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Note 4 - Loans Receivable and Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2026
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables, Excluding Allowance for Credit Losses [Text Block] | NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS At March 31, 2026 and December 31, 2025, the Company had $2.04 billion and $2.04 billion, respectively, in loans receivable outstanding. Outstanding balances include $0.05 million and $0.03 million at March 31, 2026 and December 31, 2025, respectively, for net deferred loan costs, and unamortized discounts. The portfolio segments of loans receivable at March 31, 2026 and December 31, 2025, consist of the following:
|  | March 31, 2026 |  |  | December 31, 2025 |
|  | (Dollars in thousands) |
Commercial and Industrial |  | $ | 39,817 |  |  | $ | 38,672 |
Construction |  |  | 217,805 |  |  |  | 212,307 |
Real Estate Mortgage: |  |  |  |  |  |  |  |
Commercial – Owner Occupied |  |  | 184,691 |  |  |  | 182,529 |
Commercial – Non-owner Occupied |  |  | 476,983 |  |  |  | 478,295 |
Residential – 1 to 4 Family |  |  | 430,464 |  |  |  | 451,463 |
Residential – 1 to 4 Family Investment |  |  | 479,098 |  |  |  | 494,228 |
Residential – Multifamily |  |  | 210,577 |  |  |  | 173,611 |
Consumer |  |  | 3,861 |  |  |  | 4,122 |
Total Loan receivable |  |  | 2,043,296 |  |  |  | 2,035,227 |
Allowance for credit losses on loans |  |  | (34,921 | ) |  |  | (34,649 | )
Total loan receivable, net of allowance for credit losses on loans |  | $ | 2,008,375 |  |  | $ | 2,000,578 |
An age analysis of past due loans by class at March 31, 2026 and December 31, 2025 is as follows:
|  | 30-59 |  |  | 60-89 |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Days Past |  |  | Days Past |  |  | than 90 |  |  | Total |  |  |  |  |  |  | Total |
March 31, 2026 |  | Due |  |  | Due |  |  | Days |  |  | Past Due |  |  | Current |  |  | Loans |
|  | (Dollars in Thousands) |
Commercial and Industrial |  | $ | — |  |  | $ | — |  |  | $ | 680 |  |  | $ | 680 |  |  | $ | 39,137 |  |  | $ | 39,817 |
Construction |  |  | — |  |  |  | — |  |  |  | 1,091 |  |  |  | 1,091 |  |  |  | 216,714 |  |  |  | 217,805 |
Real Estate Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial – Owner Occupied |  |  | — |  |  |  | — |  |  |  | 400 |  |  |  | 400 |  |  |  | 184,291 |  |  |  | 184,691 |
Commercial – Non-owner Occupied |  |  | — |  |  |  | — |  |  |  | 3,163 |  |  |  | 3,163 |  |  |  | 473,820 |  |  |  | 476,983 |
Residential – 1 to 4 Family |  |  | 1,989 |  |  |  | 242 |  |  |  | 2,494 |  |  |  | 4,725 |  |  |  | 425,739 |  |  |  | 430,464 |
Residential – 1 to 4 Family Investment |  |  | 1,507 |  |  |  | 118 |  |  |  | 1,437 |  |  |  | 3,062 |  |  |  | 476,036 |  |  |  | 479,098 |
Residential – Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 210,577 |  |  |  | 210,577 |
Consumer |  |  | 24 |  |  |  | — |  |  |  | 141 |  |  |  | 165 |  |  |  | 3,696 |  |  |  | 3,861 |
Total Loans |  | $ | 3,520 |  |  | $ | 360 |  |  | $ | 9,406 |  |  | $ | 13,286 |  |  | $ | 2,030,010 |  |  | $ | 2,043,296 |
