v3.26.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
The Company has also updated all accompanying footnotes and disclosures affected by the correction within Note 4. Loans, Note 5. Allowance for Credit Losses, Note 6. Fair Value, Note 7. Government Guaranteed Loan Servicing Activities, Note 14. Income Taxes, Note 15. Regulatory Capital, Note 18. Earnings per Common Share, and Note 21. Parent Company Only Financial Information.
The effect of the above error noted on the previously reported financial statements is presented below:
Consolidated Balance Sheet as of December 31, 2024As ReportedCorrectionAs Restated
Loans HFI, at amortized cost
$1,005,726 $(4,269)$1,001,457 
    Net loans HFI, at amortized cost
990,214 (4,269)985,945 
Accrued interest receivable
9,155 (1,525)7,630 
Deferred income tax asset
— 445 445 
Other assets
12,490 (1)12,489 
Total assets
1,288,297 (5,350)1,282,947 
Deferred income tax liabilities
301 (301)— 
Accrued expenses and other liabilities
10,411 (688)9,723 
Total liabilities
1,177,377 (989)1,176,388 
Retained earnings
44,134 (4,361)39,773 
Total shareholders’ equity
110,920 (4,361)106,559 
Total liabilities and shareholders’ equity
1,288,297 (5,350)1,282,947 
Consolidated Balance Sheet as of December 31, 2025As ReportedCorrectionAs Restated
Loans HFI, at amortized cost
$909,818 $(5,880)$903,938 
Net loans HFI, at amortized cost
887,822 (5,880)881,942 
Accrued interest receivable
8,421 (2,104)6,317 
Deferred income tax asset
6,538 1,288 7,826 
Other assets
13,971 707 14,678 
Total assets
1,300,258 (5,989)1,294,269 
Retained earnings
19,763 (5,989)13,774 
Total shareholders’ equity
87,569 (5,989)81,580 
Total liabilities and shareholders’ equity
1,300,258 (5,989)1,294,269 
Consolidated Statement of Income (Loss) for the year ended December 31, 2024As ReportedCorrectionAs Restated
Interest income loans, including fees
$78,831 $(948)$77,883 
Total interest income
82,810 (948)81,862 
Net interest income
38,026 (948)37,078 
Provision for credit losses
14,726 672 15,398 
Net interest income after provision for credit losses
23,300 (1,620)21,680 
Gain on sale of government guaranteed loans, net28,252 (1,590)26,662 
Total noninterest income60,469 (1,590)58,879 
Income from continuing operations before income taxes
16,987 (3,210)13,777 
Income tax expense from continuing operations
4,315 (797)3,518 
Net income from continuing operations12,672 (2,413)10,259 
Net income
12,603 (2,413)10,190 
Net income available to common shareholders
11,062 (2,413)8,649 
Basic earnings per common share: Continuing operations2.69 (0.58)2.11 
Total basic earnings per common share
2.68 (0.59)2.09 
Diluted earnings per common share: Continuing operations2.64 (0.53)2.11 
Total diluted earnings per common share
2.62 (0.53)2.09 
Consolidated Statement of Income for the year ended December 31, 2025As ReportedCorrectionAs Restated
Interest income loans, including fees
$81,244 $(578)$80,666 
Total interest income
85,794 (578)85,216 
Net interest income
45,785 (578)45,207 
Provision for credit losses
24,586 1,060 25,646 
Net interest income after provision for credit losses
21,199 (1,638)19,561 
Gain on sale of government guaranteed loans, net11,720 (551)11,169 
Total noninterest income18,396 (551)17,845 
Loss from continuing operations before income taxes
(30,830)(2,189)(33,019)
Income tax benefit from continuing operations
(7,893)(561)(8,454)
Net loss from continuing operations(22,937)(1,628)(24,565)
Net loss
(22,937)(1,628)(24,565)
Net loss attributable to common shareholders
(24,478)(1,628)(26,106)
Basic loss per common share: Continuing operations(5.93)(0.39)(6.32)
Total basic loss per common share
(5.93)(0.39)(6.32)
Diluted loss per common share: Continuing operations(5.93)(0.39)(6.32)
Total diluted loss per common share
(5.93)(0.39)(6.32)
Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2024As ReportedCorrectionAs Restated
Net income
$12,603 $(2,413)$10,190 
Comprehensive income
12,628 (2,413)10,215 
Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2025As ReportedCorrectionAs Restated
Net loss
$(22,937)$(1,628)$(24,565)
