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Loans Receivable and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Loans Receivable and Allowance for Credit Losses [Abstract]  
Loans Receivable and Allowance for Credit Losses Note 5 - Loans Receivable and Allowance for Credit Losses

The following table presents the recorded investment in loans receivable at December 31, 2025 and December 31, 2024 by segment and class:

 

December 31, 2025

December 31, 2024

(In Thousands)

Loans:

Residential one-to-four family

$

226,708 

$

239,870 

Commercial and multi-family (1)

2,040,768 

2,155,929 

Cannabis related (2)

69,293 

103,206 

Construction (1)

68,521 

130,589 

Commercial business (1) (3)

168,459 

242,239 

Business express

74,862 

92,947 

Home equity (4)

74,332 

66,769 

Consumer

3,580 

2,235 

Total Loans

2,726,523 

3,033,784 

Less:

Deferred loan fees, net

(1,741)

(2,736)

Allowance for credit losses

(33,691)

(34,789)

(35,432)

(37,525)

Total Loans, net

$

2,691,091 

$

2,996,259 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

The Company occasionally transfers a portion of its originated commercial loans to participating lending partners. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying consolidated statements of financial condition. The Company and its lending partners share proportionally in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans, collects cash payments from the borrowers, remits payments (net of servicing fees), and disburses required escrow funds to relevant parties.

At December 31, 2025 and 2024, loans serviced by the Bank for the benefit of others totaled $103.6 million and $116.5 million, respectively.

Related-Party Loans

The Bank grants loans to its officers and directors and to their affiliates. The activity with respect to loans to directors, officers and affiliates of such persons, is as follows:

 

Years Ended December 31,

2025

2024

(In Thousands)

Balance - beginning

$

26,505 

$

28,208 

Loans originated

-

-

Changes in related party status

(57)

-

Collections of principal

(551)

(1,703)

Balance - ending

$

25,897 

$

26,505 


‎

Note 5- Loans Receivable and Allowance for Credit Losses (continued)

Allowance for Credit losses

The Company engages a third-party vendor to assist in the CECL calculation and has established a robust internal governance framework to oversee the quarterly estimation process for the allowance for credit losses (“ACL”). The ACL calculation methodology relies on regression-based discounted cash flow (“DCF”) models that correlate relationships between certain financial metrics and external market and macroeconomic variables. The following are some of the key factors and assumptions that are used in the Company’s CECL calculations:

methods based on probability of default and loss given default which are modeled based on macroeconomic scenarios;

a reasonable and supportable forecast period determined based on management’s current review of macroeconomic environment;

a reversion period after the reasonable and supportable forecast period;

estimated prepayment rates based on the Company’s historical experience and future macroeconomic environment;

estimated credit utilization rates based on the Company’s historical experience and future macroeconomic environment; and

incorporation of qualitative factors not captured within the modeled results. The qualitative factors include but are not limited to changes in lending policies, business conditions, changes in the nature and size of the portfolio, portfolio concentrations, and external factors such as competition.

Allowance for credit losses are aggregated for the major loan segments, with similar risk characteristics, summarized below. However, for the purposes of calculating the reserves, these segments may be further broken down into loan classes by risk characteristics that include but are not limited to regulatory call codes, industry type, geographic location, and collateral type.

Residential one-to-four family real estate loans involve certain risks such as interest rate risk and risk of non-repayment. Adjustable-rate residential real estate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying properties may be adversely affected by higher interest rates. Repayment risk may be affected by a number of factors including, but not necessarily limited to, job loss, divorce, illness and personal bankruptcy of the borrower.

Commercial and multi-family real estate lending entails additional risks as compared with residential family property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. The payment experience on such loans is typically dependent on the successful operation of the real estate project. The success of such projects is sensitive to changes in supply and demand conditions in the market for commercial real estate as well as general economic conditions.

