One-to-four family $ 2,059 $ — $ — $ (62) $ 1,997 Home equity (1) 197 (25) — 22 194 Commercial and multifamily 2,225 — — 43 2,268 Construction and land 2,778 — — (280) 2,498 Manufactured homes 283 — — 26 309 Floating homes 611 — — (25) 586 Other consumer (2) 159 (53) 5 49 160 Commercial business 216 — — (11) 205 Unallocated 4 — — (4) — Total $ 8,532 $ (78) $ 5 $ (242) $ 8,217 (1) During the three months ended June 30, 2023, there was one revolving home equity loan that was charged off. (2) During the three months ended June 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off. Six Months Ended June 30, 2023 Beginning Impact of Adoption of ASU 2016-16 Charge-offs Recoveries Provision (Recapture) Ending One-to-four family $ 1,771 $ 355 $ — $ — $ (129) $ 1,997 Home equity (1) 132 69 (25) — 18 194 Commercial and multifamily 2,501 (320) — — 87 2,268 Construction and land 1,209 1,359 — — (70) 2,498 Manufactured homes 462 (180) — — 27 309 Floating homes 456 166 — — (36) 586 Other consumer (2) 324 (163) (132) 12 119 160 Commercial business 256 (35) — — (16) 205 Unallocated 488 (491) — — 3 — Total $ 7,599 $ 760 $ (157) $ 12 $ 3 $ 8,217 (1) During the six months ended June 30, 2023, there was one revolving home equity loan that was charged off. (2) During the six months ended June 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off. Three Months Ended June 30, 2022 Beginning Charge-offs Recoveries Provision Ending One-to-four family $ 1,474 $ — $ 45 $ 119 $ 1,638 Home equity 96 — 57 (40) 113 Commercial and multifamily 2,227 — — 85 2,312 Construction and land 698 — — 326 1,024 Manufactured homes 448 — 12 (16) 444 Floating homes 376 — — 34 410 Other consumer 333 (11) 1 8 331 Commercial business 238 — 6 (4) 240 Unallocated 517 — — 88 605 Total $ 6,407 $ (11) $ 121 $ 600 $ 7,117 Six Months Ended June 30, 2022 Beginning Charge-offs Recoveries Provision Ending One-to-four family $ 1,402 $ — $ 45 $ 191 $ 1,638 Home equity 93 — 58 (38) 113 Commercial and multifamily 2,340 — — (28) 2,312 Construction and land 650 — — 374 1,024 Manufactured homes 475 — 12 (43) 444 Floating homes 372 — — 38 410 Other consumer 310 (35) 6 50 331 Commercial business 269 (6) 6 (29) 240 Unallocated 395 — — 210 605 Total $ 6,306 $ (41) $ 127 $ 725 $ 7,117 Credit Quality Indicators. Federal regulations provide for the classification of lower quality loans and other assets (such as OREO and repossessed assets), debt and equity securities considered as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. Assets classified as "doubtful" have all of the weaknesses in those classified "substandard," with the added characteristic that the weaknesses present make "collection or liquidation in full," on the basis of currently existing facts, conditions and values, "highly questionable and improbable." Assets classified as "loss" are those considered "uncollectible" and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading. The grades for watch and special mention loans are used by the Company to identify and track potential problem loans which do not rise to the levels described for substandard, doubtful, or loss. These are loans which have been criticized and deserve management's close attention based upon known characteristics such as periodic payment delinquency, failure to comply with contractual terms of the loan, or collateral concerns. Loans identified as watch, special mention, substandard, doubtful, or loss are subject to additional problem loan reporting to management every three months. When we classify problem assets as either substandard or doubtful, we may determine that these assets should be individually analyzed if they no longer share common risk characteristics with the rest of the portfolio. Therefore we may establish a specific allowance in an amount we deem prudent to address those risks. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities for pooled loans with common risk characteristics, but which, unlike specific allowances, have not been specifically allocated to particular problem assets. When an insured institution classifies problem assets as a loss, it is required to charge off those assets in the period in which they are deemed uncollectible. Our determination as to the classification of our assets and the amount of our valuation allowances is subject to review by the Federal Deposit Insurance Corporation (“FDIC”), the Bank's federal regulator, and, the Washington Department of Financial Institutions, the Bank's state banking regulator, which can order the establishment of additional loss allowances. Assets which do not currently expose us to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated as special mention. The following table presents the internally assigned grades as of June 30, 2023, by type of loan and origination year (in thousands): Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Converted to Term 2023 2022 2021 2020 2019 Prior Total One-to-four family: Pass $ 8,560 $ 88,786 $ 114,092 $ 18,192 $ 13,276 $ 30,140 $ — $ — $ 273,046 Special mention — — — — — — — — — Substandard — — 124 — 271 611 — — 1,006 Doubtful — — — — — — — — — Loss — — — — — — — — — Total one-to-four family 8,560 88,786 114,216 18,192 13,547 30,751 — — 274,052 Home equity: Pass 1,499 2,895 1,107 308 102 1,825 10,551 1,511 19,798 Special mention — — — — — — — — — Substandard — — — — — 66 — 182 248 Doubtful — — — — — — — — — Loss — — — — — — — — — Total home equity 1,499 2,895 1,107 308 102 1,891 10,551 1,693 20,046 Commercial and multifamily: Pass 4,455 83,689 86,522 26,992 31,037 59,917 — — 292,612 Special mention — — — — — 355 — — 355 Substandard — — — 1,329 5,143 1,456 — — 7,928 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and multifamily 4,455 83,689 86,522 28,321 36,180 61,728 — — 300,895 Construction and land: Pass 4,271 67,837 36,991 3,855 614 2,408 — — 115,976 Special mention — — — — — — — — — Substandard — — — — 700 71 — — 771 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land 4,271 67,837 36,991 3,855 1,314 2,479 — — 116,747 Manufactured homes: Pass 6,562 8,629 4,946 2,386 2,512 6,340 — — 31,375 Special mention — — — — — — — — — Substandard — 28 — 22 — 108 — — 158 Doubtful — — — — — — — — — Loss — — — — — — — — — Total manufactured homes 6,562 8,657 4,946 2,408 2,512 6,448 — — 31,533 Floating homes: Pass 1,736 21,741 27,302 6,557 1,925 10,972 — — 70,233 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total floating homes 1,736 21,741 27,302 6,557 1,925 10,972 — — 70,233 Other consumer: Pass 1,763 2,024 4,018 6,333 832 2,386 480 — 17,836 Special mention — — — — — — — — — Substandard — — — 72 — — — — 72 Doubtful — — — — — — — — — Loss — — — — — — — — — Total other consumer 1,763 2,024 4,018 6,405 832 2,386 480 — 17,908 Commercial business: Pass 3,150 492 3,812 493 367 5,771 9,473 — 23,558 Special mention — — — — — — — — — Substandard — 69 386 — — 2 — — 457 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial business 3,150 561 4,198 493 367 5,773 9,473 — 24,015 Total loans Pass $ 31,996 $ 276,093 $ 278,790 $ 65,116 $ 50,665 $ 119,759 $ 20,504 $ 1,511 $ 844,434 Special mention — — — — — 355 — — 355 Substandard — 97 510 1,423 6,114 2,314 — 182 10,640 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 31,996 $ 276,190 $ 279,300 $ 66,539 $ 56,779 $ 122,428 $ 20,504 $ 1,693 $ 855,429 The following tables present the internally assigned grades as of December 31, 2022, by type of loan (in thousands): December 31, 2022 One-to- Home Commercial Construction Manufactured Floating Other Commercial Total Grade: Pass $ 271,295 $ 19,230 $ 291,677 $ 109,484 $ 26,583 $ 74,443 $ 17,661 $ 22,853 $ 833,226 Watch 279 2 7,538 4,037 134 — — 161 12,151 Special Mention — — 4,096 — — — — — 4,096 Substandard 3,064 316 10,047 3,357 236 — 262 801 18,083 Total $ 274,638 $ 19,548 $ 313,358 $ 116,878 $ 26,953 $ 74,443 $ 17,923 $ 23,815 $ 867,556 Nonaccrual and Past Due Loans . Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual once the loan is 90 days past due or sooner if, in management’s opinion, the borrower may be unable to meet payment of obligations as they become due, as well as when required by regulatory provisions. The following table presents the amortized cost of nonaccrual loans as of the dates indicated, by type of loan (in thousands): June 30, 2023 December 31, 2022 Total Total Total Total One-to-four family $ 914 $ 914 $ 2,135 $ 2,135 Home equity 88 88 142 142 Commercial and multifamily 323 323 — — Construction and land 25 25 324 324 Manufactured homes 156 115 96 52 Other consumer 5 — 262 262 Total $ 1,511 $ 1,465 $ 2,959 $ 2,915 The following tables present the aging of past due loans, based on amortized cost, as of the dates indicated, by type of loan (in thousands): June 30, 2023 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ — $ 168 $ 365 $ — $ 533 $ 273,519 $ 274,052 Home equity 270 — 88 — 358 19,688 20,046 Commercial and multifamily — — 322 — 322 300,573 300,895 Construction and land 2,866 — — — 2,866 113,881 116,747 Manufactured homes — 177 78 — 255 31,278 31,533 Floating homes — — — — — 70,233 70,233 Other consumer 9 6 — — 15 17,893 17,908 Commercial business — 46 — — 46 23,969 24,015 Total $ 3,145 $ 397 $ 853 $ — $ 4,394 $ 851,035 $ 855,429 December 31, 2022 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 393 $ 289 $ 1,934 $ — $ 2,616 $ 272,022 $ 274,638 Home equity 115 — 116 — 231 19,317 19,548 Commercial and multifamily 7,198 — — — 7,198 306,160 313,358 Construction and land 1,210 — 296 — 1,506 115,372 116,878 Manufactured homes 261 155 52 — 468 26,485 26,953 Floating homes — — — — — 74,443 74,443 Other consumer 360 5 — — 365 17,558 17,923 Commercial business 4 — — — 4 23,811 23,815 Total $ 9,542 $ 449 $ 2,398 $ — $ 12,389 $ 855,167 $ 867,556 Nonperforming Loans. Loans are considered nonperforming when they are placed on nonaccrual. The following table presents the credit risk profile of our loan portfolio based on payment activity as of the date indicated, by type of loan (in thousands): December 31, 2022 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 272,503 $ 19,406 $ 313,358 $ 116,554 $ 26,857 $ 74,443 $ 17,661 $ 23,815 $ 864,597 Nonperforming 2,135 142 — 324 96 — 262 — 2,959 Total $ 274,638 $ 19,548 $ 313,358 $ 116,878 $ 26,953 $ 74,443 $ 17,923 $ 23,815 $ 867,556 Loan Modifications to Borrowers Experiencing Financial Difficulty. Loans modified to borrowers experiencing financial difficulty totaled $2.0 million at June 30, 2023. The Company has granted modifications which can generally be described in the following categories: Principal Forgiveness : A modification in which the principal is reduced. Rate Modification : A modification in which the interest rate is changed. Term Modification : A modification in which the maturity date, timing of payments or frequency of payments is changed. Payment Modification : A modification in which the dollar amount of the payment is changed. Interest only modifications in which a loan is converted to interest only payments for a period of time are included in this category. Combination Modification : Any other type of modification, including the use of multiple categories above. The Company had no commitments to extend additional credit to borrowers owing loan receivables whose terms have been modified at June 30, 2023. During the six months ended June 30, 2023, there was one one-to-four family loan modified to borrowers experiencing financial difficulty that was in current status as of June 30, 2023. This loan received a term extension for 90 days, with an amortized cost basis of $90 thousand representing 0.03% of the total class of loans. There were no loans modified within the three months ended June 30, 2023. We have no modified loan receivables that have subsequently defaulted at June 30, 2023. Troubled debt restructurings. Prior to the adoption of ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , the Company had granted a variety of concessions to borrowers in the form of loan modifications that were considered TDRs. Loans classified as TDRs totaled $2.0 million at December 31, 2022, and were previously included in impaired loans. Collateral Dependent Loans . Loans that have been classified as collateral dependent are loans where substantially all repayment of the loan is expected to come from the operation of or eventual liquidation of the collateral. Collateral dependent loans are evaluated individually for purposes of determining the ACL, which is determined based on the estimated fair value of the collateral. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded. The following tables summarize collateral dependent loans by collateral type as of the dates indicated (in thousands): June 30, 2023 Commercial Real Estate Residential Real Estate Land Other Residential Total Real estate loans: One- to four- family $ — $ 1,075 $ — $ 292 $ 1,367 Home equity — 88 — — 88 Commercial and multifamily 323 — — — 323 Construction and land — — 25 — 25 Total real estate loans 323 1,163 25 292 1,803 Consumer loans: Manufactured homes — — — 156 156 Total consumer loans — — — 156 156 Total loans $ 323 $ 1,163 $ 25 $ 448 $ 1,959 Impaired Loans. Prior to the adoption of ASC 326 on January 1, 2023, we classified loans as impaired when we determined that we may be unable to collect payments of principal or interest when due under the terms of the loan. In the process of identifying loans as impaired, we took into consideration factors which include payment history and status, collateral value, financial condition of the borrower, and the probability of collecting scheduled payments in the future. Minor payment delays and insignificant payment shortfalls typically did not result in a loan being classified as impaired. The significance of payment delays and shortfalls was considered on a case by case basis, after taking into consideration the totality of circumstances surrounding the loan and the borrower, including payment history. Impairment was measured on a loan by loan basis for all loans in the portfolio. All TDRs were also classified as impaired loans and were included in the loans individually evaluated for impairment in the calculation of the allowance for loan losses. Impaired loans at the dates indicated, by type of loan were as follows (in thousands): December 31, 2022 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,758 $ 3,038 $ 708 $ 3,746 $ 102 Home equity 210 142 68 210 5 Commercial and multifamily — — — — — Construction and land 358 324 34 358 3 Manufactured homes 187 93 94 187 52 Floating homes — — — — — Other consumer 343 261 82 343 22 Commercial business — — — — — Total $ 4,856 $ 3,858 $ 986 $ 4,844 $ 184 The following tables present the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Average Interest Income Average Interest Income One-to-four family $ 3,377 $ 19 $ 3,607 $ 44 Home equity 226 3 222 7 Commercial and multifamily 2,322 22 2,341 51 Construction and land 65 1 67 2 Manufactured homes 204 4 210 8 Floating homes — — 164 — Other consumer 341 6 263 10 Commercial business 85 (1) 115 — Total $ 6,620 $ 54 $ 6,989 $ 122

