Loans Receivable and ACL

12 Months Ended

Dec. 31, 2025

Loans Receivable and ACL

Loans Receivable and ACL

Note 4 – Loans Receivable and ACL

Loans consist of the following as of the dates stated:

	December 31, 2025				December 31, 2024
	Amount		Percent		Amount		Percent
	(Dollars in thousands)
One-to-four-family residential	$	1,177,156	19.64	%	$	1,130,791	26.06	%
Home equity		152,602	2.55	%		124,041	2.86	%
Total residential real estate		1,329,758	22.19	%		1,254,832	28.92	%
Commercial real estate		1,924,043	32.09	%		1,363,394	31.42	%
Multi-family residential		517,527	8.63	%		333,047	7.67	%
Total commercial real estate		2,441,570	40.72	%		1,696,441	39.09	%
Construction and land development		730,573	12.19	%		583,809	13.45	%
Commercial and industrial		1,007,669	16.81	%		559,828	12.90	%
Total commercial		4,179,812	69.72	%		2,840,078	65.45	%
Consumer, net of premium/discount		203,497	3.40	%		244,558	5.64	%
Mortgage warehouse		280,949	4.69	%		—	—	%
Total loans		5,994,016	100.00	%		4,339,468	100.00	%
Deferred fees, net		(7,876)				(6,539)
Allowance for credit losses		(87,411)				(38,744)
Net loans	$	5,898,729			$	4,294,185

Included in the above are approximately $404.8 million and $459.6 million in loans to borrowers in the cannabis industry, at December 31, 2025 and 2024, respectively. Of that total, $228.8 million and $321.9 million were direct loans to cannabis companies and were collateralized by real estate at December 31, 2025 and 2024, respectively. None of the loans to borrowers in the cannabis industry are collateralized by cannabis.

Mortgage loans sold to and serviced for investors are not included in the accompanying consolidated financial statements. The loans serviced for others were sold without recourse provisions. The aggregate outstanding unpaid principal balance of such loans approximated $207.2 million and $221.5 million at December 31, 2025 and 2024, respectively. Gains/losses on loans sold, including recognition of mortgage servicing rights, for the years ended December 31, 2025, 2024 and 2023 amounted to gains of $352,000 and $546,000 and losses of $29,000, respectively, and are included in mortgage banking income in the noninterest income section in the consolidated statements of income.

During the years ended December 31, 2025 and 2024, the Company purchased approximately $49.1 million and $46.8 million, respectively, of consumer loan pools. The loans purchased during the twelve months ended December 31, 2025 included loan pools collateralized by automobiles. The loans purchased during the twelve months ended December 31, 2024 included loan pools collateralized by boat and recreational vehicles, automobiles, and solar panels, as well as unsecured home improvement loans.

The outstanding balances of these purchased consumer loan pools, net of premium (discount) are as follows as of the dates stated:

	December 31, 2025
	Gross Loans		Premium (Discount)		Net Loans
	(in thousands)
Student loans	$	5,421	$	34	$	5,455
Boat and RV loans		238		—		238
Automobile loans		75,560		—		75,560
Solar panel loans		49,077		(4,667)		44,410
Home improvement loans		35,845		(13)		35,832
Total	$	166,141	$	(4,646)	$	161,495

	December 31, 2024
	Gross Loans		Premium (Discount)		Net Loans
	(in thousands)
Student loans	$	6,954	$	42	$	6,996
Boat and RV loans		48,147		1,136		49,283
Automobile loans		52,092		—		52,092
Solar panel loans		55,400		(5,073)		50,327
Home improvement loans		44,458		(15)		44,443
Total	$	207,051	$	(3,910)	$	203,141

During the year ended December 31, 2025, the Company transferred $67.0 million in consumer loans to loans held for sale, the sale of which is expected to close in the first quarter of 2026. Upon transfer, the loans were marked to market based on the selling price agreed to by the purchaser, resulting in a $517,000 loss recorded upon transfer.

