Loan Portfolio and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2025

Loan Portfolio and Allowance for Credit Losses [Abstract]

Loan Portfolio and Allowance for Credit Losses

(5) Loan Portfolio and Allowance for Credit Losses

The following tables presents loans by portfolio segment:

	June 30, 2025
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	252,211	$	40,360	$	292,571
Other		21,289		413		21,702
Real estate mortgage - 1 to 4 family:
First mortgages		2,741,357		1,595,352		4,336,709
Home equity loans		43,312		14,296		57,608
Home equity lines of credit		250,752		184,681		435,433
Installment		9,164		3,514		12,678
Total loans, net	$	3,318,085	$	1,838,616		5,156,701
Less: Allowance for credit losses						51,265
Net loans					$	5,105,436

*Includes New York, New Jersey, Vermont and Massachussetts.

	December 31, 2024
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	227,771	$	39,529	$	267,300
Other		19,144		413		19,557
Real estate mortgage - 1 to 4 family:
First mortgages		2,741,334		1,590,229		4,331,563
Home equity loans		43,096		13,643		56,739
Home equity lines of credit		235,939		173,322		409,261
Installment		9,885		3,753		13,638
Total loans, net	$	3,277,169	$	1,820,889		5,098,058
Less: Allowance for credit losses						50,248
Net loans					$	5,047,810

*Includes New York, New Jersey, Vermont and Massachussetts.

Included in commercial loans above are Paycheck Protection Program (“PPP”) loans totaling $144 thousand and $241 thousand as of June 30, 2025 and December 31, 2024, respectively.

At June 30, 2025 and December 31, 2024, the Company had approximately $37.2 million and $29.7 million of real estate construction loans, respectively.  Of the $37.2 million in real estate construction loans at June 30, 2025, approximately $9.9 million are secured by first mortgages to residential borrowers while approximately $27.3 million are to commercial borrowers for residential construction projects.  Of the $29.7 million in real estate construction loans at December 31, 2024, approximately $10.7 million were secured by first mortgages to residential borrowers while approximately $19.0 million were to commercial borrowers for residential construction projects.  The vast majority of construction loans were in the Company’s New York market.

Allowance for credit losses on loans

The level of the ACLL is based on factors that influence management’s current estimate of expected credit losses, including past events and current conditions. There were no changes in the Company’s methodology for the allowance for credit losses on loans for the period ended June 30, 2025. The Company selected the baseline economic forecast for the allowance for credit losses based on current market conditions and portfolio trends. In addition, the Company’s four quarter forecast period and four quarter straight line reversion has not changed for the period ended June 30, 2025.

The Company recorded a provision for credit losses of $650 thousand for the three months ended June 30, 2025, which is the result of a provision for credit losses on loans of $650 thousand.  There was no provision for unfunded commitments during the three months ended June 30, 2025.  The Company recorded a provision for credit losses of $950 thousand for the six months ended June 30, 2025, which is the result of a provision for credit losses on loans of $750 thousand and a $200 thousand provision for unfunded commitments during the six months ended June 30, 2025.

The Company recorded a provision for credit losses of $500 thousand for the three months ended June 30, 2024, which is the result of a provision for credit losses on loans of $500 thousand.  There was no provision for unfunded commitments during the three months ended June 30, 2024.  The Company recorded a provision for credit losses of $1.1 million for the six months ended June 30, 2024, which is the result of a provision for credit losses on loans of $1.1 million. There was no provision for unfunded commitments during the six months ended June 30, 2024.

Activity in the allowance for credit losses on loans by portfolio segment for the three months ended June 30, 2025 and 2024 is summarized as follows:

	For the three months ended June 30, 2025
(dollars in thousands)			Real Estate
			Mortgage-
	Commercial		1 to 4 Family			Installment		Total
Balance at beginning of period	$	3,023	$	47,307		$	276	$	50,606
Loans charged off:
New York and other states*		-		17			22		39
Florida		-		-			94		94
Total loan chargeoffs		-		17			116		133
Recoveries of loans previously charged off:
New York and other states*		-		138			4		142
Florida		-		-			-		-
Total recoveries		-		138			4		142
Net loans (recoveries) charged off		-		(121	)		112		(9	)
Provision for credit losses		111		449			90		650
Balance at end of period	$	3,134	$	47,877		$	254	$	51,265

* Includes New York, New Jersey, Vermont and Massachusetts.

