Loans Receivable Held for Investment

12 Months Ended

Dec. 31, 2025

Loans Receivable Held for Investment [Abstract]

Loans Receivable Held for Investment (as Restated)

Note 4 – Loans Receivable Held for Investment

Loans receivable held for investment were as follows as of the periods indicated:

	December 31, 2025			December 31, 2024
	(In thousands)
Real estate:
Single-family	$	20,607		$	24,036
Multi-family		593,187			639,156
Commercial real estate		162,618			163,348
Church		9,015			9,470
Construction		72,979			91,600
Commercial – other		140,019			77,787
SBA loans		17,067			1,142
Consumer		38			13
Gross loans receivable before deferred loan costs and premiums		1,015,530			1,006,552
Unamortized net deferred loan costs and premiums		10,529			2,116
		1,026,059			1,008,668
Credit and interest marks on purchased loans, net		(95	)		(348	)
Allowance for credit losses		(9,424	)		(8,364	)
Loans receivable, net	$	1,016,540		$	999,956

The following tables summarize the activity in the allowance for credit losses on loans for the periods indicated:

	For the Year Ended December 31, 2025
	Beginning Balance		Charge-offs			Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)
Real estate:
Single-family	$	200	$	–		$	–	$	(68	)	$	132
Multi-family		4,617		(1,143	)		–		1,308			4,782
Commercial real estate		1,188		–			–		5			1,193
Church		54		–			–		(18	)		36
Construction		1,564		–			–		475			2,039
Commercial - other		730		–			–		170			900
SBA loans		11		(36	)		–		367			342
Consumer		–		–			–		–			–
Total	$	8,364	$	(1,179	)	$	–	$	2,239		$	9,424

	For the Year Ended December 31, 2024
	Beginning Balance		Impact of CECL Adoption		Charge-offs		Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)
Real estate:
Single-family	$	264	$	–	$	–	$	–	$	(64	)	$	200
Multi-family		4,464		–		–		–		153			4,617
Commercial real estate		1,164		–		–		–		24			1,188
Church		72		–		–		–		(18	)		54
Construction		1,009		–		–		–		555			1,564
Commercial - other		592		–		–		–		138			730
SBA loans		48		–		–		–		(37	)		11
Consumer		–		–		–		–		–			–
Total	$	7,613	$	–	$	–	$	–	$	751		$	8,364

The Company also recorded a recovery of provision for off-balance sheet loan commitments of $53 thousand and $91 thousand for the years ended December 31, 2025 and 2024, respectively.

The ACL increased to $9.4 million as of December 31, 2025, compared to $8.4 million as of December 31, 2024, primarily due to an increase in specific reserves on collateral dependent loans.

The Company evaluates loans collectively for purposes of determining the ACL. Collective evaluation is based on aggregating loans deemed to possess similar risk characteristics. In certain instances, the Company may identify loans that it believes no longer possess risk characteristics similar to other loans in the loan portfolio. These loans are typically identified from those that have exhibited deterioration in credit quality, since the specific attributes and risks associated with such loans tend to become unique as the credit deteriorates. Such loans are typically nonperforming, downgraded to substandard or worse, and/or are deemed collateral dependent, where the ultimate repayment of the loan is expected to come from the operation of or eventual sale of the collateral. Loans that are deemed by management to no longer possess risk characteristics similar to other loans in the portfolio, or that have been identified as collateral dependent, are evaluated individually for purposes of determining an appropriate lifetime ACL. The Company uses the remaining life approach, using the loan’s effective interest rate, for determining the ACL on individually evaluated loans, unless the loan is deemed collateral dependent, which requires evaluation based on the estimated fair value of the underlying collateral, less estimated selling costs. The Company may increase or decrease the ACL for collateral dependent loans based on changes in the estimated fair value of the collateral.

The following tables present collateral dependent loans by collateral type as of the date indicated:

December 31, 2025

Single-Family

Multi-Family

Residential

Church

Business

Assets

Total

Real estate:

(In thousands)

Single-family

424

–

424

Multi-family

–

2,094

–

2,094

Construction

–

8,168

–

8,168

Commercial – other

–

261

Total

424

10,262

–

261

10,947

December 31, 2024

Single-Family

Multi-Family

Residential

Church

Business

Assets

Total

Real estate:

(In thousands)

Commercial – other

264

–

264

Total

264

–

264

At December 31, 2025, $10.9 million of individually evaluated loans were evaluated based on the estimated fair value of the underlying collateral. These loans had an associated ACL of $1.1 million as of December 31, 2025. All of these collateral dependent loans were on nonaccrual status at December 31, 2025.

