| NET LOANS RECEIVABLE |
5. NET LOANS RECEIVABLE A summary of net loans receivable is as follows (dollars in thousands): | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | Commercial: | | | | | | | Real estate | | $ | 466,449 | | $ | 414,835 | Commercial and industrial | | | 124,895 | | | 108,474 | Construction | | | 169,724 | | | 130,959 | Total commercial | | | 761,068 | | | 654,268 | Residential mortgages | | | 793,657 | | | 689,569 | Home equity loans and lines | | | 97,629 | | | 94,928 | Consumer | | | 19,206 | | | 17,564 | | | | 1,671,560 | | | 1,456,329 | Allowance for credit losses | | | (25,305) | | | (21,754) | Net loans receivable | | $ | 1,646,255 | | $ | 1,434,575 |
Accrued interest receivable on loans totaled $7.4 million and $6.3 million at December 31, 2025 and 2024, respectively. Accrued interest receivable on loans is included in accrued interest receivable on the consolidated statements of condition, and is excluded from the estimate of credit losses. Net deferred loan costs totaled $11.7 million and $9.8 million at December 31, 2025 and 2024, respectively, and are included in net loans receivable. The allowance for credit losses on loans is established through a provision for credit losses based on the results of life of loan quantitative models, reserves associated with collateral-dependent loans evaluated individually and adjustments for the impact of current economic conditions not accounted for in the quantitative models. The discounted cash flow methodology is used to calculate the CECL reserve for the commercial, residential mortgages, and home equity loans and lines of credit segments. The allowance for credit losses on loans estimate uses a four-quarter reasonable and supportable forecast period based on economic forecast from the Federal Open Market Committee (“FOMC”) of the Federal Reserve's projections of civilian unemployment and year-over-year U.S. GDP growth. The forecast will revert to long-term economic conditions over a four quarter reversion period on a straight- line basis. A qualitative factor framework has been developed to adjust the quantitative loss rates for asset-specific risk characteristics or current conditions at the reporting date. The following table presents the activity in the allowance for credit losses by portfolio segment (dollars in thousands): | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2025 | | | Beginning | | | | | | | | | | | Ending | | | Balance | | Provisions | | Charge-offs | | Recoveries | | Balance | Commercial | | $ | 12,067 | | $ | 2,694 | | $ | (96) | | $ | 44 | | $ | 14,709 | Residential mortgages | | | 7,930 | | | 863 | | | (4) | | | 48 | | | 8,837 | Home equity loans and lines of credit | | | 1,185 | | | (20) | | | (23) | | | 12 | | | 1,154 | Consumer | | | 572 | | | 109 | | | (109) | | | 33 | | | 605 | Allowance for credit losses - loans | | | 21,754 | | | 3,646 | | | (232) | | | 137 | | | 25,305 | Allowance for credit losses - off-balance sheet credit exposures | | | 2,190 | | | (187) | | | — | | | — | | | 2,003 | Total | | $ | 23,944 | | $ | 3,459 | | $ | (232) | | $ | 137 | | $ | 27,308 |
| | | | | | | | | | | | | | | | | | For the Six Months Ended December 31, 2024 | | | | | | | | | | | | | | | | | | | Beginning | | | | | | | | | | | Ending | | | Balance | | Provisions | | Charge-offs | | Recoveries | | Balance | Commercial | | $ | 12,504 | | | (540) | | | (111) | | | 214 | | $ | 12,067 | Residential mortgages | | | 7,706 | | | 269 | | | (45) | | | — | | | 7,930 | Home equity loans and lines of credit | | | 1,244 | | | (59) | | | — | | | — | | | 1,185 | Consumer | | | 347 | | | 305 | | | (100) | | | 20 | | | 572 | Allowance for credit losses - loans | | | 21,801 | | | (25) | | | (256) | | | 234 | | | 21,754 | Allowance for credit losses - off-balance sheet credit exposures | | | 1,899 | | | 291 | | | — | | | — | | | 2,190 | Total | | $ | 23,700 | | $ | 266 | | $ | (256) | | $ | 234 | | $ | 23,944 |