	For the three months ended June 30, 2024
(dollars in thousands)			Real Estate
			Mortgage-
	Commercial		1 to 4 Family			Installment		Total
Balance at beginning of period	$	2,742	$	46,295		$	183	$	49,220
Loans charged off:
New York and other states*		-		-			10		10
Florida		-		17			7		24
Total loan chargeoffs		-		17			17		34
Recoveries of loans previously charged off:
New York and other states*		-		74			12		86
Florida		-		-			-		-
Total recoveries		-		74			12		86
Net loan (recoveries) charged off		-		(57	)		5		(52	)
Provision for credit losses		687		592			36		500
Balance at end of period	$	3,429	$	46,129		$	214	$	49,772

* Includes New York, New Jersey, Vermont and Massachusetts.

Activity in the allowance for credit losses on loans by portfolio segment for the six months ended June 30, 2025 and 2024 is summarized as follows:

	For the six months ended June 30, 2025
(dollars in thousands)				Real Estate
				Mortgage-
	Commercial			1 to 4 Family			Installment		Total
Balance at beginning of period	$	3,420		$	46,636		$	192	$	50,248
Loans charged off:
New York and other states*		4			99			47		150
Florida		-			-			109		109
Total loan chargeoffs		4			99			156		259
Recoveries of loans previously charged off:
New York and other states*		7			179			25		211
Florida		315			-			-		315
Total recoveries		322			179			25		526
Net loans (recoveries) charged off		(318	)		(80	)		131		(267	)
(Credit) Provision for credit losses		(604	)		1,161			193		750
Balance at end of period	$	3,134		$	47,877		$	254	$	51,265

* Includes New York, New Jersey, Vermont and Massachusetts.

	For the six months ended June 30, 2024
(dollars in thousands)			Real Estate
			Mortgage-
	Commercial		1 to 4 Family			Installment		Total
Balance at beginning of period	$	2,735	$	45,625		$	218	$	48,578
Loans charged off:
New York and other states*		-		117			54		171
Florida		-		17			7		24
Total loan chargeoffs		-		134			61		195
Recoveries of loans previously charged off:
New York and other states*		-		269			20		289
Florida		-		-			-		-
Total recoveries		-		269			20		289
Net loan (recoveries) charged off		-		(135	)		41		(94	)
Provision for credit losses		694		369			37		1,100
Balance at end of period	$	3,429	$	46,129		$	214	$	49,772

* Includes New York, New Jersey, Vermont and Massachussetts.

The following tables present the balance in the allowance for credit losses on loans by portfolio segment and based on impairment evaluation as of June 30, 2025 and December 31, 2024:

	As of June 30, 2025
(dollars in thousands)			1-to-4 Family
	Commercial		Residential		Installment
	Loans		Real Estate		Loans		Total
Allowance for credit losses on loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		3,134		47,877		254		51,265
Total ending allowance balance	$	3,134	$	47,877	$	254	$	51,265
Loans:
Individually evaluated for impairment	$	780	$	23,461	$	36	$	24,277
Collectively evaluated for impairment		313,493		4,806,289		12,642		5,132,424
Total ending loans balance	$	314,273	$	4,829,750	$	12,678	$	5,156,701

	As of December 31, 2024
(dollars in thousands)			1-to-4 Family
	Commercial		Residential		Installment
	Loans		Real Estate		Loans		Total
Allowance for credit losses on loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		3,420		46,636		192		50,248
Total ending allowance balance	$	3,420		46,636		192		50,248
Loans:
Individually evaluated for impairment	$	443		23,835		112		24,390
Collectively evaluated for impairment		286,414		4,773,728		13,526		5,073,668
Total ending loans balance	$	286,857		4,797,563		13,638		5,098,058

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (accrued expenses and other liabilities) with adjustments to the reserve recognized in provision for credit losses in the consolidated income statement.

