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Loans Receivable, Allowance for Credit Losses and Credit Quality

9 Months Ended

Sep. 30, 2025

Loans Receivable, Allowance for Credit Losses and Credit Quality

Loans Receivable, Allowance for Credit Losses and Credit Quality

Note 4 – Loans Receivable, Allowance for Credit Losses and Credit Quality

Loans Receivable

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported as held-for-investment at their outstanding principal balance adjusted for any charge-offs and net of any deferred fees (including purchase accounting adjustments) and origination costs (collectively referred to as “amortized cost”). For originated loans, loan fees and certain direct origination costs are deferred and amortized or accreted into interest income over the contractual life of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income.

Loans are generally placed into nonaccrual status when they are past due 90 days or more as to either principal or interest or when, in the opinion of management, the collection of principal and/or interest is in doubt. A loan remains in nonaccrual status until the loan is current as to payment of both principal and interest or past due less than 90 days and the borrower demonstrates the ability to pay and remain current.

When cash payments are received, they are applied to principal first, then to accrued interest. It is the Company’s policy not to record interest income on nonaccrual loans until principal has become current and the borrower demonstrated the ability to pay and remain current. In certain instances, accruing loans that are past due 90 days or more as to principal or interest may not go on nonaccrual status if the Company determines that the loans are well-secured and are in the process of collection.

Allowance for Credit Losses

The Allowance for Credit Losses (“ACL”) represents management’s best estimate of credit losses over the remaining life of the loan portfolio. Loans are charged-off against the ACL when management believes the loan balance is no longer collectible. This determination made is based on management's review of specific facts and circumstances of the individual loan, including the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. Subsequent recoveries of previously charged-off amounts are recorded as increases to the ACL.

The provision for credit losses on loans is an amount sufficient to bring the ACL to an estimated balance that management considers adequate to absorb lifetime expected losses in the Company’s held-for-investment loan portfolio. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans.

Management’s determination of the adequacy of the ACL under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 326 – Financial Instruments – Credit Losses is based on an evaluation of the composition of the loan portfolio, current economic conditions, historical loan loss experience, reasonable and supportable forecasts, and other risk factors.

The Company uses a third-party Current Expected Credit Loss (“CECL”) model as part of its estimation of the ACL on a quarterly basis. Loans with similar risk characteristics are collectively assessed within pools (or segments). Loss estimates within the collectively assessed population are based on a combination of pooled assumptions and loan-level characteristics. The Company has determined that using federal call codes is an appropriate loan segmentation methodology, as it is generally based on risk characteristics of a loan’s underlying collateral. Using federal call codes also allows the Company to utilize and assess publicly available external information when developing its estimate of the ACL.

The weighted average remaining maturity (“WARM”) method is the primary credit loss estimation methodology used by the Company and involves estimating future cash flows and expected credit losses for pools of loans using their expected remaining weighted average life.

In applying future economic forecasts, the Company utilizes a forecast period of up to two years. Historical loss rates used in the quantitative model are primarily derived using both the Bank’s data, supplemented with peer bank data obtained from publicly available sources. Management also considers qualitative adjustments when estimating credit losses in consideration of the model’s quantitative limitations.

Qualitative adjustments to quantitative loss factors, either negative or positive, may include considerations of economic conditions, volume and severity of past due loans, value of underlying collateral, experience, depth, and ability of management, and concentrations of credit. During the three and nine months ended September 30, 2025, as part of management’s annual analysis of prepayment speeds, the historical prepayment speed analysis of the purchased consumer loans portfolio used in the ACL calculation was enhanced, transitioning from a lifetime analysis to a month-over-month analysis. The resulting Other Consumer loans prepayment speed forecast dropped from 16.8% to 10.1% and resulted in a $1.3 million increase in the quantitative value of the Other Consumer Loans ACL.

For those loans that do not share similar risk characteristics, the Company estimates the ACL on an individual (or loan by loan) basis. This population of individually evaluated loans (or loan relationships with the same primary source of repayment) is determined on a quarterly basis and consists of: loans with a risk rating of substandard or worse and a balance exceeding $500,000, or loan terms differing significantly from other pooled loans.

In accordance with the Company’s policy, non-accrual residential real estate loans that are below $500,000 and well secured (loan-to-value <60%) are excluded from individually evaluated loans. Measurement of credit loss is based on the expected future cash flows of an individually evaluated loan, discounted at the loan’s effective interest rate or measured on an observable market value, if one exists, or the estimated market value of the collateral underlying the loan, discounted to consider estimated costs to sell the collateral for collateral-dependent loans. If the net value is less than the loan’s amortized cost, a specific reserve in the ACL is recorded, which is charged-off in the period when management believes the loan balance is no longer collectible.

