LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Schedule of changes in the allowance for credit losses

The following tables outline the changes in the allowance for credit losses for the three and six months ended June 30, 2026 and 2025.


	For the Three Months Ended June 30, 2026
(Dollars in thousands)	Beginning Balance		Provision (Reversal)			Charge-offs			Recoveries			Ending Balance
Allowance for credit losses
One- to four-family residential	$	1,284	$	(38)		$	-		$	8		$	1,254
Commercial real estate		293		(31)			-			-			262
Construction and land		313		(56)			-			-			257
Multi-family residential		72		(1)			-			-			71
Commercial and industrial		301		19			(12)			1			309
Consumer		32		(2)			(6)			8			32
Total for loans	$	2,295	$	(109)		$	(18)		$	17		$	2,185
Unfunded lending commitments⁽¹⁾		176		5			-			-			181
Total	$	2,471	$	(104)		$	(18)		$	17		$	2,366

(1)	The allowance for credit losses on unfunded lending commitments is recorded within “other liabilities” on the statement of financial condition. The related provision for credit losses for unfunded lending commitments is recorded with the reversal of credit losses on the income statement.


	For the Three Months Ended June 30, 2025
(Dollars in thousands)	Beginning Balance		Provision (Reversal)			Charge-offs			Recoveries			Ending Balance
Allowance for credit losses
One- to four-family residential	$	1,201	$	13		$	(54)		$	13		$	1,173
Commercial real estate		190		115			-			-			305
Construction and land		512		(176)			-			-			336
Multi-family residential		35		38			-			-			73
Commercial and industrial		313		(5)			-			1			309
Consumer		26		6			(9)			7			30
Unallocated		223		(18)			-			-			205
Total for loans	$	2,500	$	(27)		$	(63)		$	21		$	2,431
Unfunded lending commitments		104		27			-			-			131
Total	$	2,604	$	-		$	(63)		$	21		$	2,562


	For the Six Months Ended June 30, 2026
(Dollars in thousands)	Beginning Balance		Provision (Reversal)			Charge-offs			Recoveries			Ending Balance
Allowance for credit losses
One- to four-family residential	$	1,323	$	(72)		$	(16)		$	19		$	1,254
Commercial real estate		267		(5)			-			-			262
Construction and land		295		(38)			-			-			257
Multi-family residential		80		(9)			-			-			71
Commercial and industrial		371		(23)			(40)			1			309
Consumer		31		3			(11)			9			32
Total for loans	$	2,367	$	(144)		$	(67)		$	29		$	2,185
Unfunded lending commitments		211		(30)			-			-			181
Total	$	2,578	$	(174)		$	(67)		$	29		$	2,366


	For the Six Months Ended June 30, 2025
(Dollars in thousands)	Beginning Balance		Provision (Reversal)			Charge-offs			Recoveries			Ending Balance
Allowance for credit losses
One- to four-family residential	$	1,164	$	73		$	(85)		$	21		$	1,173
Commercial real estate		192		113			-			-			305
Construction and land		528		(192)			-			-			336
Multi-family residential		35		38			-			-			73
Commercial and industrial		372		(69)			-			6			309
Consumer		26		27			(31)			8			30
Unallocated		205		-			-			-			205
Total for loans	$	2,522	$	(10)		$	(116)		$	35		$	2,431
Unfunded lending commitments		121		10			-			-			131
Total	$	2,643	$	-		$	(116)		$	35		$	2,562

Summary of current and past due loans


		As of June 30, 2026
(Dollars in thousands)		Past Due 30-59 Days			Past Due 60-89 Days			Past Due 90 Days or Greater			Total Past Due			Current			Total Loans
One- to four-family residential		$	1,405		$	727		$	859		$	2,991		$	73,708		$	76,699
Commercial real estate			-			-			-			-			37,426			37,426
Construction and land			16			-			-			16			15,927			15,943
Multi-family residential			-			-			-			-			4,724			4,724
Commercial and industrial			-			-			-			-			26,256			26,256
Consumer			-			-			-			-			1,737			1,737
Total		$	1,421		$	727		$	859		$	3,007		$	159,778		$	162,785


		As of December 31, 2025
(Dollars in thousands)		Past Due 30-59 Days			Past Due 60-89 Days			Past Due 90 Days or Greater			Total Past Due			Current			Total Loans
One- to four-family residential		$	2,419		$	784		$	1,021		$	4,224		$	75,899		$	80,123
Commercial real estate			-			-			32			32			32,840			32,872
Construction and land			-			-			-			-			18,806			18,806
Multi-family residential			-			-			-			-			5,309			5,309
Commercial and industrial			320			2			91			413			30,792			31,205
Consumer			6			-			-			6			1,889			1,895
Total		$	2,745		$	786		$	1,144		$	4,675		$	165,535		$	170,210

Schedule of loan portfolio by credit quality classification and origination year

The following tables present the Company’s loan portfolio by credit quality classification and origination year as of June 30, 2026 and December 31, 2025. The Company uses the latter of origination or renewal date to classify term loans into vintages. The gross charge-offs presented in the tables that follow are for the six months ended June 30, 2026 and year ended December 31, 2025.