Comprehensive loss
(21,941)(1,628)(23,569)
Consolidated Statement of Changes in Shareholders' Equity for the year ended December 31, 2024As ReportedCorrectionAs Restated
Retained Earnings as of January 1, 2024$34,395 $(1,948)$32,447 
Total Shareholders' Equity as of January 1, 2024100,707 (1,948)98,759 
Net income12,603 (2,413)10,190 
Retained Earnings as of December 31, 202444,134 (4,361)39,773 
Total Shareholders' Equity as of December 31, 2024110,920 (4,361)106,559 
Consolidated Statement of Changes in Shareholders' Equity for the year ended December 31, 2025As ReportedCorrectionAs Restated
Retained Earnings as of January 1, 2025$44,134 $(4,361)$39,773 
Total Shareholders' Equity as of January 1, 2025110,920 (4,361)106,559 
Net loss(22,937)(1,628)(24,565)
Retained Earnings as of December 31, 202519,763 (5,989)13,774 
Total Shareholders' Equity as of December 31, 202587,569 (5,989)81,580 
Consolidated Statement of Cash Flows for the year ended December 31, 2024As ReportedCorrectionAs Restated
Net income from continuing operations$12,672 $(2,413)$10,259 
Net income
12,603 (2,413)10,190 
Provision for credit losses14,726 672 15,398 
Deferred tax benefit(189)(91)(280)
Net gains on sales of government guaranteed loans(28,252)1,590 (26,662)
Net amortization of deferred loan costs— 2,861 2,861 
Change in Accrued interest receivable
(2,025)948 (1,077)
Change in Other assets
(7,891)(18)(7,909)
Change in Other liabilities
13,645 (688)12,957 
Net cash provided by operating activities of continuing operations390,875 2,861 393,736 
Net cash provided by operating activities390,534 2,861 393,395 
Loan originations, net
(530,792)(2,861)(533,653)
Net cash used in investing activities(515,933)(2,861)(518,794)
Transfer of loans and leases held for investment to loans held for sale382,951 1,590 384,541 
Consolidated Statement of Cash Flows for the year ended December 31, 2025As ReportedCorrectionAs Restated
Net loss from continuing operations$(22,937)$(1,628)$(24,565)
Net loss
(22,937)(1,628)(24,565)
Provision for credit losses24,586 1,060 25,646 
Deferred tax benefit(7,221)(539)(7,760)
Net gains on sales of government guaranteed loans(11,720)551 (11,169)
Net amortization of deferred loan costs— 3,540 3,540 
Change in Accrued interest receivable
734 579 1,313 
Change in Other assets
(1,174)(711)(1,885)
Change in Other liabilities
(5,013)688 (4,325)
Net cash provided by operating activities of continuing operations285,295 3,540 288,835 
Net cash provided by operating activities285,295 3,540 288,835 
Loan originations, net
(205,262)(3,540)(208,802)
Net cash used in investing activities(194,943)(3,540)(198,483)
Transfer of loans and leases held for investment to loans held for sale295,623 551 296,174 

The following is a summary of the impacts on financial statement line items for the quarters ended March 31, June 30, and September 30, 2025:
Consolidated Balance Sheet as of March 31, 2025 (unaudited)As ReportedCorrectionAs Restated
Loans HFI, at amortized cost
$1,026,916 $(4,692)$1,022,224 
    Net loans HFI, at amortized cost
1,010,403 (4,692)1,005,711 
Accrued interest receivable
9,153 (1,914)7,239 
Deferred income tax asset
— 278 278 
Other assets
13,494 — 13,494 
Total assets
1,291,957 (6,328)1,285,629 
Deferred income tax liabilities
648 (648)— 
Accrued expenses and other liabilities
10,025 (716)9,309 
Total liabilities
1,181,872 (1,364)1,180,508 
Retained earnings
43,082 (4,964)38,118 
Total shareholders’ equity
110,085 (4,964)105,121 
Total liabilities and shareholders’ equity
1,291,957 (6,328)1,285,629 
Consolidated Statement of Income (Loss) for the quarter ended March 31, 2025 (unaudited)As ReportedCorrectionAs Restated
Interest income loans, including fees
$19,751 $(389)$19,362 
Total interest income
20,685 (389)20,296 
Net interest income
10,999 (389)10,610 
Provision for credit losses
4,400 160 4,560 
Net interest income after provision for credit losses
6,599 (549)6,050 
Gain on sale of government guaranteed loans, net7,327 (263)7,064 
Total noninterest income8,751 (263)8,488 
Loss from continuing operations before income taxes(463)(812)(1,275)
