v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Composition of Net Loans

The composition of net loans as of June 30, 2026 and December 31, 2025 was as follows:

 

(In thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Real estate loans

 

 

 

 

 

 

One to four family residential

 

$

517,975

 

 

$

518,225

 

Home equity and second mortgages

 

 

82,886

 

 

 

78,350

 

Commercial real estate

 

 

540,209

 

 

 

534,855

 

Commercial real estate multi-family

 

 

103,477

 

 

 

104,695

 

Construction & land

 

 

45,928

 

 

 

57,005

 

Total real estate loans

 

 

1,290,475

 

 

 

1,293,130

 

Commercial loans

 

 

 

 

 

 

Condominium associations

 

 

494,331

 

 

 

506,683

 

Other commercial & industrial

 

 

469,491

 

 

 

491,765

 

PPP loans

 

 

—

 

 

 

11

 

Total commercial loans

 

 

963,822

 

 

 

998,459

 

Consumer loans

 

 

 

 

 

 

Consumer

 

 

3,082

 

 

 

3,877

 

Total consumer loans

 

 

3,082

 

 

 

3,877

 

Total loans

 

 

2,257,379

 

 

 

2,295,466

 

Allowance for credit losses

 

 

(23,926

)

 

 

(22,018

)

Net deferred loan costs

 

 

3,164

 

 

 

3,000

 

Loans, net

 

$

2,236,617

 

 

$

2,276,448

 

 

The Company manages its loan portfolio proactively to effectively identify problem credits and assess trends early, implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. The Company monitors and manages credit risk through the following governance structure: The Chief Credit Officer ("CCO") maintains the Credit Risk Rating System, which is comprised of 10 levels of risk, inclusive of 5 Criticized and Classified ratings that align with regulatory definitions of Special Mention, Substandard, Doubtful and Loss. The CCO or the Credit Manager reviews all recommended risk rating changes and controls the final assessment of risk rating. The Company maintains a Loan Review Policy which addresses internal and external review requirements and process, which is approved annually by the Board of Director’s Risk Committee and the Board of Directors. The CCO provides quarterly reporting and updates to the Risk Committee, including the presentation of the ACL calculation and balance.
Schedule of Allowance for Credit Losses by Portfolio Segment

The following tables present the activity in the ACL by portfolio segment for the three months ended June 30, 2026 and 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Balance
  March 31, 2026

 

 

Credit loss
expense /
(reversal)

 

 

Loans
charged-off

 

 

Recoveries

 

 

Balance
  June 30, 2026

 

Three Months Ended June 30, 2026

 

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

3,372

 

 

$

24

 

 

$

—

 

 

$

—

 

 

$

3,396

 

Home equity and second mortgages

 

 

374

 

 

 

(6

)

 

 

—

 

 

 

1

 

 

 

369

 

Commercial real estate

 

 

6,116

 

 

 

857

 

 

 

—

 

 

 

—

 

 

 

6,973

 

Commercial real estate multi-family

 

 

1,111

 

 

 

(9

)

 

 

—

 

 

 

—

 

 

 

1,102

 

Construction & land

 

 

424

 

 

 

(499

)

 

 

—

 

 

 

479

 

 

 

404

 

Total real estate loans

 

 

11,397

 

 

 

367

 

 

 

—

 

 

 

480

 

 

 

12,244

 

Commercial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condominium associations

 

 

2,855

 

 

 

(46

)

 

 

—

 

 

 

—

 

 

 

2,809

 

Other commercial & industrial

 

 

8,426

 

 

 

441

 

 

 

(75

)

 

 

7

 

 

 

8,799

 

Total commercial loans

 

 

11,281

 

 

 

395

 

 

 

(75

)

 

 

7

 

 

 

11,608

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

83

 

 

 

(14

)

 

 

—

 

 

 

5

 

 

 

74

 

Credit cards

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

3

 

 

 

—

 

Total consumer loans

 

 

83

 

 

 

(17

)

 

 

—

 

 

 

8

 

 

 

74

 

Total ACL on loans:

 

$

22,761

 

 

$

745

 

 

$

(75

)

 

$

495

 

 

$

23,926

 

 

 

 

 

Balance

 

 