Cannabis related loans include commercial and multi-family, construction, and commercial business loans to borrowers involved in the cannabis industry and have the risks inherent in such loan types discussed herein. In addition, while medical use cannabis and recreational use businesses are legal in numerous states, including our primary markets of New Jersey and New York, such businesses are not legal at the federal level and marijuana remains a Schedule I drug under the Controlled Substances Act of 1970. Federal prosecutors have significant discretion and there can be no assurance that the federal prosecutors will not choose to strictly enforce the federal laws governing cannabis. Any change in the federal government’s enforcement position could potentially subject our borrowers to criminal prosecution and other sanctions, which would have a material adverse effect on their businesses.

Construction lending is generally considered to involve a high risk due to the concentration of principal in a limited number of loans and borrowers and the effects of the general economic conditions on developers and builders. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost (including interest) of the project. The nature of these loans is such that they are generally difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not necessarily pre-sold and thus pose a greater potential risk to the Bank than construction loans to individuals on their personal residence.

Commercial business lending, including lines of credit, is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Commercial business loans are primarily secured by inventories and other business assets. In many cases, any repossessed collateral for a defaulted commercial business loan will not provide an adequate source of repayment of the outstanding loan balance. The Bank has further segregated its commercial business portfolio into commercial business express loans that carry higher risk relative to other commercial business loans. The Bank had originated commercial business express loans to support small business owners coming out of the COVID crisis. The portfolio consists of a large number of loans with majority of the loans carrying a balance of $250,000 or lower.

Home equity lending entails certain risks such as interest rate risk and risk of non-repayment. The marketability of the underlying property may be adversely affected by higher interest rates, decreasing the collateral value securing the loan. Repayment risk can be affected by job loss, divorce, illness and personal bankruptcy of the borrower. Home equity line of credit lending entails securing an equity interest in the borrower’s home. In many cases, the Bank’s position in these loans is as a junior lien holder to another institution’s superior lien. This type of lending is often priced on an adjustable-rate basis with the rate set at or above a predefined index. Adjustable-rate loans decrease the interest rate risk to the Bank that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default.

Other consumer loans generally have more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans generally have shorter terms and higher interest rates than other lending. In addition, consumer lending collections are dependent on the borrower’s continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness and personal bankruptcy. In many cases, any repossessed collateral for a defaulted consumer loan will not provide an adequate source of repayment of the outstanding loan.

Note 5- Loans Receivable and Allowance for Credit Losses (continued)

The following tables set forth the activity in the Bank’s allowance for credit losses and recorded investment in loans receivable at December 31, 2025, December 31, 2024 and December 31, 2023. The table also details the amount of total loans receivable, which are evaluated individually and collectively, for credit losses, and the related portion of the allowance for credit losses that is allocated to each loan class (In Thousands):

Residential

Commercial & Multi-family (1)

Cannabis Related (2)

Construction (1)

Commercial Business (1) (3)

Business Express

Home Equity (4)

Consumer

Total

Allowance for credit losses:

Beginning Balance, January 1, 2025

$

1,947 

$

10,451 

$

1,613 

$

1,902 

$

10,497 

$

7,769 

$

594 

$

16 

$

34,789 

Charge-offs

-

(419)

(13,520)

-

(19,457)

(11,328)

-

-

(44,724)

Recoveries

75

-

-

-

7

1,533

-

-

1,615

Provision (benefit)

(246)

2,025

13,384

(1,234)

15,629

12,416

38

(1)

42,011

Ending Balance, December 31, 2025

$

1,776

$

12,057

$

1,477

$

668

$

6,676

$

10,390

$

632

$

15

$

33,691

Ending Balance attributable to loans:

Individually evaluated

$

-

$

2,657

$

-

$

-

$

2,938

$

998

$

-

$

-

$

6,593

Collectively evaluated

1,776

9,400

1,477

668

3,738

9,392

632

15

27,098

Ending Balance, December 31, 2025

$

1,776

$

12,057

$

1,477

$

668

$

6,676

$

10,390

$

632

$

15

$

33,691

Loans Receivable:

