Concentrations |
6 Months Ended |
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Jun. 30, 2026 | |
| Concentrations [Abstract] | |
| Concentrations | NOTE 13 – Concentrations
The Bank has a significant concentration of deposits with five customers that accounted for approximately 41% and 28% of its deposits as of June 30, 2026 and December 31, 2025, respectively. The Bank also has a significant concentration of short-term borrowings from one customer that accounted for 93% and 91% of the outstanding balance of securities sold under agreements to repurchase as of June 30, 2026 and December 31, 2025, respectively.
The Company’s lending activities are predominantly in real estate loans that are secured by properties located in Southern California and in Washington, D.C. and
surrounding areas, and many of the borrowers reside in those areas. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy and real estate market in the markets in which the Company operates.
Multi‑family loans represented 50.97% of our gross loan portfolio at June 30, 2026 compared to 58.41% of our gross loan portfolio at December 31, 2025. We seek to mitigate the risks associated with multi‑family loans by applying appropriate underwriting requirements, which include limitations on loan‑to‑value ratios and debt service coverage ratios. Under our underwriting policies, loan‑to‑value ratios on our multi‑family loans usually do not exceed 75% of the lower of the purchase price or the appraised value of the underlying property. We also generally require minimum debt service coverage ratios of 120% for multi‑family loans. Properties securing multi‑family loans are appraised by management‑approved independent appraisers. Title insurance is required on all loans.
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