| Loans Receivable and the Allowance for Credit Losses |
Note 6 — Loans Receivable and the Allowance for Credit Losses The composition of loans was as follows at March 31, 2026 and December 31, 2025: | | | | | | | | | | March 31, | | December 31, | | | | 2026 | | 2025 | | | | | (In Thousands) | | Residential real estate: | | | | | | | | One-to-four family | | $ | 3,080 | | $ | 3,114 | | Multi-family | | | 292,160 | | | 306,508 | | Mixed-use | | | 24,703 | | | 25,197 | | Total residential real estate | | | 319,943 | | | 334,819 | | Non-residential real estate | | | 38,205 | | | 38,463 | | Construction | | | 1,320,236 | | | 1,336,329 | | Commercial and industrial | | | 149,787 | | | 150,397 | | Consumer | | | 37 | | | 58 | | Total Loans | | | 1,828,208 | | | 1,860,066 | | Deferred loan costs, net | | | 174 | | | 268 | | Allowance for credit losses | | | (4,592) | | | (4,731) | | | | $ | 1,823,790 | | $ | 1,855,603 | |
Loans serviced for the benefit of others, which are not included in the amounts shown above, totaled approximately $45.6 million and $53.3 million at March 31, 2026 and December 31, 2025, respectively. The value of mortgage servicing rights was not material at March 31, 2026 and December 31, 2025. The allowance for credit losses on loans represents management’s estimate of losses inherent in the loan portfolio as of the statement of financial condition date and is recorded as a reduction to loans. The allowance for credit losses is increased by the provision for credit losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. The allowance for credit losses on loans is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The activity in the allowance for credit loss by loan segment for the three months ended March 31, 2026 and 2025 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | Non- | | | | | Commercial | | | | | | | | | Residential | | residential | | | | | and | | | | | | | | | Real Estate | | Real Estate | | Construction | | Industrial | | Consumer | | Total | | | | (In Thousands) | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | Balance - December 31, 2025 | | $ | 1,646 | | $ | 249 | | $ | 2,035 | | $ | 743 | | $ | 58 | | $ | 4,731 | Charge-offs | | | — | | | — | | | — | | | — | | | (27) | | | (27) | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | Provision (reversal of) | | | (126) | | | 15 | | | (20) | | | 13 | | | 6 | | | (112) | Balance -March 31, 2026 | | $ | 1,520 | | $ | 264 | | $ | 2,015 | | $ | 756 | | $ | 37 | | $ | 4,592 |
| | | | | | | | | | | | | | | | | | | | | | | | Non- | | | | | Commercial | | | | | | | | | Residential | | residential | | | | | and | | | | | | | | | Real Estate | | Real Estate | | Construction | | Industrial | | Consumer | | Total | | | | (In Thousands) | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | Balance - December 31, 2024 | | $ | 1,900 | | $ | 308 | | $ | 1,937 | | $ | 520 | | $ | 165 | | $ | 4,830 | Charge-offs | | | — | | | — | | | — | | | — | | | (117) | | | (117) | Recoveries | | | — | | | 350 | | | — | | | — | | | 2 | | | 352 | Provision (reversal of) | | | 324 | | | (387) | | | (221) | | | 86 | | | 260 | | | 62 | Balance - March 31, 2025 | | $ | 2,224 | | $ | 271 | | $ | 1,716 | | $ | 606 | | $ | 310 | | $ | 5,127 |
During the three months ended March 31, 2026, the reversal of provision recorded for residential real estate and construction loans was primarily attributed to decreased loan balances. The provision expense recorded for non-residential real estate loans and commercial and industrial loans was primarily attributed to slightly increased credit risk within the loan portfolios. During the three months ended March 31, 2025, the provision expense recorded for residential real estate loans was primarily attributed to increased loan balances. The provision expense recorded for commercial and industrial loans was attributed to increased loan balances and increased credit risk. The reversal of provision recorded for non-residential real estate loans was primarily attributed to a $350,000 recovery from a loan charged off in 2021, and slightly decreased loan balance. The reversal of provision recorded for constructions loans was primarily attributed to decreased loan balances. The provision expense recorded for consumer loans was primarily attributed to the increased balance on deposit account overdrafts. The Company had no individually evaluated loan and no non-accrual loans at March 31, 2026 and December 31, 2025, respectively. The following tables provide information about delinquencies in our loan portfolio at the dates indicated. Age Analysis of Past Due Loans as of March 31, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Recorded | | | | | | | | | | | | | | | | | | | | | Investment > | | | 30 – 59 Days | | 60 – 89 Days | | Greater Than | | Total Past | | | | | Total Loans | | 90 Days and | | | Past Due | | Past Due | | 90 Days | | Due | | Current | | Receivable | | Accruing | | | | (In Thousands) | Residential real estate: | | | | | | | | | | | | | | | | | | | | | | One- to four-family | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 3,080 | | $ | 3,080 | | $ | — | Multi-family | | | — | | | — | | | — | | | — | | | 292,160 | | | 292,160 | | | — | Mixed-use | | | — | | | — | | | — | | | — | | | 24,703 | | | 24,703 | | | — | Non-residential real estate | | | — | | | — | | | — | | | — | | | 38,205 | | | 38,205 | | | — | Construction loans | | | 2,490 | | | — | | | — | | | 2,490 | | | 1,317,746 | | | 1,320,236 | | | — | Commercial and industrial loans | | | — | | | — | | | — | | | — | | | 149,787 | | | 149,787 | | | — | Consumer | | | — | | | — | | | — | | | — | | | 37 | | | 37 | | | — | | | $ | 2,490 | | $ | — | | $ | — | | $ | 2,490 | | $ | 1,825,718 | | $ | 1,828,208 | | $ | — |
Age Analysis of Past Due Loans as of December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Recorded | | | | | | | | | | | | | | | | | | | | | Investment | | | 30 – 59 Days | | 60 – 89 Days | | Greater Than | | Total Past | | | | | Total Loans | | > 90 Days and | | | Past Due | | Past Due | | 90 Days | | Due | | Current | | Receivable | | Accruing | | | | (In Thousands) | Residential real estate: | | | | | | | | | | | | | | | | | | | | | | One- to four-family | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 3,114 | | $ | 3,114 | | $ | — | Multi-family | | | — | | | — | | | — | | | — | | | 306,508 | | | 306,508 | | | — | Mixed-use | | | — | | | — | | | — | | | — | | | 25,197 | | | 25,197 | | | — | Non-residential real estate | | | — | | | — | | | — | | | — | | | 38,463 | | | 38,463 | | | — | Construction loans | | | — | | | — | | | — | | | — | | | 1,336,329 | | | 1,336,329 | | | — | Commercial and industrial loans | | | — | | | — | | | — | | | — | | | 150,397 | | | 150,397 | | | — | Consumer | | | — | | | — | | | — | | | — | | | 58 | | | 58 | | | — | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,860,066 | | $ | 1,860,066 | | $ | — |
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. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass – Loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention – Loans which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses. Substandard – Loans which are inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all of the weaknesses inherent in loans classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. The following table presents the risk category of loans at March 31, 2026 by loan segment and vintage year: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | Revolving | | | | | Term Loans Amortized Costs Basis by Origination Year | | Loans | | Loans | | | | | | | | | | | | | | | | | | Amortized | | Converted | | | March 31, 2026 | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Cost Basis | | to Term | | Total | Residential real estate | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | - | $ | 119,677 | $ | 11,968 | $ | 67,765 | $ | 64,260 | $ | 56,273 | $ | - | $ | - | $ | 319,943 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | - | $ | 119,677 | $ | 11,968 | $ | 67,765 | $ | 64,260 | $ | 56,273 | $ | - | $ | - | $ | 319,943 | | | | | | | | | | | | | | | | | | | | | Residential real estate | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Non-residential real estate | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | - | $ | 10,967 | $ | 13,567 | $ | 1,521 | $ | 233 | $ | 11,917 | $ | - | $ | - | $ | 38,205 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | - | $ | 10,967 | $ | 13,567 | $ | 1,521 | $ | 233 | $ | 11,917 | $ | - | $ | - | $ | 38,205 | | | | | | | | | | | | | | | | | | | | | Non-residential real estate | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Construction | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 110,210 | $ | 493,842 | $ | 295,163 | $ | 207,740 | $ | 116,038 | $ | 97,243 | $ | - | $ | - | $ | 1,320,236 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 110,210 | $ | 493,842 | $ | 295,163 | $ | 207,740 | $ | 116,038 | $ | 97,243 | $ | - | $ | - | $ | 1,320,236 | | | | | | | | | | | | | | | | | | | | | Construction | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 37 | $ | 6,596 | $ | 5,500 | $ | 3,429 | $ | 4,566 | $ | 1,441 | $ | 125,105 | $ | 2,892 | $ | 149,566 | Special Mention | | | - | | - | | 221 | | - | | - | | - | | - | | - | | 221 | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 37 | $ | 6,596 | $ | 5,721 | $ | 3,429 | $ | 4,566 | $ | 1,441 | $ | 125,105 | $ | 2,892 | $ | 149,787 | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 37 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 37 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 37 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 37 | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | 27 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 27 | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 110,284 | $ | 631,082 | $ | 326,198 | $ | 280,455 | $ | 185,097 | $ | 166,874 | $ | 125,105 | $ | 2,892 | $ | 1,827,987 | Special Mention | | | - | | - | | 221 | | - | | - | | - | | - | | - | | 221 | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 110,284 | $ | 631,082 | $ | 326,419 | $ | 280,455 | $ | 185,097 | $ | 166,874 | $ | 125,105 | $ | 2,892 | $ | 1,828,208 | Total | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | 27 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 27 |