Individually evaluated

$

1,392

$

130,581

$

-

$

18,888

$

10,073

$

998

$

294

$

-

$

162,226

Collectively evaluated

225,316

1,910,187

69,293

49,633

158,386

73,864

74,038

3,580

2,564,297

Total Gross Loans, December 31, 2025

$

226,708

$

2,040,768

$

69,293

$

68,521

$

168,459

$

74,862

$

74,332

$

3,580

$

2,726,523

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

The decrease in the allowance for credit losses on loans during the year ended December 31, 2025 was primarily due to a decrease in reserves on individually evaluated loans offset by an increase in reserves on collectively evaluated business express loans.


‎

Note 5- Loans Receivable and Allowance for Credit Losses (continued)

Residential

Commercial & Multi-family (1)

Cannabis Related (2)

Construction (1)

Commercial Business (1) (3)

Business Express

Home Equity (4)

Consumer

Total

Allowance for credit losses:

Beginning Balance, January 1, 2024

$

2,344 

$

15,343 

$

2,344 

$

3,758 

$

4,508 

$

4,542 

$

691 

$

78 

$

33,608 

Charge-offs

-

(531)

-

-

(1,799)

(8,038)

-

(467)

(10,835)

Recoveries

48 

-

-

-

371 

27 

-

-

446 

Provision (benefit)

(445)

(4,361)

(731)

(1,856)

7,417 

11,238 

(97)

405 

11,570 

Ending Balance, December 31, 2024

$

1,947 

$

10,451 

$

1,613 

$

1,902 

$

10,497 

$

7,769 

$

594 

$

16 

$

34,789 

Ending Balance attributable to loans:

Individually evaluated

$

-

$

1,473 

$

-

$

-

$

4,725 

$

5,619 

$

-

$

-

$

11,817 

Collectively evaluated

1,947 

8,978 

1,613 

1,902 

5,772 

2,150 

594 

16 

22,972 

Ending Balance, December 31, 2024

$

1,947 

$

10,451 

$

1,613 

$

1,902 

$

10,497 

$

7,769 

$

594 

$

16 

$

34,789 

Loans Receivable:

Individually evaluated

$

853 

$

64,735 

$

-

$

586 

$

11,163 

$

5,619 

$

443 

$

-

$

83,399 

Collectively evaluated

239,017 

2,091,194 

103,206 

130,003 

231,076 

87,328 

66,326 

2,235 

2,950,385 

Total Gross Loans, December 31, 2024

$

239,870 

$

2,155,929 

$

103,206 

$

130,589 

$

242,239 

$

92,947 

$

66,769 

$

2,235 

$

3,033,784 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

Residential

Commercial & Multi-family (1)

Cannabis Related (2)

Construction (1)

Commercial Business (1) (3)

Business Express

Home Equity (4)

Consumer

Unallocated

Total

Allowance for credit losses:

Ending Balance, December 31, 2022

2,474 

21,381

402

2,073

4,482

872 

485 

24 

180 

32,373 

Effect of adopting ASU No. 2016-13 ("CECL")

144 

(6,953)

(145)

1,369

1,727

(316)

182 

7 

(180)

(4,165)

Beginning Balance, January 1, 2023

$

2,618 

$

14,428

$

257

$

3,442

$

6,209

$

556 

$

667 

$

31 

$

-

$

28,208 

Charge-offs:

-

-

-

-

-

(805)

-

-

-

(805)

Recoveries:

45 

-

-

-

29 

11 

16 

-

-

101 

Provision (benefit):

(319)

915

2,087

316

(1,730)

4,780 

8 

47 

-

6,104 

Ending Balance, December 31, 2023

$

2,344 

$

15,343

$

2,344

$

3,758

$

4,508

$

4,542 

$

691 

$

78 

$

-

$

33,608 

Ending Balance attributable to loans:

Individually evaluated

$

-

$

990 

$

1,157

$

310 

$

975

$

797 

$

-

$

-

$

-

$

4,229 

Collectively evaluated

2,344 

14,353

1,187

3,448

3,533

3,745 

691 

78 

-

29,379 

Ending Balance, December 31, 2023

$

2,344 

$

15,343

$

2,344

$

3,758

$

4,508

$

4,542 

$

691 

$

78 

$

-

$

33,608 

Loans Receivable:

Individually evaluated

$

444 

$

40,417

$

5,342

$

2,898

$

3,909

$

797 

$

212 

$

-

$

-

$

54,019 

Collectively evaluated

247,851 

2,299,039

103,619

185,035

255,946

102,131 

66,119 

3,643 

-

3,263,383 

Total Gross Loans, December 31, 2023

$

248,295 

$

2,339,456

$

108,961

$

187,933

$

259,855

$

102,928 

$

66,331 

$

3,643 

$

-

$

3,317,402 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

Note 5- Loans Receivable and Allowance for Credit Losses (continued)

The following table presents the activity in the allowance for credit losses on off-balance sheet exposures for the years ended December 31, 2025, 2024, and 2023.

Twelve Months Ended December 31,

2025

2024

2023

(in Thousands)

Allowance for Credit Losses:

Beginning Balance

$

813 

$

694 

$

-

Impact of adopting ASU No. 2016-13 ("CECL") effective January 1, 2023

-

-

1,266 

Provision (benefit) for credit losses

17 

119 

(572)

$

830 

$

813

$

694

The tables below set forth the amounts and types of nonaccrual loans in the Bank’s loan portfolio at December 31, 2025 and 2024, respectively. Loans are generally placed on nonaccrual status when they become more than 90 days delinquent, or when the collection of principal and/or interest become doubtful.

As of December 31, 2025, nonaccrual loans differed from the amount of total loans past due greater than 90 days due to loans 90 days past due but still accruing interest or loans that were previously 90 days past due both of which are maintained on nonaccrual status for a minimum of six months until the borrower has demonstrated their ability to satisfy the terms of the loan.

As of December 31, 2025

(in Thousands)

Nonaccrual loans with an Allowance for Credit Losses

Nonaccrual loans without an Allowance for Credit Losses

Total Nonaccrual loans

Amortized Cost of Loans Past Due 90 Days and Still Accruing

Residential one-to-four family

$

-

$

1,554

$

1,554

$

-

Commercial and multi-family (1)

2,500

49,659

52,159

-

Cannabis related (2)

-

-

-

-

Construction (1)

-

4,897

4,897

-

Commercial business (1) (3)

1,660

2,065

3,725

-

Business express

626

-

626

-

Home equity (4)

-

294

294

-

Total

$

4,786

$

58,469

$

63,255

$

-

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

As of December 31, 2024

(in Thousands)

Nonaccrual loans with an Allowance for Credit Losses

Nonaccrual loans without an Allowance for Credit Losses

Total Nonaccrual loans

Amortized Cost of Loans Past Due 90 Days and Still Accruing

Residential one-to-four family

$

534 

$

853 

$

1,387 

$

-

Commercial and multi-family (1)

4,823 

28,151 

32,974 

6,049 

Cannabis related (2)

-

-

-

-

Construction (1)

-

586 

586 

-

Commercial business (1) (3)

5,208 

2,425 

7,633 

-

Business express

1,706 

191 

1,897 

1,677 

Home equity (4)

-

231 

231 

-

Total

$

12,271 

$

32,437 

$

44,708 

$

7,726 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

Had nonaccrual loans been performing in accordance with their original terms, the interest income recognized for the years ended December 31, 2025 and 2024 would have been approximately $5.4 million and $5.6 million, respectively. Interest income recognized on loans returned to accrual was approximately $3.9 million and $1.4 million, respectively. The Bank is not committed to lend additional funds to the borrowers whose loans have been placed on a nonaccrual status. At December 31, 2025, there were no loans which were more than ninety days past due and still accruing interest. At December 31, 2024, there were $7.7 million in loans which were more than ninety days past due and still accruing interest.