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company determines the fair values of its financial instruments based on the requirements established in ASC 820 , Fair Value Measurements (“ASC 820”), which provides a framework for measuring fair value in accordance with U.S. GAAP and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair values for financial instruments as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at June 30, 2023 and December 31, 2022 were determined based on these requirements. The following methods and assumptions were used to estimate the fair value of other financial instruments: Cash and cash equivalents - The estimated fair value is equal to the carrying amount. Available-for-sale securities – AFS securities are recorded at fair value based on quoted market prices, if available. If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments. Level 2 securities include those traded on an active exchange, as well as U.S. government securities. Held-to-maturity securities – HTM securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. The fair value is based on quoted market prices, if available. If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments. Level 2 securities include those traded on an active exchange, as well as U.S. government securities. Loans held-for-sale - One-to-four family mortgage loans held-for-sale are recorded at the lower of cost or fair value. The fair value of fixed-rate one-to-four family loans held-for-sale is based on whole loan forward prices obtained from government sponsored enterprises. At June 30, 2023 and December 31, 2022, loans held-for-sale were carried at cost, as no impairment was required. Loans held-for-portfolio - The estimated fair value of loans held-for-portfolio consists of a credit adjustment to reflect the estimated adjustment to the carrying value of the loans due to credit-related factors and a yield adjustment, to reflect the estimated adjustment to the carrying value of the loans due to a differential in yield between the portfolio loan yields and estimated current market rate yields on loans with similar characteristics. The estimated fair values of loans held-for-portfolio reflect exit price assumptions. The liquidity premium/discounts are part of the valuation for exit pricing. Mortgage servicing rights –The fair value of mortgage servicing rights is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds, discount rates, and delinquency rate assumptions as inputs. FHLB stock - The estimated fair value is equal to the par value of the stock. Non-maturity deposits - The estimated fair value is equal to the carrying amount. Time deposits - The estimated fair value of time deposits is based on the difference between interest costs paid on the Company’s time deposits and current market rates for time deposits with comparable characteristics. Borrowings - The fair value of borrowings are estimated using the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Subordinated notes - The fair value of subordinated notes is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. A description of the valuation methodologies used for impaired loans and OREO is as follows: Collateral dependent loans - The fair value of collateral dependent loans is based on the current appraised value of the collateral less estimated costs to sell. Troubled debt restructurings (prior to adoption of ASU 2022-02) - The fair value of loan modifications that were considered TDRs prior to the adoption of ASU 2022-02 is based on the current appraised value of the collateral less estimated costs to sell, or internally developed models utilizing a calculation of expected discounted cash flows which contain management’s assumptions. OREO and repossessed assets – The fair value of OREO and repossessed assets is based on the current appraised value of the collateral less estimated costs to sell. Off-balance sheet financial instruments - The fair value for the Company’s off-balance sheet loan commitments is estimated based on fees charged to others to enter into similar agreements, taking into account the remaining terms of the agreements and credit standing of the Company’s clients. The estimated fair value of these commitments is not significant. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the lowest level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. There were no transfers between levels during the three and six months ended June 30, 2023 and 2022. The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of the dates indicated (in thousands): June 30, 2023 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 100,169 $ 100,169 $ 100,169 $ — $ — Available-for-sale securities 8,398 8,398 — 8,398 — Held-to-maturity securities 2,182 1,797 — 1,797 — Loans held-for-sale 1,716 1,716 — 1,716 — Loans held-for-portfolio, net 847,212 798,190 — — 798,190 Mortgage servicing rights 4,726 4,726 — — 4,726 FHLB stock 3,583 3,583 — 3,583 — FINANCIAL LIABILITIES: Non-maturity deposits 533,768 533,768 — 533,768 — Time deposits 288,485 289,681 — 289,681 — Borrowings 60,000 60,000 — 60,000 — Subordinated notes 11,697 10,032 — 10,032 — December 31, 2022 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 57,836 $ 57,836 $ 57,836 $ — $ — Available-for-sale securities 10,207 10,207 — 10,207 — Held-to-maturity securities 2,199 1,811 — 1,811 — Loans held-for-portfolio, net 858,382 801,153 — — 801,153 Mortgage servicing rights 4,687 4,687 — — 4,687 FHLB stock 2,832 2,832 — 2,832 — FINANCIAL LIABILITIES: Non-maturity deposits 598,458 598,458 — 598,458 — Time deposits 210,305 209,965 — 209,965 — Borrowings 43,000 43,000 — 43,000 — Subordinated notes 11,676 10,420 — 10,420 — The following tables present the balance of assets measured at fair value on a recurring basis as of the dates indicated (in thousands): Fair Value at June 30, 2023 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 5,431 $ — $ 5,431 $ — Agency mortgage-backed securities 2,967 — 2,967 — Mortgage servicing rights 4,726 — — 4,726 Fair Value at December 31, 2022 Description Total Level 1 Level 2 Level 3 Treasury bills $ 1,594 $ — $ 1,594 $ — Municipal bonds 5,421 — 5,421 — Agency mortgage-backed securities 3,192 — 3,192 — Mortgage servicing rights 4,687 — — 4,687 The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis as of the dates indicated: June 30, 2023 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 106%-524% (126%) Discount rate 10.5%-14.5% (12.5%) December 31, 2022 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 119%-461% (132%) Discount rate 10.5%-14.5% (12.5%) Generally, any significant increases in the constant prepayment rate and discount rate utilized in the fair value measurement of the mortgage servicing rights will result in a negative fair value adjustment (and decrease in the fair value measurement). Conversely, a decrease in the constant prepayment rate and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement). An increase in the weighted-average life will result in a decrease in the constant prepayment rate and conversely, a decrease in the weighted-average life will result in an increase of the constant prepayment rate. As a result of the difficulty in observing certain significant valuation inputs affecting our “Level 3” fair value assets, we are required to make judgments regarding these items’ fair values. Different persons in possession of the same facts may reasonably arrive at different conclusions as to the inputs to be applied in valuing these assets and their fair values. Such differences may result in significantly different fair value measurements. There were no assets or liabilities (excluding mortgage servicing rights) measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six months ended June 30, 2023 and 2022. Mortgage servicing rights are measured at fair value using a significant unobservable input (Level 3) on a recurring basis. Additional information is included in “Note 6—Mortgage Servicing Rights.” The fair value of individually evaluated loans with specific allocations of the ACL based on collateral values and OREO is generally based on recent real estate appraisals and automated valuation models (“AVMs”). These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers for differences between the comparable sales and income data available. Such adjustments are typically deemed significant unobservable inputs used for determining fair value and result in a Level 3 classification. The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at June 30, 2023 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 575 $ — $ — $ 575 Collateral dependent loans 1,959 — — 1,959 Fair Value at December 31, 2022 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 659 $ — $ — $ 659 Impaired loans 4,844 — — 4,844 There were no liabilities carried at fair value, measured on a recurring or nonrecurring basis, at both June 30, 2023 and December 31, 2022.

Mortgage Servicing Rights

Mortgage Servicing Rights	6 Months Ended
	Jun. 30, 2023
Transfers and Servicing [Abstract]
Mortgage Servicing Rights	Mortgage Servicing Rights The unpaid principal balance of the Company’s mortgage servicing rights portfolio totaled $463.6 million at June 30, 2023 compared to $472.5 million at December 31, 2022. Of this total balance, the unpaid principal balance of loans serviced for Federal National Mortgage Association (“Fannie Mae”) at June 30, 2023 and December 31, 2022 were $461.4 million and $470.3 million, respectively. The unpaid principal balance of loans serviced for other financial institutions at June 30, 2023 and December 31, 2022, totaled $2.2 million and $2.2 million, respectively. Loans serviced for others are not included in the Company’s financial statements as they are not assets of the Company. A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance, at fair value $ 4,587 $ 4,668 $ 4,687 $ 4,273 Servicing rights that result from transfers and sale of financial assets 43 29 83 156 Changes in fair value: Due to changes in model inputs or assumptions and other (1) 96 57 (44) 325 Ending balance, at fair value $ 4,726 $ 4,754 $ 4,726 $ 4,754 (1) Represents changes due to collection/realization of expected cash flows and curtailments. The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: June 30, 2023 December 31, 2022 Prepayment speed (Public Securities Association “PSA” model) 126 % 132 % Weighted-average life 7.8 years 7.5 years Weighted average discount rate 12.5 % 12.5 % The amount of contractually specified servicing, late and ancillary fees earned on the mortgage servicing rights are included in

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesIn the normal course of operations, the Company engages in a variety of financial transactions that are not recorded in our financial statements. These transactions involve varying degrees of off-balance sheet credit, interest rate and liquidity risks.  These transactions are used primarily to manage clients’ requests for funding and take the form of loan commitments and lines of credit.

Borrowings, FHLB Stock and Subo

Borrowings, FHLB Stock and Subordinated Notes	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Borrowings, FHLB Stock and Subordinated Notes	Borrowings, FHLB Stock and Subordinated Notes FHLB Advances The following table presents advances from the FHLB as of the dates indicated: June 30, 2023 December 31, 2022 Fixed Rate: Outstanding balance $ 40,000 $ — Interest rates ranging from 4.06 % — % Interest rates ranging to 4.35 % — % Weighted average interest rate 4.25 % — % Variable rate: Outstanding balance $ 20,000 $ 43,000 Weighted average interest rate 5.37 % 2.14 % FHLB Des Moines Borrowing Capacity The Company has a loan agreement with the FHLB of Des Moines. The terms of the agreement call for a blanket pledge of a portion of the Company’s mortgage and commercial and multifamily loan portfolio based on the outstanding balance. Additionally, the Company had outstanding letters of credit from the FHLB of Des Moines to secure public deposits. The following table presents the borrowing capacity from the FHLB as of the dates indicated: June 30, 2023 December 31, 2022 Amount available to borrow under credit facility (1) $ 451,949 $ 442,078 Advance equivalent of collateral: One-to-four family mortgage loans 201,590 204,097 Commercial and multifamily mortgage loans 38,172 45,437 Home equity loans 489 505 Notional amount of letters of credit outstanding 11,000 8,000 Remaining FHLB borrowing capacity $ 169,251 $ 199,039 (1) Subject to eligible pledged collateral. As a member of the FHLB, the Company is required to maintain a minimum level of investment in FHLB of Des Moines stock based on specific percentages of its outstanding FHLB advances. At June 30, 2023 and December 31, 2022, the Company had an investment of $3.6 million and $2.8 million, respectively in FHLB of Des Moines stock. Federal Reserve Bank of San Francisco (“FRB SF”) Borrowings The Company has a borrowing agreement with the FRB SF. The terms of the agreement call for a blanket pledge of a portion of the Company’s consumer and commercial business loans based on the outstanding balance. At June 30, 2023 and December 31, 2022, the amount available to borrow under this credit facility was $18.4 million and $20.8 million, respectively, subject to eligible pledged collateral. The Company had no outstanding borrowings under this arrangement at June 30, 2023 and December 31, 2022. Other Borrowings The Company has access to an unsecured Fed Funds line of credit from Pacific Coast Banker’s Bank (“PCBB”). The line has a one year term maturing on June 30, 2024 and is renewable annually. As of June 30, 2023, the amount available under this line of credit was $20.0 million. There was no balance on this line of credit as of June 30, 2023 and December 31, 2022. Subordinated Debt

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Common Share	Earnings Per Common Share The following table summarizes the calculation of earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net income $ 2,892 $ 1,614 $ 5,059 $ 3,336 LESS: Participating dividends - Unvested Restricted Stock Awards (“RSAs”) (3) (3) (6) (8) LESS: Income allocated to participating securities - Unvested RSAs (15) (8) (26) (15) Net income available to common stockholders - basic 2,874 1,603 5,027 3,313 ADD BACK: Income allocated to participating securities - Unvested RSAs 15 8 26 15 LESS: Income reallocated to participating securities - Unvested RSAs (15) (8) (26) (15) Net income available to common stockholders - diluted $ 2,874 $ 1,603 $ 5,027 $ 3,313 Weighted average number of shares outstanding, basic 2,574,677 2,584,179 2,576,545 2,593,173 Effect of potentially dilutive common shares 16,556 31,120 20,941 34,616 Weighted average number of shares outstanding, diluted 2,591,233 2,615,299 2,597,486 2,627,789 Earnings per share, basic $ 1.12 $ 0.62 $ 1.95 $ 1.28 Earnings per share, diluted $ 1.11 $ 0.61 $ 1.94 $ 1.26 There were 13,080 anti-dilutive securities at June 30, 2023 and 2,656 anti-dilutive securities at June 30, 2022.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation Stock Options and Restricted Stock The Company currently has one active stockholder-approved stock-based compensation plan, the Amended and Restated 2013 Equity Incentive Plan (the "2013 Plan"). The 2013 Plan permits the grant of restricted stock, restricted stock units, stock options, and stock appreciation rights. The equity incentive plan approved by stockholders in 2008 (the"2008 Plan") expired in November 2018 and no further awards may be made under the 2008 Plan; provided, however, all awards outstanding under the 2008 Plan remain outstanding in accordance with their terms. Under the 2013 Plan, 181,750 shares of common stock were approved for awards for stock options and stock appreciation rights and 116,700 shares of common stock were approved for awards for restricted stock and restricted stock units. As of June 30, 2023, on an adjusted basis, awards for stock options totaling 295,464 shares and awards for restricted stock totaling 159,396 shares of Company common stock have been granted, net of any forfeitures, to participants in the 2013 Plan and the 2008 Plan. Share-based compensation expense was $87 thousand and $279 thousand for the three and six months ended June 30, 2023, and $91 thousand and $294 thousand for the three and six months ended June 30, 2022, respectively. Stock Option Awards All stock option awards granted under the 2008 Plan vest in 20% annual increments commencing one year from the grant date in accordance with the requirements of the 2008 Plan. The stock option awards granted to date under the 2013 Plan provide for immediate vesting of a portion of the award with the balance of the award vesting on the anniversary date of each grant date in equal annual installments over periods of one The following is a summary of the Company’s stock option award activity during the three months ended June 30, 2023 (dollars in thousands, except per share amounts): Shares Weighted- Weighted-Average Aggregate Outstanding at April 1, 2023 89,269 $ 31.00 5.68 $ 647 Granted — — Exercised (3,257) 17.21 Expired (117) 42.27 Outstanding at June 30, 2023 85,895 31.51 5.62 495 Exercisable 63,550 28.77 4.55 482 Expected to vest, assuming a 0% forfeiture rate over the vesting term 85,895 $ 31.51 5.62 $ 495 The following is a summary of the Company’s stock option award activity during the six months ended June 30, 2023 (dollars in thousands, except per share amounts): Shares Weighted- Weighted-Average Aggregate Outstanding at January 1, 2023 91,525 $ 27.64 4.65 $ 1,109 Granted 12,425 40.13 Exercised (17,610) 17.23 Forfeited (328) 42.02 Expired (117) 42.27 Outstanding at June 30, 2023 85,895 31.51 5.62 495 Exercisable 63,550 28.77 4.55 482 Expected to vest, assuming a 0% forfeiture rate over the vesting term 85,895 $ 31.51 5.62 $ 495 As of June 30, 2023, there was $179 thousand of total unrecognized compensation cost related to non-vested stock options granted under the Plans. The cost is expected to be recognized over the remaining weighted-average vesting period of approximately 2.7 years. The total intrinsic value of the shares exercised during the three and six months ended June 30, 2023 was $61 thousand and $388 thousand, and for the three and six months ended 2022 was $0 and $54 thousand, respectively. The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model. The fair value of options granted during the six months ended June 30, 2023 and 2022 were determined using the following weighted-average assumptions as of the grant date. Six Months Ended June 30, 2023 2022 Annual dividend yield 1.69 % 1.59 % Expected volatility 28.15 % 26.48 % Risk-free interest rate 3.60 % 1.64 % Expected term 6.00 years 6.00 years Weighted-average grant date fair value per option granted $ 11.33 $ 9.95 There were no options granted during the three months ended June 30, 2023 or 2022. Restricted Stock Awards The fair value of the restricted stock awards is equal to the fair value of the Company's common stock at the date of grant. Compensation expense is recognized over the vesting periods of the awards. The restricted stock awards granted under the 2008 Plan vest in 20% annual increments commencing one year from the grant date. The restricted stock awards granted to date under the 2013 Plan provide for immediate vesting of a portion of the award with the balance of the award vesting on the anniversary dates of the grant date in equal annual installments over periods of one The following is a summary of the Company’s non-vested restricted stock award activity during the three months ended June 30, 2023: Shares Weighted-Average Aggregate Intrinsic Value Per Share Non-Vested at April 1, 2023 16,342 $ 39.17 Granted — — Vested — — Forfeited — — Non-Vested at June 30, 2023 16,342 39.17 35.50 Expected to vest assuming a 0% forfeiture rate over the vesting term 16,342 $ 39.17 $ 35.50 The following is a summary of the Company’s non-vested restricted stock award activity during the six months ended June 30, 2023: Shares Weighted-Average Aggregate Intrinsic Value Per Share Non-Vested at January 1, 2023 17,879 $ 37.63 Granted 8,850 40.13 Vested (9,962) 37.14 Forfeited (425) 41.95 Non-Vested at June 30, 2023 16,342 $ 39.17 $ 35.50 Expected to vest assuming a 0% forfeiture rate over the vesting term 16,342 $ 39.17 $ 35.50 As of June 30, 2023, there was $527 thousand of unrecognized compensation cost related to non-vested restricted stock granted under the Plans. The cost is expected to be recognized over the weighted-average vesting period of 2.6 years. The total fair value of shares vested for the six months ended June 30, 2023 and 2022 was $370 thousand and $306 thousand, respectively. Employee Stock Ownership Plan The fair value of the 162,901 shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) trust was $5.8 million at June 30, 2023. ESOP compensation expense included in salaries and benefits was $204 thousand and $408 thousand for the three and six months ended June 30, 2023, and $170 thousand and $375 thousand for the three and six months ended June 30, 2022, respectively.

