Quarterly report [Sections 13 or 15(d)]

Loans Receivable (Tables)

v3.26.1
Loans Receivable (Tables)
6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans consist of the following as of June 30, 2026, and December 31, 2025:
(Dollars in thousands) June 30, 2026 December 31, 2025
Loans secured by real estate:
Residential real estate $ 455,882  $ 442,443 
Home equity 55,601  53,497 
Commercial real estate 597,364  555,594 
Construction and land development 77,710  77,208 
Multifamily 180,148  183,902 
Total loans secured by real estate 1,366,705  1,312,644 
Commercial business 103,281  99,304 
Consumer 2,036  870 
Manufactured homes 22,050  23,708 
Government 9,818  12,298 
Loans receivable 1,503,890  1,448,824 
Add:
Net deferred loan origination costs 1,006  1,606 
Loan clearing funds (1,103) (43)
Loans receivable, net of deferred fees and costs $ 1,503,793  $ 1,450,387 
Schedule of Financing Receivable, Past Due
The Company's age analysis of past due loans is summarized below:
(Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90
Days Past Due
Total Past Due and
Accruing
Current Accruing Loans Nonaccrual
Loans
Total Loans
Receivable
June 30, 2026
Residential real estate $ 4,905  $ 1,844  $ $ 6,749  $ 440,937  $ 447,686  $ 8,196  $ 455,882 
Home equity 631  145  776  54,115  54,891  710  55,601 
Commercial real estate 1,920  1,200  3,120  590,255  593,375  3,989  597,364 
Construction and land development 77,117  77,117  593  77,710 
Multifamily 1,343  1,343  177,045  178,388  1,760  180,148 
Commercial business 836  15  851  101,140  101,991  1,290  103,281 
Consumer 2,036  2,036  2,036 
Manufactured homes 325  325  21,714  22,039  11  22,050 
Government 9,818  9,818  9,818 
Total $ 8,617  $ 4,547  $ $ 13,164  $ 1,474,177  $ 1,487,341  $ 16,549  $ 1,503,890 
December 31, 2025
Residential real estate $ 4,991  $ 1,552  $ $ 6,543  $ 429,968  $ 436,511  $ 5,932  $ 442,443 
Home equity 324  324  52,363  52,687  810  53,497 
Commercial real estate 4,106  3,905  8,011  546,022  554,033  1,561  555,594 
Construction and land development 2,343  129  2,472  74,083  76,555  653  77,208 
Multifamily 450  1,303  1,753  181,453  183,206  696  183,902 
Commercial business 1,214  47  1,261  96,604  97,865  1,439  99,304 
Consumer 870  870  870 
Manufactured homes 241  28  269  23,368  23,637  71  23,708 
Government 12,298  12,298  12,298 
Total $ 13,669  $ 6,964  $ $ 20,633  $ 1,417,029  $ 1,437,662  $ 11,162  $ 1,448,824 
Schedule of Financing Receivable Credit Quality Indicators
The following table shows the amortized cost of loans, segregated by portfolio segment, credit quality rating and year of origination as of June 30, 2026, and December 31, 2025, and gross charge-offs for the six months ended June 30, 2026, and for the year ended December 31, 2025.