‎

Note 5- Loans Receivable and Allowance for Credit Losses (continued)

The following table sets forth the delinquency status of total loans receivable at December 31, 2025:

Greater Than

30-59 Days

60-90 Days

90 Days

Total Past

Total Loans

Past Due

Past Due

Past Due

Due

Current

Receivable

(In Thousands)

Residential one-to-four family

$

4,342 

$

279 

$

594 

$

5,215 

$

221,493 

$

226,708 

Commercial and multi-family (1)

17,600 

3,296 

51,979 

72,875 

1,967,893 

2,040,768 

Cannabis related (2)

-

-

-

-

69,293 

69,293 

Construction (1)

-

-

4,897 

4,897 

63,624 

68,521 

Commercial business (1) (3)

8,583 

1,041 

2,975 

12,599 

155,860 

168,459 

Business express

1,961 

-

-

1,961 

72,901 

74,862 

Home equity (4)

1,289 

65 

231 

1,585 

72,747 

74,332 

Consumer

-

-

-

-

3,580 

3,580 

Total

$

33,775 

$

4,681 

$

60,676 

$

99,132 

$

2,627,391 

$

2,726,523 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.

The following table sets forth the delinquency status of total loans receivable at December 31, 2024:

Greater Than

30-59 Days

60-90 Days

90 Days

Total Past

Total Loans

Past Due

Past Due

Past Due

Due

Current

Receivable

(In Thousands)

Residential one-to-four family

$

3,229 

$

-

$

302 

$

3,531 

$

236,339 

$

239,870 

Commercial and multi-family (1)

8,279 

2,673 

30,903 

41,855 

2,114,074 

2,155,929 

Cannabis related (2)

-

-

-

-

103,206 

103,206 

Construction (1)

-

1,829 

586 

2,415 

128,174 

130,589 

Commercial business (1) (3)

9,125 

580 

3,795 

13,500 

228,739 

242,239 

Business express

6,714 

3,452 

3,141 

13,307 

79,640 

92,947 

Home equity (4)

1,846 

18 

231 

2,095 

64,674 

66,769 

Consumer

-

-

-

-

2,235 

2,235 

Total

$

29,193 

$

8,552 

$

38,958 

$

76,703 

$

2,957,081 

$

3,033,784 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.


‎

Note 5 - Loans Receivable and Allowance for Credit Losses (continued)

Modifications

The following tables show the amortized cost basis of loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of concession granted for the twelve months ended December 31, 2025 and 2024.

For the Twelve Months Ended December 31, 2025

(In Thousands)

Number

Payment Delay

Term Extension

Rate & Term Reduction

Total Principal

% of Total Class of Financing Receivable

Residential

1 

$

162 

$

-

$

-

$

162 

0.07 

%

Commercial and multi-family

1 

-

25,523 

-

25,523 

1.25 

Commercial business

5 

-

717 

344 

1,061 

0.63 

Business express

97 

-

20,008 

-

20,008 

26.73 

104 

$

162 

$

46,248 

$

344 

$

46,754 

1.71 

For the Twelve Months Ended December 31, 2024

(In Thousands)

Number

Payment Delay

Term Extension

Rate & Term Reduction

Total Principal

% of Total Class of Financing Receivable

Residential

1 

$

173 

$

-

$

-

$

173 

0.07 

%

Commercial and multi-family

1 

-

-

15,036 

15,036 

0.67 

Commercial business

1 

1,294 

-

-

1,294 

0.52 

Business express

276 

-

63,299 

-

63,299 

68.10 

279 

$

1,467 

$

63,299 

$

15,036 

$

79,802 

2.63 

The following tables present loan modifications made during the twelve months ended December 31, 2025 and 2024 by payment status.

