The following table presents the composition of loans receivable at June 30, 2026 and December 31, 2025, respectively:

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weakness), substandard (well defined weakness) and doubtful (full collection unlikely) within the Company's internal risk rating system as of June 30, 2026 by year of origination:


		2026		2025		2024		2023		2022		Prior		Revolving		Total

		(In Thousands)
Commercial
real estate
	Pass	$	25,455	$	60,489	$	47,615	$	55,275	$	139,210	$	229,021	$	6,055	$	563,120
	Special Mention		-		-		-		-		-		-		-		-
	Substandard		-		-		-		-		-		534		-		534
	Total		25,455		60,489		47,615		55,275		139,210		229,555		6,055		563,654

Commercial
construction
	Pass		447		9,975		-		1,061		-		25		-		11,508
	Special Mention		-		-		-		-		-		-		-		-
	Substandard		-		-		-		-		-		-		55		55
	Total		447		9,975		-		1,061		-		25		55		11,563

Commercial
	Pass		6,831		4,074		3,980		1,003		1,671		7,825		6,241		31,625
	Special Mention		-		-		-		-		-		14		-		14
	Substandard		-		-		-		-		-		-		152		152
	Total		6,831		4,074		3,980		1,003		1,671		7,839		6,393		31,791

Residential
real estate
	Pass		66,482		78,920		61,910		46,540		74,619		347,942		33,682		710,095
	Special Mention		-		-		57		-		-		511		-		568
	Substandard		-		-		-		53		118		1,044		-		1,215
	Total		66,482		78,920		61,967		46,593		74,737		349,497		33,682		711,878

Consumer
	Pass		15		104		17		25		22		-		260		443
	Special Mention		-		-		-		-		-		-		-		-
	Substandard		-		-		-		-		-		-		-		-
	Total		15		104		17		25		22		-		260		443
Total
Loans Receivable		$	99,230	$	153,562	$	113,579	$	103,957	$	215,640	$	586,916	$	46,445	$	1,319,329

The Company had gross charge-offs of $21 thousand during the six months ended June 30, 2026, respectively. The $21 thousand gross charge-offs for the six months ended June 30, 2026 was due to one (1) commercial loan charge-off of $6 thousand originated in 2014, one (1) consumer loan charge-off of $9 thousand originated in 2016, and one (1) consumer loan charge-off of $6 thousand originated in 2024.
‎


		2025		2024		2023		2022		2021		Prior		Revolving		Total

		(In Thousands)
Commercial
real estate
	Pass	$	61,483	$	48,975	$	57,134	$	141,938	$	49,261	$	199,960	$	5,524	$	564,275
	Special Mention		-		-		-		-		-		-		-		-
	Substandard		-		-		-		-		-		554		-		554
	Total		61,483		48,975		57,134		141,938		49,261		200,514		5,524		564,829

Commercial
construction
	Pass		3,407		1,750		1,060		-		-		26		-		6,243
	Special Mention		-		-		-		-		-		-		-		-
	Substandard		-		-		-		-		-		-		55		55
	Total		3,407		1,750		1,060		-		-		26		55		6,298

Commercial
	Pass		6,014		4,674		1,140		1,980		379		8,459		7,282		29,928
	Special Mention		-		142		-		208		131		15		400		896
	Substandard		-		-		-		-		-		-		-		-
	Total		6,014		4,816		1,140		2,188		510		8,474		7,682		30,824

Residential
real estate
	Pass		86,973		66,032		52,927		79,384		131,541		238,877		30,307		686,041
	Special Mention		-		-		-		-		-		395		-		395
	Substandard		-		-		56		125		579		493		-		1,253
	Total		86,973		66,032		52,983		79,509		132,120		239,765		30,307		687,689

Consumer
	Pass		147		36		32		33		2		-		370		620
	Special Mention		-		-		-		-		-		-		-		-
	Substandard		-		-		-		-		-		-		-		-
	Total		147		36		32		33		2		-		370		620
Total
Loans Receivable		$	158,024	$	121,609	$	112,349	$	223,668	$	181,893	$	448,779	$	43,938	$	1,290,260

The Company had gross charge-offs of $152 thousand during the year ended December 31, 2025. One (1) charge-off of $1 thousand was a consumer loan originated in 2022, one (1) charge-off of $15 thousand was a commercial loan originated in 2022, and one (1) charge-off of $136 thousand was a commercial real estate loan originated in 2021.