At December 31, 2024, one $264 thousand individually evaluated loan was evaluated based on the estimated fair value of the underlying collateral. This loan had no associated ACL as of December 31, 2024 and was on nonaccrual status.

Past Due Loans

The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:

	December 31, 2025
	30‑59 Days Past Due		60‑89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family	$	133	$	–	$	424	$	557	$	20,070	$	20,627
Multi-family		6,162		–		2,094		8,256		587,535		595,791
Commercial real estate		–		–		–		–		162,445		162,445
Church		–		–		–		–		9,024		9,024
Construction		5,533		–		–		5,533		67,139		72,672
Commercial - other		–		367		261		628		146,366		146,994
SBA loans		–		–		222		222		18,246		18,468
Consumer		–		–		–		–		38		38
Total	$	11,828	$	367	$	3,001	$	15,196	$	1,010,863	$	1,026,059

	December 31, 2024
	30‑59 Days Past Due		60‑89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Real estate:
Single-family	$	–	$	6	$	–	$	6	$	24,042	$	24,048
Multi-family		–		–		–		–		642,109		642,109
Commercial real estate		–		–		–		–		163,269		163,269
Church		–		–		–		–		9,475		9,475
Construction		–		–		–		–		91,140		91,140
Commercial - other		–		–		–		–		77,472		77,472
SBA loans		–		264		–		264		878		1,142
Consumer		–		–		–		–		13		13
Total	$	–	$	270	$	–	$	270	$	1,008,398	$	1,008,668

The following tables present the recorded investment in non‑accrual loans by loan type as of the period indicated:

December 31, 2025	Nonaccrual with no Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Total Nonaccrual Loans
Loans receivable held for investment:			(In thousands)
Real Estate:
Single-family	$	424	$	–	$	424
Multi-family		2,094		–		2,094
Construction		–		8,168		8,168
Commercial - other		261		–		261
SBA loans		–		222		222
Total non-accrual loans	$	2,779	$	8,390	$	11,169

December 31, 2024	Nonaccrual with no Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses			Total Nonaccrual Loans
Loans receivable held for investment:			(In thousands)

SBA loans	$	264		$	–	$	264
Total non-accrual loans	$	264		$	–	$	264

The Company recognized $82 thousand of interest income on nonaccrual loans during the year ended December 31,2025. There were no loans 90 days or more delinquent that were accruing interest as of December 31, 2025 or December 31, 2024.

Modified Loans to Troubled Borrowers

GAAP requires that certain types of modifications of loans in response to a borrower’s financial difficulty be reported, which consist of the following: (i) principal forgiveness, (ii) interest rate reduction, (iii) other-than-insignificant payment delay, (iv) term extension, or (v) any combination of the foregoing. The ACL for loans that were modified in response to a borrower’s financial difficulty is measured on a collective basis, as with other loans in the loan portfolio, unless management determines that such loans no longer possess risk characteristics similar to others in the loan portfolio. In those instances, the ACL for such loans is determined through individual evaluation.

The following table presents the amortized costs basis as of December 31, 2025 and 2024 and the financial effect of loans modified to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024.

	December 31, 2025
	Term Extension			Percentage of Total Loan Type			Weighted Average Term Extension
	(In Thousands)
Real estate:
Commercial real estate		$	772		0.47	%	8 months
Construction			1,999		2.73	%	8 months
Commercial - other			367		0.26	%	9 months
Total		$	3,138

	December 31, 2024
	Term Extension			Percentage of Total Loan Type			Weighted Average Term Extension
	(In Thousands)
Real estate:
Commercial real estate		$	792		0.51	%	12 months
Construction			4,559		5.66	%	17 months
Commercial - other			572		1.28	%	14 months
Total		$	5,923

Credit Quality Indicators

The Company 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. For single-family residential, consumer and other smaller balance homogenous loans, a credit grade is established at inception, and generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. This analysis is performed at least on an annual basis. The Company uses the following definitions for risk ratings:

●

Watch. Loans classified as watch exhibit weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing and are not more than 59 days past due. A watch rating is used when a material deficiency exists, but correction is anticipated within an acceptable time frame.

