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Note 3 - Loans

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE 3 – LOANS

Loans are summarized as follows at March 31, 2025 and December 31, 2024:

		*March 31,*				*December 31,*
		*2025*				*2024*
Real estate:		(unaudited)
Residential First Mortgage		$	466,177,175			$	472,747,542
Commercial Real Estate			125,783,750				118,008,866
Multi-Family Real Estate			73,465,142				74,152,418
Construction			33,501,463				43,183,657
Commercial and Industrial			5,070,847				6,163,747
Consumer			76,998				80,955
Total loans			704,075,375				714,337,185
Allowance for credit losses			(2,590,950	)			(2,620,949	)
Net loans		$	701,484,425			$	711,716,236

The Bank has granted loans to officers and directors of the Bank. At March 31, 2025 and December 31, 2024, such loans totaled $2,082,107 and $2,256,911, respectively.

At March 31, 2025 and December 31, 2024, deferred loan fees were $2,562,282 and $2,496,364, respectively.

The following table presents the activity in the ACL by portfolio segment for the three months ended March 31, 2025 and 2024:

		*Residential First Mortgage*				*Commercial Real Estate*				*Multi-Family Real Estate*				*Construction*				*Commercial and Industrial*				*Consumer*				*Total*
Three months ended March 31, 2025
Allowance for credit losses:
Beginning balance		$	1,680,949			$	508,000			$	289,000			$	123,000			$	20,000			$	—			$	2,620,949
Provision for (recovery) of credit losses			(20,064	)			25,874				(10,084	)			(30,288	)			4,340				223				(29,999	)
Loans charged off			—				—				—				—				—				—				—
Recoveries			—				—				—				—				—				—				—
Total ending allowance balance		$	1,660,885			$	533,874			$	278,916			$	92,712			$	24,340			$	223			$	2,590,950

		*Residential First Mortgage*				*Commercial Real Estate*				*Multi-Family Real Estate*				*Construction*				*Commercial and Industrial*				*Consumer*				*Total*
Three Months Ended March 31, 2024
Allowance for credit losses:
Beginning balance		$	1,851,969			$	437,180			$	317,300			$	157,500			$	22,000			$	—			$	2,785,949
Provision for (recovery) of credit losses			7,380				26,920				400				(33,400	)			(1,300	)			—				—
Loans charged off			—				—				—				—				—				—				—
Recoveries			—				—				—				—				—				—				—
Total ending allowance balance		$	1,859,349			$	464,100			$	317,700			$	124,100			$	20,700			$	—			$	2,785,949

For the three months ended March 31, 2025, in addition to the recovery in the table above, the provision for loan losses also included a recovery of $50,000 due to a decrease in off-balance sheet commitments.

Since the Bank continues to have limited historical loss history, the majority of changes in the ACL noted in the above tables are driven by changes in the balances of the related loan segments and in the economic forecast.

The following table presents the balance of non-performing loans by portfolio segments as of March 31, 2025 and December 31, 2024:

		Nonaccrual loans beginning of period				Nonaccrual loans end of period				Nonaccrual with no Allowance for Credit Loss				Loans Past Due 90 Days or More Still Accruing
March 31, 2025
Residential First Mortgage		$	1,863,957			$	2,250,578			$	2,250,578			$	—
Commercial Real Estate			1,205,025				749,684				749,684				—
Construction			10,893,713				10,893,713				10,893,713				—
Consumer			—				—				—				—
Total		$	13,962,695			$	13,893,975			$	13,893,975			$	—

		*Nonaccrual loans beginning of period*				*Nonaccrual loans end of period*				*Nonaccrual with no Allowance for Credit Loss*				Loans Past Due 90 Days or More Still Accruing
December 31, 2024
Residential First Mortgage		$	1,432,072			$	1,863,957			$	1,863,957			$	—
Commercial Real Estate			450,392				1,205,025				1,205,025			$	—
Construction			10,893,713				10,893,713				10,893,713				—
Consumer			—				—				—				—
Total		$	12,776,177			$	13,962,695			$	13,962,695			$	—

Collateral - dependent loans individually evaluated with the ACL by collateral type were as follows at March 31, 2025 and December 31, 2024:

March 31, 2025
Portfolio segment		*Real estate*				*Other*
Residential First Mortgage		$	2,250,578			$	—
Commercial Real Estate			749,684				—
Multi-Family Real Estate			—				—
Construction			10,893,713				—
Commercial and Industrial			—				—
Other Consumer			—				—
		$	13,893,975			$	—

December 31, 2024
Portfolio segment		*Real estate*				*Other*
Residential First Mortgage		$	1,863,957			$	—
Commercial Real Estate			1,205,025				—
Multi-Family Real Estate			—				—
Construction			10,893,713				—
Commercial and Industrial			—				—
Other Consumer			—				—
		$	13,962,695			$	—

Interest income recognized during impairment and cash-basis interest income for the three months ended March 31, 2025 and 2024 was nominal.

No nonaccrual loans had specific reserves as of March 31, 2025, as they were all well-secured and in the process of collection. The Bank had no other real estate owned at either March 31, 2025 or December 31, 2024.