‎

The following table presents the carrying value and related allowance for credit losses of individually analyzed loans at June 30, 2026 and December 31, 2025, respectively:


.	June 30, 2026						December 31, 2025
	Recorded Investment		Unpaid Principal Balance		Related Allowance for Credit Losses		Recorded Investment		Unpaid Principal Balance		Related Allowance for Credit Losses
	(In Thousands)
With no related allowance recorded:
Commercial real estate (1)	$	534	$	534			$	554	$	554
Commercial construction (1)		55		55				55		55
Commercial		-		-				-		-
Residential real estate (1)		1,210		1,213				1,201		1,204
Consumer		-		-				-		-
With an allowance recorded:
Commercial real estate	$	-	$	-	$	-	$	-	$	-	$	-
Commercial construction		-		-		-		-		-		-
Commercial (2)		166		166		166		15		15		15
Residential real estate (1)		548		548		96		562		562		100
Consumer		-		-		-		-		-		-
Total:
Commercial real estate	$	534	$	534	$	-	$	554	$	554	$	-
Commercial construction		55		55		-		55		55		-
Commercial		166		166		166		15		15		15
Residential real estate		1,758		1,761		96		1,763		1,766		100
Consumer		-		-		-		-		-		-
	$	2,513	$	2,516	$	262	$	2,387	$	2,390	$	115

1.All loans are real estate collateral dependent.

2.All loans are non-collateral dependent loans.

The following table presents non-accrual loans by classes of the loan portfolio:



	June 30, 2026		December 31, 2025

	(In Thousands)
Commercial real estate	$	-	$	-
Commercial construction		-		-
Commercial		152		-
Residential real estate		516		482
Consumer		-		-
Total	$	668	$	482

As of June 30, 2026, there were seven (7) loans in non-accrual status in the amount of $668 thousand, of which one (1) loan of $152 thousand, included in commercial loans above, is non-collateral dependent and required a related allowance of $152 thousand. The remaining collateral dependent non-accrual loans did not have a required related allowance. There was interest income of $1 thousand recognized for three and six months ended June 30, 2026 on these non-accrual loans. As of December 31, 2025, there were five (5) loans in non-accrual status in the amount of $482 thousand. These loans are all collateral dependent non-accrual loans and did not have a required related allowance. There was interest income of $7 thousand recognized for the year ended December 31, 2025 on these non-accrual loans. As of June 30, 2025, there were four (4) loans in non-accrual status in the amount of $485 thousand. These loans are all collateral dependent non-accrual loans and did not have a required related allowance. There was interest income recognized of $2 thousand for the three and six months ended June 30, 2025 on these non-accrual loans.

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of June 30, 2026 and December 31, 2025, respectively:


					Greater								Loan
					than								Receivables >
	30-59 Days		60-89 Days		90 Days		Total				Total Loan		90 Days and
	Past Due		Past Due		Past Due		Past Due		Current		Receivables		Accruing

June 30, 2026	(In Thousands)
Commercial real estate	$	-	$	-	$	-	$	-	$	563,654	$	563,654	$	-
Commercial construction		-		-		-		-		11,563		11,563		-
Commercial		-		596		152		748		31,043		31,791		-
Residential real estate		964		11		175		1,150		710,728		711,878		-
Consumer		-		-		-		-		443		443		-
Total	$	964	$	607	$	327	$	1,898	$	1,317,431	$	1,319,329	$	-
December 31, 2025
Commercial real estate	$	-	$	-	$	-	$	-	$	564,829	$	564,829	$	-
Commercial construction		-		-		-		-		6,298		6,298		-
Commercial		6		-		-		6		30,818		30,824		-
Residential real estate		432		246		-		678		687,011		687,689		-
Consumer		-		6		-		6		614		620		-
Total	$	438	$	252	$	-	$	690	$	1,289,570	$	1,290,260	$	-

At June 30, 2026 and December 31, 2025, the Company had no foreclosed assets and no mortgage loans collateralized by residential real estate in the process of foreclosure.

‎

The following tables detail the activity in the allowance for credit losses for the three and six months ended June 30, 2026 and June 30, 2025, respectively:


	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Total

Allowance for credit losses	(In Thousands)
Three Months Ending June 30, 2026
Beginning Balance - March 31, 2026	$	5,943	$	100	$	470	$	5,552	$	31	$	12,096
Charge-offs		-		-		-		-		(15)		(15)
Recoveries		-		-		-		-		-		-
Provisions on loans		29		18		148		166		14		375
Ending Balance - June 30, 2026	$	5,972	$	118	$	618	$	5,718	$	30	$	12,456