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases We have operating leases for branch locations, a loan production office, our corporate office and in the past, for certain equipment. The term for our leases begins on the date we become legally obligated for the rent payments or take possession of the building, whichever is earlier. Generally, our real estate leases have initial terms of three one The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands): June 30, December 31, Operating lease right-of-use assets $ 4,966 $ 5,102 Operating lease liabilities $ 5,306 $ 5,448 The following table presents the components of lease expense for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating lease expense Office leases $ 269 $ 279 $ 537 $ 562 Sublease income (3) (3) (6) (6) Net lease expense $ 266 $ 276 $ 531 $ 556 The following table presents the schedule of lease liabilities at the date indicated (in thousands): June 30, 2023 Remainder of 2023 $ 1,113 2024 1,040 2025 930 2026 948 2027 954 Thereafter 750 Total lease payments 5,735 Less: Present value discount 429 Present value of lease liabilities $ 5,306 Lease term and discount rate by lease type consist of the following at the dates indicated: June 30, December 31, Weighted-average remaining lease term: Office leases 5.6 years 6.1 years Weighted-average discount rate (annualized): Office leases 2.77 % 2.63 % Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows Office leases $ 266 $ 265 $ 537 $ 530

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 25, 2023, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.19 per common share, payable on August 23, 2023 to stockholders of record at the close of business on August 9, 2023.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying financial information is unaudited and has been prepared from the consolidated financial statements of Sound Financial Bancorp, Inc., and its wholly owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc. References in this document to Sound Financial Bancorp refer to Sound Financial Bancorp, Inc. and references to the “Bank” refer to Sound Community Bank. References to “we,” “us,” and “our” or the “Company” refers to Sound Financial Bancorp and its wholly-owned subsidiaries, Sound Community Bank and Sound Community Insurance Agency, Inc., unless the context otherwise requires. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 14, 2023 (“2022 Form 10-K”). The results for the interim periods are not necessarily indicative of results for a full year or any other future period. Certain amounts in the prior period’s consolidated financial statements have been reclassified to conform to the current presentation. These classifications do not have an impact on previously reported consolidated net income, stockholders’ equity or earnings per share. We have not made any changes in our significant accounting policies from those disclosed in the 2022 Form 10-K, except for the accounting for debt securities, the allowance for credit losses (“ACL”) on loans and unfunded commitments, and loan modifications, as described below.
Allowance for Credit Losses and Modified Loans	Allowance for Credit Losses on Investment Securities . The ACL on investment securities is determined for both the held-to-maturity and available-for-sale classifications of the investment portfolio in accordance with Accounting Standards Codification (“ASC”) 326 - Financial Instruments - Credit Losses . For available-for-sale investment securities, we perform a quarterly qualitative evaluation for securities in an unrealized loss position to determine if, for those investments in an unrealized loss position, the decline in fair value is credit related or non-credit related. In determining whether a security’s decline in fair value is credit related, we consider a number of factors including, but not limited to: (i) the extent to which the fair value of the investment is less than its amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) downgrades in credit ratings; (iv) payment structure of the security, (v) the ability of the issuer of the security to make scheduled principal and interest payments and (vi) general market conditions, which reflect prospects for the economy as a whole, including interest rates and sector credit spreads. If it is determined that the unrealized loss can be attributed to credit loss, we record the amount of credit loss through a charge to provision for credit losses in current period earnings. However, the amount of credit loss recorded in current period earnings is limited to the amount of the total unrealized loss on the security, which is measured as the amount by which the security’s fair value is below its amortized cost. If it is likely we will be required to sell the security in an unrealized loss position, the total amount of the loss is recognized in current period earnings. For unrealized losses deemed non-credit related, we record the loss, net of tax, through accumulated other comprehensive income. We determine expected credit losses on available-for-sale and held-to-maturity securities through a discounted cash flow approach, using the security’s effective interest rate. However, as previously mentioned, the measurement of credit losses on available-for-sale securities only occurs when, through our qualitative assessment, all or a portion of the unrealized loss is determined to be credit related. Our discounted cash flow approach incorporates assumptions about the collectability of future cash flows. The amount of credit loss is measured as the amount by which the security’s amortized cost exceeds the present value of expected future cash flows. Credit losses on available-for-sale securities are measured on an individual basis, while credit losses on held-to-maturity securities are measured on a collective basis according to shared risk characteristics. Credit losses on held-to-maturity securities are only recognized at the individual security level when we determine a security no longer possesses risk characteristics similar to others in the portfolio. We do not measure credit losses on an investment’s accrued interest receivable, but rather promptly reverse from current period earnings the amount of accrued interest that is no longer deemed collectable. Accrued interest receivable for investment securities is included in accrued interest receivable balances in the Condensed Consolidated Balance Sheets. Allowance for Credit Losses on Loans and Unfunded Loan Commitments. We maintain an ACL on loans and unfunded loan commitments in accordance with ASC 326. ASC 326 requires us to recognize estimates for lifetime credit losses on loans and unfunded loan commitments at the time of origination or acquisition. The recognition of credit losses at origination or acquisition represents our best estimate of lifetime expected credit losses, given the facts and circumstances associated with a particular loan or group of loans with similar risk characteristics. Determining the ACL involves the use of significant management judgement and estimates, which are subject to change based on management’s ongoing assessment of the credit quality of the loan portfolio and changes in economic forecasts used in the model. We use a historical loss rate model when determining estimates for the ACL for our loan portfolio. We also utilize proxy loan data in our ACL model where our own historical data is not sufficiently available. We do not measure credit losses on a loan’s accrued interest receivable, but rather promptly reverse from current period earnings the amount of accrued interest that is no longer deemed collectable. Accrued interest receivable for loans is included in accrued interest receivable balances in the Condensed Consolidated Balance Sheets. Our ACL model forecasts primarily over a two-year time horizon, which we believe is a reasonable and supportable period. Beyond the two-year forecast time horizon, our ACL model reverts to historical long-term average loss rates. The duration of the forecast horizon, the period over which forecasts revert to long-term averages, the economic forecasts that management utilizes, as well as additional internal and external indicators of economic forecasts that management considers, may change over time depending on the nature and composition of our loan portfolio. We utilize a discounted cash flow ACL model for individually analyzed loans using internally derived estimates for prepayments in determining the amount and timing of future contractual cash flows we expect to collect, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less costs to sell. The estimate of future cash flows also incorporates estimates for contractual amounts we believe may not be collected, which are based on assumptions for our estimated exposure at default. Our estimated exposure at default is determined by the contractual payment schedule and expected payment profile of the loan, incorporating estimates for expected prepayments and future draws on revolving credit facilities. Our ACL methodology for unfunded loan commitments also includes assumptions concerning the probability an unfunded commitment will be drawn upon by the borrower. These assumptions are based on the historical experience of banks in an independent third party database. Expectations of future cash flows are discounted at the loan’s effective interest rate for individually analyzed loans. The effective interest rate represents the contractual rate on the loan, adjusted for any purchase premiums, or discounts, and deferred fees and costs associated with an originated loan. We have made an accounting policy election to adjust the effective interest rate to take into consideration the effects of estimated prepayments. The resulting ACL represents the amount by which the loan’s amortized cost exceeds the net present value of a loan’s discounted cash flows. The ACL is recorded through a charge to provision for credit losses and is reduced by charge-offs, net of recoveries on loans previously charged-off. It is our policy to charge-off loan balances at the time they are not expected to be collected. The historical loss rate model is derived from our loan portfolio credit history, as well as the comparable credit history for peer banks in Washington state. Key loan level attributes and economic drivers in determining the loss rate for loans include unemployment rates, changes to interest rates, changes in credit quality, changes to the consumer price index, and changes in real estate prices. In order to develop reasonable and supportable forecasts of future conditions, we estimate how those forecasts are expected to impact a borrower’s ability to satisfy their obligations to us and the ultimate collectability of future cash flows over the life of a loan. Management periodically evaluates appropriateness of economic scenarios and may decide that a particular economic scenario or a combination of probability-weighted economic scenarios should be used in our ACL model. Our ACL model at June 30, 2023 includes assumptions concerning the rising interest rate environment, ongoing inflationary pressures throughout the U.S. economy, higher energy prices, the potential impact of the ongoing war between Russia and Ukraine, general uncertainty concerning future economic conditions, and the potential for recessionary conditions. It is important to note that our ACL model relies on multiple economic variables, which are used in several economic scenarios. Although no one economic variable can fully demonstrate the sensitivity of the ACL calculation to changes in the economic variables used in the model, we have identified certain economic variables that have significant influence in our model for determining the ACL. These key economic variables include changes in the Washington state unemployment rate, residential real estate prices in the Seattle Metropolitan Statistical Area, and interest rates. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, we believe that the process to consider the available information and associated risks and uncertainties is appropriately governed and that estimates of expected credit losses were reasonable and appropriate upon adoption and for the three and six months ended June 30, 2023. Our ACL model also includes adjustments for qualitative factors, where appropriate. We recognize that historical information used as the basis for determining future expected credit losses may not always, by itself, provide a sufficient basis for determining future expected credit losses. We therefore consider the need for qualitative adjustments to the ACL on a quarterly basis. Qualitative adjustments may be related to and include, but are not limited to, factors such as: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions, (ii) organization specific risks such as credit concentrations, collateral specific risks, regulatory risks, and external factors that may ultimately impact credit quality, (iii) potential model limitations such as limitations identified through back-testing, and other limitations associated with factors such as underwriting changes, acquisition of new portfolios, and changes in portfolio segmentation, and (iv) management’s overall assessment of the adequacy of the ACL, including an assessment of model data inputs used to determine the ACL. Qualitative adjustments primarily relate to certain segments of the loan portfolio deemed by management to be of a higher-risk profile or other factors where management believes the quantitative component of our ACL model may not be fully reflective of levels deemed adequate in the judgement of management. Certain qualitative adjustments also relate to heightened uncertainty as to future macroeconomic conditions and the related impact on certain loan segments. Management reviews the need for an appropriate level of qualitative adjustments on a quarterly basis, and as such, the amount and allocation of qualitative adjustments may change in future periods. Modified Loans to Borrowers Experiencing Financial Difficulty . We occasionally modify loans to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize our potential losses. We refer to these modifications as modified loans to troubled borrowers. Modifications may include: changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and, in very limited cases, reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been in default for a period of 90 days or more. Such loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt. We typically measure the ACL on modified loans to troubled borrowers on an individual basis when the loans are deemed to no longer share risk characteristics that are similar with other loans in the portfolio. The determination of the ACL for these loans is based on a discounted cash flow approach for loans measured individually, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated fair value of the underlying collateral, less estimated costs to sell. GAAP requires us to make certain disclosures related to these loans, including certain types of modifications, as well as how such loans have performed since their modifications. Refer to Note 4 – Loans for additional information concerning modified loans to troubled borrowers.
Accounting Pronouncements Recently Issued or Adopted	Accounting Pronouncements Recently Issued or Adopted On March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, " Reference Rate Reform" ("Topic 848"). This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update apply to modifications to eligible contracts (e.g., loans, debt securities, derivatives, borrowings) that replace a reference rate affected by reference rate reform (including rates referenced in fallback provisions) and contemporaneous modifications of other contract terms related to the replacement of the reference rate (including contract modifications to add or change fallback provisions). The following optional expedients for applying the requirements of certain Topics or Industry Subtopics in the related Codification are permitted for contracts that are modified because of reference rate reform and that meet certain scope guidance: 1) Modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, should be accounted for by prospectively adjusting the effective interest rate; 2) Modifications of contracts within the scope of Topics 840, Leases, and 842, Leases, should be accounted for as a continuation of the existing contracts with no reassessments of the lease classification and the discount rate (for example, the incremental borrowing rate) or remeasurements of lease payments that otherwise would be required under those Topics for modifications not accounted for as separate contracts; and 3) Modifications of contracts do not require an entity to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Subtopic 815-15, Derivatives and Hedging— Embedded Derivatives. In January 2021, ASU 2021-01 updated amendments in the new ASU to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification. The amendments in this ASU have differing effective dates, beginning with interim periods including and subsequent to March 12, 2020 through December 31, 2022. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, and March 2020, ASU 2020-03, all of which clarifies codification and corrects unintended application of the guidance. This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology where loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The income statement would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach, and recorded a net decrease of approximately $1.1 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL of $1.5 million, net of related deferred tax assets arising from temporary differences of $305 thousand, commonly referred to as the “Day 1” adjustment. The Day 1 adjustment to the ACL is reflective of expected lifetime credit losses associated with the composition of financial assets within in the scope of ASC 326 as of January 1, 2023, which is comprised of loans held for investment and off-balance sheet credit exposures at January 1, 2023, as well as management’s current expectation of future economic conditions. The following table presents the impact of adopting ASU 2016-13 on January 1, 2023: (dollars in thousands) As Reported Prior to Adopting Impact of ASC 326 Allowance for credit losses - loans Real estate loans: One- to four- family $ 2,126 $ 1,771 $ 355 Home equity 201 132 69 Commercial and multifamily 2,181 2,501 (320) Construction and land 2,568 1,209 1,359 Total real estate loans 7,075 5,613 1,462 Consumer loans: Manufactured homes 282 462 (180) Floating homes 622 456 166 Other consumer 161 324 (163) Total consumer loans 1,065 1,242 (177) Commercial business loans 221 256 (35) Unallocated (3) 488 (491) Total loans 8,359 7,599 760 Allowance for credit losses - unfunded commitments Reserve for unfunded commitments 1,030 335 695 Total $ 9,389 $ 7,934 $ 1,455 In March 2022, the FASB issued ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The ASU eliminates the accounting guidance for troubled debt restructured loans (“TDRs”) by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, upon the Company’s adoption of the amendments in ASU 2016-13, which is commonly referred to as the current expected credit loss methodology. The Company adopted ASU 2022-02 on January 1, 2023 using the prospective transition guidance which allows the entity to continue estimating expected credit losses in accordance with legacy U.S. GAAP for receivables modified in a TDR until the receivables are subsequently modified or settled. Once a legacy TDR is modified after adoption of ASU 2022-02, the
Fair Value Measurements	Fair Value Measurements The Company determines the fair values of its financial instruments based on the requirements established in ASC 820 , Fair Value Measurements (“ASC 820”), which provides a framework for measuring fair value in accordance with U.S. GAAP and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair values for financial instruments as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at June 30, 2023 and December 31, 2022 were determined based on these requirements. The following methods and assumptions were used to estimate the fair value of other financial instruments: Cash and cash equivalents - The estimated fair value is equal to the carrying amount. Available-for-sale securities – AFS securities are recorded at fair value based on quoted market prices, if available. If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments. Level 2 securities include those traded on an active exchange, as well as U.S. government securities. Held-to-maturity securities – HTM securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. The fair value is based on quoted market prices, if available. If quoted market prices are not available, management utilizes third-party pricing services or broker quotations from dealers in the specific instruments. Level 2 securities include those traded on an active exchange, as well as U.S. government securities. Loans held-for-sale - One-to-four family mortgage loans held-for-sale are recorded at the lower of cost or fair value. The fair value of fixed-rate one-to-four family loans held-for-sale is based on whole loan forward prices obtained from government sponsored enterprises. At June 30, 2023 and December 31, 2022, loans held-for-sale were carried at cost, as no impairment was required. Loans held-for-portfolio - The estimated fair value of loans held-for-portfolio consists of a credit adjustment to reflect the estimated adjustment to the carrying value of the loans due to credit-related factors and a yield adjustment, to reflect the estimated adjustment to the carrying value of the loans due to a differential in yield between the portfolio loan yields and estimated current market rate yields on loans with similar characteristics. The estimated fair values of loans held-for-portfolio reflect exit price assumptions. The liquidity premium/discounts are part of the valuation for exit pricing. Mortgage servicing rights –The fair value of mortgage servicing rights is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds, discount rates, and delinquency rate assumptions as inputs. FHLB stock - The estimated fair value is equal to the par value of the stock. Non-maturity deposits - The estimated fair value is equal to the carrying amount. Time deposits - The estimated fair value of time deposits is based on the difference between interest costs paid on the Company’s time deposits and current market rates for time deposits with comparable characteristics. Borrowings - The fair value of borrowings are estimated using the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Subordinated notes - The fair value of subordinated notes is estimated using discounted cash flows based on current lending rates for similar long-term debt instruments with similar terms and remaining time to maturity. A description of the valuation methodologies used for impaired loans and OREO is as follows: Collateral dependent loans - The fair value of collateral dependent loans is based on the current appraised value of the collateral less estimated costs to sell. Troubled debt restructurings (prior to adoption of ASU 2022-02) - The fair value of loan modifications that were considered TDRs prior to the adoption of ASU 2022-02 is based on the current appraised value of the collateral less estimated costs to sell, or internally developed models utilizing a calculation of expected discounted cash flows which contain management’s assumptions. OREO and repossessed assets – The fair value of OREO and repossessed assets is based on the current appraised value of the collateral less estimated costs to sell. Off-balance sheet financial instruments - The fair value for the Company’s off-balance sheet loan commitments is estimated based on fees charged to others to enter into similar agreements, taking into account the remaining terms of the agreements and credit standing of the Company’s clients. The estimated fair value of these commitments is not significant. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the lowest level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. There were no transfers between levels during the three and six months ended June 30, 2023 and 2022.

