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What changed in Catalyst Bancorp, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Catalyst Bancorp, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+105 added−118 removedSource: 10-K (2026-03-31) vs 10-K (2025-03-28)

Top changes in Catalyst Bancorp, Inc.'s 2025 10-K

105 paragraphs added · 118 removed · 76 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

64 edited+26 added−40 removed39 unchanged
Biggest changeThe following table shows the amounts of our non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and foreclosed assets at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2024 ​ 2023 Non-accruing loans ​ ​ ​ ​ ​ One- to four-family residential ​ $ 1,530 ​ $ 1,875 ​ Commercial real estate ​ - ​ ​ 50 ​ Construction and land ​ 37 ​ ​ 42 ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total non-accruing loans ​ ​ 1,567 ​ ​ 1,967 ​ Accruing loans 90 days or more past due ​ ​ ​ ​ One- to four-family residential ​ 64 ​ ​ 24 ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total accruing loans 90 days or more past due ​ ​ 64 ​ ​ 24 ​ Total non-performing loans ​ ​ 1,631 ​ ​ 1,991 ​ Foreclosed assets ​ ​ 194 ​ ​ 60 ​ Total non-performing assets ​ $ 1,825 ​ $ 2,051 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ $ 167,076 ​ $ 144,920 ​ Total assets ​ ​ 276,697 ​ ​ 270,932 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total non-accruing loans as a percentage of total loans ​ ​ 0.94 % ​ ​ 1.36 % Total non-performing loans as a percentage of total loans ​ ​ 0.98 ​ ​ ​ 1.37 ​ Total non-performing loans as a percentage of total assets ​ ​ 0.59 ​ ​ ​ 0.73 ​ Total non-performing assets as a percentage of total assets ​ ​ 0.66 ​ ​ ​ 0.76 ​ ​ ​ The following table shows how our allowance for loan losses is allocated by type of loan at each of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 ​ 2023 (Dollars in thousands) Amount of Allowance Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans ​ Amount of Allowance Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans One-to four-family residential ​ $ 1,164 ​ 46.2 % ​ 48.5 % ​ $ 1,240 ​ 58.4 % ​ 57.7 % Commercial real estate ​ 192 7.6 ​ ​ 13.2 ​ ​ 213 10.0 ​ 14.8 ​ Construction and land ​ 528 20.9 ​ ​ 19.7 ​ ​ 283 13.3 ​ 9.6 ​ Multi-family residential ​ 35 1.4 ​ ​ 1.5 ​ ​ 50 2.4 ​ 2.3 ​ Commercial and industrial ​ 372 14.8 ​ ​ 15.8 ​ ​ 302 14.2 ​ 13.8 ​ Consumer ​ 26 1.0 ​ ​ 1.3 ​ ​ 36 1.7 ​ 1.8 ​ Unallocated ​ ​ 205 ​ 8.1 ​ ​ - ​ ​ ​ - ​ - ​ ​ - ​ Total ​ $ 2,522 ​ 100.0 % ​ 100.0 % ​ $ 2,124 ​ 100.0 % ​ 100.0 % ​ 36 Table of Contents Investment Securities .
Biggest changeAll loans within the relationship have paid as agreed and, at December 31, 2025, were current and performing. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2025 ​ 2024 Substandard loans ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 2,699 ​ $ 2,417 ​ Commercial real estate ​ 254 ​ ​ 227 ​ Construction and land ​ 128 ​ ​ 158 ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ 1,949 ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total substandard loans ​ $ 5,030 ​ $ 2,802 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-accruing loans ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 2,228 ​ $ 1,530 ​ Commercial real estate ​ - ​ ​ - ​ Construction and land ​ 20 ​ ​ 37 ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ - ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total non-accruing loans ​ ​ 2,248 ​ ​ 1,567 ​ Accruing loans 90 days or more past due ​ ​ ​ ​ ​ ​ One- to four-family residential ​ 272 ​ ​ 64 ​ Commercial real estate ​ 32 ​ ​ - ​ Construction and land ​ - ​ ​ - ​ Multi-family residential ​ - ​ ​ - ​ Commercial and industrial ​ ​ 91 ​ ​ - ​ Consumer ​ - ​ ​ - ​ Total accruing loans 90 days or more past due ​ ​ 395 ​ ​ 64 ​ Total non-performing loans ​ ​ 2,643 ​ ​ 1,631 ​ Foreclosed assets ​ ​ 34 ​ ​ 194 ​ Total non-performing assets ​ $ 2,677 ​ $ 1,825 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ $ 170,210 ​ $ 167,076 ​ Total assets ​ ​ 282,927 ​ ​ 276,697 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total non-accruing loans as a percentage of total loans ​ ​ 1.32 % ​ ​ 0.94 % Total non-performing loans as a percentage of total loans ​ ​ 1.55 ​ ​ ​ 0.98 ​ Total non-performing loans as a percentage of total assets ​ ​ 0.93 ​ ​ ​ 0.59 ​ Total non-performing assets as a percentage of total assets ​ ​ 0.95 ​ ​ ​ 0.66 ​ ​ ​ ​ 34 Table of Contents The following table shows how our allowance for credit losses is allocated by type of loan at each of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 (Dollars in thousands) ​ ​ ​ Amount of Allowance ​ ​ ​ Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans ​ Amount of Allowance ​ ​ ​ Percent of Allowance to Total Allowance ​ Percent of Loans in Category to Total Loans One-to four-family residential ​ $ 1,323 ​ 55.9 % ​ 47.1 % ​ $ 1,164 ​ 46.2 % ​ 48.5 % Commercial real estate ​ 267 11.3 ​ ​ 19.3 ​ ​ 192 7.6 ​ 13.2 ​ Construction and land ​ 295 12.5 ​ ​ 11.0 ​ ​ 528 20.9 ​ 19.7 ​ Multi-family residential ​ 80 3.4 ​ ​ 3.1 ​ ​ 35 1.4 ​ 1.5 ​ Commercial and industrial ​ 371 15.7 ​ ​ 18.3 ​ ​ 372 14.8 ​ 15.8 ​ Consumer ​ 31 1.2 ​ ​ 1.2 ​ ​ 26 1.0 ​ 1.3 ​ Unallocated ​ ​ - ​ - ​ ​ - ​ ​ ​ 205 ​ 8.1 ​ ​ - ​ Total ​ $ 2,367 ​ 100.0 % ​ 100.0 % ​ $ 2,522 ​ 100.0 % ​ 100.0 % ​ Investment Securities .
Calculated net of deferred fees and discounts and loans in process. (2) Average investment securities does not include unrealized holding gains/losses on available-for-sale securities. (3) Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. ​ 41 Table of Contents Rate/Volume Analysis.
Calculated net of deferred fees and discounts and loans in process. (2) Average investment securities does not include unrealized holding gains/losses on available-for-sale securities. (3) Equals net interest income divided by average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. ​ 40 Table of Contents Rate/Volume Analysis.
Our strategy for credit risk management focuses on an experienced team of credit professionals, well-defined credit policies and procedures, appropriate loan underwriting criteria and active credit monitoring. ​ 27 Table of Contents Critical Accounting Estimates In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies used in preparing our financial statements.
Our strategy for credit risk management focuses on an experienced team of credit professionals, well-defined credit policies and procedures, appropriate loan underwriting criteria and active credit monitoring. ​ 26 Table of Contents Critical Accounting Estimates In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies used in preparing our financial statements.
The allowance for credit losses includes the allowance for loan losses and the allowance for credit losses on unfunded lending commitments, which is recorded in other liabilities on the statement of financial condition. The allowance for credit losses is established through a provision for credit losses charged to earnings.
The allowance for credit losses includes the allowance for credit losses on loans and the allowance for credit losses on unfunded lending commitments, which is recorded in other liabilities on the statement of financial condition. The allowance for credit losses is established through a provision for credit losses charged to earnings.
However, if a substantial portion of these deposits is not retained, we may utilize borrowings from our secondary funding sources or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense. ​ The Bank exceeded all regulatory capital requirements and was categorized as well-capitalized at December 31, 2024 and December 31, 2023.
However, if a substantial portion of these deposits is not retained, we may utilize borrowings from our secondary funding sources or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense. ​ ​ 46 Table of Contents The Bank exceeded all regulatory capital requirements and was categorized as well-capitalized at December 31, 2025 and December 31, 2024.
The Company can allocate portions of this letter of credit to collateralize certain deposit balances in excess of the FDIC’s insurance limit as an alternative to pledging investment securities for the same purpose. At December 31, 2024, the Company used $25.0 million of the FHLB custodial letter of credit to collateralize public fund deposits.
The Company can allocate portions of this letter of credit to collateralize certain deposit balances in excess of the FDIC’s insurance limit as an alternative to pledging investment securities for the same purpose. At December 31, 2025, the Company used $20.0 million of the FHLB custodial letter of credit to collateralize public fund deposits.
These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods. Allowance for Credit Losses.
This policy requires numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods. Allowance for Credit Losses.
We also have the ability to borrow from the FHLB, Federal Reserve Bank of Atlanta, and our primary correspondent bank. At December 31, 2024, our borrowed funds consisted of FHLB advances with a net carrying value of $9.6 million.
We also have the ability to borrow from the FHLB, Federal Reserve Bank of Atlanta, and our primary correspondent bank. At December 31, 2025, our borrowed funds consisted of FHLB advances with a net carrying value of $14.7 million.
The following table shows certain information regarding our borrowings at or for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended ​ ​ December 31, (Dollars in thousands) ​ 2024 ​ 2023 Advance from Federal Reserve Bank of Atlanta ​ ​ ​ ​ Average balance ​ $ 16,918 ​ ​ $ 923 ​ Maximum balance at any month-end during the period ​ 21,000 ​ ​ ​ 10,000 ​ Balance at end of period ​ - ​ ​ 10,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 4.81 % ​ 4.95 % Weighted average interest rate at end of period (1) ​ - ​ ​ 4.83 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Advances from FHLB ​ ​ ​ ​ Average balance ​ $ 9,475 ​ ​ $ 9,285 ​ Maximum balance at any month-end during the period ​ 10,261 ​ ​ ​ 9,378 ​ Balance at end of period ​ 9,558 ​ ​ 9,378 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 2.89 % ​ 2.94 % Weighted average interest rate at end of period (1) ​ 0.93 ​ ​ 0.93 ​ (1) Reflects the weighted average contractual rate of advances. ​ Shareholders’ Equity .