For the Twelve Months Ended December 31, 2025

(In Thousands)

Current

30-59 Days Past Due

60-90 Days Past Due

Greater than 90 Days Past Due & Accruing

Nonaccrual

Total

Residential

$

-

$

-

$

-

$

-

$

162

$

162

Commercial and multi-family

25,523

-

-

-

-

25,523

Commercial business

394

244

-

-

667

1,305

Business express

19,138

-

-

-

626

19,764

$

45,055

$

244

$

-

$

-

$

1,455

$

46,754

For the Twelve Months Ended December 31, 2024

(In Thousands)

Current

30-59 Days Past Due

60-90 Days Past Due

Greater than 90 Days Past Due & Accruing

Nonaccrual

Total

Residential

$

-

$

173 

$

-

$

-

$

-

$

173 

Commercial and multi-family

15,036 

-

-

-

-

15,036 

Commercial business

-

-

-

-

1,294 

1,294 

Business express

62,791 

74 

-

-

434 

63,299 

$

77,827 

$

247 

$

-

$

-

$

1,728 

$

79,802 

The Company monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts.

For modified loans, a subsequent payment default occurs after management evaluates a borrower’s financial condition subsequent to modification and upon evaluating facts and circumstances determines the borrower is not adhering to the terms of the modification but no later than when a principal or interest payment is 90 days past due or the loan has been classified into non-accrual status during the reporting period.

Of the loans modified during the preceding twelve months, there were eight Business express loans with a combined balance of $2.1 million that subsequently defaulted and were charged-off in full. There was one Commercial business loans with a balances of $246,000 that subsequently defaulted and was charged-off in full.


‎

Note 5 - Loans Receivable and Allowance for Credit Losses (continued)

Criticized and Classified Assets

The Company’s policies provide for a classification system for problem assets. Under this classification system, problem assets are classified as “substandard,” “doubtful,” or “loss.”

When the Company classifies problem assets, the Company may establish general allowances for credit losses in an amount deemed prudent by management. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. A portion of general loss allowances established to cover possible losses related to assets classified as substandard or doubtful may be included in determining our regulatory capital. Specific valuation allowances for credit losses generally do not qualify as regulatory capital. As of December 31, 2025, the Company had $188.9 million in assets classified as substandard, of which $162.2 million were individually evaluated. As of December 31, 2024, the Company had $152.7 million in assets classified as substandard, of which $83.4 million were also individually evaluated. The loans classified as substandard are comprised of unsecured commercial loans, commercial loans secured by commercial real estate, commercial business assets, and residential real estate. The loans that have been classified substandard were classified as such primarily due to payment status, updated financial information has not been timely provided, or the collateral underlying the loan is in the process of being revalued.

The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies.  The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list (risk ratings 1-5) are treated as “pass” for grading purposes. The “criticized” risk rating (6) and the “classified” risk ratings (7-9) are detailed below:

6 – Special Mention- Loans currently performing but with potential weaknesses including adverse trends in borrower’s operations, credit quality, financial strength, or possible collateral deficiency.

7 – Substandard- Loans that are inadequately protected by current sound worth, paying capacity, and collateral support. Loans on “nonaccrual” status. The loan needs special and corrective attention.

8 – Doubtful- Weaknesses in credit quality and collateral support make full collection improbable, but pending reasonable factors remain sufficient to defer the loss status.

9 – Loss- Continuance as a bankable asset is not warranted. However, this does not preclude future attempts at partial recovery.

Residential, home equity, and consumer loans are rated pass at origination with subsequent adjustments based on delinquency status.