Credit loss

 

 

 

 

 

 

 

 

Balance

 

 

 

March 31,

 

 

expense /

 

 

Loans

 

 

 

 

 

June 30,

 

(In thousands)

 

2025

 

 

(reversal)

 

 

charged-off

 

 

Recoveries

 

 

2025

 

Three Months Ended June 30, 2025

 

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

2,363

 

 

$

262

 

 

$

—

 

 

$

—

 

 

$

2,625

 

Home equity and second mortgages

 

 

192

 

 

 

17

 

 

 

—

 

 

 

1

 

 

 

210

 

Commercial real estate

 

 

7,946

 

 

 

(230

)

 

 

—

 

 

 

25

 

 

 

7,741

 

Commercial real estate multi-family

 

 

316

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

319

 

Construction & land

 

 

442

 

 

 

1,117

 

 

 

—

 

 

 

—

 

 

 

1,559

 

Total real estate loans

 

 

11,259

 

 

 

1,169

 

 

 

—

 

 

 

26

 

 

 

12,454

 

Commercial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condominium associations

 

 

2,311

 

 

 

(10

)

 

 

—

 

 

 

—

 

 

 

2,301

 

Other commercial & industrial

 

 

8,164

 

 

 

376

 

 

 

(18

)

 

 

38

 

 

 

8,560

 

PPP loans

 

 

2

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

1

 

Total commercial loans

 

 

10,477

 

 

 

365

 

 

 

(18

)

 

 

38

 

 

 

10,862

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

112

 

 

 

(7

)

 

 

—

 

 

 

4

 

 

 

109

 

Credit cards

 

 

1

 

 

 

(4

)

 

 

—

 

 

 

3

 

 

 

—

 

Total consumer loans

 

 

113

 

 

 

(11

)

 

 

—

 

 

 

7

 

 

 

109

 

Total ACL on loans:

 

$

21,849

 

 

$

1,523

 

 

$

(18

)

 

$

71

 

 

$

23,425

 

 

The following tables present the activity in the ACL by portfolio segment for the six months ended June 30, 2026 and 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance

 

 

Credit loss

 

 

 

 

 

 

 

 

Balance

 

 

 

December 31,

 

 

expense /

 

 

Loans

 

 

 

 

 

June 30,

 

(In thousands)

 

2025

 

 

(reversal)

 

 

charged-off

 

 

Recoveries

 

 

2026

 

Six Months Ended June 30, 2026

 

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

3,437

 

 

$

(41

)

 

$

—

 

 

$

—

 

 

$

3,396

 

Home equity and second mortgages

 

 

336

 

 

 

31

 

 

 

—

 

 

 

2

 

 

 

369

 

Commercial real estate

 

 

5,872

 

 

 

1,101

 

 

 

—

 

 

 

—

 

 

 

6,973

 

Commercial real estate multi-family

 

 

984

 

 

 

118

 

 

 

—

 

 

 

—

 

 

 

1,102

 

Construction & land

 

 

390

 

 

 

(540

)

 

 

—

 

 

 

554

 

 

 

404

 

Total real estate loans

 

 

11,019

 

 

 

669

 

 

 

—

 

 

 

556

 

 

 

12,244

 

Commercial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condominium associations

 

 

2,967

 

 

 

(158

)

 

 

—

 

 

 

—

 

 

 

2,809

 

Other commercial & industrial

 

 

7,939

 

 

 

1,082

 

 

 

(252

)

 

 

30

 

 

 

8,799

 

Total commercial loans

 

 

10,906

 

 

 

924

 

 

 

(252

)

 

 

30

 

 

 

11,608

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

93

 

 

 

17

 

 

 

(44

)

 

 

8

 

 

 

74

 

Credit cards

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

6

 

 

 

—

 

Total consumer loans

 

 

93

 

 

 

11

 

 

 

(44

)

 

 

14

 

 

 

74

 

Total ACL on loans:

 

$

22,018

 

 

$

1,604

 

 

$

(296

)

 

$

600

 

 

$

23,926

 

 

 

(In thousands)

 

Balance
  December 31, 2024

 

 

Credit loss
expense /
(reversal)

 

 

Loans
charged-off

 

 