In the ordinary course of business, the Company enters into commitments to extend credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. The credit risk associated with these commitments is evaluated in a manner similar to the ACL on loans. The reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. Loans consist of the following as of the dates stated:


	September 30, 2025				December 31, 2024
	Amount		Percent		Amount		Percent

	(Dollars in thousands)

One-to-four-family residential	$	1,133,856	24.01	%	$	1,130,791	26.06	%
Home equity		138,979	2.94	%		124,041	2.86	%
Total residential real estate		1,272,835	26.95	%		1,254,832	28.92	%

Commercial real estate		1,449,675	30.70	%		1,363,394	31.42	%
Multi-family residential		430,428	9.11	%		333,047	7.67	%
Total commercial real estate		1,880,103	39.81	%		1,696,441	39.09	%
Construction and land development		655,023	13.87	%		583,809	13.45	%
Commercial and industrial		651,731	13.80	%		559,828	12.90	%
Total commercial		3,186,857	67.48	%		2,840,078	65.44	%

Consumer, net of premium/discount		263,259	5.57	%		244,558	5.64	%

Total loans		4,722,951	100.00	%		4,339,468	100.00	%
Deferred fees, net		(6,822)				(6,316)
Allowance for credit losses		(43,052)				(38,744)
Net loans	$	4,673,077			$	4,294,408

Included in the above are approximately $418.6 million and $459.6 million in loans to borrowers in the cannabis industry at September 30, 2025 and December 31, 2024, respectively. Of that total, $258.5 million and $321.9 million were direct loans to cannabis companies and were collateralized by real estate at September 30, 2025 and December 31, 2024, respectively.

During the three months ended September 30, 2025 and 2024, the Company purchased approximately $20.3 million and $13.3 million of consumer loan pools, respectively. During the nine months ended September 30, 2025 and 2024, the Company purchased approximately $34.7 million and $32.9 million of consumer loan pools, respectively. The loans purchased during the three and nine months ended September 30, 2025 included loan pools collateralized by automobiles. The loans purchased during the three and nine months ended September 30, 2024 included loan pools collateralized by boats, recreational vehicles and automobiles.

The outstanding balances of these purchased consumer loan pools, shown net of premium (discount) are as follows as of the dates stated:


	September 30, 2025
	Gross Loan		Premium (Discount)		Net Loan

	(in thousands)

Student loans	$	5,733	$	35	$	5,768
Boat and RV loans		41,517		937		42,454
Automobile loans		68,307		—		68,307
Solar panel loans		50,436		(4,758)		45,678
Home improvement loans		37,768		(15)		37,753
Total	$	203,761	$	(3,801)	$	199,960


	December 31, 2024
	Gross Loan		Premium (Discount)		Net Loan

	(in thousands)

Student loans	$	6,954	$	42	$	6,996
Boat and RV loans		48,147		1,136		49,283
Automobile loans		52,092		—		52,092
Solar panel loans		55,400		(5,073)		50,327
Home improvement loans		44,458		(15)		44,443
Total	$	207,051	$	(3,910)	$	203,141

The carrying value of loans pledged to secure advances from the FHLB were $1.23 billion and $1.24 billion as of September 30, 2025 and December 31, 2024, respectively.

The following table presents the aging of the amortized cost of loans receivable by loan category as of the date stated:


	September 30, 2025
			30-59		60-89		90 Days or
	Current		Days		Days		More Past Due				Total
	Loans		Past Due		Past Due		Still Accruing		Nonaccrual		Loans

	(in thousands)
Real estate loans:
One-to-four-family residential	$	1,130,365	$	377	$	343	$	171	$	2,600	$	1,133,856
Home equity		137,620		187		—		—		1,172		138,979
Commercial real estate		1,447,710		—		—		1,156		809		1,449,675
Multi-family residential		430,428		—		—		—		—		430,428
Construction and land development		655,013		—		—		—		10		655,023
Commercial and industrial		644,657		—		2,388		—		4,686		651,731
Consumer		256,767		2,792		1,620		—		2,080		263,259
Total	$	4,702,560	$	3,356	$	4,351	$	1,327	$	11,357	$	4,722,951


	December 31, 2024
			30-59		60-89		90 Days or
	Current		Days		Days		More Past Due				Total
	Loans		Past Due		Past Due		Still Accruing		Nonaccrual		Loans