The following table shows certain information regarding our borrowings at or for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended ​ ​ December 31, (Dollars in thousands) ​ 2025 ​ 2024 Advance from Federal Reserve Bank of Atlanta ​ ​ ​ ​ ​ ​ Average balance ​ $ - ​ ​ $ 16,918 ​ Maximum balance at any month-end during the period ​ - ​ ​ ​ 21,000 ​ Balance at end of period ​ - ​ ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ - % ​ 4.81 % Weighted average interest rate at end of period (1) ​ - ​ ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Advances from FHLB ​ ​ ​ ​ ​ ​ Average balance ​ $ 10,676 ​ ​ $ 9,475 ​ Maximum balance at any month-end during the period ​ 19,723 ​ ​ ​ 10,261 ​ Balance at end of period ​ 14,732 ​ ​ 9,558 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average interest rate during the period ​ 2.94 % ​ 2.89 % Weighted average interest rate at end of period (1) ​ 2.49 ​ ​ 0.93 ​ (1) Reflects the weighted average contractual rate of advances. ​ Shareholders’ Equity .
We are committed to maintaining a strong liquidity position. We monitor our liquidity position daily and anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that the majority of maturing time deposits will be retained.
We monitor our liquidity position daily and anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that the majority of maturing time deposits will be retained. We also anticipate continued use of our secondary funding sources.
Total public fund deposits totaled $35.6 million, or 19.2% of total deposits, at December 31, 2024, compared to $23.3 million, or 14.1% of total deposits, at December 31, 2023. At December 31, 2024, approximately 83% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market, compared to 78% at December 31, 2023.
Total public fund deposits were $26.4 million, or 14.3% of total deposits, at December 31, 2025, compared to $35.6 million, or 19.2% of total deposits, at December 31, 2024. At December 31, 2025, approximately 59% of our total public fund deposits consisted of non-interest-bearing and interest-bearing demand deposits from municipalities within our market, compared to 83% at December 31, 2024.
The table below summarizes our unused and available liquidity sources as of December 31, 2024. ​ ​ ​ ​ (Dollars in thousands) ​ 12/31/2024 Advances from the Federal Home Loan Bank of Dallas ​ $ 45,719 Line of credit with primary correspondent bank ​ ​ 17,800 Unpledged available-for-sale investment securities, at fair value ​ ​ 19,088 Total unused and available liquidity ​ $ 82,607 ​ ​ The Bank’s available borrowing capacity with the FHLB is secured though a blanket floating lien on real estate loans.
The table below summarizes our unused and available liquidity sources as of December 31, 2025. ​ ​ ​ ​ (Dollars in thousands) ​ December 31, 2025 Advances from the Federal Home Loan Bank of Dallas ​ $ 49,664 Line of credit with primary correspondent bank ​ ​ 17,800 Unpledged available-for-sale investment securities, at fair value ​ ​ 32,761 Total unused and available liquidity ​ $ 100,225 ​ ​ The Bank’s available borrowing capacity with the FHLB is secured through a blanket floating lien on real estate loans.
(2) Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets. (3) The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income.
(2) Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets.
At December 31, 2024, the Company had common shares outstanding of 4,278,150. 40 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
At December 31, 2025, the Company had common shares outstanding of 4,074,911. 39 Table of Contents Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
Total uninsured non-public funds deposits were approximately $22.5 million and $26.3 million at December 31, 2024 and 2023, respectively.
Total uninsured non-public funds deposits were approximately $28.8 million and $22.5 million at December 31, 2025 and 2024, respectively.
Weighted average yields are calculated by dividing the estimated annual income divided by the average amortized cost of the applicable securities. ​ The following table sets forth the dollar value of our investment securities which have fixed interest rates or which have floating or adjustable interest rates at each of the dates indicated . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (Dollars in thousands) ​ ​ 2024 ​ ​ 2023 Fixed-rate ​ ​ Available-for-sale $ 28,679 $ 70,498 Held-to-maturity ​ ​ 13,447 ​ ​ 13,461 Total fixed-rate ​ ​ 42,126 ​ ​ 83,959 ​ ​ ​ ​ ​ ​ ​ Adjustable-rate ​ ​ ​ ​ ​ Available-for-sale ​ 33 ​ 42 Held-to-maturity ​ ​ - ​ ​ - Total adjustable-rate ​ ​ 33 ​ ​ 42 Total investment securities ​ $ 42,159 ​ $ 84,001 ​ ​ Deposits .
Weighted average yields are calculated by dividing the estimated annual income by the average amortized cost of the applicable securities. ​ The following table sets forth the dollar value of our investment securities which have fixed interest rates or which have floating or adjustable interest rates at each of the dates indicated . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (Dollars in thousands) ​ ​ 2025 ​ ​ 2024 Fixed-rate ​ ​ Available-for-sale, at fair value ​ ​ ​ $ 31,659 ​ ​ ​ $ 28,679 Held-to-maturity ​ ​ 14,917 ​ ​ 13,447 Total fixed-rate ​ ​ 46,576 ​ ​ 42,126 ​ ​ ​ ​ ​ ​ ​ Adjustable-rate ​ ​ ​ ​ ​ Available-for-sale, at fair value ​ 18,808 ​ 33 Held-to-maturity ​ ​ - ​ ​ - Total adjustable-rate ​ ​ 18,808 ​ ​ 33 Total investment securities ​ $ 65,384 ​ $ 42,159 ​ ​ ​ 36 Table of Contents Deposits .
Under the November 2024 Repurchase Plan, 187,150 shares of the Company’s common stock were available for repurchase at December 31, 2024. ​ Since the announcement of our first share repurchase plan on January 26, 2023 and through December 31, 2024, the Company has repurchased a total of 1,011,850 shares of its common stock, or approximately 19% of the common shares originally issued, at an average cost per share of $11.93.
Under the November 2025 Repurchase Plan, 188,911 shares of the Company’s common stock were available for repurchase at December 31, 2025. ​ Since the announcement of our first share repurchase plan on January 26, 2023 and through December 31, 2025, the Company has repurchased a total of 1,215,089 shares of its common stock, or approximately 23% of the common shares originally issued, at an average cost per share of $12.06.
The following table sets forth the composition of our securities portfolio as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 ​ 2023 (Dollars in thousands) Amortized Cost % of Total ​ Fair Value Amortized Cost ​ % of Total Fair Value Securities available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ 31,511 ​ 67.5 % ​ $ 27,202 ​ $ 65,704 ​ 70.5 % ​ $ 57,512 U.S.
The following table sets forth the composition of our investment securities portfolio as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 (Dollars in thousands) ​ ​ ​ Amortized Cost ​ ​ ​ % of Total ​ Fair Value ​ ​ ​ Amortized Cost ​ % of Total ​ ​ ​ Fair Value Securities available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ 51,820 ​ 75.7 % ​ $ 48,888 ​ $ 31,511 ​ 67.5 % ​ $ 27,202 U.S.
We believe there will be opportunities to utilize our strong capital position for expansion through acquisitions of other financial institutions in our current market area and adjoining markets in south Louisiana. ● Rebranded franchise. St. Landry Homestead Federal Savings Bank completed its re-branding and changed its name to Catalyst Bank in June 2022.
We intend to take advantage of opportunities to utilize our strong capital position for expansion through acquisitions of other financial institutions in our current market area and adjoining markets in south Louisiana. ● Rebranded franchise. We completed our re-branding and changed the Bank’s name to Catalyst Bank in June 2022.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments.
Government and agency obligations ​ ​ 13,000 ​ 27.9 ​ ​ 10,860 ​ 13,003 ​ 14.0 ​ ​ 10,793 Municipal obligations ​ 447 ​ 0.9 ​ ​ 424 ​ 458 ​ 0.5 ​ ​ 434 Total securities held to maturity ​ ​ 13,447 ​ 28.8 ​ ​ 11,284 ​ 13,461 ​ 14.5 ​ ​ ​ 11,227 Total investment securities ​ $ 46,662 ​ 100.0 % ​ $ 39,996 ​ $ 93,162 ​ 100.0 % $ 81,767 ​ The following table presents the amortized cost of our total investment securities portfolio that matures during each of the periods indicated and the weighted average yields for each range of maturities at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Maturity as of December 31, 2024 (Dollars in thousands) ​ One Year or Less ​ After One Through Five Years ​ After Five Through Ten Years ​ Over Ten Years ​ Total Total investment securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ - ​ ​ $ 5,351 ​ ​ $ 445 ​ ​ $ 25,715 ​ ​ $ 31,511 ​ U.S.
Government and agency obligations ​ ​ 13,000 ​ 19.0 ​ ​ 11,577 ​ 13,000 ​ 27.9 ​ ​ 10,860 Municipal obligations ​ 1,917 ​ 2.8 ​ ​ 1,990 ​ 447 ​ 0.9 ​ ​ 424 Total securities held to maturity ​ ​ 14,917 ​ 21.8 ​ ​ 13,567 ​ 13,447 ​ 28.8 ​ ​ ​ 11,284 Total investment securities ​ $ 68,434 ​ 100.0 % ​ $ 64,034 ​ $ 46,662 ​ 100.0 % $ 39,996 ​ 35 Table of Contents The following table presents the amortized cost of our total investment securities portfolio that matures during each of the periods indicated and the weighted average yields for each range of maturities at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Maturity as of December 31, 2025 (Dollars in thousands) ​ One Year or Less ​ After One Through Five Years ​ After Five Through Ten Years ​ Over Ten Years ​ Total Total investment securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ - ​ ​ $ 5,312 ​ ​ $ 338 ​ ​ $ 46,170 ​ ​ $ 51,820 ​ U.S.