The following table presents the aging of the amortized cost of loans receivable by loan category as of the date stated:

	December 31, 2025
			30-59		60-89		90 Days or
	Current		Days		Days		More Past Due				Total
	Loans		Past Due		Past Due		Still Accruing		Nonaccrual		Loans
	(in thousands)
Real estate loans:
One-to-four-family residential	$	1,166,731	$	7,232	$	481	$	—	$	2,712	$	1,177,156
Home equity		150,413		445		385		—		1,359		152,602
Commercial real estate		1,923,108		80		—		—		855		1,924,043
Multi-family residential		517,527		—		—		—		—		517,527
Construction and land development		730,563		—		—		—		10		730,573
Commercial and industrial		895,662		73,225		2,531		—		36,251		1,007,669
Consumer		194,595		4,665		2,022		—		2,215		203,497
Mortgage warehouse		280,949		—		—		—		—		280,949
Total	$	5,859,548	$	85,647	$	5,419	$	—	$	43,402	$	5,994,016

	December 31, 2024
			30-59		60-89		90 Days or
	Current		Days		Days		More Past Due				Total
	Loans		Past Due		Past Due		Still Accruing		Nonaccrual		Loans
	(in thousands)
Real estate loans:
One-to-four-family residential	$	1,124,762	$	2,363	$	736	$	—	$	2,930	$	1,130,791
Home equity		122,812		100		171		—		958		124,041
Commercial real estate		1,355,064		5,325		—		—		3,005		1,363,394
Multi-family residential		332,740		307		—		—		—		333,047
Construction and land development		583,435		364		—		—		10		583,809
Commercial and industrial		550,353		4,907		10		—		4,558		559,828
Consumer		236,801		3,725		1,637		—		2,395		244,558
Total	$	4,305,967	$	17,091	$	2,554	$	—	$	13,856	$	4,339,468

The following table presents the amortized cost of nonaccrual loans receivable by loan category as of the date stated:

	December 31, 2025						December 31, 2024
	Nonaccrual		Nonaccrual		Total		Nonaccrual		Nonaccrual		Total
	Loans with		Loans with		Nonaccrual		Loans with		Loans with		Nonaccrual
	No ACL		an ACL		Loans		No ACL		an ACL		Loans
	(In thousands)
Real estate loans:
One-to-four-family residential	$	2,712	$	—	$	2,712	$	2,930	$	—	$	2,930
Home equity		1,359		—		1,359		958		—		958
Commercial real estate		855		—		855		3,005		—		3,005
Construction and land development		10		—		10		10		—		10
Commercial and industrial		19,799		16,452		36,251		454		4,104		4,558
Consumer		2,215		—		2,215		2,394		1		2,395
Total	$	26,950	$	16,452	$	43,402	$	9,751	$	4,105	$	13,856

During the years ended December 31, 2025, 2024, and 2023, the Company reversed $253,000, $498,000 and $116,000 of interest income, respectively, for loans that were placed on non-accrual.

Credit Quality Information

Management uses a methodology to systematically estimate the amount of expected losses in each segment of loans in the Company’s portfolio. For the purposes of estimating the ACL, management segregates the loan portfolio into loan segments that share similar risk characteristics such as the purpose of the loan, repayment source, and collateral. These characteristics are considered when determining the appropriate level of the ACL for each category. Risk characteristics unique to each loan segment include:

Commercial real estate, including multi-family residential loans – Collateral values are established by independent third-party appraisals and evaluations. Primary repayment sources include operating income generated by the real estate, permanent debt refinancing, sale of the real estate and, secondarily, liquidation of the collateral.

Commercial and industrial – The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Collateral frequently consists of a first lien position on business assets including, but not limited to, accounts receivable, inventory and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets.