‎

Note 5 - Loans Receivable and Allowance for Credit Losses (continued)

The following table presents the loan portfolio types summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful, and loss within the Company’s internal risk rating system as of December 31, 2025 and 2024 (In Thousands):

Loans by Year of Origination at December 31, 2025

2025

2024

2023

2022

2021

Prior

Revolving Loans

Revolving Loans to Term Loans

Total

Residential one-to-four family

Pass

$

10,255

$

11,887

$

15,164

$

43,691

$

33,586

$

107,069

$

-

$

-

$

221,652

Special Mention

-

-

-

1,802

910

790

-

-

3,502

Substandard

-

-

-

-

445

1,109

-

-

1,554

Total one-to-four family

$

10,255

$

11,887

$

15,164

$

45,493

$

34,941

$

108,968

$

-

$

-

$

226,708

Commercial and multi-family (1)

Pass

$

50,098

$

8,293

$

184,486

$

613,331

$

151,205

$

773,732

$

8,760

$

-

$

1,789,905

Special Mention

-

-

-

28,029

11,307

58,141

-

-

97,477

Substandard

-

-

1,633

68,011

18,795

64,807

140

-

153,386

Total Commercial and multi-family

$

50,098

$

8,293

$

186,119

$

709,371

$

181,307

$

896,680

$

8,900

$

-

$

2,040,768

Cannabis related (2)

Pass

$

-

$

-

$

-

$

8,385

$

2,067

$

7,958

$

8,050

$

-

$

26,460

Special Mention

-

-

18,981

17,552

5,442

-

858

-

42,833

Substandard

-

-

-

-

-

-

-

-

-

Total Cannabis Related

$

-

$

-

$

18,981

$

25,937

$

7,509

$

7,958

$

8,908

$

-

$

69,293

Construction (1)

Pass

$

917

$

2,004

$

15,752

$

19,460

$

4,403

$

-

$

4,803

$

-

$

47,339

Special Mention

-

-

2,294

-

-

-

-

-

2,294

Substandard

-

-

-

15,715

2,587

586

-

-

18,888

Total Construction

$

917

$

2,004

$

18,046

$

35,175

$

6,990

$

586

$

4,803

$

-

$

68,521

Commercial business (1) (3)

Pass

$

-

$

7,388

$

1,995

$

4,829

$

1,039

$

24,455

$

93,029

$

-

$

132,735

Special Mention

-

-

-

-

1,458

2,358

18,153

-

21,969

Substandard

-

-

-

-

-

2,047

11,708

-

13,755

Total Commercial business

$

-

$

7,388

$

1,995

$

4,829

$

2,497

$

28,860

$

122,890

$

-

$

168,459

Business express

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

$

71,843

$

71,843

Special Mention

-

-

-

-

-

-

2,021

2,021

Substandard

-

-

-

-

-

-

397

601

998

Total Business express

$

-

$

-

$

-

$

-

$

-

$

-

$

397

$

74,465

$

74,862

Home equity (4)

Pass

$

1,796

$

164

$

3,293

$

1,246

$

396

$

4,914

$

57,357

$

4,319

$

73,485

Special Mention

-

-

-

-

-

42

511

-

553

Substandard

-

-

-

-

-

114

30

150

294

Total Home equity

$

1,796

$

164

$

3,293

$

1,246

$

396

$

5,070

$

57,898

$

4,469

$

74,332

Consumer

Pass

$

1,824

$

272

$

1,106

$

290

$

2

$

80

$

6

$

-

$

3,580

Special Mention

-

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

-

Total Consumer

$

1,824

$

272

$

1,106

$

290

$

2

$

80

$

6

$

-

$

3,580

Total Loans

$

64,890

$

30,008

$

244,704

$

822,341

$

233,642

$

1,048,202

$

203,802

$

78,934

$

2,726,523

Gross charge-offs

$

-

$

-

$

-

$

12,836

$

282

$

3,848

$

18,166

$

9,592

$

44,724

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.