The information at and for the years ended December 31, 2024 and 2023 is derived from the audited financial statements that appear elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2024 ​ 2023 Selected Financial Condition Data: ​ Total assets ​ $ 276,697 ​ $ 270,932 Cash and cash equivalents ​ 44,295 ​ 19,011 Investment securities: ​ ​ Available for sale ​ 28,712 ​ 70,540 Held to maturity ​ 13,447 ​ 13,461 Loans receivable, net of unearned income ​ 167,076 ​ 144,920 Allowance for loan losses ​ ​ 2,522 ​ ​ 2,124 Total deposits ​ 185,674 ​ 165,622 Borrowings ​ 9,558 ​ 19,378 Shareholders’ equity ​ 80,204 ​ 84,559 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (Dollars in thousands) ​ 2024 ​ 2023 Selected Operating Data: ​ ​ ​ ​ Total interest income ​ $ 13,862 ​ $ 9,661 ​ Total interest expense ​ 4,317 ​ 1,956 ​ Net interest income ​ 9,545 ​ 7,705 ​ Provision for credit losses ​ 531 ​ 128 ​ Net interest income after provision for credit losses ​ 9,014 ​ 7,577 ​ Total non-interest income (loss) ​ (3,840) ​ 1,589 ​ Total non-interest expense ​ 9,157 ​ 8,579 ​ Income (loss) before income taxes ​ (3,983) ​ 587 ​ Income tax expense (benefit) ​ (894) ​ 61 ​ Net income (loss) ​ $ (3,089) ​ $ 526 ​ ​ ​ ​ ​ ​ ​ ​ ​ Selected Performance Ratios: (1) ​ ​ ​ Average yield on interest-earning assets ​ 5.30 % 3.83 % Average rate on interest-bearing liabilities ​ 2.54 ​ 1.33 ​ Average interest rate spread (2) ​ 2.76 ​ 2.50 ​ Net interest margin (2) ​ 3.65 ​ 3.06 ​ Average interest-earning assets to average interest-bearing liabilities ​ 154.24 ​ 172.40 ​ Net interest income after provision for loan losses to non-interest expense ​ 98.44 ​ 88.32 ​ Total non-interest expense to average assets ​ 3.25 ​ 3.22 ​ Efficiency ratio (3) ​ 160.51 ​ 92.29 ​ Return on average assets (ratio of net income (loss) to average total assets) ​ (1.10) ​ 0.20 ​ Return on average equity (ratio of net income (loss) to average total equity) ​ (3.79) ​ 0.62 ​ ​ 30 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the ​ ​ Year Ended December 31, ​ ​ 2024 ​ 2023 Asset Quality Ratios: (4) ​ ​ ​ Non-accrual loans as a percent of total loans outstanding ​ 0.94 % ​ 1.36 % Non-performing assets as a percent of total assets (5) ​ 0.66 ​ ​ 0.76 ​ Allowance for loan losses as a percent of total loans outstanding ​ 1.51 ​ ​ 1.47 ​ Allowance for loan losses as a percent of non-performing loans ​ 154.63 ​ ​ 106.68 ​ Net (charge-offs) recoveries to average loans receivable ​ (0.17) ​ ​ 0.02 ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: (6) ​ ​ ​ Common equity Tier 1 capital ​ 45.81 % ​ 52.34 % Tier 1 leverage capital ​ 28.73 ​ ​ 31.67 ​ Tier 1 risk-based capital ​ 45.81 ​ ​ 52.34 ​ Total risk-based capital ​ 47.06 ​ ​ 53.59 ​ Average equity to average assets ​ 28.91 ​ ​ 31.79 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ Banking offices ​ 6 ​ 6 ​ Full-time equivalent employees ​ 49 ​ 48 ​ (1) With the exception of end of period ratios, all ratios are based on average daily balances during the indicated periods.
The information at and for the years ended December 31, 2025 and 2024 is derived from the audited financial statements that appear elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, (Dollars in thousands) ​ 2025 ​ 2024 Selected Financial Condition Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 282,927 ​ $ 276,697 Cash and cash equivalents ​ 25,205 ​ 44,295 Investment securities: ​ ​ ​ ​ Available for sale, at fair value ​ 50,467 ​ 28,712 Held to maturity ​ 14,917 ​ 13,447 Loans receivable, net of unearned income ​ 170,210 ​ 167,076 Allowance for credit losses ​ ​ 2,367 ​ ​ 2,522 Total deposits ​ 185,274 ​ 185,674 Borrowings ​ 14,732 ​ 9,558 Shareholders’ equity ​ 81,725 ​ 80,204 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (Dollars in thousands) ​ 2025 ​ 2024 Selected Operating Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total interest income ​ $ 13,896 ​ $ 13,862 ​ Total interest expense ​ 4,106 ​ 4,317 ​ Net interest income ​ 9,790 ​ 9,545 ​ Provision for credit losses ​ 60 ​ 531 ​ Net interest income after provision for credit losses ​ 9,730 ​ 9,014 ​ Total non-interest income (loss) ​ 1,358 ​ (3,840) ​ Total non-interest expense ​ 8,584 ​ 9,157 ​ Income (loss) before income tax expense (benefit) ​ 2,504 ​ (3,983) ​ Income tax expense (benefit) ​ 452 ​ (894) ​ Net income (loss) ​ $ 2,052 ​ $ (3,089) ​ ​ ​ ​ ​ ​ ​ ​ ​ Selected Performance Ratios: (1) ​ ​ ​ ​ ​ Average yield on interest-earning assets ​ 5.55 % 5.30 % Average rate on interest-bearing liabilities ​ 2.55 ​ 2.54 ​ Average interest rate spread (2) ​ 3.00 ​ 2.76 ​ Net interest margin (2) ​ 3.92 ​ 3.65 ​ Average interest-earning assets to average interest-bearing liabilities ​ 155.44 ​ 154.24 ​ Net interest income after provision for credit losses to non-interest expense ​ 113.35 ​ 98.44 ​ Total non-interest expense to average assets ​ 3.15 ​ 3.25 ​ Efficiency ratio (3) ​ 76.99 ​ 160.51 ​ Return on average assets (ratio of net income (loss) to average total assets) ​ 0.75 ​ (1.10) ​ Return on average equity (ratio of net income (loss) to average total equity) ​ 2.53 ​ (3.79) ​ ​ 28 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the ​ ​ Year Ended December 31, ​ ​ 2025 ​ 2024 Asset Quality Ratios: (4) ​ ​ ​ ​ ​ ​ ​ ​ Non-accrual loans as a percent of total loans outstanding ​ 1.32 % ​ 0.94 % Non-performing assets as a percent of total assets (5) ​ 0.95 ​ ​ 0.66 ​ Allowance for credit losses on loans as a percent of total loans outstanding ​ 1.39 ​ ​ 1.51 ​ Allowance for credit losses on loans as a percent of non-performing loans ​ 89.56 ​ ​ 154.63 ​ Net charge-offs to average loans receivable ​ (0.07) ​ ​ (0.17) ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: (6) ​ ​ ​ ​ ​ Common equity Tier 1 capital ​ 42.45 % ​ 45.81 % Tier 1 leverage capital ​ 27.36 ​ ​ 28.73 ​ Tier 1 risk-based capital ​ 42.45 ​ ​ 45.81 ​ Total risk-based capital ​ 43.71 ​ ​ 47.06 ​ Average equity to average assets ​ 29.73 ​ ​ 28.91 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ ​ ​ Banking offices ​ 6 ​ 6 ​ Full-time equivalent employees ​ 49 ​ 49 ​ (1) With the exception of end of period ratios, all ratios are based on average daily balances during the indicated periods.
The following table summarizes the results of our net interest income model as of December 31, 2024, which estimates the impact of immediate and sustained changes in interest rates on net interest income over the following twelve months. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Net Interest Income $ Change % Change Change in Interest Rates in Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 11,173 ​ $ 852 8.3 % 100 ​ 10,754 ​ 433 4.2 ​ Static ​ 10,321 ​ - - ​ (100) ​ 10,121 ​ (200) (1.9) ​ (200) ​ 9,655 ​ (666) (6.5) ​ ​ ​ The above table indicates that as of December 31, 2024, in the event of an immediate and sustained 100 basis point decrease in interest rates, our net interest income for the 12 months ending December 31, 2025 would be expected to decrease by $200,000 or 1.9%.
The following table summarizes the results of our net interest income model as of December 31, 2025, which estimates the impact of immediate and sustained changes in interest rates on net interest income over the following twelve months. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ ​ Net Interest Income ​ ​ ​ $ Change ​ ​ ​ % Change Change in Interest Rates in Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 10,145 ​ $ 126 1.3 % 100 ​ 10,094 ​ 75 0.7 ​ Static ​ 10,019 ​ - - ​ (100) ​ 9,856 ​ (163) (1.6) ​ (200) ​ 9,614 ​ (405) (4.0) ​ ​ ​ The above table indicates that as of December 31, 2025, in the event of an immediate and sustained 100 basis point decrease in interest rates, our net interest income for the 12 months ending December 31, 2026 would be expected to decrease by $163,000 or 1.6%. ​ 44 Table of Contents Economic Value of Equity.
The total provision for credit losses on loans and unfunded commitments was $531,000 for the year ended December 31, 2024, compared to $128,000 in 2023. In 2024, the provision for credit losses was largely attributable to commercial loan growth and an increase in the allowance for credit losses on individually evaluated loans. ​ 43 Table of Contents Non-interest Income .
In 2024, the provision for credit losses totaled $531,000 and was largely attributable to commercial loan growth and an increase in the allowance for credit losses on individually evaluated residential loans. 42 Table of Contents Non-interest Income (Loss) .
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. The details of these cash flow classifications are presented on the statement of cash flows included in Item 8 of this Form 10-K.
The details of these cash flow classifications are presented on the statement of cash flows included in Item 8 of this Form 10-K.
The following table sets forth our EVE as of December 31, 2024 and reflects the changes to EVE as a result of immediate and sustained changes in interest rates as indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Economic Value of Equity ​ EVE as % of Fair Value of Assets (Dollars in thousands) Amount $ Change % Change ​ EVE Ratio Change Change in Interest Rates In Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 86,200 ​ $ (1,990) (2.3) % ​ 33.3 0.4 % 100 ​ 87,299 ​ (891) (1.0) ​ 33.1 0.2 ​ Static ​ 88,190 ​ - - ​ 32.9 - ​ (100) ​ 89,567 ​ 1,377 1.6 ​ 32.9 - ​ (200) ​ 89,777 ​ 1,587 1.8 ​ 32.5 (0.4) ​ ​ 45 Table of Contents Liquidity and Capital Resources The Company maintains levels of liquid assets deemed adequate by management.
The following table sets forth our EVE as of December 31, 2025 and reflects the changes to EVE as a result of immediate and sustained changes in interest rates as indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Economic Value of Equity ​ EVE as % of Fair Value of Assets (Dollars in thousands) ​ ​ ​ Amount ​ ​ ​ $ Change ​ ​ ​ % Change ​ EVE Ratio ​ Change Change in Interest Rates In Basis Points (Rate Shock): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 82,623 ​ $ (3,798) (4.4) % ​ 30.7 % ​ (0.3) % 100 ​ 84,626 ​ (1,795) (2.1) ​ 30.9 ​ (0.1) ​ Static ​ 86,421 ​ - - ​ 31.0 ​ - ​ (100) ​ 87,522 ​ 1,101 1.3 ​ 31.0 ​ (0.1) ​ (200) ​ 87,864 ​ 1,443 1.7 ​ 30.6 ​ (0.4) ​ ​ Liquidity and Capital Resources The Company maintains levels of liquid assets deemed adequate by management.
