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Loans and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Loans Held-for-Investment
The following table presents the composition of the Company’s loans held-for-investment as of the dates indicated.
December 31,
($ in thousands)20252024
Commercial real estate:
Commercial property
$1,071,396 $940,931 
Business property638,063 595,547 
Multifamily175,579 194,220 
Construction
18,561 21,854 
Total commercial real estate1,903,599 1,752,552 
Commercial and industrial508,662 472,763 
Consumer:
Residential mortgage401,337 392,456 
Other consumer6,802 11,616 
Total consumer408,139 404,072 
Loans held-for-investment
2,820,400 2,629,387 
Allowance for credit losses on loans(33,381)(30,628)
Net loans held-for-investment
$2,787,019 $2,598,759 
Schedule of Reclassification of ACL on Loans and Initial Adjustment to ACL
The following table presents a composition of provision (reversal) for credit losses for the periods indicated:
Year Ended December 31,
($ in thousands)202520242023
Provision for credit losses on loans $3,675 $3,488 $497 
Provision (reversal) for credit losses on off-balance sheet credit exposures
353 (87)(629)
Total provision (reversal) for credit losses$4,028 $3,401 $(132)
The following table presents the activities in ACL on loans for the periods indicated:
($ in thousands)Commercial PropertyBusiness PropertyMultifamilyConstructionCommercial and IndustrialResidential MortgageOther ConsumerTotal
Balance at January 1, 2023$8,502 $5,749 $1,134 $151 $5,502 $3,691 $213 $24,942 
Impact of ASC 326 adoption(1,762)896 256 — 4,344 (2,534)(133)1,067 
Charge-offs— (4)— — (45)— (83)(132)
Recoveries— — — 1,107 — 43 1,159 
Provision (reversal) for credit losses on loans5,925 (1,911)51 (16)(4,663)1,069 42 497 
Balance at December 31, 202312,665 4,739 1,441 135 6,245 2,226 82 27,533 
Charge-offs— (104)(20)— (524)— (43)(691)
Recoveries— — — 126 — 168 298 
Provision (reversal) for credit losses on loans258 (672)950 (54)2,866 280 (140)3,488 
Balance at December 31, 202412,923 3,967 2,371 81 8,713 2,506 67 30,628 
Charge-offs— (307)— — (919)— (82)(1,308)
Recoveries— — — 377 — 386 
Provision (reversal) for credit losses on loans(3,575)683 (1,089)42 7,186 365 63 3,675 
Balance at December 31, 2025$9,348 $4,347 $1,282 $123 $15,357 $2,871 $53 $33,381 
Schedule of Credit Quality Indicators
The following table summarizes the Company’s loans held-for-investment by loan segment, internal risk ratings and vintage year as of December 31, 2025 and gross write offs for the year ended December 31, 2025. The vintage year is the year of origination, renewal or major modification. Revolving loans that are converted to term loans presented in the table below are excluded from term loans by vintage year columns.
