Loans Receivable Held for Investment

6 Months Ended

Jun. 30, 2026

Loans Receivable Held for Investment [Abstract]

NOTE 4 – Loans Receivable Held for Investment

Loans receivable held for investment were as follows as of the periods indicated:

	June 30, 2026			December 31, 2025
	(In thousands)
Real estate:
Single-family	$	18,743		$	20,607
Multi-family		569,924			593,187
Commercial real estate		180,960			162,618
Church		8,847			9,015
Construction		90,910			72,979
Commercial – other		231,998			140,019
SBA loans		16,604			17,067
Consumer		65			38
Gross loans receivable before deferred loan costs and premiums		1,118,051			1,015,530
Unamortized net deferred loan costs and premiums		19,288			10,529
Gross loans receivable		1,137,339			1,026,059
Credit and interest marks on purchased loans, net		(1	)		(95	)
Allowance for credit losses		(10,799	)		(9,424	)
Loans receivable, net	$	1,126,539		$	1,016,540

Accrued interest receivable on loans receivable held for investment was $5.6 million and $5.2 million at June 30, 2026 and December 31, 2025, respectively, and is included in accrued interest receivable on the consolidated statements of financial condition.

The following tables summarize the activity in the allowance for credit losses on loans for the three months ended:

	June 30, 2026
	Beginning Balance		Charge-offs			Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)

Single-family	$	132	$	-		$	-	$	(12	)	$	120
Multi-family		4,383		-			-		881			5,264
Commercial real estate		1,703		-			-		84			1,787
Church		64		-			-		3			67
Construction		1,686		-			-		277			1,963
Commercial - other		1,458		(215	)		-		346			1,589
SBA loans		83		(75	)		-		1			9
Total	$	9,509	$	(290	)	$	-	$	1,580		$	10,799

	June 30, 2025
	Beginning Balance		Charge-offs		Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)

Single-family	$	193	$	-	$	-	$	(71	)	$	122
Multi-family		6,061		-		-		227			6,288
Commercial real estate		1,285		-		-		(50	)		1,235
Church		48		-		-		7			55
Construction		1,395		-		-		(104	)		1,291
Commercial - other		1,200		-		-		(386	)		814
SBA loans		78		-		-		(3	)		75
Total	$	10,260	$	-	$	-	$	(380	)	$	9,880

The following tables summarize the activity in the allowance for credit losses on loans for the six months ended:

	June 30, 2026
	Beginning Balance		Charge- offs			Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)
Real estate:
Single-family	$	132	$	-		$	-	$	(12	)	$	120
Multi-family		4,782		-			-		482			5,264
Commercial real estate		1,193		-			-		594			1,787
Church		36		-			-		31			67
Construction		2,039		-			-		(76	)		1,963
Commercial - other		900		(215	)		-		904			1,589
SBA loans		342		(112	)		-		(221	)		9
Total	$	9,424	$	(327	)	$	-	$	1,702		$	10,799

	June 30, 2025
	Beginning Balance		Charge- offs		Recoveries		Provision (Recapture)			Ending Balance
	(In thousands)

Single-family	$	200	$	-	$	-	$	(78	)	$	122
Multi-family		4,617		-		-		1,671			6,288
Commercial real estate		1,188		-		-		47			1,235
Church		54		-		-		1			55
Construction		1,564		-		-		(273	)		1,291
Commercial - other		730		-		-		84			814
SBA loans		11		-		-		64			75
Total	$	8,364	$	-	$	-	$	1,516		$	9,880

The Company recorded a recapture of provision for off-balance sheet loan commitments of $99 thousand and $74 thousand for the three months ended June 30, 2026 and 2025, respectively. The Company recorded a recapture of provision for off-balance sheet loan commitments of $21 thousand and $56 thousand for the six months ended June 30, 2026 and 2025, respectively.

The ACL increased from $9.4 million at December 31, 2025 to $10.8 million at June 30, 2026. This increase was primarily due to loan portfolio growth, including an increase in the commercial-other portfolio, and the establishment of a specific reserve on a non-accrual loan.