Income tax benefit from continuing operations(128)(209)(337)
Net loss from continuing operations(335)(603)(938)
Net loss(335)(603)(938)
Net loss attributable to common shareholders(720)(603)(1,323)
Basic loss per common share: Continuing operations(0.17)(0.15)(0.32)
Total basic loss per common share(0.17)(0.15)(0.32)
Diluted loss per common share: Continuing operations(0.17)(0.15)(0.32)
Total diluted loss per common share(0.17)(0.15)(0.32)
Consolidated Statement of Comprehensive Income (Loss) for the quarter ended March 31, 2025 (unaudited)As ReportedCorrectionAs Restated
Net loss$(335)$(603)$(938)
Comprehensive loss243 (603)(360)
Consolidated Statement of Changes in Shareholders' Equity for the quarter ended March 31, 2025 (unaudited)As ReportedCorrectionAs Restated
Retained Earnings as of January 1, 2025$44,134 $(4,361)$39,773 
Total Shareholders' Equity as of January 1, 2025110,920 (4,361)106,559 
Net loss(335)(603)(938)
Retained Earnings as of March 31, 202543,082 (4,964)38,118 
Total Shareholders' Equity as of March 31, 2025110,085 (4,964)105,121 
Consolidated Statement of Cash Flows for the three months ended March 31, 2025 (unaudited)As ReportedCorrectionAs Restated
Net loss from continuing operations$(335)$(603)$(938)
Net loss(335)(603)(938)
Provision for credit losses4,400 160 4,560 
Deferred tax benefit(189)179 (10)
Net gains on sales of government guaranteed loans(7,327)263 (7,064)
Net amortization of deferred loan costs— 934 934 
Change in Accrued interest receivable
2 389 391 
Change in Other assets
(359)(360)(719)
Change in Other liabilities
(892)(28)(920)
Net cash provided by operating activities of continuing operations74,164 934 75,098 
Net cash provided by operating activities74,164 934 75,098 
Loan originations, net
(92,636)(934)(93,570)
Net cash used in investing activities(92,665)(934)(93,599)
Transfer of loans and leases held for investment to loans held for sale70,882 263 71,145 

Consolidated Balance Sheet as of June 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Loans HFI, at amortized cost
$1,035,112 $(5,300)$1,029,812 
    Net loans HFI, at amortized cost
1,018,071 (5,300)1,012,771 
Accrued interest receivable
9,495 (2,135)7,360 
Deferred income tax asset
— 247 247 
Other assets
16,815 712 17,527 
Total assets
1,343,867 (6,476)1,337,391 
Deferred income tax liabilities
895 (895)— 
Total liabilities
1,235,644 (895)1,234,749 
Retained earnings
41,128 (5,581)35,547 
Total shareholders’ equity
108,223 (5,581)102,642 
Total liabilities and shareholders’ equity
1,343,867 (6,476)1,337,391 
Consolidated Statement of Income (Loss) for the quarter ended June 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Interest income loans, including fees
$21,459 $(221)$21,238 
Total interest income
22,505 (221)22,284 
Net interest income
12,348 (221)12,127 
Provision for credit losses
7,264 343 7,607 
Net interest income after provision for credit losses
5,084 (564)4,520 
Gain on sale of government guaranteed loans, net6,136 (264)5,872 
Total noninterest income10,795 (264)10,531 
Loss from continuing operations before income taxes(1,649)(828)(2,477)
Income tax benefit from continuing operations(412)(211)(623)
Net loss from continuing operations(1,237)(617)(1,854)
Net loss(1,237)(617)(1,854)
Net loss attributable to common shareholders(1,623)(617)(2,240)
Basic loss per common share: Continuing operations(0.39)(0.15)(0.54)
Total basic loss per common share(0.39)(0.15)(0.54)
Diluted loss per common share: Continuing operations(0.39)(0.15)(0.54)
Total diluted loss per common share(0.39)(0.15)(0.54)
Consolidated Statement of Comprehensive Income (Loss) for the quarter ended June 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Net loss$(1,237)$(617)$(1,854)
Comprehensive loss(1,227)(617)(1,844)
Consolidated Statement of Changes in Shareholders' Equity for the quarter ended June 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Retained Earnings as of April 1, 2025$43,082 $(4,964)$38,118 
Total Shareholders' Equity as of April 1, 2025110,085 (4,964)105,121 
Net loss(1,237)(617)(1,854)
Retained Earnings as of June 30, 202541,128 (5,581)35,547 