	June 30, 2026
															Line-of-credit
															Arrangements
	Term Loans by Origination Year												Line-of-credit		Converted to
(Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Arrangements		Term Loans		Total
One- to four-family residential
Pass	$	1,047	$	3,496	$	7,846	$	3,294	$	10,790	$	43,416	$	3,111	$	975	$	73,975
Special Mention		-		-		-		-		-		51		243		-		294
Substandard		-		-		17		-		484		1,929		-		-		2,430
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,047	$	3,496	$	7,863	$	3,294	$	11,274	$	45,396	$	3,354	$	975	$	76,699
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	16	$	-	$	-	$	16
Commercial real estate
Pass	$	2,475	$	6,836	$	2,220	$	8,889	$	1,296	$	7,512	$	140	$	4,959	$	34,327
Special Mention		-		621		1,325		447		93		303		-		-		2,789
Substandard		-		-		211		-		-		99		-		-		310
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	2,475	$	7,457	$	3,756	$	9,336	$	1,389	$	7,914	$	140	$	4,959	$	37,426
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and land
Pass	$	1,213	$	304	$	62	$	-	$	95	$	383	$	12,720	$	1,149	$	15,926
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		17		-		-		17
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,213	$	304	$	62	$	-	$	95	$	400	$	12,720	$	1,149	$	15,943
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family residential
Pass	$	-	$	-	$	2,907	$	-	$	-	$	1,817	$	-	$	-	$	4,724
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	-	$	-	$	2,907	$	-	$	-	$	1,817	$	-	$	-	$	4,724
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial and industrial
Pass	$	1,479	$	7,632	$	3,132	$	1,275	$	126	$	317	$	6,452	$	3,887	$	24,300
Special Mention		85		14		-		-		-		-		105		-		204
Substandard		-		749		320		-		683		-		-		-		1,752
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,564	$	8,395	$	3,452	$	1,275	$	809	$	317	$	6,557	$	3,887	$	26,256
Gross charge-offs	$	-	$	-	$	-	$	-	$	12	$	-	$	28	$	-	$	40
Consumer
Pass	$	433	$	708	$	196	$	165	$	21	$	214	$	-	$	-	$	1,737
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	433	$	708	$	196	$	165	$	21	$	214	$	-	$	-	$	1,737
Gross charge-offs	$	7	$	4	$	-	$	-	$	-	$	-	$	-	$	-	$	11
Total
Pass	$	6,647	$	18,976	$	16,363	$	13,623	$	12,328	$	53,659	$	22,423	$	10,970	$	154,989
Special Mention		85		635		1,325		447		93		354		348		-		3,287
Substandard		-		749		548		-		1,167		2,045		-		-		4,509
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	6,732	$	20,360	$	18,236	$	14,070	$	13,588	$	56,058	$	22,771	$	10,970	$	162,785
Gross charge-offs	$	7	$	4	$	-	$	-	$	12	$	16	$	28	$	-	$	67


	December 31, 2025
															Line-of-credit
															Arrangements
	Term Loans by Origination Year												Line-of-credit		Converted to
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Arrangements		Term Loans		Total
One- to four-family residential
Pass	$	3,654	$	3,650	$	3,624	$	11,134	$	2,334	$	45,887	$	2,270	$	4,574	$	77,127
Special Mention		-		-		-		-		53		-		244		-		297
Substandard		-		21		9		485		-		2,184		-		-		2,699
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	3,654	$	3,671	$	3,633	$	11,619	$	2,387	$	48,071	$	2,514	$	4,574	$	80,123
Gross charge-offs	$	-	$	-	$	9	$	-	$	-	$	152	$	-	$	-	$	161
Commercial real estate
Pass	$	1,041	$	2,768	$	4,122	$	1,392	$	904	$	7,448	$	148	$	11,672	$	29,495
Special Mention		625		1,338		754		97		309		-		-		-		3,123
Substandard		-		221		-		-		-		33		-		-		254
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,666	$	4,327	$	4,876	$	1,489	$	1,213	$	7,481	$	148	$	11,672	$	32,872
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction and land
Pass	$	245	$	132	$	-	$	97	$	47	$	274	$	17,883	$	-	$	18,678
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		109		-		-		-		-		19		-		-		128
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	354	$	132	$	-	$	97	$	47	$	293	$	17,883	$	-	$	18,806
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Multi-family residential
Pass	$	-	$	-	$	-	$	-	$	469	$	1,900	$	-	$	2,940	$	5,309
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	469	$	1,900	$	-	$	2,940	$	5,309
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial and industrial
Pass	$	5,232	$	8,137	$	1,602	$	164	$	90	$	414	$	10,173	$	3,220	$	29,032
Special Mention		18		-		-		-		-		-		206		-		224
Substandard		821		368		-		760		-		-		-		-		1,949
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	6,071	$	8,505	$	1,602	$	924	$	90	$	414	$	10,379	$	3,220	$	31,205
Gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer
Pass	$	1,080	$	231	$	249	$	79	$	100	$	156	$	-	$	-	$	1,895
Special Mention		-		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	1,080	$	231	$	249	$	79	$	100	$	156	$	-	$	-	$	1,895
Gross charge-offs	$	25	$	21	$	-	$	-	$	-	$	6	$	-	$	-	$	52
Total
Pass	$	11,252	$	14,918	$	9,597	$	12,866	$	3,944	$	56,079	$	30,474	$	22,406	$	161,536
Special Mention		643		1,338		754		97		362		-		450		-		3,644
Substandard		930		610		9		1,245		-		2,236		-		-		5,030
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	12,825	$	16,866	$	10,360	$	14,208	$	4,306	$	58,315	$	30,924	$	22,406	$	170,210
Gross charge-offs	$	25	$	21	$	9	$	-	$	-	$	158	$	-	$	-	$	213