Six Months Ending June 30, 2026
Beginning Balance - December 31, 2025	$	5,963	$	64	$	455	$	5,530	$	27	$	12,039
Charge-offs		-		-		(6)		-		(15)		(21)
Recoveries		-		-		-		-		-		-
Provisions on loans		9		54		169		188		18		438
Ending Balance - June 30, 2026	$	5,972	$	118	$	618	$	5,718	$	30	$	12,456

Allowance for credit losses
Three Months Ending June 30, 2025
Beginning Balance - March 31, 2025	$	5,985	$	247	$	527	$	5,433	$	30	$	12,222
Charge-offs		(136)		-		(15)		-		(1)		(152)
Recoveries		-		-		-		-		-		-
Provisions (credits) on loans		(56)		(53)		(51)		1		(6)		(165)
Ending Balance - June 30, 2025	$	5,793	$	194	$	461	$	5,434	$	23	$	11,905

Six Months Ending June 30, 2025
Beginning Balance - December 31, 2024	$	5,897	$	257	$	536	$	5,446	$	30	$	12,166
Charge-offs		(136)		-		(15)		-		(1)		(152)
Recoveries		-		-		-		-		-		-
Provisions (credits) on loans		32		(63)		(60)		(12)		(6)		(109)
Ending Balance - June 30, 2025	$	5,793	$	194	$	461	$	5,434	$	23	$	11,905

‎

The following tables represent the allocation for credit losses and the related loan portfolio disaggregated based on impairment methodology at June 30, 2026 and December 31, 2025:



	Commercial Real Estate		Commercial Construction		Commercial		Residential Real Estate		Consumer		Total

	(In Thousands)
June 30, 2026
Allowance for Credit Losses
Ending Balance	$	5,972	$	118	$	618	$	5,718	$	30	$	12,456
Ending balance: individually evaluated for impairment - real estate collateral dependent	$	-	$	-	$	-	$	96	$	-	$	96
Ending balance: individually evaluated for impairment - non-collateral dependent	$	-	$	-	$	166	$	-	$	-	$	166
Ending balance: collectively evaluated for impairment	$	5,972	$	118	$	452	$	5,622	$	30	$	12,194

Loans Receivable
Ending balance	$	563,654	$	11,563	$	31,791	$	711,878	$	443	$	1,319,329
Ending balance: individually evaluated for impairment - real estate collateral dependent	$	534	$	55	$	-	$	1,758	$	-	$	2,347
Ending balance: individually evaluated for impairment - non-collateral dependent	$	-	$	-	$	166	$	-	$	-	$	166
Ending balance: collectively evaluated for impairment	$	563,120	$	11,508	$	31,625	$	710,120	$	443	$	1,316,816

December 31, 2025
Allowance for Credit Losses
Ending Balance	$	5,963	$	64	$	455	$	5,530	$	27	$	12,039
Ending balance: individually evaluated for impairment - real estate collateral dependent	$	-	$	-	$	-	$	100	$	-	$	100
Ending balance: individually evaluated for impairment - non-collateral dependent	$	-	$	-	$	15	$	-	$	-	$	15
Ending balance: collectively evaluated for impairment	$	5,963	$	64	$	440	$	5,430	$	27	$	11,924

Loans Receivable
Ending balance	$	564,829	$	6,298	$	30,824	$	687,689	$	620	$	1,290,260
Ending balance: individually evaluated for impairment - real estate collateral dependent	$	554	$	55	$	-	$	1,763	$	-	$	2,372
Ending balance: individually evaluated for impairment - non-collateral dependent	$	-	$	-	$	15	$	-	$	-	$	15
Ending balance: collectively evaluated for impairment	$	564,275	$	6,243	$	30,809	$	685,926	$	620	$	1,287,873

‎

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Balance Sheets, totaling $2.6 million at both June 30, 2026 and December 31, 2025, and is excluded from the estimate of credit losses.

Based on the guidance in ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, a loan modification or refinancing results in a new loan if the terms of the new loan are at least as favorable to the lender as the terms with customers with similar collection risks that are not refinancing or restructuring their loans and the modification to the terms of the loan are more than minor. If a loan modification or refinancing does not result in a new loan, it is classified as a loan modification.

There are additional disclosures for modification of loans with borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows. The disclosures are applicable to situations where there is principal forgiveness, interest rate reductions, other than insignificant payment delays, term extensions, or a combination of any of these items. If the Company modifies any loans to borrowers in financial distress that involves principal forgiveness, the amount of principal that is forgiven is charged off against the allowance for credit losses. The Company had no new loan modifications to borrowers experiencing financial difficulties in the three and six months ended June 30, 2026 and June 30, 2025.