The following is an overview of financial results for the year ended December 31, 2024, compared to December 31, 2023: ● Total assets of $276.7 million at December 31, 2024, up $5.8 million or 2.1% ● Loans of $167.1 million, or 60.4% of total assets, at December 31, 2024, up $22.2 million or 15.3% ● Non-performing assets of $1.8 million at December 31, 2024, down $226,000 or 11.0% ● Investment securities of $42.2 million, or 15.2% of total assets, at December 31, 2024, down $41.8 million or 49.8% ● Deposits of $185.7 million at December 31, 2024, up $20.1 million or 12.1% ● Borrowings of $9.6 million at December 31, 2024, down $9.8 million or 50.7% ● Total shareholders’ equity of $80.2 million, or 29.0% of total assets, at December 31, 2024, down $4.4 million or 5.2% ● Net interest income increased $1.8 million, or 23.9%, to $9.5 million and net interest margin increased 59 basis points (“bps”) to 3.65% ● Provision for credit losses of $531,000 for 2024, compared to $128,000 for 2023 ● Loss on the sales of investment securities of $5.5 million for 2024, compared to a loss of $92,000 for 2023 ● Non-interest expense of $9.2 million for the year ended December 31, 2024, an increase of $578,000, or 6.7%, compared to 2023, primarily due to expenses related to the Company’s upgrade to a new core processing system ● A net loss of $3.1 million for 2024, compared to net income of $526,000 for 2023 ​ 26 Table of Contents Our results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on our loan and investment portfolios and interest expense on deposits and borrowings.
The following is an overview of financial results for the year ended December 31, 2025, compared to December 31, 2024: ● Total assets of $282.9 million at December 31, 2025, up $6.2 million or 2.3% ● Loans of $170.2 million, or 60.2% of total assets, at December 31, 2025, up $3.1 million or 1.9% ● Non-performing assets of $2.7 million at December 31, 2025, up $852,000 or 46.7% ● Investment securities of $65.4 million, or 23.1% of total assets, at December 31, 2025, up $23.2 million or 55.1% ● Deposits of $185.3 million at December 31, 2025, down $400,000 or 0.2% ● Average deposits of $179.5 million for 2025, up $7.4 million or 4.3% over 2024 ● Borrowings of $14.7 million at December 31, 2025, up $5.2 million or 54.1% ● Total shareholders’ equity of $81.7 million, or 28.9% of total assets, at December 31, 2025, up $1.5 million or 1.9% ● Net interest income increased $245,000, or 2.6%, to $9.8 million and net interest margin increased 27 basis points (“bps”) to 3.92% ● Provision for credit losses of $60,000 for 2025, compared to $531,000 for 2024 ● No losses on the sales of investment securities for 2025, compared to total losses on investment securities sales of $5.5 million for 2024 ● Non-interest expense of $8.6 million for the year ended December 31, 2025, down $573,000, or 6.3%, compared to 2024, primarily due to expenses related to the Company’s upgrade to a new core processing system in 2024 ● Net income of $2.1 million, or $0.56 per diluted common share (“diluted EPS”), for 2025, compared to a net loss of $3.1 million for 2024 ​ 25 Table of Contents Our results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on our loan and investment portfolios and interest expense on deposits and borrowings.
The total provision for credit losses on loans and unfunded commitments was $531,000 for 2024 and was largely attributable to commercial loan growth and an increase in the allowance for credit losses on individually evaluated loans. ​ 34 Table of Contents The following table shows changes in our allowance for loan losses and other related data for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ (Dollars in thousands) 2024 ​ 2023 ​ Allowance for loan losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 2,124 ​ $ 1,807 ​ ​ Impact of adoption of ASC 326 ​ ​ - ​ ​ ​ 209 ​ ​ Provision for loan losses ​ 667 ​ ​ 87 ​ ​ Net loan (charge-offs) recoveries: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ (92) ​ ​ 42 ​ ​ Commercial real estate ​ (14) ​ ​ - ​ ​ Construction and land ​ - ​ ​ - ​ ​ Multi-family residential ​ - ​ ​ - ​ ​ Commercial and industrial ​ (128) ​ ​ 1 ​ ​ Consumer ​ (35) ​ ​ (22) ​ ​ Total net (charge-offs) recoveries ​ (269) ​ ​ 21 ​ ​ Balance, end of period ​ $ 2,522 ​ $ 2,124 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on unfunded lending commitments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 257 ​ $ - ​ ​ Impact of adoption of ASC 326 ​ ​ - ​ ​ ​ 216 ​ ​ Provision for (reversal of) credit losses on unfunded lending commitments ​ ​ (136) ​ ​ 41 ​ ​ Balance, end of period ​ $ 121 ​ ​ $ 257 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total allowance for credit losses, end of period ​ $ 2,643 ​ ​ $ 2,381 ​ ​ Total provision for credit losses ​ ​ 531 ​ ​ ​ 128 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans at end of period ​ $ 167,076 ​ $ 144,920 ​ ​ Total non-accrual loans at end of period ​ 1,567 ​ ​ 1,967 ​ ​ Total non-performing loans at end of period ​ 1,631 ​ ​ 1,991 ​ ​ Total average loans ​ ​ 155,867 ​ ​ ​ 135,713 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for loan losses as a percent of: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1.51 % ​ ​ 1.47 % ​ Non-accrual loans ​ 160.94 ​ ​ ​ 107.98 ​ ​ Non-performing loans ​ 154.63 ​ ​ ​ 106.68 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net annualized (charge-offs) recoveries as a percent of average loans by portfolio: ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ (0.11) % ​ ​ 0.05 % ​ Commercial real estate ​ ​ (0.06) ​ ​ ​ - ​ ​ Construction and land ​ ​ - ​ ​ ​ - ​ ​ Multi-family residential ​ ​ - ​ ​ ​ - ​ ​ Commercial and industrial ​ ​ (0.56) ​ ​ ​ 0.01 ​ ​ Consumer ​ ​ (1.51) ​ ​ ​ (0.71) ​ ​ Total loans ​ ​ (0.17) ​ ​ ​ 0.02 ​ ​ ​ ​ 35 Table of Contents Non-performing Assets .
The total provision for credit losses on loans and unfunded commitments was $60,000 for 2025 and was largely attributable to increases in construction loan commitments and outstanding loan balances during 2025. ​ 32 Table of Contents The following table shows changes in our allowance for credit losses and other related data for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ (Dollars in thousands) ​ ​ ​ 2025 ​ 2024 ​ Allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 2,522 ​ $ 2,124 ​ ​ Provision for (reversal of) credit losses ​ (30) ​ ​ 667 ​ ​ Net loan (charge-offs) recoveries: ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ (112) ​ ​ (92) ​ ​ Commercial real estate ​ - ​ ​ (14) ​ ​ Construction and land ​ - ​ ​ - ​ ​ Multi-family residential ​ - ​ ​ - ​ ​ Commercial and industrial ​ 17 ​ ​ (128) ​ ​ Consumer ​ (30) ​ ​ (35) ​ ​ Total net charge-offs ​ (125) ​ ​ (269) ​ ​ Balance, end of period ​ $ 2,367 ​ $ 2,522 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unfunded lending commitments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, beginning of period ​ $ 121 ​ $ 257 ​ ​ Provision for (reversal of) credit losses on unfunded lending commitments ​ ​ 90 ​ ​ (136) ​ ​ Balance, end of period ​ $ 211 ​ $ 121 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for credit losses ​ $ 60 ​ ​ $ 531 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans at end of period ​ $ 170,210 ​ $ 167,076 ​ ​ Total non-accrual loans at end of period ​ 2,248 ​ ​ 1,567 ​ ​ Total non-performing loans at end of period ​ 2,643 ​ ​ 1,631 ​ ​ Total average loans ​ ​ 167,038 ​ ​ ​ 155,867 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on loans as a percent of: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1.39 % ​ ​ 1.51 % ​ Non-accrual loans ​ 105.29 ​ ​ ​ 160.94 ​ ​ Non-performing loans ​ 89.56 ​ ​ ​ 154.63 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net annualized (charge-offs) recoveries as a percent of average loans by portfolio: ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ ​ (0.14) % ​ ​ (0.11) % ​ Commercial real estate ​ ​ - ​ ​ ​ (0.06) ​ ​ Construction and land ​ ​ - ​ ​ ​ - ​ ​ Multi-family residential ​ ​ - ​ ​ ​ - ​ ​ Commercial and industrial ​ ​ 0.07 ​ ​ ​ (0.56) ​ ​ Consumer ​ ​ (1.38) ​ ​ ​ (1.51) ​ ​ Total loans ​ ​ (0.07) ​ ​ ​ (0.17) ​ ​ ​ ​ 33 Table of Contents Substandard Loans and Non-performing Assets .
At December 31, 2024, the allowance for loan losses totaled $2.5 million, or 1.51% of total loans, compared to 1.47% of total loans at December 31, 2023. The allowance for credit losses on unfunded commitments totaled $121,000, down $136,000 from December 31, 2023.
At December 31, 2025, the allowance for credit losses on loans totaled $2.4 million, or 1.39% of total loans, compared to $2.5 million, or 1.51% of total loans, at December 31, 2024.
Unrealized losses on available-for-sale securities relate principally to increases in market interest rates for similar securities. Our investment securities portfolio consists primarily of debt obligations issued by the U.S. government and government agencies and government-sponsored mortgage-backed securities. During the three months ended March 31, 2024, the Company sold 50 available-for-sale investment securities for a total pre-tax loss of $5.5 million.
Unrealized losses on available-for-sale securities relate principally to higher market interest rates for similar securities. Our investment securities portfolio consists primarily of debt obligations issued by the U.S. government and government agencies and government-sponsored mortgage-backed securities.
The change in income taxes over the comparable periods was largely due to the loss on sales of investment securities in 2024. ​ ​ 44 Table of Contents Exposure to Changes in Interest Rates Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings.
Exposure to Changes in Interest Rates Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings.
The following table presents total deposits by account type as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Non-interest-bearing demand deposits ​ $ 28,281 15.2 % ​ $ 28,183 17.0 % ​ $ 98 ​ 0.3 % Interest-bearing demand deposits ​ 48,334 26.0 ​ ​ 36,867 22.3 ​ ​ 11,467 ​ 31.1 ​ Money market ​ 10,729 5.8 ​ ​ 15,126 9.1 ​ ​ (4,397) ​ (29.1) ​ Savings ​ 37,639 20.3 ​ ​ 31,518 19.0 ​ ​ 6,121 ​ 19.4 ​ Certificates of deposit ​ ​ 60,691 32.7 ​ ​ ​ 53,928 32.6 ​ ​ ​ 6,763 ​ 12.5 ​ Total deposits ​ $ 185,674 100.0 % ​ $ 165,622 100.0 % ​ $ 20,052 ​ 12.1 ​ ​ ​ The ratio of the Company’s total loans to deposits was 90.0% and 87.5% as of December 31, 2024 and 2023, respectively. ​ The increase in interest-bearing demand deposits was largely due to a seasonal increase in public funds.
