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Note 4 - Loans

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE 4 – LOANS

Loans are summarized as follows at September 30, 2025 and December 31, 2024:

		*September 30,*				*December 31,*
		*2025*				*2024*
Real estate:		(unaudited)
Residential First Mortgage		$	449,596,294			$	472,747,542
Commercial Real Estate			122,811,801				118,008,866
Multi-Family Real Estate			70,364,169				74,152,418
Construction			25,231,859				43,183,657
Commercial and Industrial			3,703,476				6,163,747
Consumer			64,336				80,955
Total loans			671,771,935				714,337,185
Allowance for credit losses			(2,540,950	)			(2,620,949	)
Net loans		$	669,230,985			$	711,716,236

The Bank has granted loans to officers and directors of the Bank. At September 30, 2025 and December 31, 2024, such loans totaled $2,024,521 and $2,256,911, respectively.

At September 30, 2025 and December 31, 2024, deferred loan fees were $2,348,676 and $2,496,364, respectively.

The following table presents the activity in the ACL by portfolio segment for the three and nine months ended September 30, 2025 and 2024:

		*Residential First Mortgage*				*Commercial Real Estate*				*Multi-Family Real Estate*				*Construction*				*Commercial and Industrial*				*Consumer*				*Total*
Three months ended September 30, 2025
Allowance for credit losses:
Beginning balance		$	1,660,885			$	533,874			$	278,916			$	92,712			$	24,340			$	223			$	2,590,950
Provision for (recovery) of credit losses			(41,284	)			22,684				9,125				(33,926	)			(6,563	)			(36	)			(50,000	)
Loans charged off			—				—				—				—				—				—				—
Recoveries			—				—				—				—				—				—				—
Total ending allowance balance		$	1,619,601			$	556,558			$	288,041			$	58,786			$	17,777			$	187			$	2,540,950

		*Residential First Mortgage*				*Commercial Real Estate*				*Multi-Family Real Estate*				*Construction*				*Commercial and Industrial*				*Consumer*				*Total*
Three Months Ended September 30, 2024
Allowance for credit losses:
Beginning balance		$	1,836,909			$	456,898			$	315,495			$	105,426			$	33,221			$	—			$	2,747,949
Provision for (recovery) of credit losses			(10,371	)			5,417				(2,274	)			6,692				536				—				—
Loans charged off			—				—				—				—				—				—				—
Recoveries			—				—				—				—				—				—				—
Total ending allowance balance		$	1,826,538			$	462,315			$	313,221			$	112,118			$	33,757			$	—			$	2,747,949

		*Residential First Mortgage*				*Commercial Real Estate*				*Multi-Family Real Estate*				*Construction*				*Commercial and Industrial*				*Consumer*				*Total*
Nine Months Ended September 30, 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			(61,348	)			48,558				(959	)			(64,214	)			(2,223	)			187				(79,999	)
Loans charged off			—				—				—				—				—				—				—
Recoveries			—				—				—				—				—				—				—
Total ending allowance balance		$	1,619,601			$	556,558			$	288,041			$	58,786			$	17,777			$	187			$	2,540,950

		*Residential First Mortgage*				*Commercial Real Estate*				*Multi-Family Real Estate*				*Construction*				*Commercial and Industrial*				*Consumer*				*Total*
Nine Months Ended September 30, 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			(25,431	)			25,135				(4,079	)			(45,382	)			11,757				—				(38,000	)
Loans charged off			—				—				—				—				—				—				—
Recoveries			—				—				—				—				—				—				—
Total ending allowance balance		$	1,826,538			$	462,315			$	313,221			$	112,118			$	33,757			$	—			$	2,747,949

For the three and nine months ended September 30, 2025, the provision for credit losses included a recovery of $50,000 and $130,000, respectively, due to a decrease in loan balances and off-balance sheet commitments. Of the total recovery, zero and $50,000 was related to off-balance sheet commitments for the three and nine months ended September 30, 2025, respectively.