Accounting Pronouncements Rec_2

Accounting Pronouncements Recently Issued or Adopted (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Schedule of Impact of Adopting ASU 2016-13	The following table presents the impact of adopting ASU 2016-13 on January 1, 2023: (dollars in thousands) As Reported Prior to Adopting Impact of ASC 326 Allowance for credit losses - loans Real estate loans: One- to four- family $ 2,126 $ 1,771 $ 355 Home equity 201 132 69 Commercial and multifamily 2,181 2,501 (320) Construction and land 2,568 1,209 1,359 Total real estate loans 7,075 5,613 1,462 Consumer loans: Manufactured homes 282 462 (180) Floating homes 622 456 166 Other consumer 161 324 (163) Total consumer loans 1,065 1,242 (177) Commercial business loans 221 256 (35) Unallocated (3) 488 (491) Total loans 8,359 7,599 760 Allowance for credit losses - unfunded commitments Reserve for unfunded commitments 1,030 335 695 Total $ 9,389 $ 7,934 $ 1,455

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2023
Investments [Abstract]
Schedule of Amortized Cost and Fair Value of AFS Securities	The amortized cost and fair value of our AFS securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Gross Gross Estimated June 30, 2023 Municipal bonds $ 6,414 $ 17 $ (1,000) $ 5,431 Agency mortgage-backed securities 3,369 1 (403) 2,967 Total $ 9,783 $ 18 $ (1,403) $ 8,398 December 31, 2022 Treasury bills $ 1,596 $ — $ (2) $ 1,594 Municipal bonds 6,434 16 (1,029) 5,421 Agency mortgage-backed securities 3,591 1 (400) 3,192 Total $ 11,621 $ 17 $ (1,431) $ 10,207
Schedule of Amortized Cost and Fair Value of HTM Securities	The amortized cost and fair value of our HTM securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands): Amortized Gross Gross Estimated June 30, 2023 Municipal bonds $ 705 $ — $ (175) $ 530 Agency mortgage-backed securities 1,477 — (210) 1,267 Total $ 2,182 $ — $ (385) $ 1,797 December 31, 2022 Municipal bonds $ 705 $ — $ (169) $ 536 Agency mortgage-backed securities 1,494 — (219) 1,275 Total $ 2,199 $ — $ (388) $ 1,811
Schedule of Amortized Cost and Fair Value of Mortgage-backed Securities by Contractual Maturity	The amortized cost and fair value of AFS and HTM securities at June 30, 2023, by contractual maturity, are shown below (in thousands). Expected maturities of AFS securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments not due at a single maturity date, consisting of agency mortgage-backed securities, are shown separately. June 30, 2023 Available-for-sale Held-to-maturity Amortized Fair Amortized Fair Due within one year $ — $ — $ — $ — Due after one year through five years 150 150 — — Due after five years through ten years 1,227 1,239 — — Due after ten years 5,037 4,042 705 530 Agency mortgage-backed securities 3,369 2,967 1,477 1,267 Total $ 9,783 $ 8,398 $ 2,182 $ 1,797
Schedule of Aggregate Fair Value and Gross Unrealized Loss by Length of Time	The following table summarizes the aggregate fair value and gross unrealized loss by length of time of those investments for which an allowance for credit losses has not been recorded that have been in a continuous unrealized loss position at the dates indicated (in thousands): June 30, 2023 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities Municipal bonds $ — $ — $ 3,761 $ (1,000) $ 3,761 $ (1,000) Agency mortgage-backed securities 137 (5) 2,614 (398) 2,751 (403) Total available-for-sale securities $ 137 $ (5) $ 6,375 $ (1,398) $ 6,512 $ (1,403) Held-to-maturity securities Municipal bonds $ — $ — $ 530 $ (175) $ 530 $ (175) Agency mortgage-backed securities — — 1,267 (210) 1,267 (210) Total held-to-maturity securities $ — $ — $ 1,797 $ (385) $ 1,797 $ (385) December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities Treasury bills $ 1,594 $ (2) $ — $ — $ 1,594 $ (2) Municipal bonds 2,506 (641) 1,246 (388) 3,752 (1,029) Agency mortgage-backed securities 2,666 (314) 292 (86) 2,958 (400) Total $ 6,766 $ (957) $ 1,538 $ (474) $ 8,304 $ (1,431) Held-to-maturity securities Municipal bonds $ 536 $ (169) $ — $ — $ 536 $ (169) Agency mortgage-backed securities 1,274 (219) — — 1,274 (219) Total held-to-maturity securities $ 1,810 $ (388) $ — $ — $ 1,810 $ (388)

Loans (Tables)

Loans (Tables)	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Schedule of Composition of the Loan Portfolio, Excluding Loans Held-for-sale	Loans-held-for portfolio at the dates indicated, excluding loans held-for-sale, were as follows (in thousands): June 30, December 31, Real estate loans: One-to-four family $ 273,720 $ 274,638 Home equity 19,760 19,548 Commercial and multifamily 301,828 313,358 Construction and land 117,382 116,878 Total real estate loans 712,690 724,422 Consumer loans: Manufactured homes 31,619 26,953 Floating homes 70,596 74,443 Other consumer 17,915 17,923 Total consumer loans 120,130 119,319 Commercial business loans 23,939 23,815 Total loans held-for-portfolio 856,759 867,556 Premiums for purchased loans (1) 884 973 Deferred fees, net (2,214) (2,548) Total loans held-for-portfolio, gross 855,429 865,981 Allowance for credit losses — loans (8,217) (7,599) Total loans held-for-portfolio, net $ 847,212 $ 858,382 (1) Includes premiums resulting from purchased loans of $492 thousand related to one-to-four family loans, $300 thousand related to commercial and multifamily loans, and $92 thousand related to commercial business loans as of June 30, 2023. Includes premiums resulting from purchased loans of $507 thousand related to one-to-four family loans, $320 thousand related to commercial and multifamily loans, and $146 thousand related to commercial business loans as of December 31, 2022.
Schedule of Activity in Allowance for Loan Losses	The following table presents a summary of activity in the ACL on loans and unfunded commitments for the periods indicated (in thousands): Three Months Ended June 30, 2023 2022 Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Balance at beginning of period $ 8,532 $ 795 $ 9,327 $ 6,407 $ 419 $ 6,826 (Release of) provision for credit losses during the period (242) (89) (331) 600 (8) 592 Net (charge-offs)/recoveries during the period (73) — (73) 110 — 110 Balance at end of period $ 8,217 $ 706 $ 8,923 $ 7,117 $ 411 $ 7,528 Six Months Ended June 30, 2023 2022 Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Allowance for Credit Losses - Loans Reserve for Unfunded Loan Commitments Allowance for Credit Losses Balance at beginning of period $ 7,599 $ 335 $ 7,934 $ 6,306 $ 404 $ 6,710 Adoption of ASU 2016-13 (1) 760 695 1,455 — — — Provision for (release of) credit losses during the period 3 (324) (321) 725 7 732 Net (charge-offs)/recoveries during the period (145) — (145) 86 86 Balance at end of period $ 8,217 $ 706 $ 8,923 $ 7,117 $ 411 $ 7,528 (1) Represents the impact of adopting ASU 2016-13, Financial Instruments — Credit Losses on January 1, 2023. Since that date, as a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses has been based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology. The following tables summarize the activity in the allowance for credit losses - loans, excluding accrued interest, for the periods indicated (in thousands): Three Months Ended June 30, 2023 Beginning Charge-offs Recoveries Provision (Recapture) Ending One-to-four family $ 2,059 $ — $ — $ (62) $ 1,997 Home equity (1) 197 (25) — 22 194 Commercial and multifamily 2,225 — — 43 2,268 Construction and land 2,778 — — (280) 2,498 Manufactured homes 283 — — 26 309 Floating homes 611 — — (25) 586 Other consumer (2) 159 (53) 5 49 160 Commercial business 216 — — (11) 205 Unallocated 4 — — (4) — Total $ 8,532 $ (78) $ 5 $ (242) $ 8,217 (1) During the three months ended June 30, 2023, there was one revolving home equity loan that was charged off. (2) During the three months ended June 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off. Six Months Ended June 30, 2023 Beginning Impact of Adoption of ASU 2016-16 Charge-offs Recoveries Provision (Recapture) Ending One-to-four family $ 1,771 $ 355 $ — $ — $ (129) $ 1,997 Home equity (1) 132 69 (25) — 18 194 Commercial and multifamily 2,501 (320) — — 87 2,268 Construction and land 1,209 1,359 — — (70) 2,498 Manufactured homes 462 (180) — — 27 309 Floating homes 456 166 — — (36) 586 Other consumer (2) 324 (163) (132) 12 119 160 Commercial business 256 (35) — — (16) 205 Unallocated 488 (491) — — 3 — Total $ 7,599 $ 760 $ (157) $ 12 $ 3 $ 8,217 (1) During the six months ended June 30, 2023, there was one revolving home equity loan that was charged off. (2) During the six months ended June 30, 2023, the gross charge-offs related entirely to deposit overdrafts that were charged off. Three Months Ended June 30, 2022 Beginning Charge-offs Recoveries Provision Ending One-to-four family $ 1,474 $ — $ 45 $ 119 $ 1,638 Home equity 96 — 57 (40) 113 Commercial and multifamily 2,227 — — 85 2,312 Construction and land 698 — — 326 1,024 Manufactured homes 448 — 12 (16) 444 Floating homes 376 — — 34 410 Other consumer 333 (11) 1 8 331 Commercial business 238 — 6 (4) 240 Unallocated 517 — — 88 605 Total $ 6,407 $ (11) $ 121 $ 600 $ 7,117 Six Months Ended June 30, 2022 Beginning Charge-offs Recoveries Provision Ending One-to-four family $ 1,402 $ — $ 45 $ 191 $ 1,638 Home equity 93 — 58 (38) 113 Commercial and multifamily 2,340 — — (28) 2,312 Construction and land 650 — — 374 1,024 Manufactured homes 475 — 12 (43) 444 Floating homes 372 — — 38 410 Other consumer 310 (35) 6 50 331 Commercial business 269 (6) 6 (29) 240 Unallocated 395 — — 210 605 Total $ 6,306 $ (41) $ 127 $ 725 $ 7,117
Schedule of Internally Assigned Grades by Type of Loan	The following table presents the internally assigned grades as of June 30, 2023, by type of loan and origination year (in thousands): Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Converted to Term 2023 2022 2021 2020 2019 Prior Total One-to-four family: Pass $ 8,560 $ 88,786 $ 114,092 $ 18,192 $ 13,276 $ 30,140 $ — $ — $ 273,046 Special mention — — — — — — — — — Substandard — — 124 — 271 611 — — 1,006 Doubtful — — — — — — — — — Loss — — — — — — — — — Total one-to-four family 8,560 88,786 114,216 18,192 13,547 30,751 — — 274,052 Home equity: Pass 1,499 2,895 1,107 308 102 1,825 10,551 1,511 19,798 Special mention — — — — — — — — — Substandard — — — — — 66 — 182 248 Doubtful — — — — — — — — — Loss — — — — — — — — — Total home equity 1,499 2,895 1,107 308 102 1,891 10,551 1,693 20,046 Commercial and multifamily: Pass 4,455 83,689 86,522 26,992 31,037 59,917 — — 292,612 Special mention — — — — — 355 — — 355 Substandard — — — 1,329 5,143 1,456 — — 7,928 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and multifamily 4,455 83,689 86,522 28,321 36,180 61,728 — — 300,895 Construction and land: Pass 4,271 67,837 36,991 3,855 614 2,408 — — 115,976 Special mention — — — — — — — — — Substandard — — — — 700 71 — — 771 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land 4,271 67,837 36,991 3,855 1,314 2,479 — — 116,747 Manufactured homes: Pass 6,562 8,629 4,946 2,386 2,512 6,340 — — 31,375 Special mention — — — — — — — — — Substandard — 28 — 22 — 108 — — 158 Doubtful — — — — — — — — — Loss — — — — — — — — — Total manufactured homes 6,562 8,657 4,946 2,408 2,512 6,448 — — 31,533 Floating homes: Pass 1,736 21,741 27,302 6,557 1,925 10,972 — — 70,233 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total floating homes 1,736 21,741 27,302 6,557 1,925 10,972 — — 70,233 Other consumer: Pass 1,763 2,024 4,018 6,333 832 2,386 480 — 17,836 Special mention — — — — — — — — — Substandard — — — 72 — — — — 72 Doubtful — — — — — — — — — Loss — — — — — — — — — Total other consumer 1,763 2,024 4,018 6,405 832 2,386 480 — 17,908 Commercial business: Pass 3,150 492 3,812 493 367 5,771 9,473 — 23,558 Special mention — — — — — — — — — Substandard — 69 386 — — 2 — — 457 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial business 3,150 561 4,198 493 367 5,773 9,473 — 24,015 Total loans Pass $ 31,996 $ 276,093 $ 278,790 $ 65,116 $ 50,665 $ 119,759 $ 20,504 $ 1,511 $ 844,434 Special mention — — — — — 355 — — 355 Substandard — 97 510 1,423 6,114 2,314 — 182 10,640 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 31,996 $ 276,190 $ 279,300 $ 66,539 $ 56,779 $ 122,428 $ 20,504 $ 1,693 $ 855,429 The following tables present the internally assigned grades as of December 31, 2022, by type of loan (in thousands): December 31, 2022 One-to- Home Commercial Construction Manufactured Floating Other Commercial Total Grade: Pass $ 271,295 $ 19,230 $ 291,677 $ 109,484 $ 26,583 $ 74,443 $ 17,661 $ 22,853 $ 833,226 Watch 279 2 7,538 4,037 134 — — 161 12,151 Special Mention — — 4,096 — — — — — 4,096 Substandard 3,064 316 10,047 3,357 236 — 262 801 18,083 Total $ 274,638 $ 19,548 $ 313,358 $ 116,878 $ 26,953 $ 74,443 $ 17,923 $ 23,815 $ 867,556 December 31, 2022 One-to-four Home Commercial Construction Manufactured Floating Other Commercial Total Performing $ 272,503 $ 19,406 $ 313,358 $ 116,554 $ 26,857 $ 74,443 $ 17,661 $ 23,815 $ 864,597 Nonperforming 2,135 142 — 324 96 — 262 — 2,959 Total $ 274,638 $ 19,548 $ 313,358 $ 116,878 $ 26,953 $ 74,443 $ 17,923 $ 23,815 $ 867,556 The following tables summarize collateral dependent loans by collateral type as of the dates indicated (in thousands): June 30, 2023 Commercial Real Estate Residential Real Estate Land Other Residential Total Real estate loans: One- to four- family $ — $ 1,075 $ — $ 292 $ 1,367 Home equity — 88 — — 88 Commercial and multifamily 323 — — — 323 Construction and land — — 25 — 25 Total real estate loans 323 1,163 25 292 1,803 Consumer loans: Manufactured homes — — — 156 156 Total consumer loans — — — 156 156 Total loans $ 323 $ 1,163 $ 25 $ 448 $ 1,959
Schedule of Investment in Nonaccrual Loans	The following table presents the amortized cost of nonaccrual loans as of the dates indicated, by type of loan (in thousands): June 30, 2023 December 31, 2022 Total Total Total Total One-to-four family $ 914 $ 914 $ 2,135 $ 2,135 Home equity 88 88 142 142 Commercial and multifamily 323 323 — — Construction and land 25 25 324 324 Manufactured homes 156 115 96 52 Other consumer 5 — 262 262 Total $ 1,511 $ 1,465 $ 2,959 $ 2,915
Schedule of Recorded Investment Aging In Past Due Loans	The following tables present the aging of past due loans, based on amortized cost, as of the dates indicated, by type of loan (in thousands): June 30, 2023 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ — $ 168 $ 365 $ — $ 533 $ 273,519 $ 274,052 Home equity 270 — 88 — 358 19,688 20,046 Commercial and multifamily — — 322 — 322 300,573 300,895 Construction and land 2,866 — — — 2,866 113,881 116,747 Manufactured homes — 177 78 — 255 31,278 31,533 Floating homes — — — — — 70,233 70,233 Other consumer 9 6 — — 15 17,893 17,908 Commercial business — 46 — — 46 23,969 24,015 Total $ 3,145 $ 397 $ 853 $ — $ 4,394 $ 851,035 $ 855,429 December 31, 2022 30-59 Days 60-89 Days 90 Days and Greater Past Due > 90 Days and Accruing Total Past Current Total Loans One-to-four family $ 393 $ 289 $ 1,934 $ — $ 2,616 $ 272,022 $ 274,638 Home equity 115 — 116 — 231 19,317 19,548 Commercial and multifamily 7,198 — — — 7,198 306,160 313,358 Construction and land 1,210 — 296 — 1,506 115,372 116,878 Manufactured homes 261 155 52 — 468 26,485 26,953 Floating homes — — — — — 74,443 74,443 Other consumer 360 5 — — 365 17,558 17,923 Commercial business 4 — — — 4 23,811 23,815 Total $ 9,542 $ 449 $ 2,398 $ — $ 12,389 $ 855,167 $ 867,556
Schedule of Impaired Loans	Impaired loans at the dates indicated, by type of loan were as follows (in thousands): December 31, 2022 Recorded Investment Unpaid Principal Without With Total Related One-to-four family $ 3,758 $ 3,038 $ 708 $ 3,746 $ 102 Home equity 210 142 68 210 5 Commercial and multifamily — — — — — Construction and land 358 324 34 358 3 Manufactured homes 187 93 94 187 52 Floating homes — — — — — Other consumer 343 261 82 343 22 Commercial business — — — — — Total $ 4,856 $ 3,858 $ 986 $ 4,844 $ 184 The following tables present the average recorded investment and interest income recognized on impaired loans for the periods indicated, by loan types (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Average Interest Income Average Interest Income One-to-four family $ 3,377 $ 19 $ 3,607 $ 44 Home equity 226 3 222 7 Commercial and multifamily 2,322 22 2,341 51 Construction and land 65 1 67 2 Manufactured homes 204 4 210 8 Floating homes — — 164 — Other consumer 341 6 263 10 Commercial business 85 (1) 115 — Total $ 6,620 $ 54 $ 6,989 $ 122