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20252024202320222021PriorTotal
December 31, 2025
Commercial Real Estate:
Commercial property
Pass$312,704 $176,824 $138,914 $203,311 $118,797 $96,119 $14,306 $7,563 $1,068,538 
Special mention— — — 923 — — — — 923 
Substandard— — 116 357 229 1,233 — — 1,935 
Doubtful— — — — — — — — — 
Total$312,704 $176,824 $139,030 $204,591 $119,026 $97,352 $14,306 $7,563 $1,071,396 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Business property
Pass$172,213 $89,840 $94,519 $77,382 $116,412 $71,607 $5,530 $3,640 $631,143 
Special mention— — — — 5,512 — — — 5,512 
Substandard— — — 442 377 589 — — 1,408 
Doubtful— — — — — — — — — 
Total$172,213 $89,840 $94,519 $77,824 $122,301 $72,196 $5,530 $3,640 $638,063 
Year-to-date period gross write offs
$— $— $— $307 $— $— $— $— $307 
Multifamily
Pass$38,551 $30,423 $13,793 $38,482 $37,071 $16,259 $1,000 $— $175,579 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$38,551 $30,423 $13,793 $38,482 $37,071 $16,259 $1,000 $— $175,579 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Construction
Pass$— $503 $— $18,058 $— $— $— $— $18,561 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$— $503 $— $18,058 $— $— $— $— $18,561 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20252024202320222021PriorTotal
December 31, 2025 (Continued)
Commercial and Industrial
Pass$30,047 $35,290 $28,031 $15,873 $4,753 $6,413 $336,748 $51,099 $508,254 
Special mention— — — — — — — — — 
Substandard— — — 247 — 161 — — 408 
Doubtful— — — — — — — — — 
Total$30,047 $35,290 $28,031 $16,120 $4,753 $6,574 $336,748 $51,099 $508,662 
Year-to-date period gross write offs
$247 $202 $125 $— $149 $196 $— $— $919 
Consumer
Residential mortgage
Pass$62,595 $29,032 $52,641 $137,472 $67,078 $47,116 $— $— $395,934 
Special mention— — — — — — — — — 
Substandard— — 4,689 — — 714 — — 5,403 
Doubtful— — — — — — — — — 
Total$62,595 $29,032 $57,330 $137,472 $67,078 $47,830 $— $— $401,337 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Other consumer
Pass$262 $— $1,788 $1,932 $429 $39 $2,347 $— $6,797 
Special mention— — — — — — — — — 
Substandard— — — — — — — 
Doubtful— — — — — — — — — 
Total$262 $— $1,788 $1,937 $429 $39 $2,347 $— $6,802 
Year-to-date period gross write offs
$— $77 $$— $$— $— $— $82 
Total loans held-for-investment
Pass$616,372 $361,912 $329,686 $492,510 $344,540 $237,553 $359,931 $62,302 $2,804,806 
Special mention— — — 923 5,512 — — — 6,435 
Substandard— — 4,805 1,051 606 2,697 — — 9,159 
Doubtful— — — — — — — — — 
Total$616,372 $361,912 $334,491 $494,484 $350,658 $240,250 $359,931 $62,302 $2,820,400 
Year-to-date period gross write offs
$247 $279 $126 $307 $153 $196 $— $— $1,308 
The following table summarizes the Company’s loans held-for-investment by loan segment, internal risk ratings and vintage year as of December 31, 2024. The vintage year is the year of origination, renewal or major modification. Revolving loans that are converted to term loans presented in the table below are excluded from term loans by vintage year columns.
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20242023202220212020PriorTotal
December 31, 2024
Commercial Real Estate:
Commercial property
Pass$196,454 $142,455 $259,222 $138,837 $76,462 $102,666 $21,031 $385 $937,512 
Special mention— — — — — — — — — 
Substandard— 131 399 258 — 2,631 — — 3,419 
Doubtful— — — — — — — — — 
Total$196,454 $142,586 $259,621 $139,095 $76,462 $105,297 $21,031 $385 $940,931 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Business property
Pass$93,973 $100,337 $95,024 $148,382 $44,239 $95,372 $6,431 $3,750 $587,508 
Special mention— — 5,034 — — — — — 5,034 
Substandard— — 447 859 — 1,699 — — 3,005 
Doubtful— — — — — — — — — 
Total$93,973 $100,337 $100,505 $149,241 $44,239 $97,071 $6,431 $3,750 $595,547 
