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LOANS RECEIVABLE, NET
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
LOANS RECEIVABLE, NET LOANS RECEIVABLE, NET
A summary of loans receivable, net, at December 31, 2025 and 2024 is as follows:
December 31, 2025December 31, 2024
(In thousands)
Residential $510,583 $518,243 
Multifamily641,027 671,116 
Commercial real estate306,096 259,633 
Construction51,353 85,546 
Junior liens31,008 25,422 
Commercial and industrial24,159 16,311 
Consumer and other126,306 7,211 
Total loans1,690,532 1,583,482 
Less: Allowance for credit losses on loans (1)
14,392 12,965 
Loans receivable, net$1,676,140 $1,570,517 
(1) For more information, see Note 4 - Allowance for Credit Losses.
Loans are recorded at amortized cost, which includes principal balance, net deferred fees or costs, premiums and discounts. The Company elected to exclude accrued interest receivable from amortized cost. Accrued interest receivable is reported separately in the consolidated balance sheets and totaled $8.3 million and $6.7 million at December 31, 2025 and December 31, 2024, respectively. Loan origination fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income as an adjustment of yield. At December 31, 2025 and December 31, 2024, net deferred loan fees totaled $2.3 million and $2.0 million, respectively.
The portfolio classes in the above table have unique risk characteristics with respect to credit quality:
•Payment on multifamily and commercial real estate mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment and the value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.
•Properties underlying construction loans often do not generate sufficient cash flows to service debt and thus repayment is subject to the ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.
•Commercial and industrial (“C&I”) loans include C&I revolving lines of credit, term loans, SBA 7a loans and to a lesser extent, Paycheck Protection Program (“PPP”) loans. Payments on C&I loans are driven principally by the cash flows of the businesses and secondarily by the sale or refinance of any collateral securing the loans. Both the cash flow and value of the collateral in liquidation may be affected by adverse general economic conditions.
•The ability of borrowers to service debt in the residential and junior liens portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.
•The consumer loan portfolio primarily includes loans purchased from Bankers Healthcare Group, LLC (“BHG”). BHG originates loans nationwide to licensed or unlicensed or otherwise skilled business professionals for business development, practice improvement, debt consolidation, working capital, equipment purchases and, occasionally, business purchases. BHG typically originates loans at fixed interest rates and without a prepayment penalty provision. BHG both underwrites and funds the loans, which are unsecured. When we purchase loans from BHG, we purchase 100% of the loans and BHG establishes a reserve deposit account with the Bank equal to 3% of the loan balance, which Management has determined to be sufficient to cover any expected losses in the loan pools. BHG services the loan, remitting payments monthly to the Bank. If a loan becomes delinquent, BHG handles all collection activity and bears all associated costs. During the delinquency period, loan payments are withdrawn from the reserve deposit account and replaced when delinquent payments are collected. If a loan becomes 90 days delinquent, the company requests a replacement or reimbursement of the loan amount due. BHG has been reimbursing the Company as requested.
Credit Quality Indicators
The Company categorizes loans into risk categories based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis is performed whenever credit is extended, renewed, or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company used the following definitions for risk ratings for loan classification:
Pass – Loans classified as pass are loans performing under the original contractual terms, do not currently pose any identified risk and can range from the highest to pass/watch quality, depending on the degree of potential risk.
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 the Company’s credit position at some future date.
Substandard – Loans classified as substandard are inadequately protected by the current sound 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 repayment and liquidation of the debt. They are characterized by a distinct possibility that the Company 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 known facts, conditions, and values, highly questionable and improbable.
Loss – Assets classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset even though partial recovery may be effected in the future.