●

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention that appears short-term in nature. 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 jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the institution may 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, based on currently existing facts, conditions, and values, highly questionable and improbable.

●

Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59 days past due and are generally performing in accordance with the loan terms.

The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination as of the date indicated:

	Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2025
	2025		2024		2023		2022			2021		Prior			Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	–	$	533	$	2,785		$	2,464	$	12,806		$	–	$	18,588
Watch		–		–		–		–			–		867			–		867
Substandard		–		–		–		1,172			–		–			–		1,172
Total	$	–	$	–	$	533	$	3,957		$	2,464	$	13,673		$	–	$	20,627

Multi-family:
Pass	$	2,519	$	63,728	$	64,468	$	164,533		$	122,938	$	82,514		$	–	$	500,700
Watch		–		13,169		16,343		14,299			9,979		23,162			–		76,952
Special Mention		–		–		–		–			1,774		1,235			–		3,009
Substandard		–		–		1,343		6,572			4,332		804			–		13,051
Doubtful		–		–		–		2,079			–		–			–		2,079
Total	$	2,519	$	76,897	$	82,154	$	187,483		$	139,023	$	107,715		$	–	$	595,791
YTD gross charge-offs	$	–	$	–	$	–	$	(1,143	)	$	–	$	–		$	–	$	(1,143	)

Commercial real estate:
Pass	$	20,019	$	48,758	$	13,741	$	21,476		$	24,284	$	20,415		$	–	$	148,693
Watch		–		–		2,363		–			–		–			–		2,363
Special Mention		–		–		854		–			–		3,475			–		4,329
Substandard		–		–		–		–			6,288		772			–		7,060
Total	$	20,019	$	48,758	$	16,958	$	21,476		$	30,572	$	24,662		$	–	$	162,445

Church:
Pass	$	–	$	–	$	2,330	$	–		$	2,091	$	3,652		$	–	$	8,073
Watch		–		–		357		–			–		594			–		951
Substandard		–		–		–		–			–		–			–		–
Total	$	–	$	–	$	2,687	$	–		$	2,091	$	4,246		$	–	$	9,024

Construction:
Watch	$	6,700	$	9,232	$	–	$	–		$	–	$	–		$	–	$	15,932
Special Mention		–		–		12,983		5,533			–		–			–		18,516
Substandard		–		–		12,634		21,073			2,519		1,998			–		38,224
Total	$	6,700	$	9,232	$	25,617	$	26,606		$	2,519	$	1,998		$	–	$	72,672

Commercial – other:
Pass	$	43,037	$	21,347	$	18,837	$	8,834		$	–	$	7,341		$	–	$	99,396
Watch		9,984		17,469		14,993		1,000			–		1,171			–		44,617
Special Mention		–		–		–		–			–		2,617			–		2,617
Substandard		–		–		–		–			103		261			–		364
Total	$	53,021	$	38,816	$	33,830	$	9,834		$	103	$	11,390		$	–	$	146,994

SBA:
Pass	$	3,789	$	12,415	$	1,452	$	–		$	–	$	19		$	–	$	17,675
Substandard		–		571		–		148			–		–			–		719
Doubtful		–		–		–		–			–		74			–		74
Total	$	3,789	$	12,986	$	1,452	$	148		$	–	$	93		$	–	$	18,468
YTD gross charge-offs	$	–	$	–	$	–	$	–		$	–	$	(36	)	$	–	$	(36	)

Consumer:
Pass	$	38	$	–	$	–	$	–		$	–	$	–		$	–	$	38
Total	$	38	$	–	$	–	$	–		$	–	$	–		$	–	$	38

Total loans:
Pass	$	69,402	$	146,248	$	101,361	$	197,628		$	151,777	$	126,747		$	–	$	793,163
Watch		16,684		39,870		34,056		15,299			9,979		25,794			–		141,682
Special Mention		–		–		13,837		5,533			1,774		7,327			–		28,471
Substandard		–		571		13,977		28,965			13,242		3,835			–		60,590
Doubtful		–		–		–		2,079			–		74			–		2,153
Total loans	$	86,086	$	186,689	$	163,231	$	249,504		$	176,772	$	163,777		$	–	$	1,026,059

	Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	–	$	543	$	4,098	$	1,968	$	1,796	$	13,687	$	–	$	22,092
Watch		–		–		–		729		1,227		–		–		1,956
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		–		–		–		–		–		–		–
Total	$	–	$	543	$	4,098	$	2,697	$	3,023	$	13,687	$	–	$	24,048

Multi-family:
Pass	$	81,474	$	77,739	$	171,836	$	126,492	$	26,771	$	90,584	$	–	$	574,896
Watch		–		5,633		16,244		14,761		–		13,244		–		49,882
Special Mention		–		–		4,210		3,150		–		–		–		7,360
Substandard		–		1,562		–		4,691		–		3,718		–		9,971
Total	$	81,474	$	84,934	$	192,290	$	149,094	$	26,771	$	107,546	$	–	$	642,109

Commercial real estate:
Pass	$	49,143	$	9,655	$	23,482	$	29,021	$	21,150	$	22,606	$	–	$	155,057
Watch		–		1,584		432		994		–		1,634		–		4,644
Special Mention		–		–		–		–		–		–		–		–
Substandard		–		3,271		–		297		–		–		–		3,568
Total	$	49,143	$	14,510	$	23,914	$	30,312	$	21,150	$	24,240	$	–	$	163,269

Church:
Pass	$	–	$	2,442	$	–	$	2,148	$	1,696	$	1,002	$	–	$	7,288
Watch		–		376		–		–		–		618		–		994
Substandard		–		–		–		–		–		1,193		–		1,193
Total	$	–	$	2,818	$	–	$	2,148	$	1,696	$	2,813	$	–	$	9,475

Construction:
Pass	$	–	$	–	$	–	$	–	$	–	$	–	$	–	$	–
Watch		9,568		31,274		227		–		–		2,038		–		43,107
Substandard		–		4,076		38,494		5,463		–		–		–		48,033
Total	$	9,568	$	35,350	$	38,721	$	5,463	$	–	$	2,038	$	–	$	91,140

Commercial – other:
Pass	$	1	$	3	$	7,575	$	–	$	2,768	$	9,965	$	–	$	20,312
Watch		19,260		28,157		706		–		–		1,197		–		49,320
Special Mention		–		–		351		–		–		2,250		–		2,601
Substandard		–		–		–		106		571		4,562		–		5,239
Total	$	19,261	$	28,160	$	8,632	$	106	$	3,339	$	17,974	$	–	$	77,472

SBA:
Pass	$	590	$	–	$	–	$	–	$	–	$	64	$	–	$	654
Substandard		–		–		150		–		338		–		–		488
Total	$	590	$	–	$	150	$	–	$	338	$	64	$	–	$	1,142

Consumer:
Pass	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13
Total	$	13	$	–	$	–	$	–	$	–	$	–	$	–	$	13

Total loans:
Pass	$	131,221	$	90,382	$	206,991	$	159,629	$	54,181	$	137,908	$	–	$	780,312
Watch		28,828		67,024		17,609		16,484		1,227		18,731		–		149,903
Special Mention		–		–		4,561		3,150		–		2,250		–		9,961
Substandard		–		8,909		38,644		10,557		909		9,473		–		68,492
Total	$	160,049	$	166,315	$	267,805	$	189,820	$	56,317	$	168,362	$	–	$	1,008,668

Allowance for Credit Losses for Off-Balance Sheet Commitments

The Company maintains an allowance for credit losses on off-balance sheet commitments related to unfunded loans and lines of credit, which is included in accrued expenses and other liabilities of the consolidated statements of financial condition. The Company applies an expected credit loss estimation methodology for off-balance sheet commitments. This methodology is commensurate with the methodology applied to each respective segment of the loan portfolio in determining the ACL for loans held-for-investment. The loss estimation process includes assumptions for the probability that a loan will fund, as well as the expected amount of funding. These assumptions are based on the Company’s own historical internal loan data.

The allowance for off-balance sheet commitments was $224 thousand and $277 thousand at December 31, 2025 and 2024, respectively. The recovery of credit losses for off-balance sheet commitments was $53 thousand and $91 thousand for the years ended December 31, 2025 and 2024, respectively.