Recoveries

 

 

Balance June 30,2025

 

Six Months Ended June 30, 2025

 

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

2,364

 

 

$

261

 

 

$

—

 

 

$

—

 

 

$

2,625

 

Home equity and second mortgages

 

 

189

 

 

 

19

 

 

 

—

 

 

 

2

 

 

 

210

 

Commercial real estate

 

 

7,522

 

 

 

184

 

 

 

—

 

 

 

35

 

 

 

7,741

 

Commercial real estate multi-family

 

 

326

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

319

 

Construction & land

 

 

586

 

 

 

17,722

 

 

 

(16,749

)

 

 

—

 

 

 

1,559

 

Total real estate loans

 

 

10,987

 

 

 

18,179

 

 

 

(16,749

)

 

 

37

 

 

 

12,454

 

Commercial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condominium associations

 

 

2,839

 

 

 

(538

)

 

 

—

 

 

 

—

 

 

 

2,301

 

Other commercial & industrial

 

 

7,889

 

 

 

1,080

 

 

 

(462

)

 

 

53

 

 

 

8,560

 

PPP loans

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

Total commercial loans

 

 

10,728

 

 

 

543

 

 

 

(462

)

 

 

53

 

 

 

10,862

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

26

 

 

 

114

 

 

 

(38

)

 

 

7

 

 

 

109

 

Credit cards

 

 

—

 

 

 

(8

)

 

 

—

 

 

 

8

 

 

 

—

 

Total consumer loans

 

 

26

 

 

 

106

 

 

 

(38

)

 

 

15

 

 

 

109

 

Total ACL on loans:

 

$

21,741

 

 

$

18,828

 

 

$

(17,249

)

 

$

105

 

 

$

23,425

 
Summary Risk Ratings Within Loan Portfolio and Current Period Charge-offs, By Loan Segment and Origination Year

The risk ratings within the loan portfolio and current period charge-offs for the six months ended June 30, 2026, by loan segment and origination year were as follows:

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

(In thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Revolving
Loans

 

 

Total

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

38,957

 

 

$

52,947

 

 

$

27,086

 

 

$

63,470

 

 

$

126,762

 

 

$

208,753

 

 

$

—

 

 

$

517,975

 

Total

 

$

38,957

 

 

$

52,947

 

 

$

27,086

 

 

$

63,470

 

 

$

126,762

 

 

$

208,753

 

 

$

—

 

 

$

517,975

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Home equity and second mortgages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

392

 

 

$

134

 

 

$

737

 

 

$

1,354

 

 

$

1,076

 

 

$

2,377

 

 

$

76,816

 

 

$

82,886

 

Total

 

$

392

 

 

$

134

 

 

$

737

 

 

$

1,354

 

 

$

1,076

 

 

$

2,377

 

 

$

76,816

 

 

$

82,886

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

26,417

 

 

 

86,576

 

 

 

49,009

 

 

$

20,421

 

 

$

84,644

 

 

$

240,282

 

 

$

—

 

 

$

507,349

 

Special Mention (6-7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,613

 

 

 

12,213

 

 

 

—

 

 

 

25,826

 

Substandard (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,034

 

 

 

—

 

 

 

7,034

 

Total

 

$

26,417

 

 

$

86,576

 

 

$

49,009

 

 

$

20,421

 

 

$

98,257

 

 

$

259,529

 

 

$

—

 

 

$

540,209

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate multi-family:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

4,529

 

 

$

25,532

 

 

$

6,835

 

 

$

9,478

 

 

$

18,672

 

 

$

38,431

 

 

$

—

 

 

$

103,477

 

Total

 

$

4,529

 

 

$

25,532

 

 

$

6,835

 

 

$

9,478

 

 

$

18,672

 

 

$

38,431

 

 

$

—

 

 

$

103,477

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Construction & land:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

1,043

 

 

$

10,715

 

 

$

9,386

 

 

$

320

 

 

$

13,840

 

 

$

273

 

 

$

2,948

 

 

$

38,525

 

Special Mention (6-7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,403

 

 

 

—

 

 

 

—

 

 

 

7,403

 

Total

 

$

1,043

 

 

$

10,715

 

 

$

9,386

 

 