| | | | | | | | | | | | | | | | | | | | | For the Six Months Ended December 31, 2023 | | | | | | Cumulative Effect | | | | | | | | | | | | | | | Beginning | | Adjustment for the | | | | | | | | | | | Ending | | | Balance | | Adoption of ASU 2016-13 | | Provisions | | Charge-offs | | Recoveries | | Balance | Commercial | | $ | 14,288 | | | (1,307) | | | (5) | | | (345) | | | 43 | | $ | 12,674 | Residential mortgages | | | 6,222 | | | (670) | | | 1,418 | | | — | | | — | | | 6,970 | Home equity loans and lines of credit | | | 1,470 | | | (265) | | | 145 | | | (12) | | | 1 | | | 1,339 | Consumer | | | 489 | | | (69) | | | 17 | | | (69) | | | 11 | | | 379 | Allowance for credit losses - loans | | | 22,469 | | | (2,311) | | | 1,575 | | | (426) | | | 55 | | | 21,362 | Allowance for credit losses - off-balance sheet credit exposures | | | — | | | 1,624 | | | 57 | | | — | | | — | | | 1,681 | Total | | $ | 22,469 | | $ | (687) | | $ | 1,632 | | $ | (426) | | $ | 55 | | $ | 23,043 |
| | | | | | | | | | | | | | | | | | | | | For the Fiscal Year Ended June 30, 2024 | | | | | | Cumulative Effect | | | | | | | | | | | | | | | Beginning | | Adjustment for the | | | | | | | | | | | Ending | | | Balance | | Adoption of ASU 2016-13 | | Provisions | | Charge-offs | | Recoveries | | Balance | Commercial | | $ | 14,288 | | | (1,307) | | | (205) | | | (345) | | | 73 | | $ | 12,504 | Residential mortgages | | | 6,222 | | | (670) | | | 2,272 | | | (118) | | | — | | | 7,706 | Home equity loans and lines of credit | | | 1,470 | | | (265) | | | 48 | | | (12) | | | 3 | | | 1,244 | Consumer | | | 489 | | | (69) | | | 48 | | | (135) | | | 14 | | | 347 | Allowance for credit losses - loans | | | 22,469 | | | (2,311) | | | 2,163 | | | (610) | | | 90 | | | 21,801 | Allowance for credit losses - off-balance sheet credit exposures | | | — | | | 1,624 | | | 275 | | | — | | | — | | | 1,899 | Total | | $ | 22,469 | | $ | (687) | | $ | 2,438 | | $ | (610) | | $ | 90 | | $ | 23,700 |
The following table presents the balance in the allowance for credit losses and allowance for loan losses and the recorded investment in loans by portfolio segment (dollars in thousands): | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | Residential | | | | | | | | | | | | Commercial | | Mortgages | | Home Equity | | Consumer | | Total | Allowance for credit losses: | | | | | | | | | | | | | | | | Related to loans individually evaluated | | $ | 123 | | $ | — | | $ | — | | $ | — | | $ | 123 | Related to loans collectively evaluated | | | 14,586 | | | 8,837 | | | 1,154 | | | 605 | | | 25,182 | Ending balance | | $ | 14,709 | | $ | 8,837 | | $ | 1,154 | | $ | 605 | | $ | 25,305 | | | | | | | | | | | | | | | | | Loans: | | | | | | | | | | | | | | | | Individually evaluated | | $ | 6,074 | | $ | 521 | | $ | — | | $ | — | | $ | 6,595 | Loans collectively evaluated | | | 754,994 | | | 793,136 | | | 97,629 | | | 19,206 | | | 1,664,965 | Ending balance | | $ | 761,068 | | $ | 793,657 | | $ | 97,629 | | $ | 19,206 | | $ | 1,671,560 |
| | | | | | | | | | | | | | | | | | December 31, 2024 | | | | | | Residential | | | | | | | | | | | | Commercial | | Mortgages | | | Home Equity | | Consumer | | Total | Allowance for credit losses: | | | | | | | | | | | | | | | | Related to loans individually evaluated | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Related to loans collectively evaluated | | | 12,067 | | | 7,930 | | | 1,185 | | | 572 | | | 21,754 | Ending balance | | $ | 12,067 | | $ | 7,930 | | $ | 1,185 | | $ | 572 | | $ | 21,754 | | | | | | | | | | | | | | | | | Loans: | | | | | | | | | | | | | | | | Individually evaluated | | $ | — | | $ | 1,541 | | $ | — | | $ | — | | $ | 1,541 | Loans collectively evaluated | | | 654,268 | | | 688,028 | | | 94,928 | | | 17,564 | | | 1,454,788 | Ending balance | | $ | 654,268 | | $ | 689,569 | | $ | 94,928 | | $ | 17,564 | | $ | 1,456,329 |