Construction and land development – These loans are generally considered to present a higher degree of risk than other real estate loans and may be affected by a variety of factors, such as adverse changes in interest rates and the borrower’s ability to control costs and adhere to time schedules. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. Construction loan repayment is substantially dependent on the ability of the borrower to complete the project and obtain permanent financing.

One-to-four family residential – These loans are made to borrowers who demonstrate the ability to repay principal and interest on a monthly basis. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources (including cash reserves) and the value of the collateral. The primary risk related to this portfolio is the financial circumstances of the individual borrowers and their ability to repay the obligation. The Company maintains policy standards for minimum credit score and maximum loan-to-value consistent with a “prime” portfolio. The Company does not originate or purchase sub-prime or other high-risk loans. Residential loans are originated either for sale to investors or retained in the Company’s loan portfolio. Decisions about whether to sell or retain residential loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and the Company’s liquidity and capital needs.

Home equity – Home equity lines of credit are generally granted for a draw period with monthly interest-only repayment requirements. At the end of the draw period, home equity lines of credit are amortized over the remaining maturity period and monthly payments of principal and interest are required. Home equity loans are term loans that require the monthly payment of principal and interest such that the loan will be fully amortized at maturity. Underwriting considerations and primary risks are materially consistent with one-to-four family residential loans. Collateral consists of a senior or subordinate lien on owner-occupied residential property.

Mortgage warehouse lending – Mortgage warehouse loans are facility lines to non-bank mortgage origination companies. The underlying collateral of these facility lines are residential real estate loans. Loans are originated by the mortgage companies for sale into secondary markets. The primary source of repayment of the facility lines is the cash flow upon sale of the loans. The primary risk of repayment is a result of changes in the secondary mortgage market which may impede the mortgage companies’ ability to sell the loans and repay their facility lines.

Consumer – The Company’s policy and underwriting in this category, which is comprised primarily of originated and purchased automobile, boat, recreational vehicle, solar, home improvement, credit card and student loans, include the following factors, among others: income sources and reliability, credit histories, term of repayment, and collateral value, as applicable.

The Company utilizes a nine-grade internal rating system for all loans, except consumer loans, which are not risk rated, as follows:

Loans rated 1-5: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 6: Loans in this category are considered “special mention”. These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 7: Loans in this category are considered “substandard”. Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 8: Loans in this category are considered “doubtful”. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company reviews the accuracy of risk ratings for all commercial real estate, construction and land development loans, and commercial and industrial loans based on various ongoing performance characteristics and supporting information that is provided from time to time by commercial borrowers. On an annual basis, or more often if needed, the Company completes a credit recertification on all mortgage warehouse originators. Annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process.

The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of December 31, 2025. Also presented are current period gross charge-offs by loan type and vintage year for the year ended December 31, 2025.