‎

Note 5 - Loans Receivable and Allowance for Credit Losses (continued)

Loans by Year of Origination at December 31, 2024

2024

2023

2022

2021

2020

Prior

Revolving Loans

Revolving Loans to Term Loans

Total

Residential one-to-four family

Pass

$

12,059 

$

16,586 

$

47,544 

$

37,639 

$

28,550 

$

92,376 

$

-

$

-

$

234,754 

Special Mention

-

-

3,555 

-

-

174 

-

-

3,729 

Substandard

-

-

301 

173 

-

913 

-

-

1,387 

Total one-to-four family

$

12,059 

$

16,586 

$

51,400 

$

37,812 

$

28,550 

$

93,463 

$

-

$

-

$

239,870 

Commercial and multi-family (1)

Pass

$

9,105 

$

183,547 

$

604,868 

$

154,968 

$

158,029 

$

709,239 

$

2,610 

$

-

$

1,822,366 

Special Mention

-

-

108,076 

37,600 

9,232 

47,756 

140 

-

202,804 

Substandard

-

10,115 

33,958 

13,027 

11,782 

61,877 

-

-

130,759 

Total Commercial and multi-family

$

9,105 

$

193,662 

$

746,902 

$

205,595 

$

179,043 

$

818,872 

$

2,750 

$

-

$

2,155,929 

Cannabis related (2)

Pass

$

-

$

19,384 

$

26,626 

$

2,129 

$

8,213 

$

-

$

6,863 

$

-

$

63,215 

Special Mention

-

9,761 

24,636 

4,844 

-

-

750 

-

39,991 

Substandard

-

-

-

-

-

-

-

-

-

Total Cannabis related

$

-

$

29,145 

$

51,262 

$

6,973 

$

8,213 

$

-

$

7,613 

$

-

$

103,206 

Construction (1)

Pass

$

4 

$

34,906 

$

37,624 

$

-

$

-

$

-

$

5,824 

$

-

$

78,358 

Special Mention

-

1,521 

3,792 

42,330 

3,745 

-

-

-

51,388 

Substandard

-

257 

-

-

586 

-

-

-

843 

Total Construction

$

4 

$

36,684 

$

41,416 

$

42,330 

$

4,331 

$

-

$

5,824 

$

-

$

130,589 

Commercial business (1) (3)

Pass

$

-

$

2,477 

$

266 

$

475 

$

3,711 

$

28,902 

$

156,581 

$

663 

$

193,075 

Special Mention

-

8,874 

-

1,878 

194 

4,835 

19,548 

409 

35,738 

Substandard

-

-

-

-

-

5,884 

7,542 

-

13,426 

Total Commercial business

$

-

$

11,351 

$

266 

$

2,353 

$

3,905 

$

39,621 

$

183,671 

$

1,072 

$

242,239 

Business express

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

23,739 

$

59,189 

$

82,928 

Special Mention

-

-

-

-

-

-

1,506 

2,894 

4,400 

Substandard

-

-

-

-

-

-

3,082 

2,537 

5,619 

Total Business express

$

-

$

-

$

-

$

-

$

-

$

-

$

28,327 

$

64,620 

$

92,947 

Home equity (4)

Pass

$

300 

$

3,767 

$

1,369 

$

501 

$

549 

$

5,754 

$

51,829 

$

2,186 

$

66,255 

Special Mention

-

-

-

-

-

18 

-

-

18 

Substandard

-

-

53 

-

81 

-

-

362 

496 

Total Home equity

$

300 

$

3,767 

$

1,422 

$

501 

$

630 

$

5,772 

$

51,829 

$

2,548 

$

66,769 

Consumer

Pass

$

623 

$

1,117 

$

389 

$

5 

$

95 

$

-

$

6 

$

-

$

2,235 

Special Mention

-

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

-

Total Consumer

$

623 

$

1,117 

$

389 

$

5 

$

95 

$

-

$

6 

$

-

$

2,235 

Total Loans

$

22,091 

$

292,312 

$

893,057 

$

295,569 

$

224,767 

$

957,728 

$

280,020 

$

68,240 

$

3,033,784 

Gross charge-offs

$

446 

$

20 

$

-

$

174 

$

-

$

1,133 

$

8,381 

$

681 

$

10,835 

(1) Excludes Cannabis related loans.

(2) Includes Commercial and multi-family, Construction, and Commercial business loans to borrowers involved in the cannabis industry.

(3) Excludes Business express loans.

(4) Includes Home equity lines of credit.
‎