The Company’s activity in the allowance for credit losses on unfunded commitments for the three and six months ended June 30, 2025 and 2024 were as follows:

(In thousands)	For the three months ended June 30, 2025
Balance at March 31, 2025	$	1,962
Provision for credit losses		-
Balance at June 30, 2025	$	1,962

(In thousands)	For the six months ended June 30, 2025
Balance at January 1, 2025	$	1,762
Provision for credit losses		200
Balance at June 30, 2025	$	1,962

(In thousands)	For the three months ended June 30, 2024
Balance at March 31, 2024	$	1,662
Provision for credit losses		-
Balance at June 30, 2024	$	1,662

(In thousands)	For the six months ended June 30,2024
Balance at January 1, 2024	$	1,662
Provision for credit losses		-
Balance at June 30, 2024	$	1,662

Loan Credit Quality

The Company categorizes commercial loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. On at least an annual basis, the Company’s loan grading process analyzes non-homogeneous loans, such as commercial loans and commercial real estate loans, individually by grading the loans based on credit risk.  The loan grades assigned to all loan types are tested by the Company’s internal loan review department in accordance with the Company’s internal loan review policy.

The Company uses the following definitions for classified loans:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be “pass” rated loans.

For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for credit losses on loans. The payment status of these homogeneous pools as of June 30, 2025 and December 31, 2024 is also included in the aging of the past due loans table. Nonperforming loans shown in the table below were loans on nonaccrual status and loans over 90 days past due and accruing.

As of June 30, 2025, and December 31, 2024 and based on the most recent analysis performed, the risk category of loans by class of loans, and gross charge-offs year to date for each loan type by origination year was as follows:

Loan Credit Quality

(in thousands)	As of June 30, 2025
	Term Loans Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Commercial :
Risk rating
Pass	$	30,673	$	48,801	$	51,978	$	70,571	$	21,751	$	60,711	$	5,644	$	-	$	290,129
Special Mention		-		-		-		240		-		-		-		-		240
Substandard		-		-		-		1,352		-		811		-		-		2,163
Doubtful		-		-		-		-		-		39		-		-		39
Total Commercial Loans	$	30,673	$	48,801	$	51,978	$	72,163	$	21,751	$	61,561	$	5,644	$	-	$	292,571
Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	4	$	-	$	-	$	-	$	4
	$	-	$	-	$	-	$	-	$	4	$	-	$	-	$	-	$	4
Commercial Other:
Risk rating
Pass	$	1,563	$	1,959	$	6,897	$	1,352	$	260	$	1,854	$	7,764	$	-	$	21,649
Special mention		-		-		-		-		-		-		-		-		-
Substandard		-		12		-		-		4		-		37		-		53
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial Real Estate Loans	$	1,563	$	1,971	$	6,897	$	1,352	$	264	$	1,854	$	7,801	$	-	$	21,702
Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential First Mortgage:
Risk rating
Performing	$	143,583	$	319,376	$	384,888	$	519,248	$	791,544	$	2,162,585	$	1,368	$	-	$	4,322,592
Nonperforming		-		-		553		182		1,121		12,261		-		-		14,117
Total First Mortgage:	$	143,583	$	319,376	$	385,441	$	519,430	$	792,665	$	2,174,846	$	1,368	$	-	$	4,336,709
Residential First Mortgage Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	99	$	-	$	-	$	99
	$	-	$	-	$	-	$	-	$	-	$	99	$	-	$	-	$	99
Home Equity Loans:
Risk rating
Performing	$	5,775	$	5,827	$	7,989	$	4,972	$	6,059	$	26,578	$	-	$	-	$	57,200
Nonperforming		-		-		-		66		-		342		-		-		408
Total Home Equity Loans:	$	5,775	$	5,827	$	7,989	$	5,038	$	6,059	$	26,920	$	-	$	-	$	57,608
Home Equity Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Home Equity Lines of Credit:
Risk rating
Performing	$	1,211	$	3,800	$	1,520	$	1,771	$	1,870	$	16,808	$	405,798	$	-	$	432,778
Nonperforming		-		-		-		70		-		2,384		201		-		2,655
Total Home Equity Credit Lines:	$	1,211	$	3,800	$	1,520	$	1,841	$	1,870	$	19,192	$	405,999	$	-	$	435,433
Home Equity Lines of Credit:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Installments:
Risk rating
Performing	$	1,780	$	2,501	$	4,215	$	2,164	$	433	$	608	$	931	$	-	$	12,632
Nonperforming		-		-		4		34		7		1		-		-		46
Total Installments	$	1,780	$	2,501	$	4,219	$	2,198	$	440	$	609	$	931	$	-	$	12,678
Installments Loans:
Current-period Gross writeoffs	$	-	$	76	$	7	$	15	$	20	$	38	$	-	$	-	$	156
	$	-	$	76	$	7	$	15	$	20	$	38	$	-	$	-	$	156