|  | 30-59 |  |  | 60-89 |  |  | Greater |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Days Past |  |  | Days Past |  |  | than 90 |  |  | Total |  |  |  |  |  |  | Total |
December 31, 2025 |  | Due |  |  | Due |  |  | Days |  |  | Past Due |  |  | Current |  |  | Loans |
|  | (Dollars in thousands) |
Commercial and Industrial |  | $ | — |  |  | $ | — |  |  | $ | 688 |  |  | $ | 688 |  |  | $ | 37,984 |  |  | $ | 38,672 |
Construction |  |  | — |  |  |  | — |  |  |  | 1,091 |  |  |  | 1,091 |  |  |  | 211,216 |  |  |  | 212,307 |
Real Estate Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial – Owner Occupied |  |  | — |  |  |  | — |  |  |  | 400 |  |  |  | 400 |  |  |  | 182,129 |  |  |  | 182,529 |
Commercial – Non-owner Occupied |  |  | — |  |  |  | 1,122 |  |  |  | 3,668 |  |  |  | 4,790 |  |  |  | 473,505 |  |  |  | 478,295 |
Residential – 1 to 4 Family |  |  | — |  |  |  | 1,434 |  |  |  | 2,965 |  |  |  | 4,399 |  |  |  | 447,064 |  |  |  | 451,463 |
Residential – 1 to 4 Family Investment |  |  | — |  |  |  | 896 |  |  |  | 1,840 |  |  |  | 2,736 |  |  |  | 491,492 |  |  |  | 494,228 |
Residential – Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 173,611 |  |  |  | 173,611 |
Consumer |  |  | — |  |  |  | 32 |  |  |  | 141 |  |  |  | 173 |  |  |  | 3,949 |  |  |  | 4,122 |
Total Loans |  | $ | — |  |  | $ | 3,484 |  |  | $ | 10,793 |  |  | $ | 14,277 |  |  | $ | 2,020,950 |  |  | $ | 2,035,227 |
The following table provides the amortized cost of loans on nonaccrual status:
|  | March 31, 2026 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Loans Past Due |  |  |  |  |
|  | Nonaccrual |  |  | Nonaccrual |  |  | Total |  |  | Over 90 Days |  |  | Total |
(amounts in thousands) |  | with no ACL |  |  | with ACL |  |  | Nonaccrual |  |  | Still Accruing |  |  | Nonperforming |
Commercial and Industrial |  | $ | — |  |  | $ | 680 |  |  | $ | 680 |  |  | $ | — |  |  | $ | 680 |
Construction |  |  | 1,091 |  |  |  | — |  |  |  | 1,091 |  |  |  | — |  |  |  | 1,091 |
Commercial - Owner Occupied |  |  | 400 |  |  |  | — |  |  |  | 400 |  |  |  | — |  |  |  | 400 |
Commercial - Non-owner Occupied |  |  | 243 |  |  |  | 2,920 |  |  |  | 3,163 |  |  |  | — |  |  |  | 3,163 |
Residential - 1 to 4 Family |  |  | 2,296 |  |  |  | 198 |  |  |  | 2,494 |  |  |  | — |  |  |  | 2,494 |
Residential - 1 to 4 Family Investment |  |  | 1,437 |  |  |  | — |  |  |  | 1,437 |  |  |  | — |  |  |  | 1,437 |
Residential - Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | 141 |  |  |  | — |  |  |  | 141 |  |  |  | — |  |  |  | 141 |
Total |  | $ | 5,608 |  |  | $ | 3,798 |  |  | $ | 9,406 |  |  | $ | — |  |  | $ | 9,406 |
|  | December 31, 2025 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Loans Past Due |  |  |  |  |
|  | Nonaccrual |  |  | Nonaccrual |  |  | Total |  |  | Over 90 Days |  |  | Total |
(amounts in thousands) |  | with no ACL |  |  | with ACL |  |  | Nonaccrual |  |  | Still Accruing |  |  | Nonperforming |
Commercial and Industrial |  | $ | — |  |  | $ | 688 |  |  | $ | 688 |  |  | $ | — |  |  | $ | 688 |
Construction |  |  | 1,091 |  |  |  | — |  |  |  | 1,091 |  |  |  | — |  |  |  | 1,091 |
Commercial - Owner Occupied |  |  | 400 |  |  |  | — |  |  |  | 400 |  |  |  | — |  |  |  | 400 |