The following table presents total deposits by account type as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ December 31, 2024 ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ ​ Amount ​ ​ ​ % ​ Amount ​ ​ ​ % ​ Change Non-interest-bearing demand deposits ​ $ 29,991 16.2 % ​ $ 28,281 15.2 % ​ $ 1,710 ​ 6.0 % Interest-bearing demand deposits ​ 32,851 17.7 ​ ​ 48,334 26.0 ​ ​ (15,483) ​ (32.0) ​ Money market ​ 10,235 5.5 ​ ​ 10,729 5.8 ​ ​ (494) ​ (4.6) ​ Savings ​ 53,831 29.1 ​ ​ 37,639 20.3 ​ ​ 16,192 ​ 43.0 ​ Certificates of deposit ​ ​ 58,366 31.5 ​ ​ ​ 60,691 32.7 ​ ​ ​ (2,325) ​ (3.8) ​ Total deposits ​ $ 185,274 100.0 % ​ $ 185,674 100.0 % ​ $ (400) ​ (0.2) ​ ​ ​ The ratio of the Company’s total loans to deposits was 91.9% and 90.0% as of December 31, 2025 and 2024, respectively. ​ The decline in interest-bearing demand deposits was largely due to fluctuations in public fund balances.
Government and agency obligations ​ - ​ ​ 1.00 ​ ​ 1.47 ​ ​ 2.42 ​ ​ 1.61 ​ Municipal obligations ​ - ​ ​ 3.33 ​ ​ - ​ ​ 1.41 ​ ​ 2.37 ​ Total weighted average yield ​ - ​ ​ 3.56 ​ ​ 1.63 ​ ​ 2.17 ​ ​ 2.32 ​ ​ ​ 37 Table of Contents Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments, or call options.
Government and agency obligations ​ - ​ ​ 1.24 ​ ​ 2.46 ​ ​ - ​ ​ 1.61 ​ Municipal obligations ​ - ​ ​ 3.36 ​ ​ 3.39 ​ ​ - ​ ​ 3.38 ​ Total weighted average yield ​ - ​ ​ 2.50 ​ ​ 2.91 ​ ​ 3.46 ​ ​ 3.19 ​ ​ ​ Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments, or call options.
During the year ended December 31, 2024, the Company repurchased 483,176 shares of its common stock at an average cost of $11.91 per share. Of those shares, 228,326 shares were repurchased under the Company’s November 2023 Repurchase Plan and 227,000 shares were repurchased under the May 2024 Repurchase Plan.
During the year ended December 31, 2025, the Company repurchased 203,239 shares of its common stock at an average cost of $12.72 per share. Of those shares, 187,150 shares were repurchased under the Company’s November 2024 Repurchase Plan and 16,089 shares were repurchased under the November 2025 Repurchase Plan.
Proceeds from the sales totaled $42.6 million, inclusive of accrued interest. During the nine-month period ending December 31, 2024, the Company re-deployed a portion of the sales proceeds by purchasing $7.9 million of fixed-rate government-sponsored mortgage-backed securities.
During the nine-month period ending December 31, 2024, the Company re-deployed a portion of the sales proceeds by purchasing $7.9 million of fixed-rate government-sponsored mortgage-backed securities. Net unrealized losses on securities available-for-sale totaled $3.1 million at December 31, 2025, compared to $4.5 million at December 31, 2024.
Government and agency obligations ​ ​ - ​ - ​ ​ ​ - ​ 7,999 ​ 8.6 ​ ​ 7,388 Municipal obligations ​ ​ 1,704 ​ 3.7 ​ ​ 1,510 ​ 5,998 ​ 6.4 ​ ​ ​ 5,640 Total securities available-for-sale ​ ​ 33,215 ​ 71.2 ​ ​ 28,712 ​ 79,701 ​ 85.5 ​ ​ ​ 70,540 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
Government and agency obligations ​ ​ - ​ - ​ ​ ​ - ​ - ​ - ​ ​ - Municipal obligations ​ ​ 1,697 ​ 2.5 ​ ​ 1,579 ​ 1,704 ​ 3.7 ​ ​ ​ 1,510 Total securities available-for-sale ​ ​ 53,517 ​ 78.2 ​ ​ 50,467 ​ 33,215 ​ 71.2 ​ ​ ​ 28,712 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
The increase in savings deposits was largely driven by rate specials offered to depositors during 2024, while the increase in certificates of deposit was primarily due to the acquisition of brokered funding during the fourth quarter of 2024. ​ The estimated amount of our total uninsured deposits (that is deposits in excess of the FDIC’s insurance limit), inclusive of public funds, was approximately $53.7 million at December 31, 2024 and $44.6 million at December 31, 2023.
Certificates of deposit declined primarily due to the scheduled maturity of $5.0 million of brokered deposits, which was partially offset by growth driven by in-market rate specials. ​ The estimated amount of our total uninsured deposits (that is deposits in excess of the FDIC’s insurance limit), inclusive of public funds, was approximately $50.1 million at December 31, 2025 and $53.7 million at December 31, 2024.
At December 31, 2024, the full amount of our public fund deposits in excess of the FDIC’s insurance limit were secured by either pledged investment securities of $15.1 million or $25.0 million of a custodial letter of credit granted by the Federal Home Loan Bank of Dallas. ​ 38 Table of Contents The following table shows the average balance of each type of deposit and the average rate paid on each type of interest-bearing deposit for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2024 ​ 2023 (Dollars in thousands) Average Balance Interest Expense Average Rate Paid ​ Average Balance Interest Expense Average Rate Paid Interest-bearing demand deposits ​ $ 37,242 ​ $ 287 0.77 % ​ $ 40,474 ​ $ 240 0.59 % Money market ​ 13,467 ​ 266 1.98 ​ ​ 16,616 ​ 196 1.18 ​ Savings accounts ​ ​ 36,043 ​ ​ 881 ​ 2.44 ​ ​ ​ 27,996 ​ ​ 222 ​ 0.79 ​ Certificates of deposit ​ 56,498 ​ 1,795 3.18 ​ ​ 51,235 ​ 979 1.91 ​ Total interest-bearing deposits ​ $ 143,250 ​ $ 3,229 2.25 ​ ​ $ 136,321 ​ $ 1,637 1.20 ​ Non-interest-bearing demand deposits ​ ​ 28,842 ​ ​ - ​ ​ ​ ​ ​ 34,356 ​ ​ - ​ ​ ​ Total deposits ​ $ 172,092 ​ $ 3,229 ​ ​ ​ $ 170,677 ​ $ 1,637 ​ ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our total certificates of deposit at December 31, 2024 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Amount ​ Weighted Average Rate Balance at December 31, 2024 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 21,836 3.80 % Over three months through six months ​ 18,274 3.16 ​ Over six through 12 months ​ 14,073 3.06 ​ Over 12 months ​ 6,508 1.88 ​ Total certificates of deposit ​ $ 60,691 3.23 ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our certificates of deposit in excess of the FDIC insurance limit (generally, $250,000) at December 31, 2024 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount ​ Weighted Average Rate Balance at December 31, 2024 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 5,260 4.51 % Over three months through six months ​ 7,723 3.05 ​ Over six through 12 months ​ 3,121 3.21 ​ Over 12 months ​ 1,199 2.43 ​ Total certificates of deposit with balances in excess of $250,000 ​ $ 17,303 3.48 ​ ​ ​ Borrowings .
At December 31, 2025, the full amount of our public fund deposits in excess of the FDIC’s insurance limit were secured by either pledged investment securities of $25.3 million or $20.0 million of a custodial letter of credit granted by the Federal Home Loan Bank of Dallas. ​ ​ 37 Table of Contents The following table shows the average balance of each type of deposit and the average rate paid on each type of interest-bearing deposit for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2025 ​ 2024 (Dollars in thousands) ​ ​ ​ Average Balance ​ ​ ​ Interest Expense ​ ​ ​ Average Rate Paid ​ Average Balance ​ ​ ​ Interest Expense ​ ​ ​ Average Rate Paid Interest-bearing demand deposits ​ $ 36,276 ​ $ 379 1.04 % ​ $ 37,242 ​ $ 287 0.77 % Money market ​ 10,226 ​ 236 2.31 ​ ​ 13,467 ​ 266 1.98 ​ Savings accounts ​ ​ 47,059 ​ ​ 1,330 ​ 2.83 ​ ​ ​ 36,043 ​ ​ 881 ​ 2.44 ​ Certificates of deposit ​ 56,919 ​ 1,846 3.24 ​ ​ 56,498 ​ 1,795 3.18 ​ Total interest-bearing deposits ​ ​ 150,480 ​ ​ 3,791 2.52 ​ ​ ​ 143,250 ​ ​ 3,229 2.25 ​ Non-interest-bearing demand deposits ​ ​ 29,006 ​ ​ - ​ ​ ​ ​ ​ 28,842 ​ ​ - ​ ​ ​ Total deposits ​ $ 179,486 ​ $ 3,791 ​ ​ ​ $ 172,092 ​ $ 3,229 ​ ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our total certificates of deposit at December 31, 2025 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Amount ​ Weighted Average Rate Balance at December 31, 2025 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 19,309 3.54 % Over three months through six months ​ 18,671 3.31 ​ Over six through 12 months ​ 14,927 2.94 ​ Over 12 months ​ 5,459 1.70 ​ Total certificates of deposit ​ $ 58,366 3.14 ​ ​ ​ The following table shows the maturities and weighted average contractual interest rates of our certificates of deposit in excess of the FDIC insurance limit (generally, $250,000) at December 31, 2025 by time remaining to maturity. ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ ​ Amount ​ Weighted Average Rate Balance at December 31, 2025 maturing in: ​ ​ ​ ​ ​ Three months or less ​ $ 9,354 4.00 % Over three months through six months ​ 5,329 3.39 ​ Over six through 12 months ​ 4,330 2.95 ​ Over 12 months ​ 469 1.75 ​ Total certificates of deposit with balances in excess of $250,000 ​ $ 19,482 3.55 ​ ​ ​ ​ 38 Table of Contents Borrowings .
We also anticipate continued use of our secondary funding sources. 46 Table of Contents The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Commitment Expiration — Per Period (Dollars in thousands) ​ Total Amounts Committed at December 31, 2024 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Commitments to originate loans ​ $ 11,979 ​ $ 11,979 ​ $ - ​ $ - ​ $ - Undisbursed portion of construction loans in process ​ 7,635 ​ 4,654 ​ 2,981 ​ - ​ - Unused lines of credit ​ 15,391 ​ 12,115 ​ 2,164 ​ - ​ 1,112 Unused overdraft privilege amounts ​ 1,167 ​ - ​ - ​ - ​ 1,167 Letters of credit ​ ​ 19 ​ ​ 19 ​ ​ - ​ ​ - ​ ​ - Total commitments ​ $ 36,191 ​ $ 28,767 ​ $ 5,145 ​ $ - ​ $ 2,279 ​ ​ The following table summarizes our contractual cash obligations at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due By Period (Dollars in thousands) ​ Total at December 31, 2024 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Certificates of deposit ​ $ 60,691 ​ $ 54,183 ​ $ 5,935 ​ $ 573 ​ $ - Borrowings ​ 10,000 ​ 3,000 ​ 3,000 ​ 4,000 ​ - Total term debt ​ $ 70,691 ​ $ 57,183 ​ $ 8,935 ​ $ 4,573 ​ $ - ​ ​ Management expects that a majority of the maturing certificates of deposit will be retained.