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
One-to-Four-Family Residential
Grade:
Pass	1-5	$	109,894	$	99,901	$	133,211	$	252,202	$	230,200	$	310,541	$	38,849	$	1,174,798
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		239		1,983		136		2,358
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	109,894	$	99,901	$	133,211	$	252,202	$	230,439	$	312,524	$	38,985	$	1,177,156
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity
Grade:
Pass	1-5	$	—	$	481	$	245	$	—	$	—	$	919	$	149,598	$	151,243
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		62		125		—		—		—		1,172		1,359
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	—	$	543	$	370	$	—	$	—	$	919	$	150,770	$	152,602
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate
Grade:
Pass	1-5	$	277,427	$	176,824	$	268,778	$	350,792	$	166,603	$	443,438	$	109,330	$	1,793,192
Special Mention	6		—		12,654		33,785		49,323		4,277		6,918		—		106,957
Substandard	7		—		—		—		457		—		23,437		—		23,894
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	277,427	$	189,478	$	302,563	$	400,572	$	170,880	$	473,793	$	109,330	$	1,924,043
Current period gross charge-offs		$	—	$	—	$	—	$	18	$	—	$	—	$	—	$	18
Multi-Family
Grade:
Pass	1-5	$	51,330	$	17,220	$	79,309	$	232,302	$	29,510	$	106,112	$	1,744	$	517,527
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	51,330	$	17,220	$	79,309	$	232,302	$	29,510	$	106,112	$	1,744	$	517,527
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and Land Development
Grade:
Pass	1-5	$	95,751	$	212,670	$	256,764	$	13,536	$	16,138	$	3,466	$	99,857	$	698,182
Special Mention	6		—		—		—		32,381		—		—		—		32,381
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	95,751	$	212,670	$	256,764	$	45,917	$	16,138	$	3,476	$	99,857	$	730,573
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial
Grade:
Pass	1-5	$	72,148	$	65,844	$	99,436	$	91,265	$	106,858	$	61,608	$	387,604	$	884,763
Special Mention	6		—		1,696		2,262		12,851		10,417		4,306		45,454		76,986
Substandard	7		9,500		—		2,437		13,835		4,878		8,776		6,389		45,815
Doubtful	8		—		—		—		105		—		—		—		105
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	81,648	$	67,540	$	104,135	$	118,056	$	122,153	$	74,690	$	439,447	$	1,007,669
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	3,762	$	—	$	3,762

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Consumer
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			56,733		40,589		3,775		41,676		36,574		20,694		3,456		203,497
Total		$	56,733	$	40,589	$	3,775	$	41,676	$	36,574	$	20,694	$	3,456	$	203,497
Current period gross charge-offs		$	291	$	22	$	413	$	2,088	$	1,637	$	277	$	37	$	4,765
Mortgage Warehouse
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	280,949	$	280,949
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	—	$	—	$	—	$	—	$	—	$	—	$	280,949	$	280,949
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Loans
Grade:
Pass	1-5	$	606,550	$	572,940	$	837,743	$	940,097	$	549,309	$	926,084	$	1,067,931	$	5,500,654
Special Mention	6		—		14,350		36,047		94,555		14,694		11,224		45,454		216,324
Substandard	7		9,500		62		2,562		14,292		5,117		34,196		7,697		73,426
Doubtful	8		—		—		—		105		—		10		—		115
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			56,733		40,589		3,775		41,676		36,574		20,694		3,456		203,497
Total		$	672,783	$	627,941	$	880,127	$	1,090,725	$	605,694	$	992,208	$	1,124,538	$	5,994,016
Current period gross charge-offs		$	291	$	22	$	413	$	2,106	$	1,637	$	4,039	$	37	$	8,545

(1) Consumer loans are not formally risk rated and included $2.2 million of loans on non-accrual as of December 31, 2025

The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of December 31, 2024. Also presented are current period gross charge-offs by loan type and vintage year for the year ended December 31, 2024.

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
One-to-Four-Family Residential
Grade:
Pass	1-5	$	97,895	$	145,711	$	266,364	$	247,799	$	115,133	$	224,354	$	30,227	$	1,127,483
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		246		—		2,990		72		3,308
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	97,895	$	145,711	$	266,364	$	248,045	$	115,133	$	227,344	$	30,299	$	1,130,791
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home Equity
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	123,083	$	123,083
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		958		958
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	—	$	—	$	—	$	—	$	—	$	—	$	124,041	$	124,041
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate
Grade:
Pass	1-5	$	118,115	$	409,048	$	364,384	$	69,349	$	97,500	$	248,749	$	45,088	$	1,352,233
Special Mention	6		—		—		1,399		2,664		873		3,220		—		8,156
Substandard	7		—		—		469		—		—		2,536		—		3,005
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	118,115	$	409,048	$	366,252	$	72,013	$	98,373	$	254,505	$	45,088	$	1,363,394
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	4,000	$	—	$	4,000
Multi-Family
Grade:
Pass	1-5	$	5,138	$	7,563	$	212,492	$	21,791	$	36,016	$	50,047	$	—	$	333,047
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	5,138	$	7,563	$	212,492	$	21,791	$	36,016	$	50,047	$	—	$	333,047
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and Land Development
Grade:
Pass	1-5	$	161,997	$	284,102	$	90,512	$	13,255	$	9,232	$	364	$	24,337	$	583,799
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	161,997	$	284,102	$	90,512	$	13,255	$	9,232	$	374	$	24,337	$	583,809
Current period gross charge-offs		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial
Grade:
Pass	1-5	$	42,154	$	64,943	$	54,435	$	38,759	$	6,594	$	14,468	$	324,481	$	545,834
Special Mention	6		—		—		531		2,884		1,002		—		425		4,842
Substandard	7		—		—		—		—		343		4,214		4,595		9,152
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			—		—		—		—		—		—		—		—
Total		$	42,154	$	64,943	$	54,966	$	41,643	$	7,939	$	18,682	$	329,501	$	559,828
Current period gross charge-offs		$	—	$	—	$	—	$	272	$	—	$	119	$	—	$	391