Interest income on nonaccrual loans is recognized using the cost recovery method. Interest income on loans that were on nonaccrual status and cash-basis interest income for the year ended December 31, 2025, the six months ended December 31, 2024 and fiscal year ended June 30, 2024 was nominal. At various times, certain loan modifications are executed for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan. Substantially all of these modifications include one or a combination of the following: extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; temporary reduction in the interest rate; change in scheduled payment amount including interest only; or extensions of additional credit for payment of delinquent real estate taxes or other costs. The Company may occasionally make modifications to loans where the borrower is considered to be experiencing financial difficulty. Types of modifications considered include principal reductions, interest rate reductions, other-than-insignificant payment delay, term extensions, or a combination. The following tables show the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted. | | | | | | | | | For the Year Ended December 31, 2025 | | | | Other | | Total | | | | Payment | | Class Segment | | | | Delay | | of Loans | | Commercial: | | | | | | | Real estate | | $ | 4,410 | | 0.95 | % | Commercial and industrial | | | — | | — | % | Construction | | | — | | — | % | Residential mortgages | | | — | | — | % | Home equity loans and lines | | | — | | — | % | Consumer | | | — | | — | % | | | $ | 4,410 | | 0.26 | % |
The modifications to borrowers experiencing financial difficulty during the year ended December 31, 2025 provided partial payment deferrals for a weighted average of 0.3 years. The Company closely monitors the performance of the loans that are modified. The loans that were modified during the prior twelve months preceding December 31, 2025 were all performing within their modified terms with no payment defaults. At December 31, 2025, loans modified to borrowers experiencing financial difficulty were on non-accrual status. Non-accrual loans that are modified to borrowers experiencing financial difficulty remain on non-accrual status until the borrower has demonstrated performance under the modified terms. There were no modifications to loans where the borrower was considered to be experiencing financial difficulty for the six months ended December 31, 2024 and fiscal year ended June 30, 2024. The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans (dollars in thousands): | | | | | | | | | | | | | | | December 31, 2025 | | | | | | Nonaccrual | | Past Due | | | | | | | | Loans With | | 90 Days | | | | | | | | No Related | | Still on | | Recognized | | | Nonaccrual | | Allowance | | Accrual | | Interest Income | Commercial: | | | | | | | | | | | | | Real estate | | $ | 6,074 | | $ | 5,231 | | $ | 6 | | $ | — | Commercial and industrial | | | 3 | | | — | | | — | | | — | Construction | | | — | | | — | | | — | | | — | Residential mortgages | | | 3,860 | | | 521 | | | — | | | — | Home equity loans and lines | | | 1,307 | | | — | | | — | | | — | Consumer | | | — | | | — | | | — | | | — | | | $ | 11,244 | | $ | 5,752 | | $ | 6 | | $ | — |
| | | | | | | | | | | | | | | December 31, 2024 | | | | | | Nonaccrual | | Past Due | | | | | | | | Loans With | | 90 Days | | | | | | | | No Related | | Still on | | Recognized | | | Nonaccrual | | Allowance | | Accrual | | Interest Income | Commercial: | | | | | | | | | | | | | Real estate | | $ | — | | $ | — | | $ | 1 | | $ | — | Commercial and industrial | | | 10 | | | — | | | — | | | — | Construction | | | — | | | — | | | — | | | — | Residential mortgages | | | 4,127 | | | 1,541 | | | — | | | — | Home equity loans and lines | | | 1,109 | | | — | | | — | | | — | Consumer | | | — | | | — | | | — | | | — | | | $ | 5,246 | | $ | 1,541 | | $ | 1 | | $ | — |
Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually evaluated loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by class of loans (dollars in thousands): | | | | | | | | December 31, 2025 | | | Amortized Cost | | Collateral Type | Commercial: | | | | | | Real estate | | $ | 6,074 | | Commercial real estate property | Commercial and industrial | | | — | | | Construction | | | — | | | Residential mortgages | | | 521 | | Residential real estate property | Home equity loans and lines | | | — | | | Consumer | | | — | | | | | $ | 6,595 | | |