	(in thousands)
Real estate loans:
One-to-four-family residential	$	1,124,762	$	2,363	$	736	$	—	$	2,930	$	1,130,791
Home equity		122,812		100		171		—		958		124,041
Commercial real estate		1,355,064		5,325		—		—		3,005		1,363,394
Multi-family residential		332,740		307		—		—		—		333,047
Construction and land development		583,435		364		—		—		10		583,809
Commercial and industrial		550,353		4,907		10		—		4,558		559,828
Consumer		236,801		3,725		1,637		—		2,395		244,558
Total	$	4,305,967	$	17,091	$	2,554	$	—	$	13,856	$	4,339,468

The following table presents the amortized cost of nonaccrual loans receivable by loan category as of the dates stated:


	September 30, 2025						December 31, 2024
	Nonaccrual		Nonaccrual		Total		Nonaccrual		Nonaccrual		Total
	Loans with		Loans with		Nonaccrual		Loans with		Loans with		Nonaccrual
	No ACL		an ACL		Loans		No ACL		an ACL		Loans

	(In thousands)
Real estate loans:
One-to-four-family residential	$	2,600	$	—	$	2,600	$	2,930	$	—	$	2,930
Home equity		1,172		—		1,172		958		—		958
Commercial real estate		809		—		809		3,005		—		3,005
Construction and land development		10		—		10		10		—		10
Commercial and industrial		562		4,124		4,686		454		4,104		4,558
Consumer		2,080		—		2,080		2,394		1		2,395
Total	$	7,233	$	4,124	$	11,357	$	9,751	$	4,105	$	13,856

During the three and nine months ended September 30, 2025, the Company reversed $82,000 and $288,000 of interest income for loans that were placed on non-accrual respectively. During the three and nine months ended September 30, 2024, the Company reversed $232,000 of interest income for loans that were placed on non-accrual.

Credit Quality Information

The Company utilizes a nine-grade internal rating system for all loans, except consumer loans, which are not risk rated, as follows:

Loans rated 1-5: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 6: Loans in this category are considered “special mention”. These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 7: Loans in this category are considered “substandard”. Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 8: Loans in this category are considered “doubtful”. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company reviews the accuracy of risk ratings for commercial real estate, construction and land development loans, and commercial and industrial loans based on various ongoing performance characteristics and supporting information that is provided from time to time by commercial borrowers. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process.

The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of September 30, 2025. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended September 30, 2025:


		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
One-to-Four-Family Residential
Grade:
Pass	1-5	$	68,875	$	101,033	$	138,257	$	252,612	$	231,078	$	305,439	$	33,790	$	1,131,084
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		242		2,292		238		2,772
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	68,875	$	101,033	$	138,257	$	252,612	$	231,320	$	307,731	$	34,028	$	1,133,856
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home Equity
Grade:
Pass	1-5	$	—	$	—	$	245	$	—	$	—	$	—	$	137,562	$	137,807
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		1,172		1,172
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	—	$	—	$	245	$	—	$	—	$	—	$	138,734	$	138,979
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate
Grade:
Pass	1-5	$	181,156	$	109,979	$	270,672	$	278,879	$	65,442	$	335,176	$	66,546	$	1,307,850
Special Mention	6		—		—		81,743		47,917		4,443		4,015		1,742		139,860
Substandard	7		—		—		—		1,617		—		348		—		1,965
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	181,156	$	109,979	$	352,415	$	328,413	$	69,885	$	339,539	$	68,288	$	1,449,675
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-Family
Grade:
Pass	1-5	$	17,538	$	6,083	$	72,966	$	227,584	$	18,270	$	83,784	$	4,203	$	430,428
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	17,538	$	6,083	$	72,966	$	227,584	$	18,270	$	83,784	$	4,203	$	430,428
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and Land Development
Grade:
Pass	1-5	$	51,715	$	195,481	$	259,138	$	38,822	$	16,143	$	1,326	$	80,805	$	643,430
Special Mention	6		—		—		—		11,583		—		—		—		11,583
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	51,715	$	195,481	$	259,138	$	50,405	$	16,143	$	1,336	$	80,805	$	655,023
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and Industrial
Grade:
Pass	1-5	$	37,675	$	37,908	$	62,243	$	57,156	$	36,833	$	19,443	$	384,128	$	635,386
Special Mention	6		—		—		—		2,952		2,627		946		625		7,150
Substandard	7		—		—		11		123		12		4,537		4,512		9,195
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	37,675	$	37,908	$	62,254	$	60,231	$	39,472	$	24,926	$	389,265	$	651,731
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			51,871		54,215		27,225		56,084		46,140		24,611		3,113		263,259
Total		$	51,871	$	54,215	$	27,225	$	56,084	$	46,140	$	24,611	$	3,113	$	263,259
Current period gross charge-offs		$	—	$	22	$	11	$	365	$	214	$	51	$	30	$	693