June 30, 2026 2026 2025 2024 2023 2022 Prior Revolving Revolving
Converted to
Term
Total
Total Loans Receivable $ 198,920  $ 194,185  $ 125,149  $ 134,153  $ 259,781  $ 591,702  $ $ $ 1,503,890 
Total current period gross charge-off $ $ (5) $ (43) $ $ $ (25) $ $ $ (73)
Residential real estate
Pass (1-6) $ 33,903  $ 20,020  $ 19,174  $ 25,302  $ 76,569  $ 266,626  $ $ $ 441,594 
Special Mention (7) 306  204  415  2,278  2,889  6,092 
Substandard (8) 286  72  900  3,383  3,555  8,196 
Total $ 34,209  $ 20,510  $ 19,246  $ 26,617  $ 82,230  $ 273,070  $ $ $ 455,882 
Current period gross charge-off (5) (5)
Home equity
Pass (1-6) $ 8,688  $ 10,710  $ 7,131  $ 6,662  $ 9,563  $ 11,725  $ $ $ 54,479 
Special Mention (7) 72  92  248  412 
Substandard (8) 20  275  40  375  710 
Total $ 8,688  $ 10,710  $ 7,151  $ 7,009  $ 9,695  $ 12,348  $ $ $ 55,601 
Current period gross charge-off
Commercial real estate
Pass (1-6) $ 79,519  $ 72,398  $ 68,174  $ 69,614  $ 106,223  $ 182,174  $ $ $ 578,102 
Special Mention (7) 365  657  1,439  3,328  3,066  4,803  13,658 
Substandard (8) 130  1,191  194  1,012  3,077  5,604 
Total $ 79,884  $ 73,185  $ 70,804  $ 73,136  $ 110,301  $ 190,054  $ $ $ 597,364 
Current period gross charge-off
Construction and land development
Pass (1-6) $ 31,114  $ 32,453  $ 7,527  $ 3,595  $ 278  $ 121  $ $ $ 75,088 
Special Mention (7) 477  477 
Substandard (8) 925  1,220  2,145 
Total $ 31,591  $ 32,453  $ 7,527  $ 4,520  $ 278  $ 1,341  $ $ $ 77,710 
Current period gross charge-off
Multifamily
Pass (1-6) $ 13,120  $ 14,698  $ 6,275  $ 12,225  $ 43,801  $ 84,881  $ $ $ 175,000 
Special Mention (7) 2,139  1,249  3,388 
Substandard (8) 420  194  1,146  1,760 
Total $ 15,679  $ 14,698  $ 6,275  $ 12,419  $ 44,947  $ 86,130  $ $ $ 180,148 
Current period gross charge-off
Commercial business
Pass (1-6) $ 26,902  $ 36,838  $ 12,400  $ 8,492  $ 9,111  $ 4,625  $ $ $ 98,368 
Special Mention (7) 96  838  320  921  720  199  3,094 
Substandard (8) 475  130  972  79  163  1,819 
Total $ 26,998  $ 38,151  $ 12,850  $ 10,385  $ 9,910  $ 4,987  $ $ $ 103,281 
Current period gross charge-off (43) (43)
Consumer
Pass (1-6) $ 1,871  $ 53  $ 43  $ 48  $ 12  $ $ $ $ 2,036 
Total $ 1,871  $ 53  $ 43  $ 48  $ 12  $ $ $ $ 2,036 
Current period gross charge-off (25) (25)
Manufactured homes
Pass (1-6) $ $ 95  $ 73  $ 19  $ 1,564  $ 20,288  $ $ $ 22,039 
Special Mention (7) 11  $ 11 
Total $ $ 95  $ 73  $ 19  $ 1,564  $ 20,299  $ $ $ 22,050 
Current period gross charge-off
Government
Pass (1-6) $ $ 4,330  $ 1,180  $ $ 844  $ 3,464  $ $ $ 9,818 
Total $ $ 4,330  $ 1,180  $ $ 844  $ 3,464  $ $ $ 9,818 
Current period gross charge-off

December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Revolving
Converted to
Term
Total
Total Loans Receivable $ 132,738  $ 125,371  $ 125,504  $ 257,065  $ 260,859  $ 438,852  $ 106,883  $ 1,552  $ 1,448,824 
Total current period gross charge-off $ (202) $ $ (44) $ $ (13) $ (496) $ $ (755)
Residential real estate
Pass (1-6) $ 12,570  $ 19,139  $ 26,559  $ 80,834  $ 93,636  $ 196,415  $ 2,477  $ $ 431,630 
Special Mention (7) 619  1,464  1,063  1,651  4,797 
Substandard (8) 296  74  887  1,475  430  2,854  6,016 
Total $ 12,866  $ 19,213  $ 28,065  $ 83,773  $ 95,129  $ 200,920  $ 2,477  $ $ 442,443 
Current period gross charge-off (13) (13)
Home equity
Pass (1-6) $ 766  $ 92  $ 41  $ 232  $ 49  $ 2,086  $ 47,926  $ 1,187  $ 52,379 
Special Mention (7) 59  45  194  305 
Substandard (8) 24  20  181  417  171  813 
Total $ 766  $ 116  $ 48  $ 232  $ 69  $ 2,326  $ 48,388  $ 1,552  $ 53,497 