Total Shareholders' Equity as of June 30, 2025108,223 (5,581)102,642 
Consolidated Statement of Cash Flows for the six months ended June 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Net loss from continuing operations$(1,572)$(1,220)$(2,792)
Net loss(1,572)(1,220)(2,792)
Provision for credit losses11,664 503 12,167 
Deferred tax benefit(189)277 88 
Net gains on sales of government guaranteed loans(13,463)527 (12,936)
Net amortization of deferred loan costs— 1,810 1,810 
Change in Accrued interest receivable
(340)610 270 
Change in Other assets
(3,170)(1,386)(4,556)
Change in Other liabilities
(2,820)688 (2,132)
Net cash provided by operating activities of continuing operations137,457 1,809 139,266 
Net cash provided by operating activities137,457 1,809 139,266 
Loan originations, net
(202,226)(1,809)(204,035)
Net cash used in investing activities(196,508)(1,809)(198,317)
Transfer of loans and leases held for investment to loans held for sale136,073 527 136,600 
Consolidated Balance Sheet as of September 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Loans HFI, at amortized cost
$936,903 $(5,574)$931,329 
    Net loans HFI, at amortized cost
912,418 (5,574)906,844 
Accrued interest receivable
8,898 (2,098)6,800 
Deferred income tax asset
5,839 1,201 7,040 
Other assets
14,119 715 14,834 
Total assets
1,345,978 (5,756)1,340,222 
Retained earnings
21,841 (5,756)16,085 
Total shareholders’ equity
89,728 (5,756)83,972 
Total liabilities and shareholders’ equity
1,345,978 (5,756)1,340,222 
Consolidated Statement of Income (Loss) for the quarter ended September 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Interest income loans, including fees
$20,708 $38 $20,746 
Total interest income
21,654 38 21,692 
Net interest income
11,280 38 11,318 
Provision for credit losses
10,915 250 11,165 
Net interest income after provision for credit losses
365 (212)153 
Gain on sale of government guaranteed loans, net3,063 (24)3,039 
Total noninterest income(1,046)(24)(1,070)
Loss from continuing operations before income taxes
(25,896)(236)(26,132)
Income tax benefit from continuing operations
(6,994)(61)(7,055)
Net loss from continuing operations(18,902)(175)(19,077)
Net loss
(18,902)(175)(19,077)
Net loss attributable to common shareholders
(19,287)(175)(19,462)
Basic loss per common share: Continuing operations(4.66)(0.05)(4.71)
Total basic loss per common share
(4.66)(0.05)(4.71)
Diluted loss per common share: Continuing operations(4.66)(0.05)(4.71)
Total diluted loss per common share
(4.66)(0.05)(4.71)
Consolidated Statement of Comprehensive Income (Loss) for the quarter ended September 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Net loss
$(18,902)$(175)$(19,077)
Comprehensive loss
(18,603)(175)(18,778)
Consolidated Statement of Changes in Shareholders' Equity for the quarter ended September30, 2025 (unaudited)As ReportedCorrectionAs Restated
Retained Earnings as of July 1, 2025$41,128 $(5,581)$35,547 
Total Shareholders' Equity as of July 1, 2025108,223 (5,581)102,642 
Net loss(18,902)(175)(19,077)
Retained Earnings as of September 30, 202521,841 (5,756)16,085 
Total Shareholders' Equity as of September 30, 202589,728 (5,756)83,972 
Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 (unaudited)As ReportedCorrectionAs Restated
Net loss from continuing operations$(20,474)$(1,395)$(21,869)
Net loss
(20,474)(1,395)(21,869)
Provision for credit losses22,579 753 23,332 
Deferred tax benefit(189)(6,656)(6,845)
Net gains on sales of government guaranteed loans(16,526)551 (15,975)
Net amortization of deferred loan costs— 2,727 2,727 
Change in Accrued interest receivable
257 573 830 
Change in Other assets
(8,207)5,485 (2,722)
Change in Other liabilities
636 688 1,324 
Net cash provided by operating activities of continuing operations184,764 2,726 187,490 
Net cash provided by operating activities184,764 2,726 187,490 
Loan originations, net
(226,566)(2,726)(229,292)
Net cash used in investing activities(220,513)(2,726)(223,239)
Transfer of loans and leases held for investment to loans held for sale283,856 551 284,407