The following table presents the risk category of loans at December 31, 2025 by loan segment and vintage year: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | Revolving | | | | | Term Loans Amortized Costs Basis by Origination Year | | Loans | | Loans | | | | | | | | | | | | | | | | | | Amortized | | Converted | | | December 31, 2025 | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Cost Basis | | to Term | | Total | Residential real estate | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 120,070 | $ | 11,768 | $ | 75,364 | $ | 64,588 | $ | 21,735 | $ | 41,068 | $ | - | $ | - | $ | 334,593 | Special Mention | | | - | | 226 | | - | | - | | - | | - | | - | | - | | 226 | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 120,070 | $ | 11,994 | $ | 75,364 | $ | 64,588 | $ | 21,735 | $ | 41,068 | $ | - | $ | - | $ | 334,819 | Residential real estate | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Non-residential real estate | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 11,013 | $ | 13,632 | $ | 1,531 | $ | 235 | $ | 1,606 | $ | 10,446 | $ | - | $ | - | $ | 38,463 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 11,013 | $ | 13,632 | $ | 1,531 | $ | 235 | $ | 1,606 | $ | 10,446 | $ | - | $ | - | $ | 38,463 | Non-residential real estate | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Construction | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 445,820 | $ | 380,754 | $ | 233,309 | $ | 158,283 | $ | 75,970 | $ | 42,193 | $ | - | $ | - | $ | 1,336,329 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 445,820 | $ | 380,754 | $ | 233,309 | $ | 158,283 | $ | 75,970 | $ | 42,193 | $ | - | $ | - | $ | 1,336,329 | Construction | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 6,431 | $ | 5,959 | $ | 3,590 | $ | 4,843 | $ | 18 | $ | 1,501 | $ | 127,705 | $ | 350 | $ | 150,397 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 6,431 | $ | 5,959 | $ | 3,590 | $ | 4,843 | $ | 18 | $ | 1,501 | $ | 127,705 | $ | 350 | $ | 150,397 | Commercial and industrial | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 58 | $ | - | $ | - | $ | - | $ | - | $ | | $ | - | $ | - | $ | 58 | Special Mention | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 58 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 58 | Consumer | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | 702 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 702 | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | | | Risk Rating | | | | | | | | | | | | | | | | | | | | Pass | | $ | 583,392 | $ | 412,113 | $ | 313,794 | $ | 227,949 | $ | 99,329 | $ | 95,208 | $ | 127,705 | $ | 350 | $ | 1,859,840 | Special Mention | | | - | | 226 | | - | | - | | - | | - | | - | | - | | 226 | Substandard | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Doubtful | | | - | | - | | - | | - | | - | | - | | - | | - | | - | Total | | $ | 583,392 | $ | 412,339 | $ | 313,794 | $ | 227,949 | $ | 99,329 | $ | 95,208 | $ | 127,705 | $ | 350 | $ | 1,860,066 | Total | | | | | | | | | | | | | | | | | | | | Current period gross charge-offs | | $ | 702 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 702 | | | | | | | | | | | | | | | | | | | | |
Modifications to Borrowers Experiencing Financial Difficulty: Occasionally, the Company modifies loans to borrowers in financial distress by providing a term extension; an other-than-insignificant payment delay; or an interest rate reduction. In some cases, the Company provides multiple types of concessions on a loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction, may be granted. There were no loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2026 or the year ended December 31, 2025. Allowance for Credit Losses on Off-Balance Sheet Commitments: The following table presents the activity in the allowance for credit losses related to off-balance sheet commitments, that is included in accounts payable and accrued expenses on the consolidated statement of financial condition, for the three months ended March 31, 2026 and 2025: | | | | | | Allowance for Credit Loss | Balance – December 31, 2025 | | $ | 879 | Provision for credit loss | | | 112 | Balance – March 31, 2026 | | $ | 991 | | | | | | | Allowance for Credit Loss | Balance – December 31, 2024 | | $ | 704 | Provision for credit loss | | | 175 | Balance – March 31, 2025 | | $ | 879 | | | | |
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