Commercial - Non-owner Occupied |  |  | 1,109 |  |  |  | 2,559 |  |  |  | 3,668 |  |  |  | — |  |  |  | 3,668 |
Residential - 1 to 4 Family |  |  | 2,965 |  |  |  | — |  |  |  | 2,965 |  |  |  | — |  |  |  | 2,965 |
Residential - 1 to 4 Family Investment |  |  | 1,840 |  |  |  | — |  |  |  | 1,840 |  |  |  | — |  |  |  | 1,840 |
Residential - Multifamily |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | 141 |  |  |  | — |  |  |  | 141 |  |  |  | — |  |  |  | 141 |
Total |  | $ | 7,546 |  |  | $ | 3,247 |  |  | $ | 10,793 |  |  | $ | — |  |  | $ | 10,793 |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is recorded in other liabilities and is adjusted through the provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. At March 31, 2026 and December 31, 2025, the allowance for credit losses on off-balance sheet credit exposures was $762.3 thousand and $829.1 thousand, respectively, on exposures totaling $198.0 million and $189.8 million, respectively. During the three months ended March 31, 2026 and 2025 , we recorded a recovery for credit losses of $66.8 thousand, and a provision for credit losses on off balance sheet exposures of $73.3 thousand, respectively. Allowance for Credit Losses (ACL) The following tables present the information regarding the allowance for credit losses for the three months ended March 31, 2026 and 2025:
|  |  |  |  |  |  |  |  |  | Real Estate Mortgage |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Commercial |  |  | Commercial |  |  |  |  |  |  | Residential |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Commercial |  |  |  |  |  |  | Owner |  |  | Non-owner |  |  | Residential |  |  | 1 to 4 Family |  |  | Residential |  |  |  |  |  |  |  |  |
|  | and Industrial |  |  | Construction |  |  | Occupied |  |  | Occupied |  |  | 1 to 4 Family |  |  | Investment |  |  | Multifamily |  |  | Consumer |  |  | Total |
|  | (Dollars in thousands) |
Three months ended March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2025 |  | $ | 1,008 |  |  | $ | 4,032 |  |  | $ | 2,239 |  |  | $ | 9,661 |  |  | $ | 8,205 |  |  | $ | 7,601 |  |  | $ | 1,845 |  |  | $ | 58 |  |  | $ | 34,649 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recoveries |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |
Provisions (benefits) |  |  | 21 |  |  |  | (137 | ) |  |  | (25 | ) |  |  | (436 | ) |  |  | (274 | ) |  |  | 526 |  |  |  | 596 |  |  |  | (2 | ) |  |  | 269 |
Ending Balance at March 31, 2026 |  | $ | 1,032 |  |  | $ | 3,895 |  |  | $ | 2,214 |  |  | $ | 9,225 |  |  | $ | 7,931 |  |  | $ | 8,127 |  |  | $ | 2,441 |  |  | $ | 56 |  |  | $ | 34,921 |
For the three months ended March 31, 2026, the increase to the Residential 1 to 4 Family Investment segment was due to an increase in the qualitative factors related to an increase in problem loans that are 30 - 89 days delinquent. The increase in the Residential Multifamily segment was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segment. The provision benefit during the three months ended March 31, 2026 to the Commercial Non-owner Occupied segment is due to a decrease in the problem loans balance that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.