$

320

 

 

$

21,243

 

 

$

273

 

 

$

2,948

 

 

$

45,928

 

Current period gross charge-off

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Condominium associations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

11,452

 

 

$

19,310

 

 

$

8,723

 

 

$

37,382

 

 

$

230,674

 

 

$

186,790

 

 

$

—

 

 

$

494,331

 

Total

 

$

11,452

 

 

$

19,310

 

 

$

8,723

 

 

$

37,382

 

 

$

230,674

 

 

$

186,790

 

 

$

—

 

 

$

494,331

 

Current period gross charge-off

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Other commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

20,814

 

 

$

39,153

 

 

$

42,893

 

 

$

37,410

 

 

$

44,036

 

 

$

144,844

 

 

$

102,235

 

 

$

431,385

 

Special Mention (6-7)

 

 

532

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12

 

 

 

8,089

 

 

 

3,309

 

 

 

11,942

 

Substandard (8)

 

 

—

 

 

 

4,312

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,871

 

 

 

13,103

 

 

 

21,286

 

Doubtful (9)

 

 

—

 

 

 

—

 

 

 

449

 

 

 

1,355

 

 

 

—

 

 

 

3,074

 

 

 

—

 

 

 

4,878

 

Total

 

$

21,346

 

 

$

43,465

 

 

$

43,342

 

 

$

38,765

 

 

$

44,048

 

 

$

159,878

 

 

$

118,647

 

 

$

469,491

 

Current period gross charge-off

 

$

—

 

 

$

—

 

 

$

57

 

 

$

—

 

 

$

—

 

 

$

146

 

 

$

49

 

 

$

252

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

350

 

 

$

437

 

 

$

398

 

 

$

572

 

 

$

226

 

 

$

1,009

 

 

$

90

 

 

$

3,082

 

Total

 

$

350

 

 

$

437

 

 

$

398

 

 

$

572

 

 

$

226

 

 

$

1,009

 

 

$

90

 

 

$

3,082

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

2

 

 

$

39

 

 

$

—

 

 

$

44

 

 

The risk ratings within the loan portfolio and current period charge-offs for the year ended December 31, 2025, by loan segment and origination year were as follows:

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

 

 

 

 

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Revolving
Loans

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

55,170

 

 

$

38,384

 

 

$

71,586

 

 

$

131,680

 

 

$

85,884

 

 

$

135,521

 

 

$

—

 

 

$

518,225

 

Total

 

$

55,170

 

 

$

38,384

 

 

$

71,586

 

 

$

131,680

 

 

$

85,884

 

 

$

135,521

 

 

$

—

 

 

$

518,225

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Home equity and second mortgages:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

196

 

 

$

754

 

 

$

1,407

 

 

$

725

 

 

$

141

 

 

$

1,278

 

 

$

73,849

 

 

$

78,350

 

Total

 

$

196

 

 

$

754

 

 

$

1,407

 

 

$

725

 

 

$

141

 

 

$

1,278

 

 

$

73,849

 

 

$

78,350

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

86,362

 

 

 

51,376

 

 

 

23,474

 

 

$

82,940

 

 

$

85,395

 

 

$

161,894

 

 

$

—

 

 

$

491,441

 

Special Mention (6-7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,115

 

 

 

855

 

 

 

17,551

 

 

 

—

 

 

 

35,521

 

Substandard (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

248

 

 

 

1,519

 

 

 

6,126

 

 

 

—

 

 

 

7,893

 

Total

 

$

86,362

 

 

$

51,376

 

 

$

23,474

 

 

$

100,303

 

 

$

87,769

 

 

$

185,571

 

 

$

—

 

 

$

534,855

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate multi-family:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

25,422

 

 

$

7,818

 

 

$

9,922

 

 

$

17,520

 

 

$

15,533

 

 

$

27,030

 

 

$

—

 

 

$

103,245

 

Special Mention (6-7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,450

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,450

 

Total

 

$

25,422

 

 

$

7,818

 

 

$

9,922

 

 

$

18,970

 

 

$

15,533

 

 

$

27,030

 

 

$

—

 

 

$

104,695

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Construction & land:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

10,201

 

 

$

9,290

 

 