The following table presents the aging of the recorded investment in past due loans as of March 31, 2025 and December 31, 2024, by class of loans:

										*Greater than*
		*30-59 Days*				*60-89 Days*				*89 Days*				*Total*				*Loans Not*
		*Past Due*				*Past Due*				*Past Due*				*Past Due*				*Past Due*				*Total*
March 31, 2025
Residential First Mortgage		$	1,174,160			$	54,659			$	624,860			$	1,853,679			$	464,323,496			$	466,177,175
Commercial Real Estate			—				—				749,684				749,684				125,034,066				125,783,750
Multi-Family Real Estate			—				—				—				—				73,465,142				73,465,142
Construction			—				—				10,893,713				10,893,713				22,607,750				33,501,463
Commercial and Industrial			—				—				—				—				5,070,847				5,070,847
Consumer			—				—				—				—				76,998				76,998
Total		$	1,174,160			$	54,659			$	12,268,257			$	13,497,076			$	690,578,299			$	704,075,375

										*Greater than*
		*30-59 Days*				*60-89 Days*				*89 Days*				*Total*				*Loans Not*
		*Past Due*				*Past Due*				*Past Due*				*Past Due*				*Past Due*				*Total*
December 31, 2024
Residential First Mortgage		$	119,309			$	1,607,835			$	513,297			$	2,240,441			$	470,507,101			$	472,747,542
Commercial Real Estate			—				—				1,205,025				1,205,025				116,803,841				118,008,866
Multi-Family Real Estate			—				—				—				—				74,152,418				74,152,418
Construction			—				—				10,893,713				10,893,713				32,289,944				43,183,657
Commercial and Industrial			—				—				—				—				6,163,747				6,163,747
Consumer			-				—				—				-				80,955				80,955
Total		$	119,309			$	1,607,835			$	12,612,035			$	14,339,179			$	699,998,006			$	714,337,185

Credit Quality Indicators

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. Commercial and multi-family real estate, commercial and industrial and construction loans are graded on an annual basis. Residential and consumer loans are primarily evaluated based on performance. Refer to the immediately preceding table for the aging of the recorded investment of these loan segments. The Bank uses the following definitions for risk ratings:

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

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, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above are considered to be Pass rated loans.

The following table presents loans, by risk category, loan class and year of origination as of March 31, 2025 and December 31, 2024:

		Term Loans by Origination Year
March 31, 2025		*2025*				*2024*				*2023*				*2022*				*2021*				*Prior*				*Revolving Loans*				*Totals*
Residential First Mortgage
Pass		$	1,069,334			$	27,818,216			$	20,731,206			$	104,554,548			$	31,351,533			$	138,003,876			$	140,804,020			$	464,332,733
Special Mention			—				—				—				—				—				759,170				601,737				1,360,907
Substandard			—				—				—				—				—				145,119				338,416				483,535
Doubtful			—				—				—				—				—				—				—				—
Total			1,069,334				27,818,216				20,731,206				104,554,548				31,351,533				138,908,165				141,744,173				466,177,175
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Commercial Real Estate
Pass			6,175,404				16,041,293				15,530,386				5,328,601				1,748,074				79,777,004				433,304				125,034,066
Special Mention			—				—				—				—				—				749,684				—				749,684
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			6,175,404				16,041,293				15,530,386				5,328,601				1,748,074				80,526,688				433,304				125,783,750
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Multi-Family Real Estate
Pass			—				—				—				5,177,727				—				6,074,672				62,212,743				73,465,142
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				5,177,727				—				6,074,672				62,212,743				73,465,142
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Construction
Pass			—				—				—				—				—				—				22,607,750				22,607,750
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				10,893,713				10,893,713
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				—				—				—				33,501,463				33,501,463
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Commercial and Industrial
Pass			26,365				2,244,848				184,723				—				—				253,950				2,360,961				5,070,847
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			26,365				2,244,848				184,723				—				0				253,950				2,360,961				5,070,847
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Consumer
Pass			—				—				—				—				—				—				76,998				76,998
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				—				—				—				76,998				76,998
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Total loans		$	7,271,103			$	46,104,357			$	36,446,315			$	115,060,876			$	33,099,607			$	225,763,475			$	240,329,642			$	704,075,375

		Term Loans by Origination Year
December 31, 2024		*2024*				*2023*				*2022*				*2021*				*2020*				*Prior*				*Revolving Loans*				*Totals*
Residential First Mortgage
Pass		$	26,742,846			$	20,620,971			$	102,163,479			$	31,658,834			$	25,961,474			$	118,351,367			$	145,384,614			$	470,883,585
Special Mention			—				—				—				—				186,177				593,420				598,461				1,378,058
Substandard			—				—				—				—				—				146,730				339,169				485,899
Doubtful			—				—				—				—				—				—				—				—
Total			26,742,846				20,620,971				102,163,479				31,658,834				26,147,651				119,091,517				146,322,244				472,747,542
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Commercial Real Estate
Pass			14,935,535				11,625,202				5,363,747				2,030,427				42,533,113				38,696,841				1,618,976				116,803,841
Special Mention			—				—				—				—				—				754,633				—				754,633
Substandard			—				—				—				—				—				450,392				—				450,392
Doubtful			—				—				—				—				—				—				—				—
Total			14,935,535				11,625,202				5,363,747				2,030,427				42,533,113				39,901,866				1,618,976				118,008,866
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Multi-Family Real Estate
Pass			—				—				2,262,457				—				—				1,909,140				69,980,821				74,152,418
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				2,262,457				—				—				1,909,140				69,980,821				74,152,418
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Construction
Pass			—				—				—				—				—				—				32,289,944				32,289,944
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				10,893,713				10,893,713
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				—				—				—				43,183,657				43,183,657
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Commercial and Industrial
Pass			2,380,140				196,286				—				—				311,422				—				3,275,899				6,163,747
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			2,380,140				196,286				—				—				311,422				—				3,275,899				6,163,747
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Consumer
Pass			—				—				—				—				—				—				80,955				80,955
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				—				—				—				80,955				80,955
Gross charge-offs by vintage			—				—				—				—				—				—				—				—
Total loans		$	44,058,521			$	32,442,459			$	109,789,683			$	33,689,261			$	68,992,186			$	160,902,523			$	264,462,552			$	714,337,185

There were no loan modifications during the three-month period ended March 31, 2025 .