| | | | | | | | December 31, 2024 | | | Amortized Cost | | Collateral Type | Commercial: | | | | | | Real estate | | $ | — | | | Commercial and industrial | | | — | | | Construction | | | — | | | Residential mortgages | | | 1,541 | | Residential real estate property | Home equity loans and lines | | | — | | | Consumer | | | — | | | | | $ | 1,541 | | |
The following table presents the aging of the recorded investment in loans by class of loans (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | 30 - 59 | | 60 - 89 | | 90 or more | | | | | | | | | | | | Days | | Days | | Days | | Total | | Loans Not | | | | | | Past Due | | Past Due | | Past Due | | Past Due | | Past Due | | Total | Commercial: | | | | | | | | | | | | | | | | | | | Real estate | | $ | 1 | | $ | 3 | | $ | 6,080 | | $ | 6,084 | | $ | 460,365 | | $ | 466,449 | Commercial and industrial | | | 23 | | | — | | | — | | | 23 | | | 124,872 | | | 124,895 | Construction | | | — | | | — | | | — | | | — | | | 169,724 | | | 169,724 | Residential mortgages | | | — | | | 2,322 | | | 471 | | | 2,793 | | | 790,864 | | | 793,657 | Home equity loans and lines | | | 660 | | | 216 | | | 392 | | | 1,268 | | | 96,361 | | | 97,629 | Consumer | | | 2,585 | | | — | | | — | | | 2,585 | | | 16,621 | | | 19,206 | Total | | $ | 3,269 | | $ | 2,541 | | $ | 6,943 | | $ | 12,753 | | $ | 1,658,807 | | $ | 1,671,560 |
| | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | 30 - 59 | | 60 - 89 | | 90 or more | | | | | | | | | | | | Days | | Days | | Days | | Total | | Loans Not | | | | | | Past Due | | Past Due | | Past Due | | Past Due | | Past Due | | Total | Commercial: | | | | | | | | | | | | | | | | | | | Real estate | | $ | 6,734 | | $ | — | | $ | 1 | | $ | 6,735 | | $ | 408,100 | | $ | 414,835 | Commercial and industrial | | | 5 | | | — | | | — | | | 5 | | | 108,469 | | | 108,474 | Construction | | | — | | | — | | | — | | | — | | | 130,959 | | | 130,959 | Residential mortgages | | | — | | | 888 | | | 1,515 | | | 2,403 | | | 687,166 | | | 689,569 | Home equity loans and lines | | | 1,198 | | | 67 | | | 567 | | | 1,832 | | | 93,096 | | | 94,928 | Consumer | | | 7 | | | 6 | | | — | | | 13 | | | 17,551 | | | 17,564 | Total | | $ | 7,944 | | $ | 961 | | $ | 2,083 | | $ | 10,988 | | $ | 1,445,341 | | $ | 1,456,329 |
The Company categorizes commercial 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 Company analyzes commercial loans individually by classifying the loans as to credit risk. The Company 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. Commercial loans not meeting the criteria above are considered to be pass rated loans. The Company grades residential mortgages, home equity loans and lines of credit and consumer loans as either non-performing or performing. Non-performing – Loans that are over 90 days past due and still accruing interest or on nonaccrual. Performing – Loans not meeting any of the above criteria are considered to be performing loans. The following table presents loans summarized by segment and class, and the risk category (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | Revolving | | Revolving | | | | | | | | 2024 | | | | | | | | | | | | | | Loans | | Loans | | | | | | | | | Transition | | | | | | | | | | | | | | Amortized | | Converted | | | | December 31, 2025 | | 2025 | | Period | | 2024 | | 2023 | | 2022 | | Prior | | Cost Basis | | to Term | | Total | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 58,001 | | $ | 13,931 | | $ | 49,810 | | $ | 43,497 | | $ | 53,003 | | $ | 221,781 | | $ | 804 | | $ | — | | $ | 440,827 | Special mention | | | — | | | — | | | — | | | 451 | | | — | | | 5,571 | | | — | | | — | | | 6,022 | Substandard | | | — | | | — | | | — | | | 224 | | | 2,072 | | | 15,442 | | | 1,018 | | | — | | | 18,756 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | 844 | | | — | | | — | | | 844 | Total commercial real estate | | $ | 58,001 | | $ | 13,931 | | $ | 49,810 | | $ | 44,172 | | $ | 55,075 | | $ | 243,638 | | $ | 1,822 | | $ | — | | $ | 466,449 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 69 | | $ | — | | $ | — | | $ | — | | $ | 69 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 31,169 | | $ | 9,030 | | $ | 12,433 | | $ | 3,588 | | $ | 2,533 | | $ | 7,307 | | $ | 55,233 | | $ | — | | $ | 121,293 | Special mention | | | — | | | — | | | — | | | — | | | — | | | 1,382 | | | — | | | — | | | 1,382 | Substandard | | | — | | | — | | | — | | | — | | | 12 | | | 2,130 | | | 3 | | | — | | | 2,145 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | 75 | | | — | | | — | | | 75 | Total commercial and industrial | | $ | 31,169 | | $ | 9,030 | | $ | 12,433 | | $ | 3,588 | | $ | 2,545 | | $ | 10,894 | | $ | 55,236 | | $ | — | | $ | 124,895 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 27 | | $ | — | | $ | — | | $ | 27 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 34,766 | | $ | 49,481 | | $ | 46,500 | | $ | 5,237 | | $ | 18,007 | | $ | 15,733 | | $ | — | | $ | — | | $ | 169,724 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial construction | | $ | 34,766 | | $ | 49,481 | | $ | 46,500 | | $ | 5,237 | | $ | 18,007 | | $ | 15,733 | | $ | — | | $ | — | | $ | 169,724 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgages | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 144,861 | | $ | 88,510 | | $ | 172,024 | | $ | 179,426 | | $ | 38,112 | | $ | 166,745 | | $ | 119 | | $ | — | | $ | 789,797 | Non-performing | | | — | | | — | | | 495 | | | 1,104 | | | 483 | | | 1,778 | | | — | | | — | | | 3,860 | Total residential mortgages | | $ | 144,861 | | $ | 88,510 | | $ | 172,519 | | $ | 180,530 | | $ | 38,595 | | $ | 168,523 | | $ | 119 | | $ | — | | $ | 793,657 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home equity loans and lines of credit | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 2,791 | | $ | 2,214 | | $ | 5,178 | | $ | 5,141 | | $ | 8,088 | | $ | 14,306 | | $ | 56,032 | | $ | 2,572 | | $ | 96,322 | Non-performing | | | — | | | — | | | — | | | — | | | — | | | 135 | | | 1,172 | | | — | | | 1,307 | Total home equity loans and lines of credit | | $ | 2,791 | | $ | 2,214 | | $ | 5,178 | | $ | 5,141 | | $ | 8,088 | | $ | 14,441 | | $ | 57,204 | | $ | 2,572 | | $ | 97,629 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 23 | | $ | — | | $ | — | | $ | 23 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 1,595 | | $ | 4,265 | | $ | 3,317 | | $ | 303 | | $ | 25 | | $ | 2,910 | | $ | 6,791 | | $ | — | | $ | 19,206 | Non-performing | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total consumer | | $ | 1,595 | | $ | 4,265 | | $ | 3,317 | | $ | 303 | | $ | 25 | | $ | 2,910 | | $ | 6,791 | | $ | — | | $ | 19,206 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | 98 | | $ | — | | $ | — | | $ | 6 | | $ | 4 | | $ | 1 | | $ | — | | $ | — | | $ | 109 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | Revolving | | Revolving | | | | | 2024 | | | | | | | | | | | | | | | | | Loans | | Loans | | | | | | Transition | | | | | | | | | | | | | | | | | Amortized | | Converted | | | | December 31, 2024 | | Period | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Cost Basis | | to Term | | Total | Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 11,873 | | $ | 33,387 | | $ | 46,482 | | $ | 54,961 | | $ | 22,212 | | $ | 223,547 | | $ | 531 | | $ | — | | $ | 392,993 | Special mention | | | — | | | — | | | — | | | — | | | — | | | 4,918 | | | — | | | — | | | 4,918 | Substandard | | | — | | | — | | | — | | | 2,198 | | | — | | | 13,634 | | | 1,092 | | | — | | | 16,924 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial real estate | | $ | 11,873 | | $ | 33,387 | | $ | 46,482 | | $ | 57,159 | | $ | 22,212 | | $ | 242,099 | | $ | 1,623 | | $ | — | | $ | 414,835 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 11,089 | | $ | 13,794 | | $ | 5,472 | | $ | 4,377 | | $ | 