Year-to-date period gross write offs
$— $— $77 $— $— $27 $— $— $104 
Multifamily
Pass$34,104 $53,020 $39,870 $38,104 $25,751 $2,370 $1,001 $— $194,220 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$34,104 $53,020 $39,870 $38,104 $25,751 $2,370 $1,001 $— $194,220 
Year-to-date period gross write offs
$— $— $— $20 $— $— $— $— $20 
Construction
Pass$886 $7,589 $13,379 $— $— $— $— $— $21,854 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$886 $7,589 $13,379 $— $— $— $— $— $21,854 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20242023202220212020PriorTotal
December 31, 2024 (Continued)
Commercial and Industrial
Pass$46,644 $34,737 $21,700 $7,312 $3,125 $8,044 $347,605 $3,517 $472,684 
Special mention— — — — — — — — — 
Substandard— — — — 71 — — 79 
Doubtful— — — — — — — — — 
Total$46,644 $34,737 $21,700 $7,320 $3,125 $8,115 $347,605 $3,517 $472,763 
Year-to-date period gross write offs
$— $— $— $— $— $126 $248 $150 $524 
Consumer
Residential mortgage
Pass$37,548 $73,833 $151,922 $73,183 $10,840 $44,727 $— $— $392,053 
Special mention— — — — — — — — — 
Substandard— — — — — 403 — — 403 
Doubtful— — — — — — — — — 
Total$37,548 $73,833 $151,922 $73,183 $10,840 $45,130 $— $— $392,456 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Other consumer
Pass$346 $2,914 $4,243 $1,530 $394 $$2,157 $— $11,592 
Special mention— — — — — — — — — 
Substandard— — 23 — — — — 24 
Doubtful— — — — — — — — — 
Total$346 $2,914 $4,266 $1,530 $395 $$2,157 $— $11,616 
Year-to-date period gross write offs
$— $18 $15 $— $10 $— $— $— $43 
Total loans held-for-investment
Pass$409,955 $414,885 $585,360 $407,348 $160,811 $253,187 $378,225 $7,652 $2,617,423 
Special mention— — 5,034 — — — — — 5,034 
Substandard— 131 869 1,125 4,804 — — 6,930 
Doubtful— — — — — — — — — 
Total$409,955 $415,016 $591,263 $408,473 $160,812 $257,991 $378,225 $7,652 $2,629,387 
Year-to-date period gross write offs
$— $18 $92 $20 $10 $153 $248 $150 $691 
Schedule of Nonaccrual Loans
The following table presents loans on nonaccrual status by loan segments as of the date indicated:
($ in thousands)Total Nonaccrual LoansNonaccrual Loans with ACLACL on Nonaccrual LoansCollateral Dependent Nonaccrual LoansACL on Collateral Dependent Nonaccrual Loans
December 31, 2025
Commercial real estate:
Commercial property
$1,403 $— $— $1,403 $— 
Business property938 642 134 938 134 
Total commercial real estate2,341 642 134 2,341 134 
Commercial and industrial161 71 72 161 72 
Consumer:
Residential mortgage5,403 — — 5,403 — 
Other consumer— — — 
Total consumer5,408 — 5,403 — 
Total$7,910 $718 $206 $7,905 $206 
December 31, 2024
Commercial real estate:
Commercial property$1,851 $— $— $1,851 $— 
Business property2,336 1,032 38 2,336 38 
Total commercial real estate4,187 1,032 38 4,187 38 
Commercial and industrial79 79 
Consumer:
Residential mortgage403 — — 403 — 
Other consumer24 24 — — — 
Total consumer427 24 — 403 — 
Total$4,693 $1,064 $46 $4,669 $46 
Schedule of Collateral Dependent Loans The following table presents the collateral dependent loans by loan segments as of the date indicated:
($ in thousands)Hotel / MotelRestaurantsCar WashRetailSingle Family Residential
Other
Total
December 31, 2025
Commercial real estate:
Commercial property$1,403 $— $— $— $— $— $1,403 
Business property— 377 — 529 — 32 938 
Total commercial real estate1,403 377 — 529 — 32 2,341 
Commercial and industrial— — — 82 71 161 
Consumer:
Residential mortgage— — — — 5,403 — 5,403 
Total consumer— — — — 5,403 — 5,403 
Total$1,411 $377 $ $529 $5,485 $103 $7,905 
December 31, 2024
Commercial real estate:
Commercial property$1,851 $— $— $— $— $— $1,851 
Business property— — 1,695 606 — 35 2,336 
Total commercial real estate1,851 — 1,695 606 — 35 4,187 
Commercial and industrial11 — — 60 — 79 
Consumer:
Residential mortgage— — — — 403 — 403 
