Note 4 - Allowance for Credit Losses on Loans

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Credit Loss, Financial Instrument [Text Block]

Note 4 - Allowance for Credit Losses on Loans ("ACLL")

The Company maintains an ACLL in accordance with ASC 326: Financial Instruments - Credit Losses. ASC 326 requires the Company to recognize estimates for lifetime credit losses on loans at the time of origination or acquisition. The recognition of credit losses at origination or acquisition represents the Company’s best estimate of lifetime expected credit losses, given the facts and circumstances associated with a particular loan or group of loans with similar risk characteristics. The ACLL is recognized in loans receivable on the Consolidated Balance Sheets and is adjusted as a provision (recapture of provision) for credit losses on loans on the Consolidated Statements of Operations. The Company adopted ASU 2016-13 effective January 1, 2023, as discussed in Note 1.

The following tables detail activity in the allowance for credit losses on loans by class for the periods shown:

	At or For the Year Ended December 31, 2025
(dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		(Recapture of) Provision for Credit Losses			Ending Balance
One-to-four family	$	4,757	$	—		$	—	$	(968	)	$	3,789
Multi-family		2,493		—			—		(35	)		2,458
Commercial real estate		2,410		(6,571	)		32		7,534			3,405
Construction and land		576		(1,884	)		5		1,964			661
Home equity		1,322		—			—		7			1,329
Auto and other consumer		2,687		(745	)		198		(184	)		1,956
Commercial business		6,204		(6,305	)		4,488		(998	)		3,389
Total	$	20,449	$	(15,505	)	$	4,723	$	7,320		$	16,987

	At or For the Year Ended December 31, 2024
(dollars in thousands)	Beginning Balance		Charge-offs			Recoveries		Provision for (Recapture of) Credit Losses			Ending Balance
One-to-four family	$	2,975	$	—		$	44	$	1,738		$	4,757
Multi-family		1,154		—			—		1,339			2,493
Commercial real estate		3,671		—			2		(1,263	)		2,410
Construction and land		1,889		(4,389	)		—		3,076			576
Home equity		1,077		—			—		245			1,322
Auto and other consumer		4,409		(2,494	)		320		452			2,687
Commercial business		2,335		(7,296	)		36		11,129			6,204
Total	$	17,510	$	(14,179	)	$	402	$	16,716		$	20,449

Allowance for Credit Losses on Unfunded Loan Commitments ("ACLUC"). The Company maintains an ACLUC in accordance with ASC 326: Financial Instruments - Credit Losses, as discussed in Note 1. The Company estimates expected credit losses on unfunded, off-balance sheet commitments over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The allowance is recognized in accrued expenses and other liabilities on the Consolidated Balance Sheets and is adjusted as a provision, or recapture of provision, for credit losses on unfunded commitments on the Consolidated Statements of Operations. The allowance for unfunded commitments was $594,000 and $599,000 at December 31, 2025 and 2024, respectively.