The following tables present individually evaluated collateral dependent loans by collateral type as of the date indicated:

	June 30, 2026
	Single-Family		Multi-Family Residential		Business Assets		Total
Real estate:	(in thousands)
Single-family	$	424	$	-	$	-	$	424
Multi-family		-		3,217		-		3,217
Construction		-		8,168		-		8,168
Commercial - other		-		-		46		46
Total	$	424	$	11,385	$	46	$	11,855

	December 31, 2025
	Single-Family		Multi-Family Residential		Business Assets		Total
Real estate:	(in thousands)
Single-family	$	424	$	-	$	-	$	424
Multi-family		-		2,094		-		2,094
Construction		-		8,168		-		8,168
Commercial - other		-		-		261		261
Total	$	424	$	10,262	$	261	$	10,947

At June 30, 2026, $11.9 million of individually evaluated loans were evaluated based on the estimated fair value of the underlying collateral. These loans had an associated ACL of $2.7 million as of June 30, 2026. $10.7 million of these collateral dependent loans were on non-accrual status at June 30, 2026.

At December 31, 2025, $10.9 million of individually evaluated loans were evaluated based on the estimated fair value of the underlying collateral. These loans had an associated ACL of $1.1 million as of December 31, 2025. All of these collateral dependent loans were on non-accrual status at December 31, 2025.

Past Due Loans

The following tables present the aging of the recorded investment in past due loans by loan type as of the dates indicated:

	June 30, 2026
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Single-family	$	-	$	-	$	424	$	424	$	18,341	$	18,765
Multi-family		-		-		2,094		2,094		570,237		572,331
Commercial real estate		-		2,368		-		2,368		178,379		180,747
Church		-		-		-		-		8,856		8,856
Construction		15,220		5,400		8,168		28,788		61,740		90,528
Commercial - other		-		-		412		412		247,781		248,193
SBA loans		-		65		-		65		17,789		17,854
Consumer		-		-		-		-		65		65
Total	$	15,220	$	7,833	$	11,098	$	34,151	$	1,103,188	$	1,137,339

	December 31, 2025
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Loans receivable held for investment:
Single-family	$	133	$	-	$	424	$	557	$	20,070	$	20,627
Multi-family		6,162		-		2,094		8,256		587,535		595,791
Commercial real estate		-		-		-		-		162,445		162,445
Church		-		-		-		-		9,024		9,024
Construction		5,533		-		-		5,533		67,139		72,672
Commercial - other		-		367		261		628		146,366		146,994
SBA loans		-		-		222		222		18,246		18,468
Consumer		-		-		-		-		38		38
Total	$	11,828	$	367	$	3,001	$	15,196	$	1,010,863	$	1,026,059

The following tables present the recorded investment in non-accrual loans by loan type as of the dates indicated:

	June 30, 2026
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Total Nonaccrual Loans
	(In thousands)
Loans receivable held for investment:
Commercial - other	$	46	$	366	$	412
SBA loans		65		-		65
Single-family		424		-		424
Multi-family		-		2,094		2,094
Construction		-		8,168		8,168
Total non-accrual loans	$	535	$	10,628	$	11,163

	December 31, 2025
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Total Nonaccrual Loans
	(In thousands)
Loans receivable held for investment:
Real Estate:
Single-family	$	424	$	-	$	424
Multi-family		2,094		-		2,094
Construction		-		8,168		8,168
Commercial - other		261		-		261
SBA loans		-		222		222
Total non-accrual loans	$	2,779	$	8,390	$	11,169

There were no loans 90 days or more delinquent that were accruing interest as of June 30, 2026 or December 31, 2025.