|  |  |  |  |  |  |  |  |  | Real Estate Mortgage |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Commercial |  |  | Commercial |  |  |  |  |  |  | Residential |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Commercial |  |  |  |  |  |  | Owner |  |  | Non-owner |  |  | Residential |  |  | 1 to 4 Family |  |  | Residential |  |  |  |  |  |  |  |  |
|  | and Industrial |  |  | Construction |  |  | Occupied |  |  | Occupied |  |  | 1 to 4 Family |  |  | Investment |  |  | Multifamily |  |  | Consumer |  |  | Total |
|  | (Dollars in thousands) |
Three months ended March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2024 |  | $ | 1,097 |  |  | $ | 3,037 |  |  | $ | 1,871 |  |  | $ | 6,300 |  |  | $ | 9,166 |  |  | $ | 8,832 |  |  | $ | 2,203 |  |  | $ | 67 |  |  | $ | 32,573 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recoveries |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Provisions (benefits) |  |  | (50 | ) |  |  | (762 | ) |  |  | 599 |  |  |  | 1,061 |  |  |  | (352 | ) |  |  | 23 |  |  |  | (1 | ) |  |  | (1 | ) |  |  | 517 |
Ending Balance at March 31, 2025 |  | $ | 1,048 |  |  | $ | 2,275 |  |  | $ | 2,470 |  |  | $ | 7,361 |  |  | $ | 8,814 |  |  | $ | 8,855 |  |  | $ | 2,202 |  |  | $ | 66 |  |  | $ | 33,091 |
For the three months ended March 31, 2025, the increase to the Commercial Owner Occupied, and the Commercial Non-owner Occupied portfolio's was due to an increase in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments. The provision benefit during the quarter to the Construction segment is due to a decrease in the portfolio balance that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments. Collateral-Dependent Loans The following table presents the collateral-dependent loans by portfolio segment and collateral type at March 31, 2026:
|  |  |  |  |  | Business |  |  |  |  |
(amounts in thousands) |  | Real Estate |  |  | Assets |  |  | Other |
Commercial and Industrial |  | $ | 680 |  |  | $ | — |  |  | $ | — |
Construction |  |  | 1,091 |  |  |  | — |  |  |  | — |
Commercial - Owner Occupied |  |  | 400 |  |  |  | — |  |  |  | — |
Commercial - Non-owner Occupied |  |  | 3,163 |  |  |  | — |  |  |  | — |
Residential - 1 to 4 Family |  |  | 2,494 |  |  |  | — |  |  |  | — |
Residential - 1 to 4 Family Investment |  |  | 1,437 |  |  |  | — |  |  |  | — |
Residential - Multifamily |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | 141 |  |  |  | — |  |  |  | — |
Total |  | $ | 9,406 |  |  | $ | — |  |  | $ | — |
The following table presents the collateral-dependent loans by portfolio segment and collateral type at December 31, 2025:
|  |  |  |  |  | Business |  |  |  |  |
(amounts in thousands) |  | Real Estate |  |  | Assets |  |  | Other |
Commercial and Industrial |  | $ | 688 |  |  | $ | — |  |  | $ | — |
Construction |  |  | 1,091 |  |  |  | — |  |  |  | — |
Commercial - Owner Occupied |  |  | 400 |  |  |  | — |  |  |  | — |
Commercial - Non-owner Occupied |  |  | 3,668 |  |  |  | — |  |  |  | — |
Residential - 1 to 4 Family |  |  | 2,965 |  |  |  | — |  |  |  | — |
Residential - 1 to 4 Family Investment |  |  | 1,840 |  |  |  | — |  |  |  | — |
Residential - Multifamily |  |  | — |  |  |  | — |  |  |  | — |
Consumer |  |  | 141 |  |  |  | — |  |  |  | — |
Total |  | $ | 10,793 |  |  | $ | — |  |  | $ | — |
Credit Quality Indicators: As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to the risk grades of loans, the level of classified loans, net charge-offs, nonperforming loans (see details above) and the general economic conditions in the region. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 7. Grades 1 through 4 are considered “Pass”. A description of the general characteristics of the seven risk grades is as follows:
| 1. | Good: Borrower exhibits the strongest overall financial condition and represents the most creditworthy profile.