Total consumer— — — — 403 — 403 
Total$1,862 $ $1,703 $606 $463 $35 $4,669 
Schedule of Past Due Loans
The following table presents the aging of past due in accruing loans and nonaccrual loans by loan segments as of date indicated:
Still AccruingNonaccrual
($ in thousands)30 to 59 Days Past Due60 to 89 Days Past Due90 or More Days Past DueTotal30 to 59 Days Past Due60 to 89 Days Past Due90 or More Days Past DueTotalTotal Loans Past Due
December 31, 2025
Commercial real estate:
Commercial property$— $— $— $— $— $— $524 $524 $524 
Business property140 — — 140 86 178 230 494 634 
Total commercial real estate140 — — 140 86 178 754 1,018 1,158 
Commercial and industrial21 — 26 — — 78 78 104 
Consumer:
Residential mortgage674 — — 674 2,269 273 2,862 5,404 6,078 
Other consumer108 — 115 — — — — 115 
Total consumer782 — 789 2,269 273 2,862 5,404 6,193 
Total$943 $12 $ $955 $2,355 $451 $3,694 $6,500 $7,455 
December 31, 2024
Commercial real estate:
Commercial property$433 $— $— $433 $— $984 $269 $1,253 $1,686 
Business property333 — — 333 508 — 698 1,206 1,539 
Total commercial real estate766 — — 766 508 984 967 2,459 3,225 
Commercial and industrial— — — — — 71 — 71 71 
Consumer:
Residential mortgage3,679 303 — 3,982 — 403 — 403 4,385 
Other consumer154 — — 154 — — 24 24 178 
Total consumer3,833 303 — 4,136 — 403 24 427 4,563 
Total$4,599 $303 $ $4,902 $508 $1,458 $991 $2,957 $7,859 
Schedule of Loan Modifications
The following tables present loans that the borrowers were both experiencing financial difficulty and modified during the periods indicated by loan segments and modification type:
Year Ended
($ in thousands)
Combination of Other-Than-Insignificant Payment Delay and Term Extension
TotalPercentage to Each Loan Segment
December 31, 2025
Commercial and industrial$49 $49 0.1 %
Total$49 $49 0.1 %
December 31, 2024
Commercial real estate:
Commercial property$399 $399 0.1 %
Business property2,204 2,204 0.2 %
Total commercial real estate2,603 2,603 0.1 %
Total$2,603 $2,603 0.1 %
December 31, 2023
Total$ $  %
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period indicates:
Year Ended
Combination of Other-Than-Insignificant Payment Delay and Term Extension
December 31, 2025
Commercial and industrial
6-month interest-only payment and 6-month term extension
December 31, 2024
Commercial property
6-month fixed payment and 6-month term extension
Business property
6-month fixed payment and 6-month term extension
The following table presents the performance of such loans that have been modified in the last 12 months:
($ in thousands)30 to 59 Days Past Due60 to 89 Days Past Due
90 or More Days Past Due
Total Past Due
December 31, 2025
Total$ $ $ $ 
December 31, 2024
Commercial real estate:
Business property$508 $— $664 $1,172 
Total commercial real estate508 — 664 1,172 
Total$508 $ $664 $1,172 
Schedule of Loans Held-For-Investment Transferred To Loans Held-For-Sale
The following table presents a summary of loans that were transferred from loans held-for-investment to loans held-for-sale for the periods indicated:
Year Ended December 31,
($ in thousands)202520242023
Consumer:
Residential mortgage$— $676 $— 
Total consumer— 676 — 
Total$ $676 $ 
Schedule of Loans Held-for-Investment
The following table presents a summary of purchases of loans held-for-investment for the periods indicated:
Year Ended December 31,
($ in thousands)202520242023
Consumer:
Residential mortgage$— $— $15,741 
Total consumer— — 15,741 
Total$ $ $15,741 
Schedule of Loans Held-for-Sale
The following table presents a composition of loans held-for-sale as of the dates indicated:
December 31,
($ in thousands)20252024
Commercial real estate:
Commercial property$3,750 $3,307 
Business property2,734 713 
Total commercial real estate6,484 4,020 
Commercial and industrial5,593 2,272 
Total$12,077 $6,292