Modified Loans to Troubled Borrowers

GAAP requires that certain types of modifications of loans in response to a borrower’s financial difficulty be reported, which consist of the following: (i) principal forgiveness, (ii) interest rate reduction, (iii) other-than-insignificant payment delay, (iv) term extension, or (v) any combination of the foregoing. The ACL for loans that were modified in response to a borrower’s financial difficulty is measured on a collective basis, as with other loans in the loan portfolio, unless management determines that such loans no longer possess risk characteristics similar to others in the loan portfolio. In those instances, the ACL for such loans is determined through individual evaluation.

The following tables present the amortized cost basis and the financial effect of loans modified to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025.

	Three Months Ended June 30, 2026
	Payment Delay		Payment Delay Period	Percentage of Total Loan Type
			(in thousands)
Commercial - other	$	959	6 months		0.41	%
Total	$	959

	Three Months Ended June 30, 2025
	Term Extension		Percentage of Total Loan Type			Weighted Average Term Extension
			(in thousands)
Commercial - other	$	522		0.62	%	9 months
Total	$	522

	Six Months Ended June 30, 2026
	Term Extension		Weighted Average Term Extension	Payment Delay		Payment Delay Period	Percentage of Total Loan Type
	(in thousands)
Real estate:
Construction	$	2,635	6 months					2.90	%
Commercial - other				$	959	6 months		0.41	%
Total	$	2,635		$	959

	Six Months Ended June 30, 2025
	Term Extension		Percentage of Total Loan Type			Weighted Average Term Extension
			(in thousands)
Real estate:
Commercial real estate	$	1,566		0.99	%	7 months
Construction		2,019		2.50	%	7 months
Commercial - other		468		0.48	%	9 months
Total	$	4,053

None of the modified loans have defaulted during the three or six months ended June 30, 2026 or June 30, 2025. As of June 30, 2026, the Company has not committed to lend any additional funds to any borrower whose loan was modified.

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. For single-family residential, consumer, and other smaller balance homogeneous loans, a credit grade is established at inception, and generally only adjusted based on performance. Information about payment status is disclosed elsewhere herein. The Company analyzes all other loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings:

•

Watch. Loans classified as watch exhibit weaknesses that could threaten the current net worth and paying capacity of the obligors. Watch graded loans are generally performing and are not more than 59 days past due. A watch rating is used when a material deficiency exists, but correction is anticipated within an acceptable time frame.

•

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention that appears short term in nature. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

•

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution may sustain some loss if the deficiencies are not corrected.

•

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable.

•

Loss. Loans classified as loss are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Pass rated loans are generally well protected by the current net worth and paying capacity of the obligor and/or by the value of the underlying collateral. Pass rated loans are not more than 59 days past due and are generally performing in accordance with the loan terms.

The following table stratifies the loans held for investment portfolio by the Company’s internal risk grading, and by year of origination as of the date indicated:

	Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2026
	2026		2025		2024		2023		2022			Prior			Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	-	$	-	$	-	$	527	$	2,749		$	13,461		$	-	$	16,737
Watch		-		-		-		-		-			311			-		311
Special Mention		-		-		-		-		-			-			-		-
Substandard		-		-		-		-		1,159			558			-		1,717
Total	$	-	$	-	$	-	$	527	$	3,908		$	14,330		$	-	$	18,765

Multi-family:
Pass	$	-	$	2,507	$	62,284	$	59,795	$	165,973		$	196,048		$	-	$	486,607
Watch		1,990		-		13,083		16,424		10,906			18,607			-		61,010
Special Mention		-		-		-		1,137		2,561			7,896			-		11,594
Substandard		-		-		-		-		3,994			7,047			-		11,041
Doubtful		-		-		-		-		2,079			-			-		2,079
Total	$	1,990	$	2,507	$	75,367	$	77,356	$	185,513		$	229,598		$	-	$	572,331

Commercial real estate:
Pass	$	18,764	$	23,901	$	44,427	$	13,640	$	21,136		$	43,121		$	-	$	164,989
Watch		-		-		4,131		-		-			1,193			-		5,324
Special Mention		-		-		-		2,357		-			-			-		2,357
Substandard		-		-		-		844		-			7,233			-		8,077
Total	$	18,764	$	23,901	$	48,558	$	16,841	$	21,136		$	51,547		$	-	$	180,747