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value Hierarchy for Financial Instruments	The following tables present information about the level in the fair value hierarchy for the Company’s financial assets and liabilities, whether or not recognized or recorded at fair value as of the dates indicated (in thousands): June 30, 2023 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 100,169 $ 100,169 $ 100,169 $ — $ — Available-for-sale securities 8,398 8,398 — 8,398 — Held-to-maturity securities 2,182 1,797 — 1,797 — Loans held-for-sale 1,716 1,716 — 1,716 — Loans held-for-portfolio, net 847,212 798,190 — — 798,190 Mortgage servicing rights 4,726 4,726 — — 4,726 FHLB stock 3,583 3,583 — 3,583 — FINANCIAL LIABILITIES: Non-maturity deposits 533,768 533,768 — 533,768 — Time deposits 288,485 289,681 — 289,681 — Borrowings 60,000 60,000 — 60,000 — Subordinated notes 11,697 10,032 — 10,032 — December 31, 2022 Fair Value Measurements Using: Carrying Estimated Level 1 Level 2 Level 3 FINANCIAL ASSETS: Cash and cash equivalents $ 57,836 $ 57,836 $ 57,836 $ — $ — Available-for-sale securities 10,207 10,207 — 10,207 — Held-to-maturity securities 2,199 1,811 — 1,811 — Loans held-for-portfolio, net 858,382 801,153 — — 801,153 Mortgage servicing rights 4,687 4,687 — — 4,687 FHLB stock 2,832 2,832 — 2,832 — FINANCIAL LIABILITIES: Non-maturity deposits 598,458 598,458 — 598,458 — Time deposits 210,305 209,965 — 209,965 — Borrowings 43,000 43,000 — 43,000 — Subordinated notes 11,676 10,420 — 10,420 —
Schedule of Fair value of Assets Measured on Recurring Basis	The following tables present the balance of assets measured at fair value on a recurring basis as of the dates indicated (in thousands): Fair Value at June 30, 2023 Description Total Level 1 Level 2 Level 3 Municipal bonds $ 5,431 $ — $ 5,431 $ — Agency mortgage-backed securities 2,967 — 2,967 — Mortgage servicing rights 4,726 — — 4,726 Fair Value at December 31, 2022 Description Total Level 1 Level 2 Level 3 Treasury bills $ 1,594 $ — $ 1,594 $ — Municipal bonds 5,421 — 5,421 — Agency mortgage-backed securities 3,192 — 3,192 — Mortgage servicing rights 4,687 — — 4,687
Schedule of Quantitative Information	The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis as of the dates indicated: June 30, 2023 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 106%-524% (126%) Discount rate 10.5%-14.5% (12.5%) December 31, 2022 Financial Instrument Valuation Technique Unobservable Input(s) Range Mortgage Servicing Rights Discounted cash flow Prepayment speed assumption 119%-461% (132%) Discount rate 10.5%-14.5% (12.5%)
Schedule of Fair value of Assets Measured on Nonrecurring Basis	The following tables present the balance of assets measured at fair value on a nonrecurring basis at the dates indicated (in thousands): Fair Value at June 30, 2023 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 575 $ — $ — $ 575 Collateral dependent loans 1,959 — — 1,959 Fair Value at December 31, 2022 Total Level 1 Level 2 Level 3 OREO and repossessed assets $ 659 $ — $ — $ 659 Impaired loans 4,844 — — 4,844

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	6 Months Ended
	Jun. 30, 2023
Transfers and Servicing [Abstract]
Schedule of Change in Balance of Mortgage Servicing Assets	A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance, at fair value $ 4,587 $ 4,668 $ 4,687 $ 4,273 Servicing rights that result from transfers and sale of financial assets 43 29 83 156 Changes in fair value: Due to changes in model inputs or assumptions and other (1) 96 57 (44) 325 Ending balance, at fair value $ 4,726 $ 4,754 $ 4,726 $ 4,754 (1) Represents changes due to collection/realization of expected cash flows and curtailments.
Schedule of Mortgage Service Rights Assumptions	The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows: June 30, 2023 December 31, 2022 Prepayment speed (Public Securities Association “PSA” model) 126 % 132 % Weighted-average life 7.8 years 7.5 years Weighted average discount rate 12.5 % 12.5 %

Borrowings, FHLB Stock and Su_2

Borrowings, FHLB Stock and Subordinated Notes (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Federal Home Loan Bank, Advances	The following table presents advances from the FHLB as of the dates indicated: June 30, 2023 December 31, 2022 Fixed Rate: Outstanding balance $ 40,000 $ — Interest rates ranging from 4.06 % — % Interest rates ranging to 4.35 % — % Weighted average interest rate 4.25 % — % Variable rate: Outstanding balance $ 20,000 $ 43,000 Weighted average interest rate 5.37 % 2.14 % June 30, 2023 December 31, 2022 Amount available to borrow under credit facility (1) $ 451,949 $ 442,078 Advance equivalent of collateral: One-to-four family mortgage loans 201,590 204,097 Commercial and multifamily mortgage loans 38,172 45,437 Home equity loans 489 505 Notional amount of letters of credit outstanding 11,000 8,000 Remaining FHLB borrowing capacity $ 169,251 $ 199,039 (1) Subject to eligible pledged collateral.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Common Share	The following table summarizes the calculation of earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net income $ 2,892 $ 1,614 $ 5,059 $ 3,336 LESS: Participating dividends - Unvested Restricted Stock Awards (“RSAs”) (3) (3) (6) (8) LESS: Income allocated to participating securities - Unvested RSAs (15) (8) (26) (15) Net income available to common stockholders - basic 2,874 1,603 5,027 3,313 ADD BACK: Income allocated to participating securities - Unvested RSAs 15 8 26 15 LESS: Income reallocated to participating securities - Unvested RSAs (15) (8) (26) (15) Net income available to common stockholders - diluted $ 2,874 $ 1,603 $ 5,027 $ 3,313 Weighted average number of shares outstanding, basic 2,574,677 2,584,179 2,576,545 2,593,173 Effect of potentially dilutive common shares 16,556 31,120 20,941 34,616 Weighted average number of shares outstanding, diluted 2,591,233 2,615,299 2,597,486 2,627,789 Earnings per share, basic $ 1.12 $ 0.62 $ 1.95 $ 1.28 Earnings per share, diluted $ 1.11 $ 0.61 $ 1.94 $ 1.26

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Plan Award Activity	The following is a summary of the Company’s stock option award activity during the three months ended June 30, 2023 (dollars in thousands, except per share amounts): Shares Weighted- Weighted-Average Aggregate Outstanding at April 1, 2023 89,269 $ 31.00 5.68 $ 647 Granted — — Exercised (3,257) 17.21 Expired (117) 42.27 Outstanding at June 30, 2023 85,895 31.51 5.62 495 Exercisable 63,550 28.77 4.55 482 Expected to vest, assuming a 0% forfeiture rate over the vesting term 85,895 $ 31.51 5.62 $ 495 The following is a summary of the Company’s stock option award activity during the six months ended June 30, 2023 (dollars in thousands, except per share amounts): Shares Weighted- Weighted-Average Aggregate Outstanding at January 1, 2023 91,525 $ 27.64 4.65 $ 1,109 Granted 12,425 40.13 Exercised (17,610) 17.23 Forfeited (328) 42.02 Expired (117) 42.27 Outstanding at June 30, 2023 85,895 31.51 5.62 495 Exercisable 63,550 28.77 4.55 482 Expected to vest, assuming a 0% forfeiture rate over the vesting term 85,895 $ 31.51 5.62 $ 495
Schedule of Weighted-Average Assumptions Used in Determining Fair Value of Options Granted	The fair value of options granted during the six months ended June 30, 2023 and 2022 were determined using the following weighted-average assumptions as of the grant date. Six Months Ended June 30, 2023 2022 Annual dividend yield 1.69 % 1.59 % Expected volatility 28.15 % 26.48 % Risk-free interest rate 3.60 % 1.64 % Expected term 6.00 years 6.00 years Weighted-average grant date fair value per option granted $ 11.33 $ 9.95
Schedule of Non-Vested Restricted Stock Award Activity	The following is a summary of the Company’s non-vested restricted stock award activity during the three months ended June 30, 2023: Shares Weighted-Average Aggregate Intrinsic Value Per Share Non-Vested at April 1, 2023 16,342 $ 39.17 Granted — — Vested — — Forfeited — — Non-Vested at June 30, 2023 16,342 39.17 35.50 Expected to vest assuming a 0% forfeiture rate over the vesting term 16,342 $ 39.17 $ 35.50 The following is a summary of the Company’s non-vested restricted stock award activity during the six months ended June 30, 2023: Shares Weighted-Average Aggregate Intrinsic Value Per Share Non-Vested at January 1, 2023 17,879 $ 37.63 Granted 8,850 40.13 Vested (9,962) 37.14 Forfeited (425) 41.95 Non-Vested at June 30, 2023 16,342 $ 39.17 $ 35.50 Expected to vest assuming a 0% forfeiture rate over the vesting term 16,342 $ 39.17 $ 35.50

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Balance Sheet Information Related to Leases	The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands): June 30, December 31, Operating lease right-of-use assets $ 4,966 $ 5,102 Operating lease liabilities $ 5,306 $ 5,448
Schedule of Components of the Leases and Supplemental Cash Flow Information	The following table presents the components of lease expense for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating lease expense Office leases $ 269 $ 279 $ 537 $ 562 Sublease income (3) (3) (6) (6) Net lease expense $ 266 $ 276 $ 531 $ 556 Lease term and discount rate by lease type consist of the following at the dates indicated: June 30, December 31, Weighted-average remaining lease term: Office leases 5.6 years 6.1 years Weighted-average discount rate (annualized): Office leases 2.77 % 2.63 % Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows Office leases $ 266 $ 265 $ 537 $ 530
Schedule of Lease Liability Maturities	The following table presents the schedule of lease liabilities at the date indicated (in thousands): June 30, 2023 Remainder of 2023 $ 1,113 2024 1,040 2025 930 2026 948 2027 954 Thereafter 750 Total lease payments 5,735 Less: Present value discount 429 Present value of lease liabilities $ 5,306

Accounting Pronouncements Rec_3

Accounting Pronouncements Recently Issued or Adopted (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	$ 8,217	$ 8,532	$ 8,359	$ 7,599	$ 7,117	$ 6,407	$ 6,306
Reserve for unfunded commitments	706	795	1,030	335	411	419	404
Total	8,923	9,327	9,389	7,934	7,528	6,826	6,710
Real estate loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL			7,075	5,613
Real estate loans: | One- to four- family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	1,997	2,059	2,126	1,771	1,638	1,474	1,402
Real estate loans: | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	194	197	201	132	113	96	93
Real estate loans: | Commercial and multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	2,268	2,225	2,181	2,501	2,312	2,227	2,340
Real estate loans: | Construction and land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	2,498	2,778	2,568	1,209	1,024	698	650
Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL			1,065	1,242
Consumer loans: | Manufactured homes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	309	283	282	462	444	448	475
Consumer loans: | Floating homes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	586	611	622	456	410	376	372
Consumer loans: | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	160	159	161	324	331	333	310
Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	205	216	221	256	240	238	269
Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL	$ 0	4	$ (3)	488	$ 605	$ 517	$ 395
Impact of adoption of ASU 2016-13 on retained earnings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		760		760
Deferred tax assets				(305)
Reserve for unfunded commitments				695
Total				1,455
Impact of adoption of ASU 2016-13 on retained earnings | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL				1,500
Impact of adoption of ASU 2016-13 on retained earnings | Real estate loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL				1,462
Impact of adoption of ASU 2016-13 on retained earnings | Real estate loans: | One- to four- family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		355		355
Impact of adoption of ASU 2016-13 on retained earnings | Real estate loans: | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		69		69
Impact of adoption of ASU 2016-13 on retained earnings | Real estate loans: | Commercial and multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		(320)		(320)
Impact of adoption of ASU 2016-13 on retained earnings | Real estate loans: | Construction and land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		1,359		1,359
Impact of adoption of ASU 2016-13 on retained earnings | Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL				(177)
Impact of adoption of ASU 2016-13 on retained earnings | Consumer loans: | Manufactured homes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		(180)		(180)
Impact of adoption of ASU 2016-13 on retained earnings | Consumer loans: | Floating homes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		166		166
Impact of adoption of ASU 2016-13 on retained earnings | Consumer loans: | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		(163)		(163)
Impact of adoption of ASU 2016-13 on retained earnings | Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		(35)		(35)
Impact of adoption of ASU 2016-13 on retained earnings | Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial adjustment to ACL		$ (491)		(491)
Impact of adoption of ASU 2016-13 on retained earnings | Retained Earnings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Stockholders' equity				$ 1,100