$

1,648

 

 

$

13,848

 

 

$

—

 

 

$

280

 

 

$

7,805

 

 

$

43,072

 

Special Mention (6-7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,455

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,455

 

Substandard (8)

 

 

—

 

 

 

—

 

 

 

1,052

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,052

 

Doubtful (9)

 

 

—

 

 

 

—

 

 

 

5,426

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,426

 

Total

 

$

10,201

 

 

$

9,290

 

 

$

8,126

 

 

$

21,303

 

 

$

—

 

 

$

280

 

 

$

7,805

 

 

$

57,005

 

Current period gross charge-off

 

$

—

 

 

$

—

 

 

$

19,202

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

19,202

 

Condominium associations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

16,793

 

 

$

9,222

 

 

$

46,244

 

 

$

238,879

 

 

$

85,208

 

 

$

110,337

 

 

$

—

 

 

$

506,683

 

Total

 

$

16,793

 

 

$

9,222

 

 

$

46,244

 

 

$

238,879

 

 

$

85,208

 

 

$

110,337

 

 

$

—

 

 

$

506,683

 

Current period gross charge-off

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Other commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

40,885

 

 

$

50,576

 

 

$

39,909

 

 

$

48,940

 

 

$

47,271

 

 

$

115,826

 

 

$

103,447

 

 

$

446,854

 

Special Mention (6-7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,117

 

 

 

5,759

 

 

 

3,744

 

 

 

28,190

 

 

 

38,810

 

Substandard (8)

 

 

12

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

787

 

 

 

452

 

 

 

1,251

 

Doubtful (9)

 

 

—

 

 

 

299

 

 

 

1,338

 

 

 

—

 

 

 

—

 

 

 

3,213

 

 

 

—

 

 

 

4,850

 

Total

 

$

40,897

 

 

$

50,875

 

 

$

41,247

 

 

$

50,057

 

 

$

53,030

 

 

$

123,570

 

 

$

132,089

 

 

$

491,765

 

Current period gross charge-off

 

$

—

 

 

$

280

 

 

$

14

 

 

$

468

 

 

$

11

 

 

$

1,535

 

 

$

334

 

 

$

2,642

 

PPP loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

 

$

—

 

 

$

11

 

Total

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

 

$

—

 

 

$

11

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass (Rated 1-5, M, P)

 

$

733

 

 

$

521

 

 

$

912

 

 

$

362

 

 

$

77

 

 

$

1,179

 

 

$

93

 

 

$

3,877

 

Total

 

$

733

 

 

$

521

 

 

$

912

 

 

$

362

 

 

$

77

 

 

$

1,179

 

 

$

93

 

 

$

3,877

 

Current period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

37

 

 

$

1

 

 

$

38

 

 

 

 
Summary of Amortized Cost Basis of Loans on Nonaccrual Status

The following table presents the amortized cost basis of loans on nonaccrual status as of the dates presented. There were no loans past due 90 days or more and still accruing as of June 30, 2026. As of December 31, 2025, there was one loan with a balance of $2 thousand past due 90 days or more and still accruing. The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2026 and 2025.

 

 

 

 

June 30, 2026

 

(In thousands)

 

Nonaccrual
with
No ACL

 

 

Total
Nonaccrual

 

Home equity and second mortgages

 

$

139

 

 

$

139

 

One to four family residential

 

 

181

 

 

 

181

 

Commercial real estate

 

 

—

 

 

 

5,952

 

Other commercial & industrial

 

 

1,726

 

 

 

10,642

 

Total

 

$

2,046

 

 

$

16,914

 

 

 

 

December 31, 2025

 

(In thousands)

 

Nonaccrual
with
No ACL

 

 

Total
Nonaccrual

 

One to four family residential

 

$

720

 

 

$

720

 

Commercial real estate

 

 

—

 

 

 

6,126

 

Construction & land

 

 

6,478

 

 

 

6,478

 

Other commercial & industrial

 

 

1,776

 

 

 

6,884

 

Total

 

$

8,974

 

 

$

20,208

 
Summary of Aging Analysis of Past Due Loans By Portfolio Segment

The following is an aging analysis of past due loans (including nonaccrual) as of the balance sheet dates, by portfolio segment:

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Loans Receivable (Amortized Cost)

 

 

Current

 

 

30-89 Days
Past Due

 

 

90 Days or
More Past Due

 

 

Total
Past Due

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

517,975

 

 

$

515,400

 

 

 

2,508

 

 

$

67

 

 

$

2,575

 

Home equity and second mortgages

 

 

82,886

 

 

 

82,547

 

 

 

339

 

 

 

—

 

 

 

339

 

Commercial real estate

 

 

540,209

 

 

 

540,209

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate multi-family

 

 

103,477

 

 

 

103,477

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction & land

 

 

45,928

 

 

 

45,928

 

 

 

—

 

 

 

—

 

 

 

—

 

Condominium associations

 

 

494,331

 

 

 

494,331

 

 

 

—

 

 

 

—

 

 

 

—

 

Other commercial & industrial

 

 

469,491

 

 

 

460,071

 

 

 

4,557

 

 

 

4,863

 

 

 

9,420

 

Consumer

 

 

3,082

 

 

 

3,077

 

 

 

5

 

 

 

—

 

 

 

5

 

Total loans

 

$

2,257,379

 

 

$

2,245,040

 

 

$

7,409

 

 

$

4,930

 

 

$

12,339

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Loans Receivable (Amortized Cost)

 

 

Current

 

 

30-89 Days
Past Due

 

 

90 Days or
More Past
Due

 

 

Total Past
Due

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

518,225

 

 

$

514,916

 

 

$

2,589

 

 

$

720

 

 

$

3,309

 

Home equity and second mortgages

 

 

78,350

 

 

 

77,953

 

 

 

397

 

 

 

—

 

 

 

397

 

Commercial real estate

 

 

534,855

 

 

 

534,855

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate multi-family

 

 

104,695

 

 

 

104,695

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction & land

 

 

57,005

 

 

 

50,527

 

 

 

—

 

 

 

6,478

 

 

 

6,478

 

Condominium associations

 

 

506,683

 

 

 

506,683

 

 

 

—

 

 

 

—

 

 

 

—

 

Other commercial & industrial

 

 

491,765

 

 

 

491,154

 

 

 

59

 

 

 

552

 

 

 

611

 

PPP loans

 

 

11

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

3,877

 

 

 

3,818

 

 

 

57

 

 

 

2

 

 

 

59

 

Total loans

 

$

2,295,466

 

 

$

2,284,612

 

 

$

3,102

 

 

$

7,752

 

 

$

10,854

 
Summary of Amortized Cost Basis of Collateral-dependent Loans By Collateral Type

The following table presents the amortized cost basis of collateral-dependent loans by collateral type as of the balance sheet dates:

 

 

 

 

 

(In thousands)

 

Real Estate

 

 

All Business
Assets

 

 

All Business Assets and
Real Estate

 

 

 

 

Accounts Receivable and Real Estate

 

 

Total

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity and second mortgages

 

$

139

 

 

$

—

 

 

$

—

 

 

 

 

$

—

 

 

$

139

 

One to four family residential

 

 

181

 

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

181

 

Commercial real estate

 

 

7,034

 

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

7,034

 

Other commercial & industrial

 

 

—

 

 

 

133

 

 

 

1,388

 

 

 

 

 

336

 

 

 

1,857

 

Total

 

$

7,354

 

 

$

133

 

 

$

1,388

 

 

 

 

$

336

 

 

$

9,211

 

 

(In thousands)

 

Real Estate

 

 

All Business
Assets

 

 

All Business Assets and
Real Estate

 

 

Accounts Receivable

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One to four family residential

 

$

761

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

761

 

Commercial real estate

 

 

6,126

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,126

 

Construction & land

 

 

6,478

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,478

 

Other commercial & industrial

 

 

—

 

 

 

162

 

 

 

1,390

 

 

 

261

 

 

 

1,813

 

Total

 

$

13,365

 

 

$

162

 

 

$

1,390

 

 

$

261

 

 

$

15,178

 
Summary of Amortized Cost Basis of Loans Experiencing Financial Difficulty and Modified By Class and By Type of Modification The following tables present the amortized cost basis of loans as of June 30, 2025, that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2025, respectively by class and by type of modification. Only segments displayed in the table below have modified loans; there were no other loans experiencing financial difficulty and modified. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