The following table presents the risk category of loans by class of loan and vintage as of December 31, 2025:
Term Loans by Origination Year
20252024202320222021Pre-2021Revolving LoansTotal
(in thousands)
Residential
Pass$48,171 $21,836 $12,228 $82,194 $94,621 $246,512 $— $505,562 
Substandard— — — — 330 4,691 — 5,021 
Total48,171 21,836 12,228 82,194 94,951 251,203 — 510,583 
Multifamily
Pass35,008 15,550 16,698 265,813 124,777 177,426 — 635,272 
Substandard— — — 5,319 — 436 — 5,755 
Total35,008 15,550 16,698 271,132 124,777 177,862 — 641,027 
Commercial real estate
Pass71,145 22,901 26,477 113,256 14,182 57,387 — 305,348 
Special mention— — — — — 748 — 748 
Total71,145 22,901 26,477 113,256 14,182 58,135 — 306,096 
Construction
Pass28,401 18,160 — 4,792 — — — 51,353 
Total28,401 18,160 — 4,792 — — — 51,353 
Junior liens
Pass7,691 5,719 4,039 4,995 1,176 7,146 — 30,766 
Substandard— — 59 — 39 144 — 242 
Total7,691 5,719 4,098 4,995 1,215 7,290 — 31,008 
Commercial and industrial
Pass15,263 2,066 4,893 84 1,413 — — 23,719 
Substandard— — 440 — — — — 440 
Total15,263 2,066 5,333 84 1,413 — — 24,159 
Consumer and other
Pass121,081 5,213 — — — — 12 126,306 
Total121,081 5,213 — — — — 12 126,306 
Total gross loans$326,760 $91,445 $64,834 $476,453 $236,538 $494,490 $12 $1,690,532 
The following table presents the risk category of loans by class of loan and vintage as of December 31, 2024:
Term Loans by Origination Year
20242023202220212020Pre-2020Revolving LoansTotal
(in thousands)
Residential
Pass$24,396 $12,941 $90,735 $101,928 $13,851 $269,751 $— $513,602 
Special mention— — — — — 264 — 264 
Substandard— — 225 — — 4,152 — 4,377 
Total24,396 12,941 90,960 101,928 13,851 274,167 — 518,243 
Multifamily
Pass15,690 16,933 272,345 147,322 34,541 178,799 — 665,630 
Special mention— — 5,368 — — — — 5,368 
Substandard— — — — — 118 — 118 
Total15,690 16,933 277,713 147,322 34,541 178,917 — 671,116 
Commercial real estate
Pass35,728 26,636 115,871 14,489 14,633 51,448 — 258,805 
Special mention— — — — — 828 — 828 
Total35,728 26,636 115,871 14,489 14,633 52,276 — 259,633 
Construction
Pass6,300 26,409 35,342 17,495 — — — 85,546 
Total6,300 26,409 35,342 17,495 — — — 85,546 
Junior liens
Pass5,833 4,655 5,154 1,102 222 8,264 — 25,230 
Special mention— — — — — 43 — 43 
Substandard— — — — — 149 — 149 
Total5,833 4,655 5,154 1,102 222 8,456 — 25,422 
Commercial and industrial
Pass7,603 5,730 95 2,305 — — — 15,733 
Substandard (1)— 563 — 15 — — — 578 
Total7,603 6,293 95 2,320 — — — 16,311 
Consumer and other
Pass7,186 — — — — — 25 7,211 
Total7,186 — — — — — 25 7,211 
Total gross loans$102,736 $93,867 $525,135 $284,656 $63,247 $513,816 $25 $1,583,482 
(1)    Balance in 2021 represents PPP loans which carry the federal guarantee of the SBA.