Current period gross charge-off
Commercial real estate
Pass (1-6) $ 58,029  $ 65,768  $ 62,929  $ 111,515  $ 78,531  $ 160,344  $ 3,717  $ $ 540,833 
Special Mention (7) 25  410  2,214  2,865  3,403  4,283  13,200 
Substandard (8) 208  221  1,132  1,561 
Total $ 58,054  $ 66,178  $ 65,351  $ 114,601  $ 81,934  $ 165,759  $ 3,717  $ $ 555,594 
Current period gross charge-off
Construction and land development
Pass (1-6) $ 36,388  $ 19,226  $ 12,795  $ 2,288  $ 1,074  $ 753  $ 1,893  $ $ 74,417 
Special Mention (7) 129  428  557 
Substandard (8) 939  60  1,235  2,234 
Total $ 36,388  $ 19,226  $ 13,734  $ 2,477  $ 2,737  $ 753  $ 1,893  $ $ 77,208 
Current period gross charge-off
Multifamily
Pass (1-6) $ 12,249  $ 6,289  $ 11,215  $ 44,804  $ 64,357  $ 40,791  $ 644  $ $ 180,349 
Special Mention (7) 756  374  1,727  2,857 
Substandard (8) 200  409  87  696 
Total $ 12,249  $ 6,289  $ 11,415  $ 45,969  $ 64,731  $ 42,605  $ 644  $ $ 183,902 
Current period gross charge-off (201) (201)
Commercial business
Pass (1-6) $ 6,601  $ 11,813  $ 5,661  $ 7,121  $ 4,595  $ 10,980  $ 48,326  $ $ 95,097 
Special Mention (7) 299  61  260  62  18  737  1,331  2,768 
Substandard (8) 87  898  34  124  189  107  1,439 
Total $ 6,900  $ 11,961  $ 6,819  $ 7,217  $ 4,737  $ 11,906  $ 49,764  $ $ 99,304 
Current period gross charge-off (158) (44) (293) (495)
Consumer
Pass (1-6) $ 705  $ 58  $ 72  $ 19  $ 16  $ $ $ $ 870 
Substandard (8)
Total $ 705  $ 58  $ 72  $ 19  $ 16  $ $ $ $ 870 
Current period gross charge-off (44) (2) (46)
Manufactured homes
Pass (1-6) $ $ $ $ 1,733  $ 10,383  $ 11,493  $ $ $ 23,609 
Special Mention (7) 28  28 
Substandard (8) 46  25  71 
Total $ $ $ $ 1,733  $ 10,429  $ 11,546  $ $ $ 23,708 
Current period gross charge-off
Government
Pass (1-6) $ 4,810  $ 2,330  $ $ 1,044  $ 1,077  $ 3,037  $ $ $ 12,298 
Total $ 4,810  $ 2,330  $ $ 1,044  $ 1,077  $ 3,037  $ $ $ 12,298 
Current period gross charge-off
Schedule of Financing Receivable, Modified
The following table shows the amortized cost basis of loans at June 30, 2026 and June 30, 2025, that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2026 and June 30, 2025, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financing receivable is also presented below.
Three Months Ended June 30, 2026
(Dollars in thousands) Payment
Delay
Term
Extension
Interest
Rate
Reduction
Combination
Term Extension
and Interest Rate
Reduction
% of Total
Segment
Financing
Receivables
Residential real estate $ 783  $ 117  $ $ 0.20 %
Home equity 32  0.06 %
Total $ 815  $ 117  $ $ 0.06 %

Three Months Ended June 30, 2025
(Dollars in thousands) Payment
Delay
Term
Extension
Interest
Rate
Reduction
Combination
Term Extension
and Interest Rate
Reduction
% of Total
Segment
Financing
Receivables
Commercial business $ 1,851  $ $ $ 1.75 %
Six Months Ended June 30, 2026
(Dollars in thousands) Payment
Delay
Term
Extension
Interest
Rate
Reduction
Combination
Term Extension
and Interest Rate
Reduction
% of Total
Segment
Financing
Receivables
Residential real estate $ 1,453  $ 1,512  $ $ 0.65 %
Home equity 32  0.06 %
Total $ 1,485  $ 1,512  $ $ 0.20 %
Six Months Ended June 30, 2025
(Dollars in thousands) Payment
Delay
Term
Extension
Interest
Rate
Reduction
Combination
Term Extension
and Interest Rate
Reduction
% of Total
Segment
Financing
Receivables
Residential real estate $ $ 168  $ $ 0.04 %
Commercial business $ 1,851  $ $ $ 1.75 %
Total $ 1,851  $ 168  $ $ 0.14 %
There were no commitments to lend additional amounts to the borrowers included in the previous tables.
