| Loans Receivable |
5.Loans Receivable Loans receivable consist of the following (in thousands): | | | | | | | | | June 30, 2026 | | December 31, 2025 | One to four residential | | $ | 95,785 | | $ | 109,123 | Purchased and participations | | | 5,489 | | | 5,993 | Home improvement, first mortgage | | | 421 | | | 457 | Home equity line of credit (HELOC) | | | 6,511 | | | 5,431 | Commercial, construction | | | 49,556 | | | 46,124 | Commercial and Industrial | | | 26,692 | | | 23,169 | Commercial Real Estate | | | 89,727 | | | 76,338 | Commercial Line of Credit (LOC) | | | 17,971 | | | 9,706 | Total | | | 292,152 | | | 276,341 | Add premiums on purchased loans | | | 32 | | | 35 | Less: | | | | | | | Loans sold | | | (5,853) | | | (4,386) | Loans in process | | | 26 | | | (304) | Allowance for credit losses | | | (2,952) | | | (2,682) | Deferred income from loan fees | | | (1,116) | | | (1,055) | | | $ | 282,289 | | $ | 267,949 |
As of June 30, 2026, $5.0 million of loans sold related to the commercial real estate segment while $853,000 related to the one to four residential segment. As of December 31, 2025, $3.5 million of loans sold related to the commercial real estate segment while $886,000 related to the one to four residential segment. The loan balances used in the credit quality disclosures included in this footnote are presented gross, without reducing the balance for portions sold. All sold loans are current on payments, accruing and pass rated, and are disclosed as such within the one to four residential and commercial real estate segments in the respective subsequent table disclosures. Accrued interest on loans totaling approximately $1.3 million and $1.0 million at June 30, 2026 and December 31, 2025 respectively, was excluded from the amortized cost basis of loans. 5.Loans Receivable (continued) Activity in the allowance for credit losses is summarized for the three and six months ended June 30, 2026 and 2025, as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home | | | | | | | | | | | | | | | | | | | | | | | Purchased | | improvement | | | | | | | | Commercial | | Commercial | | | | | | | | | One to Four | | and | | first | | | | | Commercial | | and | | real | | | | | | | | | Residential | | participations | | mortgage | | HELOC | | construction | | industrial | | estate | | LOC | | Total | Allowance for Credit Loss | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning balance March 31, 2026 | | $ | 992 | | $ | 56 | | $ | 4 | | $ | 58 | | $ | 456 | | $ | 278 | | $ | 933 | | $ | 40 | | $ | 2,817 | Provision | | | (24) | | | (1) | | | — | | | 8 | | | 45 | | | (8) | | | (26) | | | 141 | | | 135 | Charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Ending balance June 30, 2026 | | $ | 968 | | $ | 55 | | $ | 4 | | $ | 66 | | $ | 501 | | $ | 270 | | $ | 907 | | $ | 181 | | $ | 2,952 | Beginning balance March 31, 2025 | | | 1,102 | | | 78 | | | 2 | | | 52 | | | 238 | | | 191 | | | 495 | | | 115 | | $ | 2,273 | Provision | | | 8 | | | (9) | | | — | | | (2) | | | 109 | | | (40) | | | 96 | | | (27) | | | 135 | Charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Recoveries | | | 4 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 4 | Ending balance June 30, 2025 | | $ | 1,114 | | $ | 69 | | $ | 2 | | $ | 50 | | $ | 347 | | $ | 151 | | $ | 591 | | $ | 88 | | $ | 2,412 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning balance January 1, 2026 | | $ | 1,059 | | $ | 58 | | $ | 4 | | $ | 53 | | $ | 448 | | $ | 225 | | $ | 741 | | $ | 94 | | $ | 2,682 | Provision | | | (91) | | | (3) | | | — | | | 13 | | | 53 | | | 45 | | | 166 | | | 87 | | | 270 | Charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Recoveries | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Ending balance June 30, 2026 | | | 968 | | | 55 | | | 4 | | | 66 | | | 501 | | | 270 | | | 907 | | | 181 | | | 2,952 | Beginning balance January 1, 2025 | | | 1,074 | | | 75 | | | 2 | | | 52 | | | 195 | | | 186 | | | 435 | | | 107 | | | 2,126 | Provision | | | 24 | | | (6) | | | — | | | (2) | | | 152 | | | (35) | | | 156 | | | (19) | | | 270 | Charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Recoveries | | | 16 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 16 | Ending balance June 30, 2025 | | | 1,114 | | | 69 | | | 2 | | | 50 | | | 347 | | | 151 | | | 591 | | | 88 | | | 2,412 |
5.Loans Receivable (continued) The aging of loans receivable by class of receivable is as follows (in thousands): | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | | | 30 – 89 | | 90+ | | | | | 2026 | | Current | | days | | days | | Total | | Non-Accrual | One to four residential and home improvement | | $ | 94,358 | | $ | 888 | | $ | 960 | | $ | 96,206 | | $ | 1,462 | Purchased and Participations | | | 5,454 | | | 10 | | | 25 | | | 5,489 | | | — | Home Equity Line of Credit (HELOC) | | | 6,411 | | | 100 | | | — | | | 6,511 | | | — | Commercial & Industrial | | | 26,692 | | | — | | | — | | | 26,692 | | | — | Commercial real estate | | | 89,727 | | | — | | | — | | | 89,727 | | | — | Commercial, construction | | | 49,556 | | | — | | | — | | | 49,556 | | | — | Commercial Line of Credit (LOC) | | | 17,971 | | | — | | | — | | | 17,971 | | | — | | | $ | 290,169 | | $ | 998 | | $ | 985 | | $ | 292,152 | | $ | 1,462 |
| | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | 30 – 89 | | 90+ | | | | | | | 2025 | | Current | | days | | days | | Total | | Non-Accrual | One to four residential and home improvement | | $ | 108,408 | | $ | 783 | | $ | 389 | | $ | 109,580 | | $ | 1,294 | Purchased and Participations | | | 5,951 | | | — | | | 42 | | | 5,993 | | | — | Home Equity Line of Credit (HELOC) | | | 5,281 | | | 137 | | | 13 | | | 5,431 | | | — | Commercial & Industrial | | | 23,169 | | | — | | | — | | | 23,169 | | | — | Commercial real estate | | | 76,338 | | | — | | | — | | | 76,338 | | | — | Commercial, construction | | | 46,124 | | | — | | | — | | | 46,124 | | | — | Commercial Line of Credit (LOC) | | | 9,706 | | | — | | | — | | | 9,706 | | | — | | | $ | 274,977 | | $ | 920 | | $ | 444 | | $ | 276,341 | | $ | 1,294 |
There were 29 participation loans with a balance of $24,962 that had no related allowance that were 90+ days past due and accruing interest at June 30, 2026 and none as of December 31, 2025. As of June 30, 2026, there was one non-accrual loan in the one to four residential class with a balance of $254,790 that had a related allowance of $164,863. As of December 31, 2025, there was one non-accrual loan in the one to four residential class with a balance of $257,044 that had a related allowance of $50,958. No material amount of accrued interest was written off by reversing interest income during the three and six months ended June 30, 2026 or 2025. When, for economic or legal reasons related to the borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank would not otherwise consider, the modified loan is classified as a troubled loan modification (TLM). TLMs may consist of forgiveness of interest and/or principal, a reduction of the interest rate, interest-only payments for a period of time, and/or the extension of amortization terms. There were no new TLMs in the three and six months ended June 30, 2026 or 2025. The Bank considers a TLM in default if it becomes past due more than 30 days. No TLMs defaulted within 12 months of their modification date during the three and six months ended June 30, 2026 or 2025. There were no significant changes in the extent to which collateral secured our collateral dependent loans as of June 30, 2026 and December 31, 2025. At June 30, 2026 and December 31, 2025, we had approximately $280,749 and $27,650, respectively, of residential real-estate collateral dependent loans without an allowance and no collateral dependent loans with an allowance. The Bank has no commitments to loan additional funds to borrowers whose loans have been determined to be collateral dependent. There were no mortgage loans in the process of foreclosure at June 30, 2026, and an aggregate of $324,000 in principal amount of mortgage loans in the process of foreclosure at December 31, 2025. 5.Loans Receivable (continued) Business commercial loans are generally evaluated using the following internally prepared ratings: “Pass” ratings are assigned to loans with adequate collateral and debt service ability such that collectability of the contractual loan payments is highly probable. “Watch / special mention” ratings are assigned to loans where management has some concern that the collateral or debt service ability may not be adequate, though the collectability of the contractual loan payments is still probable. “Substandard” ratings are assigned to loans that do not have adequate collateral and/or debt service ability such that collectability of the contractual loan payments is no longer probable. “Doubtful” ratings are assigned to loans that do not have adequate collateral and/or debt service ability, and collectability of the contractual loan payments is unlikely. As of June 30, 2026 and December 31, 2025, and based on the most recent analysis performed, the aggregate dollar amount of loans segmented by risk category (and by class of loan and year of origination) is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolvers | | Total | Pass | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | $ | 2,168 | | $ | 3,105 | | $ | 3,930 | | $ | 3,673 | | $ | 6,613 | | $ | 74,666 | | $ | — | | $ | 94,155 | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | 5,489 | | | — | | | 5,489 | Home improvement, first mortgage | | | 99 | | | 170 | | | — | | | 121 | | | 20 | | | 11 | | | — | | | 421 | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | 6,511 | | | 6,511 | Commercial construction | | | 2,720 | | | 24,548 | | | 9,924 | | | 12,364 | | | — | | | — | | | — | | | 49,556 | Commercial and industrial | | | 886 | | | 19,308 | | | 4,660 | | | 452 | | | — | | | — | | | — | | | 25,306 | Commercial real estate | | | 29,652 | | | 28,452 | | | 14,023 | | | 17,373 | | | — | | | — | | | — | | | 89,500 | Commercial line of credit | | | 2,375 | | | 647 | | | 14,949 | | | — | | | — | | | — | | | — | | | 17,971 | Total pass | | $ | 37,900 | | $ | 76,230 | | $ | 47,486 | | $ | 33,983 | | $ | 6,633 | | $ | 80,166 | | $ | 6,511 | | $ | 288,909 | Special Mention | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | | — | | | — | | | — | | | — | | | — | | | 168 | | | — | | | 168 | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home improvement, first mortgage | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | 1,386 | | | — | | | — | | | — | | | — | | | 1,386 | Commercial real estate | | | — | | | — | | | 227 | | | — | | | — | | | — | | | — | | | 227 | Commercial line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total special mention | | $ | — | | $ | — | | $ | 1,613 | | $ | — | | $ | — | | $ | 168 | | $ | — | | $ | 1,781 | Substandard | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | | — | | | — | | | — | | | — | | | — | | | 1,462 | | | — | | | 1,462 | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home improvement, first mortgage | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total substandard | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,462 | | $ | — | | $ | 1,462 | Total | | $ | 37,900 | | $ | 76,230 | | $ | 49,099 | | $ | 33,983 | | $ | 6,633 | | $ | 81,796 | | $ | 6,511 | | $ | 292,152 |
5.Loans Receivable (continued) | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolvers | | Total | Pass | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | $ | 3,147 | | $ | 4,897 | | $ | 3,822 | | $ | 7,009 | | $ | 24,385 | | $ | 63,877 | | $ | — | | $ | 107,137 | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | 5,993 | | | — | | | 5,993 | Home improvement, first mortgage | | | 290 | | | — | | | 129 | | | 21 | | | — | | | 17 | | | — | | | 457 | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,431 | | | 5,431 | Commercial construction | | | 20,074 | | | 12,573 | | | 13,477 | | | — | | | — | | | — | | | — | | | 46,124 | Commercial and industrial | | | 10,455 | | | 11,215 | | | 477 | | | — | | | — | | | — | | | — | | | 22,147 | Commercial real estate | | | 29,650 | | | 34,162 | | | 12,296 | | | — | | | — | | | — | | | — | | | 76,108 | Commercial line of credit | | | 648 | | | 3,558 | | | 5,500 | | | — | | | — | | | — | | | — | | | 9,706 | Total pass | | $ | 64,264 | | $ | 66,405 | | $ | 35,701 | | $ | 7,030 | | $ | 24,385 | | $ | 69,887 | | $ | 5,431 | | $ | 273,103 | Special Mention | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | | — | | | — | | | — | | | — | | | 521 | | | 171 | | | — | | | 692 | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home improvement, first mortgage | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | 1,022 | | | — | | | — | | | — | | | — | | | — | | | 1,022 | Commercial real estate | | | — | | | 230 | | | — | | | — | | | — | | | — | | | — | | | 230 | Commercial line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total special mention | | $ | — | | $ | 1,252 | | $ | — | | $ | — | | $ | 521 | | $ | 171 | | $ | — | | $ | 1,944 | Substandard | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | | — | | | — | | | — | | | — | | | — | | | 1,294 | | | — | | | 1,294 | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home improvement, first mortgage | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total substandard | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,294 | | $ | — | | $ | 1,294 | Total | | $ | 64,264 | | $ | 67,657 | | $ | 35,701 | | $ | 7,030 | | $ | 24,906 | | $ | 71,352 | | $ | 5,431 | | $ | 276,341 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolvers | | Total | Current gross write-offs for the six months ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home improvement, first mortgage | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Current gross write-offs for the six months ended June 30, 2026 | | | | | | | | | | | | | | | | | | | | | | | | | One to four residential | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Purchased and Participations | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home improvement, first mortgage | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Home equity line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial and industrial | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial line of credit | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — |
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