Loan Credit Quality

(in thousands)	As of December 31, 2024
	Term Loans Amortized Cost Basis by Origination Year
Commercial :	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Risk rating
Pass	$	47,687	$	54,877	$	73,094	$	22,215	$	15,014	$	50,052	$	2,169	$	-	$	265,108
Special Mention		-		-		242		-		-		-		-		-		242
Substandard		-		-		1,003		-		22		887		-		-		1,912
Doubtful		-		-		-		-		-		38		-		-		38
Total Commercial Loans	$	47,687	$	54,877	$	74,339	$	22,215	$	15,036	$	50,977	$	2,169	$	-	$	267,300
Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	10	$	431	$	-	$	-	$	-	$	-	$	441
	$	-	$	-	$	10	$	431	$	-	$	-	$	-	$	-	$	441
Commercial Other:
Risk rating
Pass	$	1,842	$	7,417	$	1,796	$	407	$	184	$	2,108	$	5,634	$	-	$	19,388
Special mention		-		-		-		-		-		-		-		-		-
Substandard		13		-		-		22		-		134		-		-		169
Total Commercial Real Estate Loans	$	1,855	$	7,417	$	1,796	$	429	$	184	$	2,242	$	5,634	$	-	$	19,557
Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Residential First Mortgage:
Risk rating
Performing	$	313,944	$	398,722	$	535,702	$	821,804	$	681,840	$	1,563,659	$	938	$	-	$	4,316,609
Nonperforming		-		987		391		870		243		12,463		-		-		14,954
Total First Mortgage:	$	313,944	$	399,709	$	536,093	$	822,674	$	682,083	$	1,576,122	$	938	$	-	$	4,331,563
Residential First Mortgage Loans:
Current-period Gross writeoffs	$	194	$	-	$	-	$	-	$	-	$	18	$	-	$	-		212
	$	194	$	-	$	-	$	-	$	-	$	18	$	-	$	-	$	212
Home Equity Loans:
Risk rating
Performing	$	6,621	$	8,586	$	5,354	$	6,490	$	5,066	$	24,096	$	-	$	-	$	56,213
Nonperforming		-		-		155		-		-		371		-		-		526
Total Home Equity Loans:	$	6,621	$	8,586	$	5,509	$	6,490	$	5,066	$	24,467	$	-	$	-	$	56,739
Home Equity Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-		-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Home Equity Credit Lines:
Risk rating
Performing	$	4,793	$	1,558	$	1,110	$	887	$	46	$	14,595	$	383,425	$	-	$	406,414
Nonperforming		-		-		70		-		-		2,532		245		-		2,847
Total Home Equity Credit Lines:	$	4,793	$	1,558	$	1,180	$	887	$	46	$	17,127	$	383,670	$	-	$	409,261
Home Equity Credit Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	116	$	-	$	-	$	116
	$	-	$	-	$	-	$	-	$	-	$	116	$	-	$	-	$	116
Installments:
Risk rating
Performing	$	2,846	$	5,513	$	2,788	$	705	$	123	$	505	$	1,028	$	-	$	13,508
Nonperforming		16		5		55		19		-		35		-		-		130
Total Installments	$	2,862	$	5,518	$	2,843	$	724	$	123	$	540	$	1,028	$	-	$	13,638
Installments Loans:
Current-period Gross writeoffs	$	-	$	53	$	47	$	35	$	4	$	31	$	-	$	-		170
	$	-	$	53	$	47	$	35	$	4	$	31	$	-	$	-	$	170