The borrowers with term extensions either had payments deferred to the end of the loan term, providing payment relief, or had contractual maturity dates extended, resulting in a reduction in monthly payments.
Three Months Ended June 30, 2026
(Dollars in thousands) Principal Forgiveness Weighted average interest rate reduction Weighted average term extension (months) Average Payment delay
(months)
Residential real estate $ —  % 11 5
Home equity $ —  % 0 3
Three Months Ended June 30, 2025
(Dollars in thousands) Principal Forgiveness Weighted average interest rate reduction Weighted average term extension (months) Average Payment delay
(months)
Commercial business $ —  % 0 5
For the six months ended June 30, 2026
(Dollars in thousands) Principal Forgiveness Weighted average interest rate reduction Weighted average term extension (months) Average Payment delay
(months)
Residential real estate $ —  % 4 6
Home equity $ —  % 0 3
For the six months ended June 30, 2025
(Dollars in thousands) Principal Forgiveness Weighted average interest rate reduction Weighted average term extension (months) Payment delay
(months)
Residential real estate $ —  % 6 0
Commercial business $ —  % 0 5
The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of such loans in the twelve months following modification.
June 30, 2026
(Dollars in thousands) Current 30-59 Days
Past Due
60-89 Days
 Past Due
Greater Than 90
Days Past Due
Residential real estate $ 816  $ $ 1,139  $ 1,453 
Home equity 32 
Commercial real estate 386 
Total $ 1,202  $ $ 1,139  $ 1,485 
June 30, 2025
(Dollars in thousands) Current 30-59 Days
Past Due
60-89
Days Past
Due
Greater Than 90
Days Past Due
Residential real estate $ 197  $ 53  $ 461  $ 316 
Home equity 33 
Commercial business 1,847 
Total $ 234  $ 53  $ 461  $ 2,163 
Schedule of Accretable Yield from Financing Receivables
Accretable yield, or income recorded for the six months ended June 30, is as follows:
(Dollars in thousands) Total
2025 $ 439 
2026 334 
Accretable yield, or income expected to be recorded in the future is as follows:
(Dollars in thousands) Total
Remainder of 2026 $ 185 
2027 287 
2028 273 
2029 240 
2030 233 
2031 and thereafter 1,957 
Total $ 3,175 
Schedule of Financing Receivable, Allowance for Credit Loss The following tables show the changes in the allowance for credit losses, segregated by portfolio segment, for the three and six months ended June 30, 2026, and 2025.
The Company's activity in the allowance for credit losses, by loan segment, is summarized below for the three months ended June 30, 2026:
(Dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance
Allowance for credit losses:
Residential real estate $ 3,036  $ $ 49  $ 131  $ 3,216 
Home equity 682  54  736 
Commercial real estate 8,630  230  8,860 
Construction and land development 1,661  (38) 1,623 
Multifamily 2,081  (108) 1,973 
Commercial business 1,065  (43) 35  107  1,164 
Consumer (11) 11 
Manufactured homes 125  (9) 116 
Government
Total $ 17,285  $ (54) $ 85  $ 378  $ 17,694 
The Company's activity in the allowance for credit losses, by loan segment, is summarized below for the three months ended June 30, 2025:
(Dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance
Allowance for credit losses:
Residential real estate $ 2,442  $ $ 19  $ 294  $ 2,755 
Home equity 622  116  738 
Commercial real estate 9,657  (507) 9,150 
Construction and land development 1,644  (149) 1,495 
Multifamily 2,192  109  2,301 
Commercial business 1,234  404  (35) 1,603 
Consumer (10)
Manufactured homes 129  (4) 125 
Government 32  (17) 15 
Total $ 17,955  $ (10) $ 424  $ (185) $ 18,184 
The Company's activity in the allowance for credit losses, by loan segment, is summarized below for the six months ended June 30, 2026:
(Dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance
Allowance for credit losses:
Residential real estate $ 2,757  $ (5) $ 70  $ 394  $ 3,216 
Home equity 688  48  736 
Commercial real estate 9,152  (292) 8,860 
Construction and land development 1,114  509  1,623 
Multifamily 2,078  (105) 1,973 
Commercial business 1,583  (43) 35  (411) 1,164 
Consumer (25) 23 
Manufactured homes 116  116 
Government 16  (12)
Total $ 17,506  $ (73) $ 107  $ 154  $ 17,694 
The Company's activity in the allowance for credit losses, by loan segment, is summarized below for the six months ended June 30, 2025:
(Dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance
Allowance for credit losses:
Residential real estate $ 4,481  $ $ 35  $ (1,761) $ 2,755 
Home equity 835  (97) 738 
Commercial real estate 6,444  2,702  9,150 
Construction and land development 2,651  (1,156) 1,495 
Multifamily 1,003  (46) 10  1,334  2,301 
Commercial business 1,185  (61) 460  19  1,603 
Consumer (21) 17 
Manufactured homes 252  (127) 125 
Government 55  (40) 15 
Total $ 16,911  $ (128) $ 510  $ 891  $ 18,184 
Schedule of Collateral Dependent Loans
The table below presents the amortized cost basis of collateral dependent loans, including loans evaluated individually and collectively, and the related ACL allocation recognized on individually evaluated loans, where applicable, in accordance with ASC 326.
(Dollars in thousands) June 30, 2026
Real Estate Equipment/Inventory Accounts Receivable Vehicles Total ACL-Individual Evaluation
Residential real estate $ 8,196  $ $ $ $ 8,196  $
Home equity 710  710 
Commercial real estate 3,989  3,989  90 
Construction and land development 593  593 
Multifamily 1,760  1,760 
Commercial business 1,161  103  26  1,290  57 
Manufactured homes 11  11 
Total $ 15,259  $ 1,161  $ 103  $ 26  $ 16,549  $ 147 
(Dollars in thousands) December 31, 2025
Real Estate Equipment/Inventory Accounts Receivable Vehicles Total ACL-Individual Evaluation
Residential real estate $ 2,185  $ $ $ $ 2,185  $ 39 
Home equity
Commercial real estate 1,561  1,561  86 
Construction and land development 2,234  2,234 
Multifamily 696  696 
Commercial business 1,267  130  42  1,439  138 
Total $ 6,680  $ 1,267  $ 130  $ 42  $ 8,119  $ 263 
Schedule of Financing Receivable, Nonaccrual
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans:
As of June 30, 2026 Nonaccrual with
No Allowance for
Credit Loss
Nonaccrual with
Allowance for
Credit Loss
Nonaccrual Loans
in Total
Loans Past Due
over 90 Days Still
Accruing
Residential real estate $ 559  $ 7,637  $ 8,196  $
Home equity 710  710 
Commercial real estate 3,989  3,989 
Construction and land development 593  593 
Multifamily 1,760  1,760 
Commercial business 1,290  1,290 
Manufactured homes 11  11 
Total $ 8,191  $ 8,358  $ 16,549  $
As of December 31, 2025 Nonaccrual with
No Allowance for
Credit Loss
Nonaccrual with
Allowance for
Credit Loss
Nonaccrual Loans
in Total
Loans Past Due
over 90 Days Still
Accruing
Residential real estate $ 1,873  $ 4,059  $ 5,932  $
Home equity 810  810 
Commercial real estate 1,158  403  1,561 
Construction and land development 653  653 
Multifamily 696  696 
Commercial business 391  1,048  1,439 
Manufactured homes 71  71 
Total $ 4,771  $ 6,391  $ 11,162  $
Schedule of Changes in Liability for Credit Loss on Unfunded Commitments The following table shows the changes in the liability for credit losses on unfunded loan commitments.
(Dollars in thousands) Three months ended,
June 30, 2026
Three months ended,
June 30, 2025
Balance, beginning of period $ 2,031  $ 2,116 
Provision for (benefit from) unfunded loan commitments (114) (89)
Balance, end of period $ 1,917  $ 2,027 
(Dollars in thousands) Six months ended,
June 30, 2026
Six months ended,
June 30, 2025
Balance, beginning of period $ 1,752  $ 2,739 
Provision for (benefit from) unfunded loan commitments 165  (712)
Balance, end of period $ 1,917  $ 2,027