2,459 | | $ | 9,354 | | $ | 59,342 | | $ | — | | $ | 105,887 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | 15 | | | — | | | 2,304 | | | 151 | | | — | | | 2,470 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | 117 | | | — | | | — | | | 117 | Total commercial and industrial | | $ | 11,089 | | $ | 13,794 | | $ | 5,472 | | $ | 4,392 | | $ | 2,459 | | $ | 11,775 | | $ | 59,493 | | $ | — | | $ | 108,474 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 21 | | $ | 66 | | $ | 24 | | $ | — | | $ | 111 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial construction | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 19,210 | | $ | 51,227 | | $ | 8,814 | | $ | 31,700 | | $ | 17,582 | | $ | 1,489 | | $ | 937 | | $ | — | | $ | 130,959 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total commercial construction | | $ | 19,210 | | $ | 51,227 | | $ | 8,814 | | $ | 31,700 | | $ | 17,582 | | $ | 1,489 | | $ | 937 | | $ | — | | $ | 130,959 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgages | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 71,164 | | $ | 187,372 | | $ | 198,502 | | $ | 41,117 | | $ | 54,754 | | $ | 132,419 | | $ | 114 | | $ | — | | $ | 685,442 | Non-performing | | | — | | | — | | | 1,140 | | | 516 | | | — | | | 2,471 | | | — | | | — | | | 4,127 | Total residential mortgages | | $ | 71,164 | | $ | 187,372 | | $ | 199,642 | | $ | 41,633 | | $ | 54,754 | | $ | 134,890 | | $ | 114 | | $ | — | | $ | 689,569 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | 41 | | $ | — | | $ | — | | $ | 4 | | $ | — | | $ | — | | $ | 45 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home equity loans and lines of credit | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 2,465 | | $ | 6,219 | | $ | 5,949 | | | 8,955 | | $ | 3,209 | | $ | 13,561 | | $ | 51,312 | | $ | 2,149 | | $ | 93,819 | Non-performing | | | — | | | — | | | — | | | 95 | | | — | | | 194 | | | 820 | | | — | | | 1,109 | Total home equity loans and lines of credit | | $ | 2,465 | | $ | 6,219 | | $ | 5,949 | | $ | 9,050 | | $ | 3,209 | | $ | 13,755 | | $ | 52,132 | | $ | 2,149 | | $ | 94,928 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | $ | 1,226 | | $ | 5,249 | | $ | 556 | | $ | 73 | | $ | 45 | | $ | 3,222 | | $ | 7,193 | | $ | — | | $ | 17,564 | Non-performing | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total consumer | | $ | 1,226 | | $ | 5,249 | | $ | 556 | | $ | 73 | | $ | 45 | | $ | 3,222 | | $ | 7,193 | | $ | — | | $ | 17,564 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | 46 | | $ | 15 | | $ | 7 | | $ | 3 | | $ | — | | $ | 29 | | $ | — | | $ | — | | $ | 100 |
At December 31, 2025 and 2024, the Company had residential real estate loans in process of foreclosure of $377,000 and $948,000, respectively. As of December 31, 2025 and 2024, the Company had pledged $777.1 million and $672.3 million, respectively, of residential mortgage, home equity and commercial loans as collateral for FHLBNY borrowings and stand-by letters of credit. At December 31, 2025 and 2024, loans to executive officers, directors, or to associates of such persons, as well as activity in such loans for the years then ended were immaterial as a percentage of total loans receivable. The Company retains the servicing rights on certain mortgage loans sold, and may release the servicing rights on others. Total residential mortgage loans serviced by the Company for unrelated third parties were approximately $16.9 million and $15.7 million at December 31, 2025 and 2024, respectively. At December 31, 2025 and 2024, the unamortized balance of mortgage servicing rights on loans sold with servicing retained was approximately $157,000 and $140,000, respectively. The estimated fair value of these mortgage servicing rights was in excess of their carrying value at December 31, 2025 and 2024, and therefore no valuation reserve was necessary. At December 31, 2025 and 2024, the Company held escrow funds in trust on loans serviced for others of $358,000 and $336,000, respectively.
|