The following tables present the aging of the amortized cost in past due loans by loan class and by region as of June 30, 2025 and December 31, 2024:

	As of June 30, 2025
New York and other states*:	30-59		60-89		90 +		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	892	$	-	$	326	$	1,218	$	250,993	$	252,211
Other		-		-		-		-		21,289		21,289
Real estate mortgage - 1 to 4 family:
First mortgages		1,685		1,448		5,839		8,972		2,732,385		2,741,357
Home equity loans		98		-		235		333		42,979		43,312
Home equity lines of credit		490		225		1,250		1,965		248,787		250,752
Installment		5		-		2		7		9,157		9,164
Total	$	3,170	$	1,673	$	7,652	$	12,495	$	3,305,590	$	3,318,085

Florida:	30-59		60-89		90 +		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	40,360	$	40,360
Other		-		-		-		-		413		413
Real estate mortgage - 1 to 4 family:
First mortgages		2,399		281		1,431		4,111		1,591,241		1,595,352
Home equity loans		-		-		-		-		14,296		14,296
Home equity lines of credit		376		-		-		376		184,305		184,681
Installment		29		4		9		42		3,472		3,514
Total	$	2,804	$	285	$	1,440	$	4,529	$	1,834,087	$	1,838,616

Total:	30-59		60-89		90 +		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	892	$	-	$	326	$	1,218	$	291,353	$	292,571
Other		-		-		-		-		21,702		21,702
Real estate mortgage - 1 to 4 family:
First mortgages		4,084		1,729		7,270		13,083		4,323,626		4,336,709
Home equity loans		98		-		235		333		57,275		57,608
Home equity lines of credit		866		225		1,250		2,341		433,092		435,433
Installment		34		4		11		49		12,629		12,678
Total	$	5,974	$	1,958	$	9,092	$	17,024	$	5,139,677	$	5,156,701

* Includes New York, New Jersey, Vermont and Massachusetts.

	As of December 31, 2024
New York and other states*:	30-59		60-89		90 +		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	1,189	$	-	$	329	$	1,518	$	226,253	$	227,771
Other		-		-		14		14		19,130		19,144
Real estate mortgage - 1 to 4 family:
First mortgages		2,438		773		6,091		9,302		2,732,032		2,741,334
Home equity loans		15		22		318		355		42,741		43,096
Home equity lines of credit		401		-		1,267		1,668		234,271		235,939
Installment		18		19		69		106		9,779		9,885
Total	$	4,061	$	814	$	8,088	$	12,963	$	3,264,206	$	3,277,169

Florida:	30-59		60-89		90 +		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	39,529	$	39,529
Other		-		-		-		-		413		413
Real estate mortgage - 1 to 4 family:
First mortgages		2,037		629		1,773		4,439		1,585,790		1,590,229
Home equity loans		-		6		-		6		13,637		13,643
Home equity lines of credit		220		-		-		220		173,102		173,322
Installment		109		22		16		147		3,606		3,753
Total	$	2,366	$	657	$	1,789	$	4,812	$	1,816,077	$	1,820,889

Total:	30-59		60-89		90 +		Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans
Commercial:
Commercial real estate	$	1,189	$	-	$	329	$	1,518	$	265,782	$	267,300
Other		-		-		14		14		19,543		19,557
Real estate mortgage - 1 to 4 family:
First mortgages		4,475		1,402		7,864		13,741		4,317,822		4,331,563
Home equity loans		15		28		318		361		56,378		56,739
Home equity lines of credit		621		-		1,267		1,888		407,373		409,261
Installment		127		41		85		253		13,385		13,638
Total	$	6,427	$	1,471	$	9,877	$	17,775	$	5,080,283	$	5,098,058

* Includes New York, New Jersey, Vermont and Massachusetts.

