Loans held for sale

3 Months Ended

Mar. 31, 2026

6. Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At March 31, 2026 and December 31, 2025, the Company did not have any loans designated as held for sale.

The Company has implemented a strategy of selling certain delinquent and non-performing loans. Once the Company has decided to sell a loan, the sale usually closes in a short period of time, generally within the same quarter. Loans designated held for sale are reclassified from loans held for investment to loans held for sale. Terms of sale generally includes cash due upon the closing of the sale, no contingencies or recourse to the Company and servicing is released to the buyer.

The following tables show loans sold during the periods indicated:


	For the three months ended March 31, 2026
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain

Performing loans
Small Business Administration	1	$	543	$	—	$	51
Total	1	$	543	$	—	$	51
Delinquent and non-performing loans
Multi-family residential	2	$	1,083	$	(173)	$	43
Commercial	1		4,309		(616)		—
One-to-four family - mixed-use property	1		239		—		—
Total	4	$	5,631	$	(789)	$	43


	For the three months ended March 31, 2025
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain ⁽¹⁾

Performing loans
Multi-family residential	12	$	35,388	$	—	$	—
Commercial	1		3,274		—		—
Small Business Administration	4		5,804		—		434
Total	17	$	44,466	$	—	$	434
Delinquent and non-performing loans
Multi-family residential	1	$	550	$	—	$	134
Commercial	1		5,099		—		238
One-to-four family - mixed-use property	1		137		—		19
Total	3	$	5,786	$	—	$	391

(1)Does not include $0.2 million net loss on sale recorded to write-down performing mortgage loans to their anticipated sales price.