Past Due and Non-accrual Loans
The following table presents the recorded investment in past due and current loans by loan portfolio class as of December 31, 2025 and 2024:
30-59
Days
Past Due		60-89
Days
Past Due		90 Days
and Greater
Past Due		Total
Past Due		CurrentTotal
Loans
Receivable
(In thousands)
December 31, 2025
Residential $3,183 $44 $4,002 $7,229 $503,354 $510,583 
Multifamily— 1,036 5,669 6,705 634,322 641,027 
Commercial real estate— — — — 306,096 306,096 
Construction— — — — 51,353 51,353 
Junior liens— — 144 144 30,864 31,008 
Commercial and industrial2,001 — — 2,001 22,158 24,159 
Consumer and other— — — — 126,306 126,306 
Total$5,184 $1,080 $9,815 $16,079 $1,674,453 $1,690,532 
December 31, 2024
Residential$3,085 $315 $3,892 $7,292 $510,951 $518,243 
Multifamily303 — — 303 670,813 671,116 
Commercial real estate774 — — 774 258,859 259,633 
Construction— — — — 85,546 85,546 
Junior liens— — 149 149 25,273 25,422 
Commercial and industrial— 563 15 578 15,733 16,311 
Consumer and other— — — — 7,211 7,211 
Total$4,162 $878 $4,056 $9,096 $1,574,386 $1,583,482 
The following table presents information on non-accrual loans at December 31, 2025 and 2024:
December 31, 2025Non-accrualInterest Income Recognized on Non-accrual Loans
Amortized Cost Basis of Loans > 90 Days Past Due and Still Accruing
Amortized Cost Basis of Non-accrual Loans Without Related Allowance
(In thousands)
Residential$5,021 $65 $— $5,021 
Multifamily5,669 — — 5,669 
Junior liens242 13 — 242 
Commercial and industrial440 19 — 440 
Total$11,372 $97 $— $11,372 
December 31, 2024
Residential$4,377 $19 $— $4,377 
Multifamily— 7 — — 
Junior liens149 7 — 149 
Commercial and industrial578 — — 578 
Total$5,104 $33 $— $5,104 
The Company had no loans held-for-sale at December 31, 2025 and 2024. Gains and losses on sales of loans are specifically identified and accounted for in accordance with U.S. GAAP.
Modifications made to borrowers experiencing financial difficulty may include principal forgiveness, interest rate reductions, other than insignificant payment delays, terms extensions or a combination thereof intended to minimize economic loss and to avoid foreclosure or repossession of collateral. If the borrower has demonstrated performance under the previous terms and our underwriting process show the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest.
The following table presents the amortized cost basis at December 31, 2025, of loan modifications to borrowers experiencing financial difficulty during 2025, disaggregated by type of modification.
Payment DelaysTerm ExtensionsTotal Principal% of Total Class of Loans
(Dollars in thousands)
Residential $280 $— $280 0.05 %
Total$280 $— $280 0.02 %
Types of Modifications
Junior liens
Term extension of 68 months
Commercial and industrial
Deferral of three payments
The following table presents the amortized cost basis at December 31, 2024, of loan modifications to borrowers experiencing financial difficulty during 2024, disaggregated by type of modification.
Payment DelaysTerm ExtensionsTotal Principal% of Total Class of Loans
(Dollars in thousands)
Junior liens$— $43 $43 0.17 %
Commercial and industrial563 — 563 3.45 
Total$563 $43 $606 0.04 %
Types of Modifications
Junior liens
Term extension of 68 months
Commercial and industrial
Deferral of three payments
The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment status and amortized cost basis at December 31, 2025, of loans that were modified during the 12-month period ended December 31, 2025.
Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueNon-AccrualTotal
(In thousands)
Residential $280 $— $— $— $— $280 
Total$280 $— $— $— $— $280 
The following table presents the payment status and amortized cost basis at December 31, 2024, of loans that were modified during the 12-month period ended December 31, 2024.
Current30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueNon-AccrualTotal
(In thousands)
Junior liens$43 $— $— $— $— $43 
Commercial and industrial— — — — 563 563 
Total$43 $— $— $— $563 $606 
The Company had $4.0 million and $3.7 million in consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process at December 31, 2025 and 2024, respectively. At December 31, 2025 and December 31, 2024, the Company had no real estate owned.