At June 30, 2025 and December 31, 2024, there were no loans that were 90 days past due and still accruing interest.  As a result, non-accrual loans include all loans 90 days or more past due as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status.  There are no commitments to extend further credit on non-accrual or restructured loans.

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through foreclosure or through a deed in lieu).  Other real estate owned is included in other assets on the Consolidated statements of financial condition.  As of June 30, 2025 other real estate owned included $1.1 million of commercial and residential foreclosed properties.  In addition, non-accrual residential mortgage loans that are in the process of foreclosure had an amortized cost of $7.5 million as of June 30, 2025. As of December 31, 2024 other real estate owned included $2.2 million of residential and commercial foreclosed properties.  In addition, non-accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $8.1 million as of December 31, 2024.

Loans individually evaluated for impairment are non-accrual residential loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications. As of June 30, 2025 and December 31, 2024, there was no allowance for credit losses based on the loans individually evaluated for impairment.

Residential and installment non-accrual loans which are not loan modifications or greater than 180 days delinquent are collectively evaluated to determine the allowance for credit loss.

The following tables present the amortized cost basis in non-accrual loans by portfolio segment:

	As of June 30, 2025
(dollars in thousands)	New York and
	other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	684	$	-	$	684
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		11,221		2,896		14,117
Home equity loans		403		5		408
Home equity lines of credit		2,424		231		2,655
Installment		34		12		46
Total nonperforming loans	$	14,766	$	3,144	$	17,910

* Includes New York, New Jersey, Vermont and Massachusetts.

	As of December 31, 2024
(dollars in thousands)	New York and
	other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	329	$	-	$	329
Other		14		-		14
Real estate mortgage - 1 to 4 family:
First mortgages		11,586		3,368		14,954
Home equity loans		432		94		526
Home equity lines of credit		2,653		194		2,847
Installment		108		22		130
Total non-accrual loans		15,122		3,678		18,800
Restructured real estate mortgages - 1 to 4 family		-		-		-
Total nonperforming loans	$	15,122	$	3,678	$	18,800

* Includes New York, New Jersey, Vermont and Massachusetts.

The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of June 30, 2025 and December 31, 2024:

	As of June 30, 2025
(dollars in thousands)	Non-accrual With		Non-accrual With		Loans Past Due
	No Allowance for		Allowance for		Over 89 Days
	Credit Loss		Credit Loss		Still Accruing
Commercial:
Commercial real estate	$	684	$	-		-
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		13,568		549		-
Home equity loans		408		-		-
Home equity lines of credit		2,532		123		-
Installment		36		10		-
Total loans, net	$	17,228	$	682		-

	As of December 31, 2024
(dollars in thousands)	Non-accrual With		Non-accrual With		Loans Past Due
	No Allowance for		Allowance for		Over 89 Days
	Credit Loss		Credit Loss		Still Accruing
Commercial:
Commercial real estate	$	329	$	-		-
Other		14		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		13,560		1,394		-
Home equity loans		526		-		-
Home equity lines of credit		2,724		123		-
Installment		112		18		-
Total loans, net	$	17,265	$	1,535		-

The non-accrual balance of $682 thousand and $1.5 million was collectively evaluated and the associated allowance for credit losses on loans was determined not to be material as of June 30, 2025 and December 31, 2024, respectively.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for the collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

 The following tables present the amortized cost basis of individually analyzed collateral dependent loans by portfolio segment as of June 30, 2025 and December 31, 2024:

	As of June 30, 2025
	Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	780		-		-
Other		-		-		-
Real estate mortgage - 1 to 4 family:		-		-		-
First mortgages		19,794		-		-
Home equity loans		502		-		-
Home equity lines of credit		3,165		-		-
Installment		-		-		36
Total	$	24,241		-		36

	As of December 31, 2024
	Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	429		-		-
Other		14		-		-
Real estate mortgage - 1 to 4 family:		-		-		-
First mortgages		19,928		-		-
Home equity loans		535		-		-
Home equity lines of credit		3,372		-		-
Installment		-		-		112
Total	$	24,278		-		112

The Company has not committed to lend additional amounts to customers with outstanding loans that are modified.  Interest income recognized on loans that are individually evaluated was not material during the three and six months ended June 30, 2025 and 2024.

As of June 30, 2025 and December 31, 2024 loans individually evaluated included approximately $7.0 million and $7.0 million, respectively, of loans in accruing status that were identified as loan modifications in accordance with regulatory guidance related to Chapter 7 bankruptcy loans.

Pursuant to the adoption of ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures (“ASU 2022-02”), a borrower that is experiencing financial difficulty and receives a modification in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension in the current period needs to be disclosed.

The following table presents the amortized cost basis of loans at June 30, 2025 and 2024 that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2025 and 2024, by class and by type of modification.  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:

For the three months ended:
New York and other states*:	June 30, 2025					June 30, 2024
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:		-		-			-		-
First mortgages		319		0.01	%		194		0.01	%
Home equity loans		-		-			-		-
Home equity lines of credit		-		-			111		0.05	%
Installment		-		-			-		-
Total	$	319		0.00	%	$	305		0.01	%

Florida:
	Payment		% of Total Class		Payment		% of Total Class
(dollars in thousands)	Delay		of Loans		Delay		of Loans
Commercial:
Commercial real estate	$	-		-	$	-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:				-				-
First mortgages		-		-		-		-
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		56		0.04	%
Installment		-		-		-		-
Total	$	-		-	$	56		0.00	%

Total
	Payment			% of Total Class			Payment			% of Total Class
(dollars in thousands)	Delay			of Loans			Delay			of Loans
Commercial:
Commercial real estate		$	-		-			$	-		-
Other			-		-				-		-
Real estate mortgage - 1 to 4 family:
First mortgages			319		0.01	%			194		0.00	%
Home equity loans			-		-				-		-
Home equity lines of credit			-		-				167		0.05	%
Installment			-		-				-		-
Total		$	319		0.01	%		$	361		0.01	%

* Includes New York, New Jersey, Vermont and Massachusetts.

For the six months ended:
New York and other states*:	June 30, 2025					June 30, 2024
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:		-		-			-		-
First mortgages		394		0.01	%		194		0.01	%
Home equity loans		-		-			-		-
Home equity lines of credit		122		0.05	%		111		0.05	%
Installment		-		-			-		-
Total	$	516		0.02	%	$	305		0.01	%

Florida:
	Payment			% of Total Class		Payment			% of Total Class
(dollars in thousands)	Delay			of Loans		Delay			of Loans
Commercial:
Commercial real estate		$	-		-		$	-		-
Other			-		-			-		-
Real estate mortgage - 1 to 4 family:					-					-
First mortgages			-		-			85		0.01	%
Home equity loans			-		-			-		-
Home equity lines of credit			-		-			56		0.04	%
Installment			-		-			-		-
Total		$	-		-		$	141		0.01	%

Total
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans
Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:
First mortgages		394		0.01	%		279		0.01	%
Home equity loans		-					-		-
Home equity lines of credit		122		0.00	%		167		0.05	%
Installment		-		-			-		-
Total	$	516		0.01	%	$	446		0.01	%

* Includes New York, New Jersey, Vermont and Massachusetts.