Church:
Pass	$	-	$	-	$	-	$	1,048	$	-		$	5,661		$	-	$	6,709
Watch		-		-		-		1,569		-			578			-		2,147
Substandard		-		-		-		-		-			-			-		-
Total	$	-	$	-	$	-	$	2,617	$	-		$	6,239		$	-	$	8,856

Construction:
Watch	$	19,797	$	4,118	$	10,946	$	-	$	-		$	-		$	-	$	34,861
Special Mention		1,608		-		-		-		-			-			-		1,608
Substandard		-		-		-		25,852		23,710			4,497			-		54,059
Total	$	21,405	$	4,118	$	10,946	$	25,852	$	23,710		$	4,497		$	-	$	90,528

Commercial – other:
Pass	$	57,498	$	72,997	$	29,724	$	48,531	$	8,462		$	7,291		$	-	$	224,503
Watch		-		9,995		8,853		-		-			-			-		18,848
Special Mention		-		-		-		-		-			3,470			-		3,470
Substandard		-		-		-		-		959			367			-		1,326
Doubtful		-		-		-		-		-			46			-		46
Total	$	57,498	$	82,992	$	38,577	$	48,531	$	9,421		$	11,174		$	-	$	248,193
YTD gross charge-offs		-		-		-		-		-			(215	)		-		(215	)

SBA:
Pass	$	-	$	3,668	$	12,131	$	1,380	$	-		$	50		$	-	$	17,229
Watch		-		-		560		-		-			-			-		560
Substandard		-		-		-		-		65			-			-		65
Doubtful		-		-		-		-	$	-			-			-		-
Total	$	-	$	3,668	$	12,691	$	1,380		65		$	50		$	-	$	17,854
YTD gross charge-offs		-		-		-		-		(75	)		(37	)		-		(112	)

Consumer:
Pass	$	65	$	-	$	-	$	-	$	-		$	-		$	-	$	65
Total	$	65	$	-	$	-	$	-	$	-		$	-		$	-	$	65

Total loans:
Pass	$	76,327	$	103,073	$	148,566	$	124,921	$	198,320		$	265,632		$	-	$	916,839
Watch		21,787		14,113		37,573		17,993		10,906			20,689			-		123,061
Special Mention		1,608		-		-		3,494		2,561			11,366			-		19,029
Substandard		-		-		-		26,696		29,887			19,702			-		76,285
Doubtful		-		-		-		-		2,079			46			-		2,125
Total loans	$	99,722	$	117,186	$	186,139	$	173,104	$	243,753		$	317,435		$	-	$	1,137,339
Total YTD gross charge-offs	$	-	$	-	$	-	$	-	$	(75	)	$	(252	)	$	-	$	(327	)

	Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2025
	2025		2024		2023		2022			2021		Prior			Revolving Loans		Total
	(In thousands)
Single-family:
Pass	$	-	$	-	$	533	$	2,785		$	2,464	$	12,806		$	-	$	18,588
Watch		-		-		-		-			-		867			-		867
Substandard		-		-		-		1,172			-		-			-		1,172
Total	$	-	$	-	$	533	$	3,957		$	2,464	$	13,673		$	-	$	20,627

Multi-family:
Pass	$	2,519	$	63,728	$	64,468	$	164,533		$	122,938	$	82,514		$	-	$	500,700
Watch		-		13,169		16,343		14,299			9,979		23,162			-		76,952
Special Mention		-		-		-		-			1,774		1,235			-		3,009
Substandard		-		-		1,343		6,572			4,332		804			-		13,051
Doubtful		-		-		-		2,079			-		-			-		2,079
Total	$	2,519	$	76,897	$	82,154	$	187,483		$	139,023	$	107,715		$	-	$	595,791
YTD gross charge-offs	$	-	$	-	$	-	$	(1,143	)	$	-	$	-		$	-	$	(1,143	)