The following table summarizes our outstanding off-balance sheet commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Commitment Expiration — Per Period (Dollars in thousands) ​ Total Amounts Committed at December 31, 2025 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Commitments to originate loans ​ $ 1,740 ​ $ 1,740 ​ $ - ​ $ - ​ $ - Undisbursed portion of construction loans in process ​ 13,787 ​ 3,538 ​ 10,249 ​ - ​ - Unused lines of credit ​ 15,020 ​ 12,675 ​ 767 ​ 15 ​ 1,563 Unused overdraft privilege amounts ​ 1,238 ​ - ​ - ​ - ​ 1,238 Letters of credit ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - Total commitments ​ $ 31,785 ​ $ 17,953 ​ $ 11,016 ​ $ 15 ​ $ 2,801 ​ ​ The following table summarizes our contractual cash obligations at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments Due By Period (Dollars in thousands) ​ Total at December 31, 2025 ​ To 1 Year ​ 1 - 3 Years ​ 3 - 5 Years ​ After 5 Years Certificates of deposit ​ $ 58,366 ​ $ 52,907 ​ $ 4,969 ​ $ 490 ​ $ - Borrowings ​ 15,000 ​ 8,000 ​ 7,000 ​ - ​ - Total term debt ​ $ 73,366 ​ $ 60,907 ​ $ 11,969 ​ $ 490 ​ $ - ​ ​ Management expects that a majority of the maturing certificates of deposit will be retained.
All average balances are based on daily balances. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2024 ​ 2023 (Dollars in thousands) ​ Average Balance ​ Interest ​ Average Yield/Rate (TE) ​ Average Balance ​ Interest ​ Average Yield/Rate (TE) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable (1) ​ $ 155,867 ​ $ 10,128 6.50 % ​ $ 135,713 ​ $ 7,238 5.33 % Investment securities (2) ​ 54,235 ​ 1,063 1.97 ​ ​ 100,323 ​ 1,643 1.66 ​ Other interest-earning assets ​ 51,552 ​ 2,671 5.18 ​ ​ 16,580 ​ 780 4.70 ​ Total interest-earning assets ​ 261,654 ​ 13,862 5.30 ​ ​ 252,616 ​ 9,661 3.83 ​ Non-interest-earning assets ​ 20,163 ​ ​ ​ ​ ​ ​ ​ 14,077 ​ ​ ​ ​ ​ ​ Total assets ​ $ 281,817 ​ ​ ​ ​ ​ ​ ​ $ 266,693 ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand deposits, money market and savings accounts ​ 86,752 ​ 1,434 1.65 % ​ 85,086 ​ 658 0.77 % Certificates of deposit ​ 56,498 ​ 1,795 3.18 ​ ​ 51,235 ​ 979 1.91 ​ Total interest-bearing deposits ​ 143,250 ​ 3,229 2.25 ​ ​ 136,321 ​ 1,637 1.20 ​ Borrowings ​ 26,393 ​ 1,088 4.12 ​ ​ 10,208 ​ 319 3.12 ​ Total interest-bearing liabilities ​ 169,643 ​ 4,317 2.54 ​ ​ 146,529 ​ 1,956 1.33 ​ Non-interest-bearing liabilities ​ 30,694 ​ ​ ​ ​ ​ ​ ​ 35,387 ​ ​ ​ ​ ​ ​ Total liabilities ​ 200,337 ​ ​ ​ ​ ​ ​ ​ 181,916 ​ ​ ​ ​ ​ ​ Shareholders' equity ​ 81,480 ​ ​ ​ ​ ​ ​ ​ 84,777 ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 281,817 ​ ​ ​ ​ ​ ​ ​ $ 266,693 ​ ​ ​ ​ ​ ​ Net interest-earning assets ​ $ 92,011 ​ ​ ​ ​ ​ ​ ​ $ 106,087 ​ ​ ​ ​ ​ ​ Net interest income; average interest rate spread ​ ​ ​ ​ $ 9,545 2.76 % ​ ​ ​ ​ $ 7,705 2.50 % Net interest margin (3) ​ ​ ​ ​ ​ ​ 3.65 ​ ​ ​ ​ ​ ​ ​ 3.06 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ 154.24 ​ ​ ​ ​ ​ ​ ​ 172.40 ​ (1) Includes non-accrual loans during the respective periods.
All average balances are based on daily balances. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ 2024 (Dollars in thousands) ​ Average Balance ​ Interest ​ Average Yield/Rate (TE) ​ Average Balance ​ Interest ​ Average Yield/Rate (TE) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable (1) ​ $ 167,038 ​ $ 11,161 6.68 % ​ $ 155,867 ​ $ 10,128 6.50 % Investment securities (2) ​ 53,129 ​ 1,425 2.72 ​ ​ 54,235 ​ 1,063 1.97 ​ Other interest-earning assets ​ 30,379 ​ 1,310 4.31 ​ ​ 51,552 ​ 2,671 5.18 ​ Total interest-earning assets ​ 250,546 ​ 13,896 5.55 ​ ​ 261,654 ​ 13,862 5.30 ​ Non-interest-earning assets ​ 21,869 ​ ​ ​ ​ ​ ​ ​ 20,163 ​ ​ ​ ​ ​ ​ Total assets ​ $ 272,415 ​ ​ ​ ​ ​ ​ ​ $ 281,817 ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Demand deposits, money market and savings accounts ​ 93,561 ​ 1,945 2.08 % ​ 86,752 ​ 1,434 1.65 % Certificates of deposit ​ 56,919 ​ 1,846 3.24 ​ ​ 56,498 ​ 1,795 3.18 ​ Total interest-bearing deposits ​ 150,480 ​ 3,791 2.52 ​ ​ 143,250 ​ 3,229 2.25 ​ Borrowings ​ 10,703 ​ 315 2.94 ​ ​ 26,393 ​ 1,088 4.12 ​ Total interest-bearing liabilities ​ 161,183 ​ 4,106 2.55 ​ ​ 169,643 ​ 4,317 2.54 ​ Non-interest-bearing liabilities ​ 30,250 ​ ​ ​ ​ ​ ​ ​ 30,694 ​ ​ ​ ​ ​ ​ Total liabilities ​ 191,433 ​ ​ ​ ​ ​ ​ ​ 200,337 ​ ​ ​ ​ ​ ​ Shareholders' equity ​ 80,982 ​ ​ ​ ​ ​ ​ ​ 81,480 ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity ​ $ 272,415 ​ ​ ​ ​ ​ ​ ​ $ 281,817 ​ ​ ​ ​ ​ ​ Net interest-earning assets ​ $ 89,363 ​ ​ ​ ​ ​ ​ ​ $ 92,011 ​ ​ ​ ​ ​ ​ Net interest income; average interest rate spread ​ ​ ​ ​ $ 9,790 3.00 % ​ ​ ​ ​ $ 9,545 2.76 % Net interest margin (3) ​ ​ ​ ​ ​ ​ 3.92 ​ ​ ​ ​ ​ ​ ​ 3.65 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ 155.44 ​ ​ ​ ​ ​ ​ ​ 154.24 ​ (1) Includes non-accrual loans during the respective periods.
Loans, or portions of loans, are charged off against the allowance in the period that such loans, or portions thereof, are deemed uncollectible. Subsequent recoveries are added to the allowance. The allowance for loan losses totaled $2.5 million, or 1.51% of total loans, at December 31, 2024 and $2.1 million, or 1.47% of total loans, at December 31, 2023.
Loans, or portions of loans, are charged off against the allowance in the period that such loans, or portions thereof, are deemed uncollectible. Subsequent recoveries are added to the allowance.
Foreclosed assets consist of real estate acquired through foreclosure or real estate acquired by acceptance of a deed-in-lieu of foreclosure. (6) Capital ratios are end of period ratios for the Bank only. ​ 31 Table of Contents Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets .
Non-performing loans consist of all non-accruing loans and loans 90 days or more past due. Foreclosed assets consist of real estate acquired through foreclosure or real estate acquired by acceptance of a deed-in-lieu of foreclosure. (6) Capital ratios are end of period ratios for the Bank only. ​ Non-GAAP Measures.
(4) Asset quality ratios are end of period ratios, except for net (charge-offs) recoveries to average loans receivable. (5) Non-performing assets consist of non-performing loans and foreclosed assets. Non-performing loans consist of all non-accruing loans and loans 90 days or more past due.
(3) The efficiency ratio (a non-GAAP measure) represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income. (4) Asset quality ratios are end of period ratios, except for net (charge-offs) recoveries to average loans receivable. (5) Non-performing assets consist of non-performing loans and foreclosed assets.
For more detail on loans pledged to the FHLB, refer to Note 4 of the financial statements included in Item 8 of this Form 10-K. The Company also has a $25.0 million custodial letter of credit outstanding from the FHLB as of December 31, 2024, which is included in the calculation of our available capacity with the FHLB.
The Company also has a $20.0 million custodial letter of credit outstanding from the FHLB as of December 31, 2025, which is included in the calculation of our available capacity with the FHLB indicated above.
The most significant uses and sources of cash flows during the year ended December 31, 2024 included: ● $48.7 million in proceeds from maturities, paydowns, and sales of investment securities, ● $22.7 million net outflow due to an increase in total loans, ● $20.1 million net inflow due to an increase in deposits ● $10.0 million net outflow due to the repayment of BTFP advances, ● $7.9 million in outflows due to purchases of available-for-sale investment securities ● $5.8 million in outflows for the repurchase of the Company’s common stock.
The most significant uses and sources of cash flows during the year ended December 31, 2025 included: ● $26.5 million in outflows due to purchases of investment securities ● $5.0 million in net advances from the FHLB ● $3.3 million in net cash provided by operations ● $4.6 million in proceeds from maturities and paydowns of investment securities ● $3.3 million in outflows due to a net increase in total loans ● $2.6 million in outflows for the repurchase of the Company’s common stock We are committed to maintaining a strong liquidity position.