Investments - Schedule of Amort

Investments - Schedule of Amortized Cost and Fair Value of AFS Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 9,783	$ 11,621
Gross Unrealized Gains	18	17
Gross Unrealized Losses	(1,403)	(1,431)
Estimated Fair Value	8,398	10,207
Treasury bills
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost		1,596
Gross Unrealized Gains		0
Gross Unrealized Losses		(2)
Estimated Fair Value		1,594
Municipal bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	6,414	6,434
Gross Unrealized Gains	17	16
Gross Unrealized Losses	(1,000)	(1,029)
Estimated Fair Value	5,431	5,421
Agency mortgage-backed securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	3,369	3,591
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(403)	(400)
Estimated Fair Value	$ 2,967	$ 3,192

Investments - Schedule of Amo_2

Investments - Schedule of Amortized Cost and Fair Value of HTM Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 2,182	$ 2,199
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(385)	(388)
Estimated Fair Value	1,797	1,811
Municipal bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	705	705
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(175)	(169)
Estimated Fair Value	530	536
Agency mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,477	1,494
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(210)	(219)
Estimated Fair Value	$ 1,267	$ 1,275

Investments - Schedule of Amo_3

Investments - Schedule of Amortized Cost and Fair Value of Mortgage-backed Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortized Cost
Due within one year	$ 0
Due after one year through five years	150
Due after five years through ten years	1,227
Due after ten years	5,037
Agency mortgage-backed securities	3,369
Amortized Cost	9,783	$ 11,621
Fair Value
Due within one year	0
Due after one year through five years	150
Due after five years through ten years	1,239
Due after ten years	4,042
Agency mortgage-backed securities	2,967
Estimated Fair Value	8,398	10,207
Amortized Cost
Due within one year	0
Due after one year through five years	0
Due after five years through ten years	0
Due after ten years	705
Agency mortgage-backed securities	1,477
Total	2,182	2,199
Fair Value
Due within one year	0
Due after one year through five years	0
Due after five years through ten years	0
Due after ten years	530
Agency mortgage-backed securities	1,267
Total	$ 1,797	$ 1,811

Investments - Narrative (Detail

Investments - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) security
Debt Securities, Available-for-Sale [Line Items]
Pledged securities | $	$ 0		$ 0		$ 0
Sale of AFS securities | $	0	$ 0	0	$ 0
Accrued interest receivable on securities | $	49,000		49,000		54,000
Debt securities, available-for-sale, allowance for credit loss | $	$ 0		$ 0		$ 0
Number of securities in unrealized loss position for less than 12 months | security	2		2		16
Number of securities in unrealized loss position for more than 12 months | security	16		16		3
Agency mortgage-backed securities
Debt Securities, Available-for-Sale [Line Items]
Number of portfolio securities | security	12		12		11
Municipal bonds
Debt Securities, Available-for-Sale [Line Items]
Number of portfolio securities | security	11		11		12
Investments | $	$ 10,200,000		$ 10,200,000		$ 12,000,000
Treasury bills
Debt Securities, Available-for-Sale [Line Items]
Number of portfolio securities | security					1

Investments - Schedule of Aggre

Investments - Schedule of Aggregate Fair Value and Gross Unrealized Loss by Length of Time (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value
Less Than 12 Months	$ 137	$ 6,766
12 Months or Longer	6,375	1,538
Total	6,512	8,304
Unrealized Loss
Less Than 12 Months	(5)	(957)
12 Months or Longer	(1,398)	(474)
Total	(1,403)	(1,431)
Fair Value
Less Than 12 Months	0	1,810
12 Months or Longer	1,797	0
Total	1,797	1,810
Unrealized Loss
Less Than 12 Months	0	(388)
12 Months or Longer	(385)	0
Total	(385)	(388)
Treasury bills
Fair Value
Less Than 12 Months		1,594
12 Months or Longer		0
Total		1,594
Unrealized Loss
Less Than 12 Months		(2)
12 Months or Longer		0
Total		(2)
Municipal bonds
Fair Value
Less Than 12 Months	0	2,506
12 Months or Longer	3,761	1,246
Total	3,761	3,752
Unrealized Loss
Less Than 12 Months	0	(641)
12 Months or Longer	(1,000)	(388)
Total	(1,000)	(1,029)
Fair Value
Less Than 12 Months	0	536
12 Months or Longer	530	0
Total	530	536
Unrealized Loss
Less Than 12 Months	0	(169)
12 Months or Longer	(175)	0
Total	(175)	(169)
Agency mortgage-backed securities
Fair Value
Less Than 12 Months	137	2,666
12 Months or Longer	2,614	292
Total	2,751	2,958
Unrealized Loss
Less Than 12 Months	(5)	(314)
12 Months or Longer	(398)	(86)
Total	(403)	(400)
Fair Value
Less Than 12 Months	0	1,274
12 Months or Longer	1,267	0
Total	1,267	1,274
Unrealized Loss
Less Than 12 Months	0	(219)
12 Months or Longer	(210)	0
Total	$ (210)	$ (219)

Loans - Schedule of Composition

Loans - Schedule of Composition of the Loan Portfolio, Excluding Loans Held-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 856,759			$ 867,556
Premiums for purchased loans	884			973
Deferred fees, net	(2,214)			(2,548)
Total	855,429			865,981
Allowance for credit losses on loans	(8,217)	$ (8,532)	$ (8,359)	(7,599)	$ (7,117)	$ (6,407)	$ (6,306)
Total loans held-for-portfolio, net	847,212			858,382
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				833,226
Total	844,434
Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				4,096
Total	355
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				18,083
Total	10,640
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	712,690			724,422
Allowance for credit losses on loans			(7,075)	(5,613)
Real estate loans: | One- to four- family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	273,720			274,638
Premiums for purchased loans	492			507
Total	274,052
Allowance for credit losses on loans	(1,997)	(2,059)	(2,126)	(1,771)	(1,638)	(1,474)	(1,402)
Real estate loans: | One- to four- family | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				271,295
Total	273,046
Real estate loans: | One- to four- family | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Real estate loans: | One- to four- family | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				3,064
Total	1,006
Real estate loans: | One- to four- family | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | One- to four- family | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	19,760			19,548
Total	20,046
Allowance for credit losses on loans	(194)	(197)	(201)	(132)	(113)	(96)	(93)
Real estate loans: | Home equity | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				19,230
Total	19,798
Real estate loans: | Home equity | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Real estate loans: | Home equity | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				316
Total	248
Real estate loans: | Home equity | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | Home equity | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | Commercial and multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	301,828			313,358
Premiums for purchased loans	300			320
Total	300,895
Allowance for credit losses on loans	(2,268)	(2,225)	(2,181)	(2,501)	(2,312)	(2,227)	(2,340)
Real estate loans: | Commercial and multifamily | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				291,677
Total	292,612
Real estate loans: | Commercial and multifamily | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				4,096
Total	355
Real estate loans: | Commercial and multifamily | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				10,047
Total	7,928
Real estate loans: | Commercial and multifamily | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | Commercial and multifamily | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | Construction and land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	117,382			116,878
Total	116,747
Allowance for credit losses on loans	(2,498)	(2,778)	(2,568)	(1,209)	(1,024)	(698)	(650)
Real estate loans: | Construction and land | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				109,484
Total	115,976
Real estate loans: | Construction and land | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Real estate loans: | Construction and land | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				3,357
Total	771
Real estate loans: | Construction and land | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Real estate loans: | Construction and land | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Consumer loans:
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	120,130			119,319
Allowance for credit losses on loans			(1,065)	(1,242)
Consumer loans: | Manufactured homes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	31,619			26,953
Total	31,533
Allowance for credit losses on loans	(309)	(283)	(282)	(462)	(444)	(448)	(475)
Consumer loans: | Manufactured homes | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				26,583
Total	31,375
Consumer loans: | Manufactured homes | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Consumer loans: | Manufactured homes | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				236
Total	158
Consumer loans: | Manufactured homes | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Consumer loans: | Manufactured homes | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Consumer loans: | Floating homes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	70,596			74,443
Total	70,233
Allowance for credit losses on loans	(586)	(611)	(622)	(456)	(410)	(376)	(372)
Consumer loans: | Floating homes | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				74,443
Total	70,233
Consumer loans: | Floating homes | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Consumer loans: | Floating homes | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Consumer loans: | Floating homes | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Consumer loans: | Floating homes | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Consumer loans: | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	17,915			17,923
Total	17,908
Allowance for credit losses on loans	(160)	(159)	(161)	(324)	(331)	(333)	(310)
Consumer loans: | Other consumer | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				17,661
Total	17,836
Consumer loans: | Other consumer | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Consumer loans: | Other consumer | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				262
Total	72
Consumer loans: | Other consumer | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Consumer loans: | Other consumer | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	23,939			23,815
Premiums for purchased loans	92			146
Total	24,015
Allowance for credit losses on loans	(205)	$ (216)	$ (221)	(256)	$ (240)	$ (238)	$ (269)
Commercial business loans | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				22,853
Total	23,558
Commercial business loans | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				0
Total	0
Commercial business loans | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans				$ 801
Total	457
Commercial business loans | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0
Commercial business loans | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 0

Loans - Narrative (Details)

Loans - Narrative (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commitments to extend additional credit to borrowers whose loan terms have been modified in TDRs	$ 0
Loans classified as TDRs	2,000,000	$ 2,000,000
Accrued interest receivable on loans receivable	$ 3,000,000	$ 3,000,000
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period past due for loans to be automatically placed on nonaccrual	90 days
Real estate loans: | One- to four- family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans in process of foreclosure | loan	3
Mortgage loans in process of foreclosure, amount	$ 147,000
Real estate loans: | One- to four- family | Term extension
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost basis of modified	$ 90,000
Amortized cost basis of modified percentage	0.03%
Number of loans modified | loan	1

Loans - Schedule of Activity in

Loans - Schedule of Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Allowance for Credit Losses - Loans
Beginning Allowance	$ 8,532	$ 6,407	$ 7,599	$ 6,306
(Release of) provision for credit losses during the period	(242)	600	3	725
Net (charge-offs)/recoveries during the period	(73)	110	(145)	86
Ending Allowance	8,217	7,117	8,217	7,117
Reserve for Unfunded Loan Commitments
Beginning balance	795	419	335	404
(Release of) provision for credit losses during the period	(89)	(8)	(324)	7
Net (charge-offs)/recoveries during the period	0	0	0
Ending balance	706	411	706	411
Allowance for Credit Losses, beginning balance	9,327	6,826	7,934	6,710
Allowance for Credit Losses, (Reversal of) provision for credit losses during the period	(331)	592	(321)	732
Allowance for Credit Losses, Net (charge-offs)/recoveries during the period	(73)	110	(145)	86
Allowance for Credit Losses, ending balance	8,923	$ 7,528	8,923	$ 7,528
Impact of adoption of ASU 2016-13 on retained earnings
Allowance for Credit Losses - Loans
Beginning Allowance	$ 760		760
Reserve for Unfunded Loan Commitments
Beginning balance			695
Allowance for Credit Losses, beginning balance			$ 1,455

Loans - Schedule of Activity _2

Loans - Schedule of Activity in Allowance for Loan Losses, Excluding Accrued Interest (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	$ 8,532	$ 6,407	$ 7,599	$ 6,306
Charge-offs	(78)	(11)	(157)	(41)
Recoveries	5	121	12	127
Provision (Recapture)	(242)	600	3	725
Ending Allowance	8,217	7,117	8,217	7,117
Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	760		760
Real estate loans:
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance			5,613
Real estate loans: | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance			1,462
Real estate loans: | One- to four- family
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	2,059	1,474	1,771	1,402
Charge-offs	0	0	0	0
Recoveries	0	45	0	45
Provision (Recapture)	(62)	119	(129)	191
Ending Allowance	1,997	1,638	1,997	1,638
Real estate loans: | One- to four- family | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	355		355
Real estate loans: | Home equity
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	197	96	132	93
Charge-offs	(25)	0	(25)	0
Recoveries	0	57	0	58
Provision (Recapture)	22	(40)	18	(38)
Ending Allowance	194	113	194	113
Real estate loans: | Home equity | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	69		69
Real estate loans: | Commercial and multifamily
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	2,225	2,227	2,501	2,340
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recapture)	43	85	87	(28)
Ending Allowance	2,268	2,312	2,268	2,312
Real estate loans: | Commercial and multifamily | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	(320)		(320)
Real estate loans: | Construction and land
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	2,778	698	1,209	650
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recapture)	(280)	326	(70)	374
Ending Allowance	2,498	1,024	2,498	1,024
Real estate loans: | Construction and land | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	1,359		1,359
Consumer loans:
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance			1,242
Consumer loans: | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance			(177)
Consumer loans: | Manufactured homes
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	283	448	462	475
Charge-offs	0	0	0	0
Recoveries	0	12	0	12
Provision (Recapture)	26	(16)	27	(43)
Ending Allowance	309	444	309	444
Consumer loans: | Manufactured homes | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	(180)		(180)
Consumer loans: | Floating homes
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	611	376	456	372
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recapture)	(25)	34	(36)	38
Ending Allowance	586	410	586	410
Consumer loans: | Floating homes | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	166		166
Consumer loans: | Other consumer
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	159	333	324	310
Charge-offs	(53)	(11)	(132)	(35)
Recoveries	5	1	12	6
Provision (Recapture)	49	8	119	50
Ending Allowance	160	331	160	331
Consumer loans: | Other consumer | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	(163)		(163)
Commercial business
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	216	238	256	269
Charge-offs	0	0	0	(6)
Recoveries	0	6	0	6
Provision (Recapture)	(11)	(4)	(16)	(29)
Ending Allowance	205	240	205	240
Commercial business | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	(35)		(35)
Unallocated
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	4	517	488	395
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recapture)	(4)	88	3	210
Ending Allowance	0	$ 605	0	$ 605
Unallocated | Impact of adoption of ASU 2016-13 on retained earnings
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Allowance	$ (491)		$ (491)

