INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of effective income tax rate reconciliation

The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. Federal statutory tax amount for the year ended December 31, 2025:


	Amount		Percent
	(In thousands)
U.S Federal Statutory Tax rate	$	(2,105)	(21.00)	%
State and local taxes, net of federal income tax effect (1)	—		—	%
Changes in Valuation Allowance	1,652		16.48	%
Non-deductible compensation	205		2.04	%
Stock compensation	125		1.25	%
Transaction costs	281		2.80	%
Other Nontaxable or Nondeductible items, net (2)	(143)		(1.43)	%
Other adjustments	(15)		(0.15)	%
Total	$	—	—	%

(1) State taxes in New Jersey made up the majority (greater than 50%) of the tax effect of this category.

(2) The other nontaxable or nondeductible items category includes items such as bank owned life insurance, tax exempt income, ESOP adjustments, and other non-deductible expenses. None of those items individually or in the aggregate exceeded the 5% quantitative threshold for separate disclosure.

The following table presents required disclosure pursuant to ASC 740, Income Taxes, and reconciles the U.S. Federal statutory tax amount for the year ended December 31, 2024:


	(In thousands)
Loss before income tax benefit	$	(11,911)
Applicable statutory federal income tax rate	21.00		%
Computed “expected” federal income tax benefit	$	(2,501)
Increase (decrease) in federal income tax expense resulting from:
State income taxes, net of federal benefit	(835)
Valuation allowance	3,311
Tax-exempt income	(37)
Bank owned life insurance	(102)
Non-deductible compensation	14
ESOP fair market value adjustment	(4)
Stock compensation	145

Other items, net	9
Total	$	—

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024, are as follows:


	2025		2024
	(In thousands)
Deferred tax assets:
Allowance for credit losses on loans and REO	$	4,273	$	3,688
Allowance for losses held-to-maturity securities	22		23
Net unrealized losses on securities available-for-sale	3,996		6,472

Accrued post retirement benefits	1,220		1,128
Accrued interest receivable	202		169
Accrued bonus	312		607
Stock compensation	1,307		962
Premises and equipment	552		393
Finance lease liability	6,587		7,075
Charitable contribution carryover	2,536		2,533

Federal net operating loss carryforward	9,666		8,896
State net operating loss carryforward	3,610		2,956
Other	335		253
Total gross deferred tax assets	34,618		35,155
Deferred tax liabilities:

Net unrealized gains on derivatives	315		2,689
Deferred loan fees, net	615		563
Unrealized actuarial gains on post retirement benefits	193		99

Finance lease right-of-use asset	6,101		6,597
Other	55		86
Total gross deferred tax liabilities	7,279		10,034
Net deferred tax asset	27,339		25,121
Valuation allowance	(27,339)		(25,121)
Gross deferred tax assets after valuation allowance	$	—	$	—