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 September 30, 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*
September 30, 2025
Residential First Mortgage		$	1,863,957			$	2,502,938			$	2,502,938			$	—
Commercial Real Estate			1,205,025				7,060,968				7,060,968				—
Construction			10,893,713				10,893,713				10,893,713				—
Consumer			—				—				—				—
Total		$	13,962,695			$	20,457,619			$	20,457,619			$	—

		*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 September 30, 2025 and December 31, 2024:

September 30, 2025
Portfolio segment		*Real estate*				*Other*
Residential First Mortgage		$	2,502,938			$	—
Commercial Real Estate			7,060,968				—
Multi-Family Real Estate			—				—
Construction			10,893,713				—
Commercial and Industrial			—				—
Other Consumer			—				—
		$	20,457,619			$	—

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 and nine months ended September 30, 2025 and 2024 was nominal.

No nonaccrual loans had specific reserves as of September 30, 2025 as they were all well-secured and in the process of collection. The Bank had no other real estate owned at either September 30, 2025 or December 31, 2024.

The following table presents the aging of the recorded investment in past due loans as of September 30, 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*
September 30, 2025
Residential First Mortgage		$	69,992			$	88,237			$	1,801,822			$	1,960,051			$	447,636,243			$	449,596,294
Commercial Real Estate			—				1,859,931				7,060,968				8,920,899				113,890,902				122,811,801
Multi-Family Real Estate			—				—				—				—				70,364,169				70,364,169
Construction			—				—				10,893,713				10,893,713				14,338,146				25,231,859
Commercial and Industrial			19,340				—				—				19,340				3,684,136				3,703,476
Consumer			—				—				—				—				64,336				64,336
Total		$	89,332			$	1,948,168			$	19,756,503			$	21,794,003			$	649,977,932			$	671,771,935

										*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 September 30, 2025 and December 31, 2024:

		Term Loans by Origination Year
September 30, 2025		*2025*				*2024*				*2023*				*2022*				*2021*				*Prior*				*Revolving Loans*				*Totals*
Residential First Mortgage
Pass		$	6,522,488			$	26,799,710			$	19,609,339			$	99,318,676			$	29,797,378			$	127,658,092			$	138,007,695			$	447,713,378
Special Mention			—				—				—				—				—				808,122				596,186				1,404,308
Substandard			—				—				—				—				—				142,661				335,947				478,608
Doubtful			—				—				—				—				—				—				—				—
Total			6,522,488				26,799,710				19,609,339				99,318,676				29,797,378				128,608,875				138,939,828				449,596,294
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Commercial Real Estate
Pass			8,598,378				15,977,066				15,379,349				5,259,733				1,719,653				75,503,736				373,886				122,811,801
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			8,598,378				15,977,066				15,379,349				5,259,733				1,719,653				75,503,736				373,886				122,811,801
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Multi-Family Real Estate
Pass			1,735,716				—				—				5,085,066				—				5,890,652				57,652,735				70,364,169
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			1,735,716				—				—				5,085,066				—				5,890,652				57,652,735				70,364,169
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Construction
Pass			—				—				—				—				—				—				14,338,146				14,338,146
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				10,893,713				10,893,713
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				—				—				—				25,231,859				25,231,859
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Commercial and Industrial
Pass			23,978				1,966,064				161,069				—				—				166,104				1,386,261				3,703,476
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			23,978				1,966,064				161,069				—				—				166,104				1,386,261				3,703,476
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Consumer
Pass			—				—				—				—				—				—				64,336				64,336
Special Mention			—				—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—				—
Doubtful			—				—				—				—				—				—				—				—
Total			—				—				—				—				—				—				64,336				64,336
Gross charge-offs by vintage			—				—				—				—				—				—				—				—

Total loans		$	16,880,560			$	44,742,840			$	35,149,757			$	109,663,475			$	31,517,031			$	210,169,367			$	223,648,905			$	671,771,935

		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- or nine -month periods ended September 30, 2025 .