Loans - Term Loans Amortized Co

Loans - Term Loans Amortized Cost Basis by Origination Year (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 31,996
2022	276,190
2021	279,300
2020	66,539
2019	56,779
Prior	122,428
Revolving Loans Amortized Cost Basis	20,504
Revolving Loans Amortized Cost Basis Converted to Term	1,693
Total	855,429	$ 865,981
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	31,996
2022	276,093
2021	278,790
2020	65,116
2019	50,665
Prior	119,759
Revolving Loans Amortized Cost Basis	20,504
Revolving Loans Amortized Cost Basis Converted to Term	1,511
Total	844,434
Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	355
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	355
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	97
2021	510
2020	1,423
2019	6,114
Prior	2,314
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	182
Total	10,640
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | One- to four- family
Financing Receivable, Credit Quality Indicator [Line Items]
2023	8,560
2022	88,786
2021	114,216
2020	18,192
2019	13,547
Prior	30,751
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	274,052
Real estate loans: | One- to four- family | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	8,560
2022	88,786
2021	114,092
2020	18,192
2019	13,276
Prior	30,140
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	273,046
Real estate loans: | One- to four- family | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | One- to four- family | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	124
2020	0
2019	271
Prior	611
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	1,006
Real estate loans: | One- to four- family | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | One- to four- family | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,499
2022	2,895
2021	1,107
2020	308
2019	102
Prior	1,891
Revolving Loans Amortized Cost Basis	10,551
Revolving Loans Amortized Cost Basis Converted to Term	1,693
Total	20,046
Real estate loans: | Home equity | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,499
2022	2,895
2021	1,107
2020	308
2019	102
Prior	1,825
Revolving Loans Amortized Cost Basis	10,551
Revolving Loans Amortized Cost Basis Converted to Term	1,511
Total	19,798
Real estate loans: | Home equity | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Home equity | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	66
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	182
Total	248
Real estate loans: | Home equity | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Home equity | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Commercial and multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,455
2022	83,689
2021	86,522
2020	28,321
2019	36,180
Prior	61,728
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	300,895
Real estate loans: | Commercial and multifamily | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,455
2022	83,689
2021	86,522
2020	26,992
2019	31,037
Prior	59,917
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	292,612
Real estate loans: | Commercial and multifamily | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	355
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	355
Real estate loans: | Commercial and multifamily | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	1,329
2019	5,143
Prior	1,456
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	7,928
Real estate loans: | Commercial and multifamily | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Commercial and multifamily | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Construction and land
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,271
2022	67,837
2021	36,991
2020	3,855
2019	1,314
Prior	2,479
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	116,747
Real estate loans: | Construction and land | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,271
2022	67,837
2021	36,991
2020	3,855
2019	614
Prior	2,408
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	115,976
Real estate loans: | Construction and land | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Construction and land | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	700
Prior	71
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	771
Real estate loans: | Construction and land | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Real estate loans: | Construction and land | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Manufactured homes
Financing Receivable, Credit Quality Indicator [Line Items]
2023	6,562
2022	8,657
2021	4,946
2020	2,408
2019	2,512
Prior	6,448
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	31,533
Consumer loans: | Manufactured homes | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	6,562
2022	8,629
2021	4,946
2020	2,386
2019	2,512
Prior	6,340
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	31,375
Consumer loans: | Manufactured homes | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Manufactured homes | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	28
2021	0
2020	22
2019	0
Prior	108
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	158
Consumer loans: | Manufactured homes | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Manufactured homes | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Floating homes
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,736
2022	21,741
2021	27,302
2020	6,557
2019	1,925
Prior	10,972
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	70,233
Consumer loans: | Floating homes | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,736
2022	21,741
2021	27,302
2020	6,557
2019	1,925
Prior	10,972
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	70,233
Consumer loans: | Floating homes | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Floating homes | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Floating homes | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Floating homes | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,763
2022	2,024
2021	4,018
2020	6,405
2019	832
Prior	2,386
Revolving Loans Amortized Cost Basis	480
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	17,908
Consumer loans: | Other consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,763
2022	2,024
2021	4,018
2020	6,333
2019	832
Prior	2,386
Revolving Loans Amortized Cost Basis	480
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	17,836
Consumer loans: | Other consumer | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Other consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	72
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	72
Consumer loans: | Other consumer | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Consumer loans: | Other consumer | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Commercial business
Financing Receivable, Credit Quality Indicator [Line Items]
2023	3,150
2022	561
2021	4,198
2020	493
2019	367
Prior	5,773
Revolving Loans Amortized Cost Basis	9,473
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	24,015
Commercial business | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	3,150
2022	492
2021	3,812
2020	493
2019	367
Prior	5,771
Revolving Loans Amortized Cost Basis	9,473
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	23,558
Commercial business | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Commercial business | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	69
2021	386
2020	0
2019	0
Prior	2
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	457
Commercial business | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	0
Commercial business | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term	0
Total	$ 0

Loans - Schedule of Credit Qual

Loans - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 856,759	$ 867,556
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		833,226
Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		12,151
Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		4,096
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		18,083
Real estate loans:
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	712,690	724,422
Real estate loans: | One- to four- family
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	273,720	274,638
Real estate loans: | One- to four- family | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		271,295
Real estate loans: | One- to four- family | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		279
Real estate loans: | One- to four- family | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Real estate loans: | One- to four- family | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		3,064
Real estate loans: | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	19,760	19,548
Real estate loans: | Home equity | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		19,230
Real estate loans: | Home equity | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		2
Real estate loans: | Home equity | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Real estate loans: | Home equity | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		316
Real estate loans: | Commercial and multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	301,828	313,358
Real estate loans: | Commercial and multifamily | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		291,677
Real estate loans: | Commercial and multifamily | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		7,538
Real estate loans: | Commercial and multifamily | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		4,096
Real estate loans: | Commercial and multifamily | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		10,047
Real estate loans: | Construction and land
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	117,382	116,878
Real estate loans: | Construction and land | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		109,484
Real estate loans: | Construction and land | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		4,037
Real estate loans: | Construction and land | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Real estate loans: | Construction and land | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		3,357
Consumer loans:
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	120,130	119,319
Consumer loans: | Manufactured homes
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	31,619	26,953
Consumer loans: | Manufactured homes | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		26,583
Consumer loans: | Manufactured homes | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		134
Consumer loans: | Manufactured homes | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Consumer loans: | Manufactured homes | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		236
Consumer loans: | Floating homes
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	70,596	74,443
Consumer loans: | Floating homes | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		74,443
Consumer loans: | Floating homes | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Consumer loans: | Floating homes | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Consumer loans: | Floating homes | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Consumer loans: | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	17,915	17,923
Consumer loans: | Other consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		17,661
Consumer loans: | Other consumer | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Consumer loans: | Other consumer | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Consumer loans: | Other consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		262
Commercial business
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 23,939	23,815
Commercial business | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		22,853
Commercial business | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		161
Commercial business | Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		0
Commercial business | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans		$ 801

Loans - Schedule of Investment

Loans - Schedule of Investment in Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	$ 1,511	$ 2,959
Total Nonaccrual Loans with no ACL	1,465	2,915
Real estate loans: | One- to four- family
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	914	2,135
Total Nonaccrual Loans with no ACL	914	2,135
Real estate loans: | Home equity
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	88	142
Total Nonaccrual Loans with no ACL	88	142
Real estate loans: | Commercial and multifamily
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	323	0
Total Nonaccrual Loans with no ACL	323	0
Real estate loans: | Construction and land
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	25	324
Total Nonaccrual Loans with no ACL	25	324
Consumer loans: | Manufactured homes
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	156	96
Total Nonaccrual Loans with no ACL	115	52
Consumer loans: | Other consumer
Financing Receivable, Past Due [Line Items]
Total Nonaccrual Loans	5	262
Total Nonaccrual Loans with no ACL	$ 0	$ 262

Loans - Schedule of Recorded In

Loans - Schedule of Recorded Investment Aging In Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	$ 855,429	$ 865,981
> 90 Days and Accruing	0	0
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	3,145	9,542
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	397	449
Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	853	2,398
Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	4,394	12,389
Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	851,035	855,167
Real estate loans: | One- to four- family
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	274,052
> 90 Days and Accruing	0	0
Real estate loans: | One- to four- family | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	393
Real estate loans: | One- to four- family | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	168	289
Real estate loans: | One- to four- family | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	365	1,934
Real estate loans: | One- to four- family | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	533	2,616
Real estate loans: | One- to four- family | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	273,519	272,022
Real estate loans: | Home equity
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	20,046
> 90 Days and Accruing	0	0
Real estate loans: | Home equity | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	270	115
Real estate loans: | Home equity | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Real estate loans: | Home equity | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	88	116
Real estate loans: | Home equity | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	358	231
Real estate loans: | Home equity | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	19,688	19,317
Real estate loans: | Commercial and multifamily
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	300,895
> 90 Days and Accruing	0	0
Real estate loans: | Commercial and multifamily | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	7,198
Real estate loans: | Commercial and multifamily | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Real estate loans: | Commercial and multifamily | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	322	0
Real estate loans: | Commercial and multifamily | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	322	7,198
Real estate loans: | Commercial and multifamily | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	300,573	306,160
Real estate loans: | Construction and land
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	116,747
> 90 Days and Accruing	0	0
Real estate loans: | Construction and land | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	2,866	1,210
Real estate loans: | Construction and land | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Real estate loans: | Construction and land | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	296
Real estate loans: | Construction and land | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	2,866	1,506
Real estate loans: | Construction and land | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	113,881	115,372
Consumer loans: | Manufactured homes
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	31,533
> 90 Days and Accruing	0	0
Consumer loans: | Manufactured homes | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	261
Consumer loans: | Manufactured homes | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	177	155
Consumer loans: | Manufactured homes | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	78	52
Consumer loans: | Manufactured homes | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	255	468
Consumer loans: | Manufactured homes | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	31,278	26,485
Consumer loans: | Floating homes
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	70,233
> 90 Days and Accruing	0	0
Consumer loans: | Floating homes | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Consumer loans: | Floating homes | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Consumer loans: | Floating homes | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Consumer loans: | Floating homes | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Consumer loans: | Floating homes | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	70,233	74,443
Consumer loans: | Other consumer
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	17,908
> 90 Days and Accruing	0	0
Consumer loans: | Other consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	9	360
Consumer loans: | Other consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	6	5
Consumer loans: | Other consumer | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Consumer loans: | Other consumer | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	15	365
Consumer loans: | Other consumer | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	17,893	17,558
Commercial business
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	24,015
> 90 Days and Accruing	0	0
Commercial business | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	4
Commercial business | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	46	0
Commercial business | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	0	0
Commercial business | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	46	4
Commercial business | Current
Financing Receivable, Past Due [Line Items]
Loans held-for-portfolio	$ 23,969	$ 23,811

Loans - Schedule of Nonperformi

Loans - Schedule of Nonperforming Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	$ 856,759	$ 867,556
Real estate loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	712,690	724,422
Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	273,720	274,638
Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	19,760	19,548
Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	301,828	313,358
Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	117,382	116,878
Consumer loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	120,130	119,319
Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	31,619	26,953
Consumer loans: | Floating homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	70,596	74,443
Consumer loans: | Other consumer
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	17,915	17,923
Commercial business loans
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	$ 23,939	23,815
Performing
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		864,597
Performing | Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		272,503
Performing | Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		19,406
Performing | Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		313,358
Performing | Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		116,554
Performing | Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		26,857
Performing | Consumer loans: | Floating homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		74,443
Performing | Consumer loans: | Other consumer
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		17,661
Performing | Commercial business loans
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		23,815
Nonperforming
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		2,959
Nonperforming | Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		2,135
Nonperforming | Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		142
Nonperforming | Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		0
Nonperforming | Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		324
Nonperforming | Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		96
Nonperforming | Consumer loans: | Floating homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		0
Nonperforming | Consumer loans: | Other consumer
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		262
Nonperforming | Commercial business loans
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans		$ 0

Loans - Schedule of Collateral

Loans - Schedule of Collateral Dependent Loans (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	$ 1,959
Real estate loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	1,803
Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	1,367
Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	88
Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	323
Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	25
Consumer loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	156
Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	156
Commercial Real Estate
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	323
Commercial Real Estate | Real estate loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	323
Commercial Real Estate | Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Commercial Real Estate | Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Commercial Real Estate | Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	323
Commercial Real Estate | Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Commercial Real Estate | Consumer loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Commercial Real Estate | Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Residential Real Estate
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	1,163
Residential Real Estate | Real estate loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	1,163
Residential Real Estate | Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	1,075
Residential Real Estate | Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	88
Residential Real Estate | Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Residential Real Estate | Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Residential Real Estate | Consumer loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Residential Real Estate | Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	25
Land | Real estate loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	25
Land | Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Land | Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Land | Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Land | Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	25
Land | Consumer loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Land | Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Other Residential
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	448
Other Residential | Real estate loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	292
Other Residential | Real estate loans: | One- to four- family
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	292
Other Residential | Real estate loans: | Home equity
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Other Residential | Real estate loans: | Commercial and multifamily
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Other Residential | Real estate loans: | Construction and land
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	0
Other Residential | Consumer loans:
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	156
Other Residential | Consumer loans: | Manufactured homes
Financing Receivable, Allowance For Credit Losses [Line Items]
Total loans	$ 156

Loans - Schedule of Impaired Lo

Loans - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2022
Impaired Loans [Abstract]
Unpaid Principal Balance			$ 4,856
Without Allowance			3,858
With Allowance			986
Total Recorded Investment			4,844
Related Allowance			184
Average Recorded Investment	$ 6,620	$ 6,989
Interest Income Recognized	54	122
Real estate loans: | One- to four- family
Impaired Loans [Abstract]
Unpaid Principal Balance			3,758
Without Allowance			3,038
With Allowance			708
Total Recorded Investment			3,746
Related Allowance			102
Average Recorded Investment	3,377	3,607
Interest Income Recognized	19	44
Real estate loans: | Home equity
Impaired Loans [Abstract]
Unpaid Principal Balance			210
Without Allowance			142
With Allowance			68
Total Recorded Investment			210
Related Allowance			5
Average Recorded Investment	226	222
Interest Income Recognized	3	7
Real estate loans: | Commercial and multifamily
Impaired Loans [Abstract]
Unpaid Principal Balance			0
Without Allowance			0
With Allowance			0
Total Recorded Investment			0
Related Allowance			0
Average Recorded Investment	2,322	2,341
Interest Income Recognized	22	51
Real estate loans: | Construction and land
Impaired Loans [Abstract]
Unpaid Principal Balance			358
Without Allowance			324
With Allowance			34
Total Recorded Investment			358
Related Allowance			3
Average Recorded Investment	65	67
Interest Income Recognized	1	2
Consumer loans: | Manufactured homes
Impaired Loans [Abstract]
Unpaid Principal Balance			187
Without Allowance			93
With Allowance			94
Total Recorded Investment			187
Related Allowance			52
Average Recorded Investment	204	210
Interest Income Recognized	4	8
Consumer loans: | Floating homes
Impaired Loans [Abstract]
Unpaid Principal Balance			0
Without Allowance			0
With Allowance			0
Total Recorded Investment			0
Related Allowance			0
Average Recorded Investment	0	164
Interest Income Recognized	0	0
Consumer loans: | Other consumer
Impaired Loans [Abstract]
Unpaid Principal Balance			343
Without Allowance			261
With Allowance			82
Total Recorded Investment			343
Related Allowance			22
Average Recorded Investment	341	263
Interest Income Recognized	6	10
Commercial business
Impaired Loans [Abstract]
Unpaid Principal Balance			0
Without Allowance			0
With Allowance			0
Total Recorded Investment			0
Related Allowance			$ 0
Average Recorded Investment	85	115
Interest Income Recognized	$ (1)	$ 0

Fair Value Measurements -Schedu

Fair Value Measurements -Schedule of Fair Value Hierarchy for Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
FINANCIAL ASSETS:
Available-for-sale securities	$ 8,398		$ 10,207
Held-to-maturity securities	1,797		1,811
Mortgage servicing rights	4,726	$ 4,587	4,687	$ 4,754	$ 4,668	$ 4,273
Level 1
FINANCIAL ASSETS:
Cash and cash equivalents	100,169		57,836
Available-for-sale securities	0		0
Held-to-maturity securities	0		0
Loans held-for-sale	0
Loans held-for-portfolio, net	0		0
Mortgage servicing rights	0		0
FHLB stock	0		0
FINANCIAL LIABILITIES:
Non-maturity deposits	0		0
Time deposits	0		0
Borrowings	0		0
Subordinated notes	0		0
Level 2
FINANCIAL ASSETS:
Cash and cash equivalents	0		0
Available-for-sale securities	8,398		10,207
Held-to-maturity securities	1,797		1,811
Loans held-for-sale	1,716
Loans held-for-portfolio, net	0		0
Mortgage servicing rights	0		0
FHLB stock	3,583		2,832
FINANCIAL LIABILITIES:
Non-maturity deposits	533,768		598,458
Time deposits	289,681		209,965
Borrowings	60,000		43,000
Subordinated notes	10,032		10,420
Level 3
FINANCIAL ASSETS:
Cash and cash equivalents	0		0
Available-for-sale securities	0		0
Held-to-maturity securities	0		0
Loans held-for-sale	0
Loans held-for-portfolio, net	798,190		801,153
Mortgage servicing rights	4,726		4,687
FHLB stock	0		0
FINANCIAL LIABILITIES:
Non-maturity deposits	0		0
Time deposits	0		0
Borrowings	0		0
Subordinated notes	0		0
Carrying Value
FINANCIAL ASSETS:
Cash and cash equivalents	100,169		57,836
Available-for-sale securities	8,398		10,207
Held-to-maturity securities	2,182		2,199
Loans held-for-sale	1,716
Loans held-for-portfolio, net	847,212		858,382
Mortgage servicing rights	4,726		4,687
FHLB stock	3,583		2,832
FINANCIAL LIABILITIES:
Non-maturity deposits	533,768		598,458
Time deposits	288,485		210,305
Borrowings	60,000		43,000
Subordinated notes	11,697		11,676
Estimated Fair Value
FINANCIAL ASSETS:
Cash and cash equivalents	100,169		57,836
Available-for-sale securities	8,398		10,207
Held-to-maturity securities	1,797		1,811
Loans held-for-sale	1,716
Loans held-for-portfolio, net	798,190		801,153
Mortgage servicing rights	4,726		4,687
FHLB stock	3,583		2,832
FINANCIAL LIABILITIES:
Non-maturity deposits	533,768		598,458
Time deposits	289,681		209,965
Borrowings	60,000		43,000
Subordinated notes	$ 10,032		$ 10,420