Total Loans
Grade:
Pass	1-5	$	356,959	$	450,484	$	803,521	$	855,053	$	367,766	$	745,168	$	707,034	$	4,285,985
Special Mention	6		—		—		81,743		62,452		7,070		4,961		2,367		158,593
Substandard	7		—		—		11		1,740		254		7,177		5,922		15,104
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			51,871		54,215		27,225		56,084		46,140		24,611		3,113		263,259
Total		$	408,830	$	504,699	$	912,500	$	975,329	$	421,230	$	781,927	$	718,436	$	4,722,951
Current period gross charge-offs		$	—	$	22	$	11	$	365	$	214	$	51	$	30	$	693

(1) Consumer loans are not formally risk rated and included $2.1 million of loans on non-accrual as of September 30, 2025.

The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of December 31, 2024. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended December 31, 2024:


		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
One-to-Four-Family Residential
Grade:
Pass	1-5	$	97,895	$	145,711	$	266,364	$	247,799	$	115,133	$	224,354	$	30,227	$	1,127,483
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		246		—		2,990		72		3,308
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	97,895	$	145,711	$	266,364	$	248,045	$	115,133	$	227,344	$	30,299	$	1,130,791
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home Equity
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	123,083	$	123,083
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		958		958
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	—	$	—	$	—	$	—	$	—	$	—	$	124,041	$	124,041
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial Real Estate
Grade:
Pass	1-5	$	118,115	$	409,048	$	364,384	$	69,349	$	97,500	$	248,749	$	45,088	$	1,352,233
Special Mention	6		—		—		1,399		2,664		873		3,220		—		8,156
Substandard	7		—		—		469		—		—		2,536		—		3,005
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	118,115	$	409,048	$	366,252	$	72,013	$	98,373	$	254,505	$	45,088	$	1,363,394
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multi-Family
Grade:
Pass	1-5	$	5,138	$	7,563	$	212,492	$	21,791	$	36,016	$	50,047	$	—	$	333,047
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	5,138	$	7,563	$	212,492	$	21,791	$	36,016	$	50,047	$	—	$	333,047
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction and Land Development
Grade:
Pass	1-5	$	161,997	$	284,102	$	90,512	$	13,255	$	9,232	$	364	$	24,337	$	583,799
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	161,997	$	284,102	$	90,512	$	13,255	$	9,232	$	374	$	24,337	$	583,809
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial and Industrial
Grade:
Pass	1-5	$	42,154	$	64,943	$	54,435	$	38,759	$	6,594	$	14,468	$	324,481	$	545,834
Special Mention	6		—		—		531		2,884		1,002		—		425		4,842
Substandard	7		—		—		—		—		343		4,214		4,595		9,152
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			—		—		—		—		—		—		—		—
Total		$	42,154	$	64,943	$	54,966	$	41,643	$	7,939	$	18,682	$	329,501	$	559,828
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			67,429		32,233		67,018		49,262		9,047		17,145		2,424		244,558
Total		$	67,429	$	32,233	$	67,018	$	49,262	$	9,047	$	17,145	$	2,424	$	244,558
Current period gross charge-offs		$	—	$	136	$	388	$	165	$	100	$	45	$	10	$	844

Total Loans
Grade:
Pass	1-5	$	425,299	$	911,367	$	988,187	$	390,953	$	264,475	$	537,982	$	547,216	$	4,065,479
Special Mention	6		—		—		1,930		5,548		1,875		3,220		425		12,998
Substandard	7		—		—		469		246		343		9,740		5,625		16,423
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated ⁽¹⁾			67,429		32,233		67,018		49,262		9,047		17,145		2,424		244,558
Total		$	492,728	$	943,600	$	1,057,604	$	446,009	$	275,740	$	568,097	$	555,690	$	4,339,468
Current period gross charge-offs		$	—	$	136	$	388	$	165	$	100	$	45	$	10	$	844

(1) Consumer loans are not formally risk rated and included $2.4 million of loans on non-accrual as of December 31, 2024.