		Term Loans Amortized Cost Basis by Origination Year (in thousands)
	Risk Rating	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Consumer
Grade:
Pass	1-5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention	6		—		—		—		—		—		—		—		—
Substandard	7		—		—		—		—		—		—		—		—
Doubtful	8		—		—		—		—		—		—		—		—
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			67,429		32,233		67,018		49,262		9,047		17,145		2,424		244,558
Total		$	67,429	$	32,233	$	67,018	$	49,262	$	9,047	$	17,145	$	2,424	$	244,558
Current period gross charge-offs		$	—	$	300	$	2,252	$	1,587	$	231	$	250	$	24	$	4,644
Total Loans
Grade:
Pass	1-5	$	425,299	$	911,367	$	988,187	$	390,953	$	264,475	$	537,982	$	547,216	$	4,065,479
Special Mention	6		—		—		1,930		5,548		1,875		3,220		425		12,998
Substandard	7		—		—		469		246		343		9,740		5,625		16,423
Doubtful	8		—		—		—		—		—		10		—		10
Loss	9		—		—		—		—		—		—		—		—
Loans not formally risk rated (1)			67,429		32,233		67,018		49,262		9,047		17,145		2,424		244,558
Total		$	492,728	$	943,600	$	1,057,604	$	446,009	$	275,740	$	568,097	$	555,690	$	4,339,468
Current period gross charge-offs		$	—	$	300	$	2,252	$	1,859	$	231	$	4,369	$	24	$	9,035

(1) Consumer loans are not formally risk rated and included $2.4 million of loans on non-accrual as of December 31, 2024

The following tables present an analysis of the change in the ACL by major loan segment for the period stated:

	For the Year Ended December 31, 2025
	One-to-Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Mortgage Warehouse		Unallocated		Total
	(in thousands)
Balance at December 31, 2024	$	1,195	$	74	$	9,481	$	599	$	4,137	$	11,174	$	12,084	$	—	$	—	$	38,744
Adjustment to allowance for Provident acquisition		48		5		13,543		139		199		36,186		—		151		—		50,271
Provision for (release of) credit losses		460		73		(2,329)		450		714		5,403		(168)		74		—		4,677
Charge-offs		—		—		(18)		—		—		(3,762)		(4,765)		—		—		(8,545)
Recoveries of loans previously charged-off		—		—		922		—		—		598		744		—		—		2,264
Balance at December 31, 2025	$	1,703	$	152	$	21,599	$	1,188	$	5,050	$	49,599	$	7,895	$	225	$	—	$	87,411

