v3.26.1
Related Party Transactions
12 Months Ended
Dec. 31, 2025
Related Party Transactions  
Related Party Transactions

Note 3. Related Party Transactions

This disclosure describes the nature, description, and amounts of related party transactions.

Transactions with Subsidiaries

The Company has entered into several agreements with its subsidiary, MP Securities. The Company eliminates the income and expense related to these agreements in the consolidated financial statements.

Related Party Transaction Policy

The Board has adopted a Related Party Transaction Policy to assist in evaluating transactions the Company may enter into with a related party. Under this policy, a majority of the members of the Company’s Board and majority of its independent Board members must approve a material transaction that it enters into with a related party.

Related Party Transactions with Owners

The Company has entered into several transactions with its equity owners. The following table (dollars in thousands) describes the nature and dollar amounts of the related party transactions with these owners:

December 31,

December 31,

2025

  ​ ​ ​

2024

Balance Sheet Items

Cash and cash equivalents held at related parties

$

5,698

$

5,153

Certificates of deposit held at related parties

Lines of credit payable to related parties

Off Balance Sheet Items

Loans serviced for the related parties

$

5,826

$

5,977

Year ended

December 31,

2025

  ​ ​ ​

2024

Income Statement Items

Detail

Interest income on loans purchased from related parties

$

$

83

Interest income on interest-bearing accounts held at related parties

160

153

Interest expense on other debt due to related parties

200

Networking fees paid to related parties for referring business to the Company

96

118

Income from broker services provided to related parties

22

30

Related Party Transactions with Non-Owner Organizations

The Company has entered into several transactions with Kane County Teacher’s Credit Union (“KCT”), whose former Chief Executive Officer and President, Mr. R. Michael Lee, serves as our Chairman of the Board and therefore possessed the ability to significantly influence the management of both parties. On April 3, 2024, KCT and Consumers Credit Union announced their intent to merge. This merger transaction was completed on December 1, 2024. Mr. Lee no longer holds a position with Consumers Credit Union. The Company does not consider Consumers Credit Union a related party, and therefore no related party items are disclosed as of and for the year ended December 31, 2025.

The following table describes the nature and dollar amounts of the related party transactions with KCT through December 31, 2024:

December 31,

Balance Sheet Items

2024

Cash and cash equivalents held at related parties

$

Certificates of deposit held at related parties

1,305

Off Balance Sheet Items

Loans serviced for the related parties

$

3,386

Year ended

December 31,

2024

Income Statement Items

Interest on interest-bearing accounts held at related parties

$

61

Interest expense on other debt due related parties

193

Networking fees paid to related parties for referring business to the Company

212

Related Party Transactions with Management

From time to time, the Company’s Board and members of its executive management team have purchased debt certificates from the Company or have purchased investment products through MP

Securities. The following table (dollars in thousands) describes the nature and dollar amounts of these related party transactions with its management:

December 31,

December 31,

2025

  ​ ​ ​

2024

Outstanding public offering debt certificates payable to officers and managers

$

2,278

$

2,276