 

(Dollars in thousands)

 

 

Principal Re-Advance

 

 

Combination Payment Delay and Term Extension

 

 

Percent
of Loan Segment

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

Other commercial & industrial

 

 

$

3,344

 

 

$

19

 

 

 

0.67

%

Total

 

 

$

3,344

 

 

$

19

 

 

 

0.15

%

 

 

 

(Dollars in thousands)

 

Payment
Delay

 

 

Principal Re-
Advance

 

 

Combination
Payment
Delay
and Term
Extension

 

 

Percent
of Loan Segment

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,904

 

 

$

—

 

 

$

—

 

 

 

0.37

%

Other commercial and industrial

 

 

354

 

 

 

3,344

 

 

 

19

 

 

 

0.74

%

Total

 

$

2,258

 

 

$

3,344

 

 

$

19

 

 

 

0.25

%

 

 

The Company does not have any additional commitments to the borrowers included in the previous tables.

 

For the three and six months ended June 30, 2025, modifications related to payment delays had minimal financial effect. The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2025.

 

 

 

Weighted-
Average
Term
Extension (months)

 

Three Months Ended June 30, 2025

 

 

 

Other commercial & industrial

 

 

39

 

 

 

 

 

Weighted-
Average
Term
Extension (months)

 

Six Months Ended June 30, 2025

 

 

 

Other commercial & industrial

 

 

39

 
Schedule of Performance of Loans Modified in Last 12 Months The following tables present the performance of such loans that have been modified in the last 12 months as of June 30, 2026 and 2025.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

30 - 59
Days Past
Due

 

 

60 - 89
Days Past
Due

 

 

90 Days or More Past Due

 

 

Total Past
Due

 

June 30, 2026

 

 

 

Other commercial & industrial

 

$

—

 

 

$

—

 

 

$

4,369

 

 

$

4,369

 

Total

 

$

—

 

 

$

—

 

 

$

4,369

 

 

$

4,369

 

 

 

 

 

 

(In thousands)

 

30 - 59
Days Past
Due

 

 

60 - 89
Days Past
Due

 

 

90 Days or More Past Due

 

 

Total Past
Due

 

June 30, 2025

 

 

 

One to four family residential

 

$

—

 

 

$

—

 

 

$

2

 

 

$

2

 

Total

 

$

—

 

 

$

—

 

 

$

2

 

 

$

2

 

 
Schedule of Amortized Cost Basis of Loans Payment Default and Modified in Prior 12 Months he following table presents the amortized cost basis of loans that had a payment default during the three and six months ended June 30, 2026 and 2025, and were modified in the 12 months prior to that default to borrowers experiencing financial difficulty.

 

 

 

 

(In thousands)

 

Payment
Delay

 

 

Total

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

Other commercial & industrial

 

$

4,369

 

 

$

4,369

 

Total:

 

$

4,369

 

 

$

4,369

 

 

 

(In thousands)

 

Payment
Delay

 

 

Total

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

One to four family residential

 

$

—

 

 

$

—

 

Total:

 

$

—

 

 

$

—

 

 

(In thousands)

 

Payment
Delay

 

 

Total

 

Six Months Ended June 30, 2026

 

 

 

 

 

 

Other commercial & industrial

 

$

4,369

 

 

$

4,369

 

Total:

 

$

4,369

 

 

$

4,369

 

 

(In thousands)

 

Payment
Delay

 

 

Total

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

One to four family residential

 

$

2

 

 

$

2

 

Total:

 

$

2

 

 

$

2

 
Summary of Changes to Mortgage Servicing Rights

The following summarizes changes to MSRs:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Beginning balance

 

$

3,086

 

 

$

3,289

 

 

$

3,033

 

 

$

3,488

 

Payoffs

 

 

(55

)

 

 

(96

)

 

 

(81

)

 

 

(152

)

Changes in fair value

 

 

137

 

 

 

60

 

 

 

216

 

 

 

(83

)

Ending balance

 

$

3,168

 

 

$

3,253

 

 

$

3,168

 

 

$

3,253