The Bank closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of such loans that have been modified during the last 12 months:

	As of June 30, 2025
New York and other states*:				30-59		60-89		90 +
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		393		-		-		80		473
Home equity loans		18		-		-		-		18
Home equity lines of credit		122		126		-		-		248
Installment		-		-		-		-		-
Total	$	533	$	126	$	-	$	80	$	739

Florida:				30-59		60-89		90 +
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		-		-		-
Home equity loans		87		-		-		-		87
Home equity lines of credit		70		-		-		-		70
Installment		-		-		-		-		-
Total	$	157	$	-	$	-	$	-	$	157

Total				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		393		-		-		80		473
Home equity loans		105		-		-		-		105
Home equity lines of credit		192		126		-		-		318
Installment		-		-		-		-		-
Total	$	690	$	126	$	-	$	80	$	896

* Includes New York, New Jersey, Vermont and Massachusetts.

	As of June 30, 2024
New York and other states*:				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		194		-		-		-		194
Home equity loans		-		-		-		-		-
Home equity lines of credit		111		-		-		-		111
Installment		-		-		-		-		-
Total	$	305	$	-	$	-	$	-	$	305

Florida:				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		85		-		-		-		85
Home equity loans		-		-		-		-		-
Home equity lines of credit		56		-		-		-		56
Installment		-		-		-		-		-
Total	$	141	$	-	$	-	$	-	$	141

Total				30-59		60-89		90+
				Days		Days		Days
(dollars in thousands)	Current			Past Due		Past Due		Past Due	Total
Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		279		-		-		-		279
Home equity loans		-		-		-		-		-
Home equity lines of credit		167		-		-		-		167
Installment		-		-		-		-		-
Total	$	446	$	-	$	-	$	-	$	446

* Includes New York, New Jersey, Vermont and Massachusetts.

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:

For the Three Months Ended:
	June 30, 2025		June 30, 2024
	Weighted		Weighted
New York and other states*:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:		-		-
First mortgages		24		12
Home equity loans		-		-
Home equity lines of credit		-		24
Installment		-		-
Total		24		36

	Weighted		Weighted
Florida:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-
Home equity loans		-		-
Home equity lines of credit		-		6
Installment		-		-
Total		-		6

	Weighted		Weighted
	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		24		12
Home equity loans		-		-
Home equity lines of credit		-		18
Installment		-		-
Total		24		30

* Includes New York, New Jersey, Vermont and Massachusetts.

For the Six Months Ended June 30, 2025
	June 30, 2025		June 30, 2024
	Weighted		Weighted
New York and other states*:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:		-		-
First mortgages		24		12
Home equity loans		-		-
Home equity lines of credit		24		24
Installment		-		-
Total		48		36

	Weighted		Weighted
Florida:	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		12
Home equity loans		-		-
Home equity lines of credit		-		6
Installment		-		-
Total		-		18

	Weighted		Weighted
	Average		Average
	Payment		Payment
(dollars in thousands)	Delay (Months)		Delay (Months)
Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		24		12
Home equity loans		-		-
Home equity lines of credit		24		18
Installment		-		-
Total		48		30

* Includes New York, New Jersey, Vermont and Massachusetts.

The addition of these loan modifications did not have a significant impact on the allowance for credit losses on loans. The nature of the modifications that resulted in them being classified as a loan modification was the borrower filing for bankruptcy protection.  There was 1 loan modification totaling $80 thousand for residential mortgages and 1 home equity line of credit loan modification totaling $126 thousand that defaulted during the three months ended June 30, 2025 which had been classified as a loan modification within the prior twelve months.  There was 1 loan modification totaling $80 thousand for residential mortgages and 2 home equity line of credit loan modifications totaling $247 thousand that defaulted during the six months ended June 30, 2025 which had been classified as a loan modification within the prior twelve months. There were no loans that defaulted during the three and six months ended June 30, 2024 which had been classified as a loan modification within the prior twelve months.

In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s underwriting policy.

Generally, the modification of the terms of loans is the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies even though there is no modification of terms, the borrowers’ debt to the Company is discharged and they do not reaffirm the debt.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court.