The following table presents an analysis of the change in the ACL by major loan segment for the periods stated:


	For the Three Months Ended September 30, 2025
	One-to-Four								Construction
	Family				Commercial				and Land		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Development		Industrial		Consumer		Unallocated		Total

	(in thousands)
Balance at June 30, 2025	$	1,288	$	91	$	10,081	$	538	$	7,153	$	14,315	$	9,135	$	—	$	42,601
Provision for (release of) credit losses		222		33		(322)		65		(1,165)		174		2,034		—		1,041
Charge-offs		—		—		—		—		—		—		(693)		—		(693)
Recoveries of loans previously charged-off		—		—		—		—		—		12		91		—		103

Balance at September 30, 2025	$	1,510	$	124	$	9,759	$	603	$	5,988	$	14,501	$	10,567	$	—	$	43,052

	For the Three Months Ended September 30, 2024
	One-to-Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Unallocated		Total

	(in thousands)
Balance at June 30, 2024	$	1,960	$	137	$	7,041	$	482	$	6,436	$	12,457	$	9,344	$	—	$	37,857
Provision for (release of) credit losses		(789)		(72)		5,532		(73)		(2,139)		(1,238)		3,776		—		4,997
Charge offs		—		—		(4,000)		—		—		—		(1,305)		—		(5,305)
Recoveries of loans previously charged off		—		—		—		—		—		12		44		—		56

Balance at September 30, 2024	$	1,171	$	65	$	8,573	$	409	$	4,297	$	11,231	$	11,859	$	—	$	37,605

	For the Nine Months Ended September 30, 2025
	One-to-Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Unallocated		Total

	(in thousands)
Balance at December 31, 2024	$	1,195	$	74	$	9,481	$	599	$	4,137	$	11,174	$	12,084	$	—	$	38,744
Provision for (release of) credit losses		315		50		(645)		4		1,851		3,291		1,366		—		6,232
Charge offs		—		—		—		—		—		—		(3,441)		—		(3,441)
Recoveries of loans previously charged off		—		—		923		—		—		36		558		—		1,517

Balance at September 30, 2025	$	1,510	$	124	$	9,759	$	603	$	5,988	$	14,501	$	10,567	$	—	$	43,052

	For the Nine Months Ended September 30, 2024
	One-to-Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Unallocated		Total

	(in thousands)
Balance at December 31, 2023	$	1,835	$	117	$	5,698	$	378	$	7,630	$	10,878	$	5,686	$	—	$	32,222
Provision for (release of) credit losses		(664)		(52)		6,875		31		(3,333)		684		9,775		—		13,316
Charge offs		—		—		(4,000)		—		—		(391)		(3,800)		—		(8,191)
Recoveries of loans previously charged off		—		—		—		—		—		60		198		—		258

Balance at September 30, 2024	$	1,171	$	65	$	8,573	$	409	$	4,297	$	11,231	$	11,859	$	—	$	37,605

The following table presents the amortized cost of collateral-dependent loans as of September 30, 2025 and December 31, 2024:


	As of
	September 30, 2025		December 31, 2024

	(in thousands)
One-to-four-family residential	$	2,573	$	3,112
Home equity		1,154		908
Commercial real estate		1,098		3,005
Construction and land development		10		10
Commercial and industrial		9,080		9,152
Total	$	13,915	$	16,187

The Company closely monitors the performance of borrowers experiencing financial difficulty to understand the effectiveness of its loan modification efforts.

The following tables present the period end amortized cost basis of loans modified to borrowers experiencing financial difficulty during the periods indicated, disaggregated by class of financing receivable, type of modification granted and the financial effect of the modifications:


	Three Months Ended September 30, 2025
	Amortized		% of Total Class of
	Cost Basis		Financing Receivable			Financial Effect
	(In thousands)
Interest rate reduction
Commercial real estate	$	37,098		2.0	%		Terminated swap, changed interest rate index, reduced spread and added rate floors
Total	$	37,098

	Nine Months Ended September 30, 2025
	Amortized		% of Total Class of
	Cost Basis		Financing Receivable			Financial Effect
	(In thousands)
Interest rate reduction
Commercial real estate	$	37,098		2.0	%		Terminated swap, changed interest rate index, reduced spread and added rate floors
Total	$	37,098

	Three Months Ended September 30, 2024
	Amortized		% of Total Class of
	Cost Basis		Financing Receivable			Financial Effect
	(In thousands)
Term extension and interest rate increase
Commercial real estate	$	6,200		0.4	%		Resulted in a net charge off of $3.1 million
Total	$	6,200

	Nine Months Ended September 30, 2024
	Amortized		% of Total Class of
	Cost Basis		Financing Receivable			Financial Effect
	(In thousands)
Term extension and interest rate increase
Commercial real estate	$	6,200		0.4	%		Resulted in a net charge off of $3.1 million
Total	$	6,200