	For the Year Ended December 31, 2024
	One-to-Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Mortgage Warehouse		Unallocated		Total
	(in thousands)
Balance at December 31, 2023	$	1,835	$	117	$	5,698	$	378	$	7,630	$	10,878	$	5,686	$	—	$	—	$	32,222
Provision for (release of) credit losses		(640)		(43)		7,783		221		(3,493)		425		10,681		—		—		14,934
Charge offs		—		—		(4,000)		—		—		(391)		(4,644)		—		—		(9,035)
Recoveries of loans previously charged off		—		—		—		—		—		262		361		—		—		623
Balance at December 31, 2024	$	1,195	$	74	$	9,481	$	599	$	4,137	$	11,174	$	12,084	$	—	$	—	$	38,744

	For the Year Ended December 31, 2023
	One-to-Four
	Family				Commercial				Construction and		Commercial and
	Residential		Home Equity		Real Estate		Multi-Family		Land Development		Industrial		Consumer		Mortgage Warehouse		Unallocated		Total
	(in thousands)
Balance at December 31, 2022	$	3,485	$	258	$	5,785	$	753	$	3,846	$	8,255	$	1,403	$	—	$	1,243	$	25,028
Adjustment to adoption of ASU 2016-13		266		13		822		—		(246)		932		615		—		(1,243)		1,159
Provision for (release of) credit losses		(1,537)		(154)		(909)		(375)		4,030		2,322		6,280		—		—		9,657
Charge offs		(379)		—		—		—		—		(679)		(3,487)		—		—		(4,545)
Recoveries of loans previously charged off		—		—		—		—		—		48		875		—		—		923
Balance at December 31, 2023	$	1,835	$	117	$	5,698	$	378	$	7,630	$	10,878	$	5,686	$	—	$	—	$	32,222

The following table presents the amortized cost of collateral-dependent loans as of December 31:

	2025		2024
Real estate loans:	(in thousands)
One to four-family residential	$	2,433	$	3,112
Home equity		1,338		908
Commercial real estate		19,057		3,005
Construction and land development		10		10
Commercial and industrial loans		62,986		9,152
Total	$	85,824	$	16,187

The Company closely monitors the performance of borrowers experiencing financial difficulty to understand the effectiveness of its loan modification efforts.

The following tables present the period end amortized cost basis of loans modified to borrowers experiencing financial difficulty during the periods indicated, disaggregated by class of financing receivable, type of modification granted and the financial effect of the modifications.

	For the Year Ended December 31, 2025
	Amortized		% of Total Class of
	Cost Basis		Financing Receivable			Financial Effect
	(In thousands)
Interest rate reduction
Commercial real estate	$	36,765		1.5	%		Terminated swap, changed interest rate index, reduced spread and added rate floors
Total	$	36,765

	For the Year Ended December 31, 2024
	Amortized		% of Total Class of
	Cost Basis		Financing Receivable			Financial Effect
	(In thousands)
Term extension and interest rate increase
Commercial real estate	$	6,200		0.4	%		Resulted in a net charge off of $3.1 million
Total	$	6,200

Modifications to borrowers experiencing financial difficulty were performing in accordance with the modified terms, current and not in default as of December 31, 2025 and 2024. The Company did not modify any loans to borrowers experiencing financial difficulty during the year ended December 31, 2023.

ACL – Unfunded Commitments

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable (i.e., commitment cannot be canceled at any time). The allowance for off-balance sheet credit exposures is adjusted as a provision for (release of) credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans. The ACL for unfunded loan commitments of $3.3 million and $3.2 million as of December 31, 2025 and 2024, respectively, is classified separately on the consolidated balance sheets within accrued expenses and other liabilities.

The following table presents the balance and activity in the ACL for unfunded loan commitments for the periods stated:

	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Beginning balance	$	3,203	$	6,014	$	—
Adjustment to allowance for unfunded commitments for Provident acquisition		146		—		—
Adjustment to allowance for unfunded commitments for adoption of ASC 326		—		—		1,786
Release of provision for credit losses		(24)		(2,811)		4,228
Ending balance	$	3,325	$	3,203	$	6,014