Fair Value Measurements -Sche_2

Fair Value Measurements -Schedule of Fair value of Assets Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Recurring
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
Treasury bills		$ 1,594
Municipal bonds	$ 5,431	5,421
Agency mortgage-backed securities	2,967	3,192
Mortgage servicing rights	4,726	4,687
Recurring | Level 1
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
Treasury bills		0
Municipal bonds	0	0
Agency mortgage-backed securities	0	0
Mortgage servicing rights	0	0
Recurring | Level 2
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
Treasury bills		1,594
Municipal bonds	5,431	5,421
Agency mortgage-backed securities	2,967	3,192
Mortgage servicing rights	0	0
Recurring | Level 3
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
Treasury bills		0
Municipal bonds	0	0
Agency mortgage-backed securities	0	0
Mortgage servicing rights	4,726	4,687
Nonrecurring
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
OREO and repossessed assets	575	659
Collateral dependent loans	1,959
Impaired loans		4,844
Nonrecurring | Level 1
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
OREO and repossessed assets	0	0
Collateral dependent loans	0
Impaired loans		0
Nonrecurring | Level 2
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
OREO and repossessed assets	0	0
Collateral dependent loans	0
Impaired loans		0
Nonrecurring | Level 3
Balance of Assets Measured at Fair Value on Recurring or Nonrecurring Basis [Abstract]
OREO and repossessed assets	575	659
Collateral dependent loans	$ 1,959
Impaired loans		$ 4,844

Fair Value Measurements -Sche_3

Fair Value Measurements -Schedule of Quantitative Information (Details) - Recurring - Level 3 - Mortgage Servicing Rights - Discounted cash flow	Jun. 30, 2023	Dec. 31, 2022
Minimum | Prepayment speed assumption
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage Servicing Rights	1.06	1.19
Minimum | Discount rate
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage Servicing Rights	0.105	0.105
Maximum | Prepayment speed assumption
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage Servicing Rights	5.24	4.61
Maximum | Discount rate
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage Servicing Rights	0.145	0.145
Weighted Average | Prepayment speed assumption
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage Servicing Rights	1.26	1.32
Weighted Average | Discount rate
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage Servicing Rights	0.125	0.125

Mortgage Servicing Rights - Nar

Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]
Mortgage servicing rights portfolio	$ 463,600		$ 463,600		$ 472,500
Contractually specified servicing, late and ancillary fees earned on the mortgage servicing rights	297	$ 313	596	$ 633
Federal National Mortgage Association
Servicing Assets at Fair Value [Line Items]
Loans serviced for others	461,400		461,400		470,300
Other financial institutions
Servicing Assets at Fair Value [Line Items]
Loans serviced for others	$ 2,200		$ 2,200		$ 2,200

Mortgage Servicing Rights - Sch

Mortgage Servicing Rights - Schedule of Change in Balance of Mortgage Servicing Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance, at fair value	$ 4,587	$ 4,668	$ 4,687	$ 4,273
Servicing rights that result from transfers and sale of financial assets	43	29	83	156
Changes in fair value:
Due to changes in model inputs or assumptions and other	96	57	(44)	325
Ending balance, at fair value	$ 4,726	$ 4,754	$ 4,726	$ 4,754

Mortgage Servicing Rights - Mor

Mortgage Servicing Rights - Mortgage Service Rights Assumptions (Details)	6 Months Ended	9 Months Ended
	Jun. 30, 2023	Sep. 30, 2022
Transfers and Servicing [Abstract]
Prepayment speed (Public Securities Association “PSA” model)	126%	132%
Weighted-average life	7 years 9 months 18 days	7 years 6 months
Weighted average discount rate	12.50%	12.50%

Borrowings, FHLB Stock and Su_3

Borrowings, FHLB Stock and Subordinated Notes - Schedule of Federal Home Loan Bank, Advances (Details) - FHLB - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fixed Rate:
Outstanding balance	$ 40,000	$ 0
Variable rate:
Outstanding balance	$ 20,000	$ 43,000
Minimum
Fixed Rate:
Interest rate	4.06%	0%
Maximum
Fixed Rate:
Interest rate	4.35%	0%
Weighted Average
Fixed Rate:
Interest rate	4.25%	0%
Variable rate:
Weighted average interest rate	5.37%	2.14%

Borrowings, FHLB Stock and Su_4

Borrowings, FHLB Stock and Subordinated Notes - Schedule of Borrowing Capacity from the FHLB (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Advance equivalent of collateral:	$ 856,759	$ 867,556
FHLB
Line of Credit Facility [Line Items]
Amount available to borrow under credit facility	451,949	442,078
Remaining FHLB borrowing capacity	169,251	199,039
FHLB | Letter of Credit
Line of Credit Facility [Line Items]
Notional amount of letters of credit outstanding	11,000	8,000
FHLB | One- to four- family | Asset Pledged as Collateral
Line of Credit Facility [Line Items]
Advance equivalent of collateral:	201,590	204,097
FHLB | Commercial and multifamily | Asset Pledged as Collateral
Line of Credit Facility [Line Items]
Advance equivalent of collateral:	38,172	45,437
FHLB | Home equity | Asset Pledged as Collateral
Line of Credit Facility [Line Items]
Advance equivalent of collateral:	$ 489	$ 505

Borrowings, FHLB Stock and Su_5

Borrowings, FHLB Stock and Subordinated Notes - Narrative (Details) - USD ($)	1 Months Ended	6 Months Ended
	Sep. 30, 2020	Jun. 30, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Investment in FHLB stock		$ 3,583,000	$ 2,832,000
Subordinated notes, net		11,697,000	11,676,000
Subordinated Debt
Short-term Debt [Line Items]
Aggregate principal amount	$ 12,000,000
Subordinated notes, net		11,700,000	11,700,000
Subordinated Debt | Period before October 1, 2025
Short-term Debt [Line Items]
Interest rate	5.25%
Subordinated Debt | Period after October 1, 2025 | SOFR
Short-term Debt [Line Items]
Basis spread on variable rate	5.13%
Federal Reserve Bank of San Francisco
Short-term Debt [Line Items]
Outstanding borrowings		0	0
Line of Credit | Pacific Coast Banker's Bank
Short-term Debt [Line Items]
Amount available to borrow under loan agreement		$ 20,000,000
Term period		1 year
Outstanding borrowings		$ 0	0
Asset Pledged as Collateral | Federal Reserve Bank of San Francisco
Short-term Debt [Line Items]
Amount available to borrow under loan agreement		$ 18,400,000	$ 20,800,000

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 2,892	$ 1,614	$ 5,059	$ 3,336
LESS: Participating dividends - Unvested Restricted Stock Awards (“RSAs”)	(3)	(3)	(6)	(8)
LESS: Income allocated to participating securities - Unvested RSAs	(15)	(8)	(26)	(15)
Net income available to common stockholders - basic	2,874	1,603	5,027	3,313
ADD BACK: Income allocated to participating securities - Unvested RSAs	15	8	26	15
LESS: Income reallocated to participating securities - Unvested RSAs	(15)	(8)	(26)	(15)
Net income available to common stockholders - diluted	$ 2,874	$ 1,603	$ 5,027	$ 3,313
Weighted average number of shares outstanding, basic (in shares)	2,574,677	2,584,179	2,576,545	2,593,173
Effect of potentially dilutive common shares (in shares)	16,556	31,120	20,941	34,616
Weighted average number of shares outstanding, diluted (in shares)	2,591,233	2,615,299	2,597,486	2,627,789
Earnings per share, basic (in dollars per share)	$ 1.12	$ 0.62	$ 1.95	$ 1.28
Earnings per share, diluted (in dollars per share)	$ 1.11	$ 0.61	$ 1.94	$ 1.26
Anti-dilutive securities not included in computation of diluted earnings per common share (in shares)			13,080	2,656

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options and Restricted Stock (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) plan shares	Jun. 30, 2022 USD ($)
Stock-based Compensation [Line Items]
Share-based compensation expense | $	$ 87	$ 91	$ 279	$ 294
Stock Options
Stock-based Compensation [Line Items]
Cumulative number of shares issued (in shares)	295,464		295,464
Restricted Stock
Stock-based Compensation [Line Items]
Cumulative number of shares issued (in shares)	159,396		159,396
2013 Plan
Stock-based Compensation [Line Items]
Award annual vesting rights | plan			1
2013 Plan | Stock Options and Stock Appreciation Rights
Stock-based Compensation [Line Items]
Common stock approved (in shares)	181,750		181,750
2013 Plan | Restricted Stock and Restricted Stock Units
Stock-based Compensation [Line Items]
Common stock approved (in shares)	116,700		116,700

Stock-based Compensation - St_2

Stock-based Compensation - Stock Option Awards Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-based Compensation [Line Items]
Intrinsic value of the shares exercised	$ 61	$ 0	$ 388	$ 54
Stock Options
Stock-based Compensation [Line Items]
Term of awards			10 years
Unrecognized compensation cost	$ 179		$ 179
Remaining weighted-average vesting period			2 years 8 months 12 days
Granted (in shares)	0	0	12,425
Stock Options | 2008 Plan
Stock-based Compensation [Line Items]
Annual vesting percentage			20%
Vesting commencement period from grant date			1 year
Stock Options | 2013 Plan | Minimum
Stock-based Compensation [Line Items]
Award vesting period			1 year
Stock Options | 2013 Plan | Maximum
Stock-based Compensation [Line Items]
Award vesting period			4 years

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Stock Option Plan Award Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Shares
Outstanding, beginning of period (in shares)	89,269	91,525		91,525
Granted (in shares)	0		0	12,425
Exercised (in shares)	(3,257)			(17,610)
Forfeited (in shares)				(328)
Expired (in shares)	(117)			(117)
Outstanding, end of period (in shares)	85,895	89,269		85,895		91,525
Exercisable, Shares (in shares)	63,550			63,550
Expected to vest, assuming a 0% forfeiture rate over the vesting term, Shares (in shares)	85,895			85,895
Weighted- Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 31	$ 27.64		$ 27.64
Granted (in dollars per share)	0			40.13
Exercised (in dollars per share)	17.21			17.23
Forfeited (in dollars per share)				42.02
Expired (in dollars per share)	42.27			42.27
Outstanding, end of period (in dollars per share)	31.51	$ 31		31.51		$ 27.64
Exercisable, Weighted-Average Exercise Price (in dollars per share)	28.77			28.77
Expected to Vest, assuming a 0% forfeiture rate over the vesting term, Weighted-Average Exercise Price (in dollars per share)	$ 31.51			$ 31.51
Additional Disclosures
Forfeiture rate	0%			0%
Outstanding, Weighted-Average Remaining Contractual Term	5 years 7 months 13 days	5 years 8 months 4 days		5 years 7 months 13 days		4 years 7 months 24 days
Exercisable, Weighted-Average Remaining Contractual Term	4 years 6 months 18 days			4 years 6 months 18 days
Expected to Vest, assuming a 0% forfeiture rate over the vesting term, Weighted-Average Remaining Contractual Term	5 years 7 months 13 days			5 years 7 months 13 days
Outstanding, Aggregate Intrinsic Value	$ 495	$ 647		$ 495		$ 1,109
Exercisable, Aggregate Intrinsic Value	482			482
Expected to Vest, assuming a 0% forfeiture rate over the vesting term, Aggregate Intrinsic Value	$ 495			$ 495
Share-based compensation arrangement, fair value assumptions and methodology [Abstract]
Annual dividend yield				1.69%	1.59%
Expected volatility				28.15%	26.48%
Risk-free interest rate				3.60%	1.64%
Expected term				6 years	6 years
Weighted-average grant date fair value per option granted (in dollars per share)				$ 11.33	$ 9.95

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Awards Narrative (Details) - Restricted Stock - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Stock-based Compensation [Line Items]
Unrecognized compensation cost	$ 527
Remaining weighted-average vesting period	2 years 7 months 6 days
Total fair value of shares vested	$ 370	$ 306
2008 Plan
Stock-based Compensation [Line Items]
Annual vesting percentage	20%
Vesting commencement period from grant date	1 year
2013 Plan | Minimum
Stock-based Compensation [Line Items]
Award vesting period	1 year
2013 Plan | Maximum
Stock-based Compensation [Line Items]
Award vesting period	4 years

Stock-based Compensation - Sc_2

Stock-based Compensation - Schedule of Nonvested Restricted Stock Awards (Details) - Restricted Stock	3 Months Ended	6 Months Ended
	Jun. 30, 2023 $ / shares shares	Jun. 30, 2023 $ / shares shares
Shares
Non-vested, beginning of period (in shares) | shares	16,342	17,879
Granted (in shares) | shares	0	8,850
Vested (in shares) | shares	0	(9,962)
Forfeited (in shares) | shares	0	(425)
Non-vested, end of period (in shares) | shares	16,342	16,342
Expected to Vest assuming a 0% forfeiture rate over the vesting term, Shares (in shares) | shares	16,342	16,342
Weighted-Average Grant-Date Fair Value Per Share
Non-vested, beginning of period (in dollars per share)	$ 39.17	$ 37.63
Granted (in dollars per share)	0	40.13
Vested (in dollars per share)	0	37.14
Forfeited (in dollars per share)	0	41.95
Non-vested, end of period (in dollars per share)	39.17	39.17
Expected to vest assuming a 0% forfeiture rate over the vesting term, Weighted-Average Grant-Date Fair Value Per Share(in dollars per share)	39.17	39.17
Aggregate Intrinsic Value Per Share
Aggregate intrinsic value per share (in dollars per share)	35.50	35.50
Expected to Vest assuming a 0% forfeiture rate over the vesting term (in dollars per share)	$ 35.50	$ 35.50
Forfeiture rate	0%	0%

Stock-based Compensation - Empl

Stock-based Compensation - Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Number of common shares held by the trust (in shares)	162,901		162,901
Fair value of shares held by ESOP trust	$ 5,800		$ 5,800
ESOP compensation expense	$ 204	$ 170	$ 408	$ 375

Leases - Narrative (Details)

Leases - Narrative (Details)	6 Months Ended
	Jun. 30, 2023 renewalOption
Lessee, Lease, Description [Line Items]
Number of renewal options	1
Minimum
Lessee, Lease, Description [Line Items]
Initial lease term	3 years
Remaining lease term	1 year 2 months
Maximum
Lessee, Lease, Description [Line Items]
Initial lease term	10 years
Remaining lease term	6 years

Leases - Schedule of Balance Sh

Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 4,966	$ 5,102
Operating lease liabilities	$ 5,306	$ 5,448

Leases - Schedule of Components

Leases - Schedule of Components of the Leases and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Sublease income	$ (3)	$ (3)	$ (6)	$ (6)
Net lease expense	266	276	531	556
Office leases
Property, Plant and Equipment [Line Items]
Operating lease expense	$ 269	279	$ 537	562
Weighted-average remaining lease term:	5 years 7 months 6 days		5 years 7 months 6 days		6 years 1 month 6 days
Weighted-average discount rate (annualized):	2.77%		2.77%		2.63%
Operating cash flows	$ 266	$ 265	$ 537	$ 530

Leases - Schedule of Lease Liab

Leases - Schedule of Lease Liability Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Remainder of 2023	$ 1,113
2024	1,040
2025	930
2026	948
2027	954
Thereafter	750
Total lease payments	5,735
Less: Present value discount	429
Present value of lease liabilities	$ 5,306	$ 5,448

Subsequent Events (Details)

Subsequent Events (Details)	Jul. 25, 2023 $ / shares
Subsequent Event | Dividend Declared
Subsequent Event [Line Items]
Dividends declared (in dollars per share)	$ 0.19