To the extent that actual outcomes differ from management’s estimates, additional provisions to the allowance for credit losses may be required that would adversely impact earnings in future periods. 28 Table of Contents Investment Securities. Available-for-sale securities consist of investment securities not classified as trading securities or held-to-maturity securities.
To the extent that actual outcomes differ from management’s estimates, additional provisions to the allowance for credit losses may be required that would adversely impact earnings in future periods. 27 Table of Contents Selected Financial and Other Data Set forth below is selected financial and other data of the Company at and for the dates indicated.
Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards. The following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results.
Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards.
The following table summarizes the changes in the composition of our loan portfolio by type of loan as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ ​ ​ ​ ​ (Dollars in thousands) Amount % Amount % ​ Change Real estate loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 81,097 48.5 % ​ $ 83,623 57.7 % ​ $ (2,526) ​ (3.0) % Commercial real estate ​ 22,108 13.2 ​ ​ 21,478 14.8 ​ ​ 630 ​ 2.9 ​ Construction and land ​ 32,941 19.7 ​ ​ 13,857 9.6 ​ ​ 19,084 ​ 137.7 ​ Multi-family residential ​ 2,570 1.5 ​ ​ 3,373 2.3 ​ ​ (803) ​ (23.8) ​ Total real estate loans ​ ​ 138,716 82.9 ​ ​ ​ 122,331 84.4 ​ ​ ​ 16,385 ​ 13.4 ​ Other loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 26,439 15.8 ​ ​ ​ 19,984 13.8 ​ ​ ​ 6,455 ​ 32.3 ​ Consumer ​ ​ 1,921 1.3 ​ ​ ​ 2,605 1.8 ​ ​ ​ (684) ​ (26.3) ​ Total other loans ​ ​ 28,360 17.1 ​ ​ ​ 22,589 15.6 ​ ​ ​ 5,771 ​ 25.5 ​ Total loans ​ $ 167,076 100.0 % ​ $ 144,920 100.0 % ​ $ 22,156 ​ 15.3 % ​ ​ During 2024, loan growth was primarily driven by commercial construction and non-real estate commercial loan growth.
The following table summarizes the changes in the composition of our loan portfolio by type of loan as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ December 31, 2024 ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ ​ Amount ​ ​ ​ % ​ Amount ​ ​ ​ % ​ Change Real estate loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 80,123 47.1 % ​ $ 81,097 48.5 % ​ $ (974) ​ (1.2) % Commercial real estate ​ 32,872 19.3 ​ ​ 22,108 13.2 ​ ​ 10,764 ​ 48.7 ​ Construction and land ​ 18,806 11.0 ​ ​ 32,941 19.7 ​ ​ (14,135) ​ (42.9) ​ Multi-family residential ​ 5,309 3.1 ​ ​ 2,570 1.5 ​ ​ 2,739 ​ 106.6 ​ Total real estate loans ​ ​ 137,110 80.5 ​ ​ ​ 138,716 82.9 ​ ​ ​ (1,606) ​ (1.2) ​ Other loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 31,205 18.3 ​ ​ ​ 26,439 15.8 ​ ​ ​ 4,766 ​ 18.0 ​ Consumer ​ ​ 1,895 1.2 ​ ​ ​ 1,921 1.3 ​ ​ ​ (26) ​ (1.4) ​ Total other loans ​ ​ 33,100 19.5 ​ ​ ​ 28,360 17.1 ​ ​ ​ 4,740 ​ 16.7 ​ Total loans ​ $ 170,210 100.0 % ​ $ 167,076 100.0 % ​ $ 3,134 ​ 1.9 ​ ​ ​ During 2025, a multi-family construction loan with an outstanding balance of $4.4 million at December 31, 2024 paid-off and $16.5 million of outstanding construction loans at December 31, 2024 were converted to amortizing real estate loans following the completion of their respective construction projects.
The average rate earned on our investment securities portfolio was 1.97% for the year ended December 31, 2024, up 31 basis points compared to 1.66% for 2023 primarily due to investment securities purchased during 2024.
The average rate earned on our investment securities portfolio was 2.72% for 2025, up 75 bps compared to 2024, primarily due to the impact of higher-yielding investment securities purchased during 2024 and 2025.
The change in the carrying value of our FHLB advances reflects the amortization of deferred prepayment penalties on $10.0 million in advances restructured in December of 2020. Deferred prepayment penalties on our FHLB advances totaled $442,000 and $622,000 at December 31, 2024 and 2023, respectively.
Deferred prepayment penalties on our FHLB advances totaled $268,000 and $442,000 at December 31, 2025 and 2024, respectively.
Data processing and communication expense for 2024 included $509,000 of data conversion and other associated expenses associated with the Company’s upgrade to a new core processing system. Professional fees totaled $469,00 for the year ended December 31, 2024, down $17,000, or 3.5%, from 2023. Professional fees associated with obtaining our 2024 and 2023 BEA grants totaled $42,000 and $66,000, respectively.
Data processing and communication expense for 2024 included $509,000 of data conversion and other associated expenses due to the Company’s upgrade to a new core processing system.
Non-interest income for 2024 was down $5.4 million compared to 2023, primarily due to losses on the sales of investment securities. Non-interest expense for 2024 was up $578,000, or 6.7%, compared to 2023, primarily due to expenses associated with the Company’s upgrade to a new core processing system. Interest Income.
Non-interest expense for 2025 was down compared to 2024 primarily due to expenses incurred during 2024 related to the Company’s upgrade to a new core processing system. ​ 41 Table of Contents Interest Income.
For the year ended December 31, 2024, the Company reported a net loss of $3.1 million, compared to net income of $526,000 for the year ended December 31, 2023. Net interest income for 2024 was up $1.8 million, or 23.9%, compared to 2023. The provision for credit losses totaled $531,000 in 2024, compared to $128,000 in 2023.
For the year ended December 31, 2025, the Company reported net income of $2.1 million, or $0.56 diluted EPS, compared to a net loss of $3.1 million for the year ended December 31, 2024.
The combined effect of changes in both rate and volume has been allocated proportionately to the change due to rate and the change due to volume. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, 2024 vs 2023 ​ ​ Increase (Decrease) Due to ​ Total (Dollars in thousands) ​ Rate ​ Volume ​ Increase (Decrease) Interest income: ​ ​ ​ Loans receivable ​ $ 1,720 ​ $ 1,170 ​ $ 2,890 Investment securities ​ 276 ​ (856) ​ (580) Other interest-earning assets ​ 76 ​ 1,815 ​ 1,891 Total interest income ​ 2,072 ​ 2,129 ​ 4,201 Interest expense: ​ ​ ​ Demand deposits, money market and savings accounts ​ 764 ​ 12 ​ 776 Certificates of deposit ​ 706 ​ 110 ​ 816 Total deposits ​ 1,470 ​ 122 ​ 1,592 Borrowings ​ (6) ​ 775 ​ 769 Total interest expense ​ 1,464 ​ 897 ​ 2,361 Increase (decrease) in net interest income ​ $ 608 ​ $ 1,232 ​ $ 1,840 ​ ​ ​ 42 Table of Contents Comparison of Results of Operation for the Years Ended December 31, 2024 and 2023 General.
The combined effect of changes in both rate and volume has been allocated proportionately to the change due to rate and the change due to volume. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, 2025 vs 2024 ​ ​ Increase (Decrease) Due to ​ Total (Dollars in thousands) ​ Rate ​ Volume ​ Increase (Decrease) Interest income: ​ ​ ​ ​ ​ ​ Loans receivable ​ $ 293 ​ $ 740 ​ $ 1,033 Investment securities ​ 388 ​ (26) ​ 362 Other interest-earning assets ​ (395) ​ (966) ​ (1,361) Total interest income ​ 286 ​ (252) ​ 34 Interest expense: ​ ​ ​ ​ ​ ​ Demand deposits, money market and savings accounts ​ 392 ​ 119 ​ 511 Certificates of deposit ​ 38 ​ 13 ​ 51 Total deposits ​ 430 ​ 132 ​ 562 Borrowings ​ (394) ​ (379) ​ (773) Total interest expense ​ 36 ​ (247) ​ (211) Increase (decrease) in net interest income ​ $ 250 ​ $ (5) ​ $ 245 ​ ​ Comparison of Results of Operation for the Years Ended December 31, 2025 and 2024 General.
For reporting periods beginning on or after January 1, 2023, the allowance for credit losses reflects management’s current estimate of expected credit losses over the remaining life of its loans as of the end of the reporting period.
We have identified the evaluation of the allowance for credit losses as a critical accounting policy where amounts are sensitive to material variation. The Company’s allowance for credit losses reflects management’s current estimate of expected credit losses over the remaining life of its loans as of the end of the reporting period.
Since 2021, we have increased our commercial lending activities to grow the loan portfolio with greater diversification. ​ 32 Table of Contents The following table presents certain major segments of our commercial real estate, construction and land, and commercial and industrial loan balances as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ 2024 ​ 2023 ​ Change Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail ​ $ 4,005 ​ $ 4,825 ​ $ (820) ​ (17.0) % Hospitality ​ ​ 3,460 ​ ​ 4,003 ​ ​ (543) ​ (13.6) ​ Restaurants ​ ​ 1,091 ​ ​ 1,037 ​ ​ 54 ​ 5.2 ​ Oilfield services ​ ​ 402 ​ ​ 437 ​ ​ (35) ​ (8.0) ​ Other non-owner occupied ​ ​ 2,658 ​ ​ 2,908 ​ ​ (250) ​ (8.6) ​ Other owner occupied ​ ​ 10,492 ​ ​ 8,268 ​ ​ 2,224 ​ 26.9 ​ Total commercial real estate ​ $ 22,108 ​ $ 21,478 ​ $ 630 ​ 2.9 ​ Construction and land ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ $ 10,031 ​ $ 1,406 ​ $ 8,625 ​ 613.4 % Health service facilities ​ ​ 7,139 ​ ​ 2,469 ​ ​ 4,670 ​ 189.1 ​ Hospitality ​ ​ 2,716 ​ ​ 2,716 ​ ​ - ​ - ​ Retail ​ ​ 5,106 ​ ​ - ​ ​ 5,106 ​ - ​ Other commercial construction and land ​ ​ 4,364 ​ ​ 4,312 ​ ​ 52 ​ 1.2 ​ Consumer residential construction and land ​ ​ 3,585 ​ ​ 2,954 ​ ​ 631 ​ 21.4 ​ Total construction and land ​ $ 32,941 ​ $ 13,857 ​ $ 19,084 ​ 137.7 ​ Commercial and industrial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oilfield services ​ $ 14,823 ​ $ 6,254 ​ $ 8,569 ​ 137.0 % Industrial equipment ​ ​ 2,831 ​ ​ 3,453 ​ ​ (622) ​ (18.0) ​ Professional services ​ ​ 3,127 ​ ​ 2,792 ​ ​ 335 ​ 12.0 ​ Communications ​ ​ - ​ ​ 2,823 ​ ​ (2,823) ​ (100.0) ​ Other commercial and industrial ​ ​ 5,658 ​ ​ 4,662 ​ ​ 996 ​ 21.4 ​ Total commercial and industrial loans ​ $ 26,439 ​ $ 19,984 ​ $ 6,455 ​ 32.3 ​ ​ ​ The following table shows the scheduled contractual maturities of our loans as of December 31, 2024.