| 2. | Satisfactory (A): Borrower reflects a well-balanced financial condition, demonstrates a high level of creditworthiness and typically will have a strong banking relationship with the Bank.
| 3. | Satisfactory (B): Borrower exhibits a balanced financial condition and does not expose the Bank to more than a normal or average overall amount of risk. Loans are considered fully collectable.
| 4. | Watch List: Borrower reflects a fair financial condition, but there exists an overall greater than average risk. Risk is deemed acceptable by virtue of increased monitoring and control over borrowings. Probability of timely repayment is present.
| 5. | Other Assets Especially Mentioned (OAEM): Financial condition is such that assets in this category have a potential weakness or pose unwarranted financial risk to the Bank even though the asset value is not currently individually evaluated. The asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans that require an increased degree of monitoring or servicing as a result of internal or external changes.
| 6. | Substandard: This classification represents more severe cases of #5 (OAEM) characteristics that require increased monitoring. Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral. Asset has a well-defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset’s net book value.
| 7. | Doubtful: Assets which have all the weaknesses inherent in those assets classified #6 (Substandard) but the risks are more severe relative to financial deterioration in capital and/or asset value; accounting/evaluation techniques may be questionable and the overall possibility for collection in full is highly improbable. Borrowers in this category require constant monitoring, are considered work-out loans and present the potential for future loss to the Bank.
The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of March 31, 2026.
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans at |  |  |  |  |
(Dollars in thousands) |  | Term Loans Amortized Cost Basis by Origination Year |  |  | Amortized |  |  |  |  |
As of March 31, 2026 |  | 2026 |  |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | Prior |  |  | Cost Basis |  |  | Total |
Commercial and Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 226 |  |  | $ | 4,929 |  |  | $ | 751 |  |  | $ | 3,109 |  |  | $ | 299 |  |  | $ | 5,242 |  |  | $ | 24,581 |  |  | $ | 39,137 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 403 |  |  |  | — |  |  |  | 277 |  |  |  | 680 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 226 |  |  | $ | 4,929 |  |  | $ | 751 |  |  | $ | 3,109 |  |  | $ | 702 |  |  | $ | 5,242 |  |  | $ | 24,858 |  |  | $ | 39,817 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | — |  |  | $ | 1,002 |  |  | $ | 324 |  |  | $ | 305 |  |  | $ | 988 |  |  | $ | 194 |  |  | $ | 213,901 |  |  | $ | 216,714 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,091 |  |  |  | — |  |  |  | 1,091 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | — |  |  | $ | 1,002 |  |  | $ | 324 |  |  | $ | 305 |  |  | $ | 988 |  |  | $ | 1,285 |  |  | $ | 213,901 |  |  | $ | 217,805 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial – Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 6,655 |  |  | $ | 33,535 |  |  | $ | 23,157 |  |  | $ | 29,220 |  |  | $ | 33,828 |  |  | $ | 55,657 |  |  | $ | 2,239 |  |  | $ | 184,291 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 400 |  |  |  | — |  |  |  | 400 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 6,655 |  |  | $ | 33,535 |  |  | $ | 23,157 |  |  | $ | 29,220 |  |  | $ | 33,828 |  |  | $ | 56,057 |  |  | $ | 2,239 |  |  | $ | 184,691 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial – Non-owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 6,889 |  |  | $ | 108,733 |  |  | $ | 50,344 |  |  | $ | 13,113 |  |  | $ | 102,107 |  |  | $ | 174,973 |  |  | $ | 4,302 |  |  | $ | 460,461 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,159 |  |  |  | — |  |  |  | 2,159 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 361 |  |  |  | 14,002 |  |  |  | — |  |  |  | 14,363 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 6,889 |  |  | $ | 108,733 |  |  | $ | 50,344 |  |  | $ | 13,113 |  |  | $ | 102,468 |  |  | $ | 191,134 |  |  | $ | 4,302 |  |  | $ | 476,983 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential – 1 to 4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 10,225 |  |  | $ | 41,700 |  |  | $ | 42,313 |  |  | $ | 45,814 |  |  | $ | 93,114 |  |  | $ | 189,267 |  |  | $ | 5,537 |  |  | $ | 427,970 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 786 |  |  |  | 731 |  |  |  | 977 |  |  |  | — |  |  |  | 2,494 |
|  | $ | 10,225 |  |  | $ | 41,700 |  |  | $ | 42,313 |  |  | $ | 46,600 |  |  | $ | 93,845 |  |  | $ | 190,244 |  |  | $ | 5,537 |  |  | $ | 430,464 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential – 1 to 4 Family Investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 4,422 |  |  | $ | 37,623 |  |  | $ | 51,216 |  |  | $ | 67,270 |  |  | $ | 110,450 |  |  | $ | 206,680 |  |  | $ | — |  |  | $ | 477,661 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,108 |  |  |  | — |  |  |  | 329 |  |  |  | — |  |  |  | 1,437 |
|  | $ | 4,422 |  |  | $ | 37,623 |  |  | $ | 51,216 |  |  | $ | 68,378 |  |  | $ | 110,450 |  |  | $ | 207,009 |  |  | $ | — |  |  | $ | 479,098 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential – Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 14,804 |  |  | $ | 42,698 |  |  | $ | 13,913 |  |  | $ | 4,786 |  |  | $ | 71,389 |  |  | $ | 62,987 |  |  | $ | — |  |  | $ | 210,577 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 14,804 |  |  | $ | 42,698 |  |  | $ | 13,913 |  |  | $ | 4,786 |  |  | $ | 71,389 |  |  | $ | 62,987 |  |  | $ | — |  |  | $ | 210,577 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | 221 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,490 |  |  | $ | 9 |  |  | $ | 3,720 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 141 |  |  |  | — |  |  |  | 141 |
|  | $ | — |  |  | $ | — |  |  | $ | 221 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,631 |  |  | $ | 9 |  |  | $ | 3,861 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total Loan Receivable |  | $ | 43,221 |  |  | $ | 270,220 |  |  | $ | 182,239 |  |  | $ | 165,511 |  |  | $ | 413,670 |  |  | $ | 717,589 |  |  | $ | 250,846 |  |  | $ | 2,043,296 |
As of March 31, 2026, the Company was in the process of foreclosing on 21 residential 1 to 4 family loans with a principal balance of $5.2 million. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2025.
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans at |  |  |  |  |
(Dollars in thousands) |  | Term Loans Amortized Cost Basis by Origination Year |  |  | Amortized |  |  |  |  |
As of December 31, 2025 |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Cost Basis |  |  | Total |
Commercial and Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 4,990 |  |  | $ | 879 |  |  | $ | 3,313 |  |  | $ | 305 |  |  | $ | 2 |  |  | $ | 5,778 |  |  | $ | 22,717 |  |  | $ | 37,984 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 411 |  |  |  | — |  |  |  | — |  |  |  | 277 |  |  |  | 688 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 4,990 |  |  | $ | 879 |  |  | $ | 3,313 |  |  | $ | 716 |  |  | $ | 2 |  |  | $ | 5,778 |  |  | $ | 22,994 |  |  | $ | 38,672 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,001 |  |  | $ | 325 |  |  | $ | 307 |  |  | $ | 1,396 |  |  | $ | — |  |  | $ | 193 |  |  | $ | 207,994 |  |  | $ | 211,216 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,091 |  |  |  | — |  |  |  | 1,091 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 1,001 |  |  | $ | 325 |  |  | $ | 307 |  |  | $ | 1,396 |  |  | $ | — |  |  | $ | 1,284 |  |  | $ | 207,994 |  |  | $ | 212,307 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial – Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 32,560 |  |  | $ | 23,259 |  |  | $ | 32,471 |  |  | $ | 34,016 |  |  | $ | 11,545 |  |  | $ | 46,025 |  |  | $ | 2,253 |  |  | $ | 182,129 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 400 |  |  |  | — |  |  |  | 400 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 32,560 |  |  | $ | 23,259 |  |  | $ | 32,471 |  |  | $ | 34,016 |  |  | $ | 11,545 |  |  | $ | 46,425 |  |  | $ | 2,253 |  |  | $ | 182,529 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial – Non-owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 109,092 |  |  | $ | 50,669 |  |  | $ | 14,659 |  |  | $ | 102,688 |  |  | $ | 29,279 |  |  | $ | 150,007 |  |  | $ | 4,794 |  |  | $ | 461,188 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,176 |  |  |  | — |  |  |  | 2,176 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 370 |  |  |  | — |  |  |  | 14,561 |  |  |  | — |  |  |  | 14,931 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 109,092 |  |  | $ | 50,669 |  |  | $ | 14,659 |  |  | $ | 103,058 |  |  | $ | 29,279 |  |  | $ | 166,744 |  |  | $ | 4,794 |  |  | $ | 478,295 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 202 |  |  | $ | — |  |  | $ | 202 |
Residential – 1 to 4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 59,089 |  |  | $ | 43,287 |  |  | $ | 47,018 |  |  | $ | 95,574 |  |  | $ | 49,503 |  |  | $ | 148,408 |  |  | $ | 5,619 |  |  | $ | 448,498 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | 841 |  |  |  | 733 |  |  |  | — |  |  |  | 1,391 |  |  |  | — |  |  |  | 2,965 |
|  | $ | 59,089 |  |  | $ | 43,287 |  |  | $ | 47,859 |  |  | $ | 96,307 |  |  | $ | 49,503 |  |  | $ | 149,799 |  |  | $ | 5,619 |  |  | $ | 451,463 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | 47 |  |  | $ | — |  |  | $ | — |  |  | $ | 203 |  |  | $ | — |  |  | $ | 250 |
Residential – 1 to 4 Family Investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 39,340 |  |  | $ | 52,575 |  |  | $ | 70,258 |  |  | $ | 114,208 |  |  | $ | 90,734 |  |  | $ | 125,273 |  |  | $ | — |  |  | $ | 492,388 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | 985 |  |  |  | 525 |  |  |  | — |  |  |  | 330 |  |  |  | — |  |  |  | 1,840 |
|  | $ | 39,340 |  |  | $ | 52,575 |  |  | $ | 71,243 |  |  | $ | 114,733 |  |  | $ | 90,734 |  |  | $ | 125,603 |  |  | $ | — |  |  | $ | 494,228 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential – Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 27,456 |  |  | $ | 13,952 |  |  | $ | 4,812 |  |  | $ | 63,789 |  |  | $ | 31,067 |  |  | $ | 32,535 |  |  | $ | — |  |  | $ | 173,611 |
OAEM |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 27,456 |  |  | $ | 13,952 |  |  | $ | 4,812 |  |  | $ | 63,789 |  |  | $ | 31,067 |  |  | $ | 32,535 |  |  | $ | — |  |  | $ | 173,611 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | 226 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,746 |  |  | $ | 9 |  |  | $ | 3,981 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 141 |  |  |  | — |  |  |  | 141 |
|  | $ | — |  |  | $ | 226 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,887 |  |  | $ | 9 |  |  | $ | 4,122 |
Current period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total Loan Receivable |  | $ | 273,528 |  |  | $ | 185,172 |  |  | $ | 174,664 |  |  | $ | 414,015 |  |  | $ | 212,130 |  |  | $ | 532,055 |  |  | $ | 243,663 |  |  | $ | 2,035,227 |
Modifications to Borrowers Experiencing Financial Difficulty During the periods ended March 31, 2026 and 2025, the Company did not make any modifications to borrowers experiencing financial difficulty.

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- Definition The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent + Details
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