Commercial real estate:
Pass	$	20,019	$	48,758	$	13,741	$	21,476		$	24,284	$	20,415		$	-	$	148,693
Watch		-		-		2,363		-			-		-			-		2,363
Special Mention		-		-		854		-			-		3,475			-		4,329
Substandard		-		-		-		-			6,288		772			-		7,060
Total	$	20,019	$	48,758	$	16,958	$	21,476		$	30,572	$	24,662		$	-	$	162,445

Church:
Pass	$	-	$	-	$	2,330	$	-		$	2,091	$	3,652		$	-	$	8,073
Watch		-		-		357		-			-		594			-		951
Substandard		-		-		-		-			-		-			-		-
Total	$	-	$	-	$	2,687	$	-		$	2,091	$	4,246		$	-	$	9,024

Construction:
Watch	$	6,700	$	9,232	$	-	$	-		$	-	$	-		$	-	$	15,932
Special Mention		-		-		12,983		5,533			-		-			-		18,516
Substandard		-		-		12,634		21,073			2,519		1,998			-		38,224
Total	$	6,700	$	9,232	$	25,617	$	26,606		$	2,519	$	1,998		$	-	$	72,672

Commercial – other:
Pass	$	43,037	$	21,347	$	18,837	$	8,834		$	-	$	7,341		$	-	$	99,396
Watch		9,984		17,469		14,993		1,000			-		1,171			-		44,617
Special Mention		-		-		-		-			-		2,617			-		2,617
Substandard		-		-		-		-			103		261			-		364
Total	$	53,021	$	38,816	$	33,830	$	9,834		$	103	$	11,390		$	-	$	146,994

SBA:
Pass	$	3,789	$	12,415	$	1,452	$	-		$	-	$	19		$	-	$	17,675
Substandard		-		571		-		148			-		-			-		719
Doubtful		-		-		-		-			-		74			-		74
Total	$	3,789	$	12,986	$	1,452	$	148		$	-	$	93		$	-	$	18,468
YTD gross charge-offs	$	-	$	-	$	-	$	-		$	-	$	(36	)	$	-	$	(36	)

Consumer:
Pass	$	38	$	-	$	-	$	-		$	-	$	-		$	-	$	38
Total	$	38	$	-	$	-	$	-		$	-	$	-		$	-	$	38

Total loans:
Pass	$	69,402	$	146,248	$	101,361	$	197,628		$	151,777	$	126,747		$	-	$	793,163
Watch		16,684		39,870		34,056		15,299			9,979		25,794			-		141,682
Special Mention		-		-		13,837		5,533			1,774		7,327			-		28,471
Substandard		-		571		13,977		28,965			13,242		3,835			-		60,590
Doubtful		-		-		-		2,079			-		74			-		2,153
Total loans	$	86,086	$	186,689	$	163,231	$	249,504		$	176,772	$	163,777		$	-	$	1,026,059
Total YTD gross charge-offs	$	-	$	-	$	-	$	(1,143	)	$	-	$	(36	)	$	-	$	(1,179	)

Allowance for Credit Losses for Off-Balance Sheet Commitments

The Company maintains an allowance for credit losses on off-balance sheet commitments related to unfunded loans and lines of credit, which is included in accrued expenses and other liabilities of the consolidated statements of financial condition. The Company applies an expected credit loss estimation methodology for off-balance sheet commitments. This methodology is commensurate with the methodology applied to each respective segment of the loan portfolio in determining the ACL for loans held-for-investment. The loss estimation process includes assumptions for the probability that a loan will fund, as well as the expected amount of funding. These assumptions are based on the Company’s own historical internal loan data.

The allowance for off-balance sheet commitments was $203 thousand and $224 thousand at June 30, 2026 and December 31, 2025, respectively, and was classified within accrued expenses and other liabilities on the consolidated statements of financial condition.