The increase in commercial and industrial loans during 2025 was largely driven by growth within the industrial equipment and oilfield services segments of our loan portfolio. ​ 30 Table of Contents The following table presents certain major segments of our commercial real estate, construction and land, and commercial and industrial loan balances as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ 2025 ​ 2024 ​ Change Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail ​ $ 9,455 ​ $ 4,005 ​ $ 5,450 ​ 136.1 % Hospitality ​ ​ 5,632 ​ ​ 3,460 ​ ​ 2,172 ​ 62.8 ​ Health service facilities ​ ​ 3,300 ​ ​ 393 ​ ​ 2,907 ​ 739.7 ​ Restaurants ​ ​ 1,071 ​ ​ 1,091 ​ ​ (20) ​ (1.8) ​ Oilfield services ​ ​ 365 ​ ​ 402 ​ ​ (37) ​ (9.2) ​ Other non-owner occupied ​ ​ 2,349 ​ ​ 2,658 ​ ​ (309) ​ (11.6) ​ Other owner occupied ​ ​ 10,700 ​ ​ 10,099 ​ ​ 601 ​ 6.0 ​ Total commercial real estate ​ $ 32,872 ​ $ 22,108 ​ $ 10,764 ​ 48.7 ​ Construction and land ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family residential ​ $ 4,749 ​ $ 10,031 ​ $ (5,282) ​ (52.7) % Health service facilities ​ ​ 10,547 ​ ​ 7,139 ​ ​ 3,408 ​ 47.7 ​ Hospitality ​ ​ - ​ ​ 2,716 ​ ​ (2,716) ​ (100.0) ​ Retail ​ ​ - ​ ​ 5,106 ​ ​ (5,106) ​ (100.0) ​ Other commercial construction and land ​ ​ 2,112 ​ ​ 4,364 ​ ​ (2,252) ​ (51.6) ​ Consumer residential construction and land ​ ​ 1,398 ​ ​ 3,585 ​ ​ (2,187) ​ (61.0) ​ Total construction and land ​ $ 18,806 ​ $ 32,941 ​ $ (14,135) ​ (42.9) ​ Commercial and industrial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oilfield services ​ $ 17,295 ​ $ 14,823 ​ $ 2,472 ​ 16.7 % Industrial equipment ​ ​ 7,064 ​ ​ 2,831 ​ ​ 4,233 ​ 149.5 ​ Professional services ​ ​ 3,531 ​ ​ 3,127 ​ ​ 404 ​ 12.9 ​ Other commercial and industrial ​ ​ 3,315 ​ ​ 5,658 ​ ​ (2,343) ​ (41.4) ​ Total commercial and industrial loans ​ $ 31,205 ​ $ 26,439 ​ $ 4,766 ​ 18.0 ​ ​ ​ The following table shows the scheduled contractual maturities of our loans as of December 31, 2025.
The increase in the allowance for loan losses from December 31, 2023 largely reflects the impact of loan growth in 2024.
The decline in the allowance for credit losses on loans from December 31, 2024 largely reflects the impact of net charge-offs and a decline in the estimated allowance for credit losses on individually evaluated loans.
Shareholders’ equity totaled $80.2 million, or 29.0% of total assets, at December 31, 2024, down $4.4 million, or 5.2%, from $84.6 million, or 31.2% of total assets, at December 31, 2023. During 2024, shareholders’ equity decreased by $5.8 million due to the Company’s repurchases of its common stock.
Shareholders’ equity totaled $81.7 million, or 28.9% of total assets, at December 31, 2025, up $1.5 million, or 1.9%, from $80.2 million, or 29.0% of total assets, at December 31, 2024. During 2025, the impacts of net income and the decline in unrealized losses on available-for-sale securities were partially offset by the Company’s repurchases of its common stock.
Government and agency obligations ​ - ​ ​ 2,000 ​ ​ 8,000 ​ ​ 3,000 ​ ​ 13,000 ​ Municipal obligations ​ ​ - ​ ​ ​ 1,075 ​ ​ ​ - ​ ​ ​ 1,076 ​ ​ ​ 2,151 ​ Total ​ $ - ​ ​ $ 8,426 ​ ​ $ 8,445 ​ ​ $ 29,791 ​ ​ $ 46,662 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average yield ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ - % ​ 4.56 % ​ 4.55 % ​ 2.17 % ​ 2.61 % U.S.
Government and agency obligations ​ - ​ ​ 9,000 ​ ​ 4,000 ​ ​ - ​ ​ 13,000 ​ Municipal obligations ​ ​ - ​ ​ ​ 1,070 ​ ​ ​ 2,544 ​ ​ ​ - ​ ​ ​ 3,614 ​ Total ​ $ - ​ ​ $ 15,382 ​ ​ $ 6,882 ​ ​ $ 46,170 ​ ​ $ 68,434 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average yield ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ - % ​ 4.45 % ​ 4.70 % ​ 3.46 % ​ 3.57 % U.S.
During the first quarter of 2024, the Company executed a strategy involving the sale of a substantial portion of its available-for-sale investment securities. The Company sold 50 available-for-sale investment securities for a pre-tax loss of $5.5 million and collected proceeds from the sales of $42.6 million.
The weighted average yield of the securities purchased during 2025 was 4.72% at December 31, 2025. During the three months ended March 31, 2024, the Company sold 50 available-for-sale investment securities for a total pre-tax loss of $5.5 million. Proceeds from the sales totaled $42.6 million, inclusive of accrued interest.
Total investment securities, available-for-sale and held-to-maturity, amounted to $42.2 million at December 31, 2024, down $41.8 million, or 49.8%, compared to $84.0 million in investment securities at December 31, 2023. Net unrealized losses on securities available-for-sale totaled $4.5 million at December 31, 2024, compared to $9.2 million at December 31, 2023.
Total investment securities, available-for-sale and held-to-maturity, amounted to $65.4 million at December 31, 2025, up $23.2 million, or 55.1%, compared to $42.2 million in investment securities at December 31, 2024. During 2025, the Company purchased $20.2 million of variable-rate and $6.3 million of fixed-rate securities.
The Company reported an income tax benefit of $894,000 for the year ended December 31, 2024, compared to income tax expense of $61,000 for the year ended December 31, 2023.
The Company reported income tax expense of $452,000 for 2025, compared to an income tax benefit of $894,000 for 2024. The change in income taxes over the comparable periods was largely due to the loss on sales of investment securities in 2024.
The amounts shown below do not take into account loan prepayments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts due after December 31, 2024 in (Dollars in thousands) ​ One year or less ​ After one year through five years ​ After five years through 15 years ​ After 15 years ​ Total One- to four-family residential $ 609 $ 7,304 $ 31,113 $ 42,071 $ 81,097 Commercial real estate ​ 85 ​ 12,599 ​ 8,270 ​ 1,154 ​ 22,108 Construction and land ​ 23,903 ​ 8,672 ​ 330 ​ 36 ​ 32,941 Multi-family residential ​ - ​ 470 ​ 2,100 ​ - ​ 2,570 Commercial and industrial ​ 6,848 ​ 15,289 ​ 4,267 ​ 35 ​ 26,439 Consumer ​ 268 ​ 1,369 ​ 284 ​ - ​ 1,921 Total $ 31,713 $ 45,703 $ 46,364 $ 43,296 $ 167,076 ​ ​ 33 Table of Contents The following table shows the dollar amount of our loans at December 31, 2024, due after December 31, 2025, as shown in the preceding table, which have fixed interest rates or which have floating or adjustable interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Fixed-Rate ​ Floating or Adjustable-Rate ​ Total Amounts due after December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential $ 32,153 ​ $ 48,335 ​ $ 80,488 Commercial real estate ​ 13,656 ​ 8,367 ​ 22,023 Construction and land ​ 1,977 ​ 7,061 ​ 9,038 Multi-family residential ​ - ​ 2,570 ​ 2,570 Commercial and industrial ​ 15,657 ​ 3,934 ​ 19,591 Consumer ​ 1,278 ​ 375 ​ 1,653 Total $ 64,721 ​ $ 70,642 ​ $ 135,363 ​ ​ Allowance for Credit Losses .
The amounts shown below do not take into account loan prepayments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts due after December 31, 2025 in (Dollars in thousands) ​ One year or less ​ After one year through five years ​ After five years through 15 years ​ After 15 years ​ Total One- to four-family residential $ 902 $ 6,312 $ 32,076 $ 40,833 $ 80,123 Commercial real estate ​ 951 ​ 24,579 ​ 6,708 ​ 634 ​ 32,872 Construction and land ​ 13,269 ​ 5,055 ​ 447 ​ 35 ​ 18,806 Multi-family residential ​ 469 ​ 2,940 ​ 1,900 ​ - ​ 5,309 Commercial and industrial ​ 9,655 ​ 18,747 ​ 2,775 ​ 28 ​ 31,205 Consumer ​ 441 ​ 1,360 ​ 94 ​ - ​ 1,895 Total $ 25,687 $ 58,993 $ 44,000 $ 41,530 $ 170,210 ​ ​ 31 Table of Contents The following table shows the dollar amount of our loans at December 31, 2025, due after December 31, 2026, as shown in the preceding table, which have fixed interest rates or which have floating or adjustable interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ Fixed-Rate ​ Floating or Adjustable-Rate ​ Total Amounts due after December 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family residential $ 35,727 ​ $ 43,494 ​ $ 79,221 Commercial real estate ​ 21,794 ​ 10,127 ​ 31,921 Construction and land ​ 547 ​ 4,990 ​ 5,537 Multi-family residential ​ 2,940 ​ 1,900 ​ 4,840 Commercial and industrial ​ 17,916 ​ 3,634 ​ 21,550 Consumer ​ 1,317 ​ 137 ​ 1,454 Total $ 80,241 ​ $ 64,282 ​ $ 144,523 ​ ​ Allowance for Credit Losses .
Total interest income increased $4.2 million, or 43.5%, to $13.9 million for the year ended December 31, 2024, compared to 2023. Interest income on loans and other interest-earning assets were up by $2.9 million and $1.9 million, respectively, for the year ended December 31, 2024, compared to 2023.
The allowance for credit losses on loans totaled $2.4 million, or 1.39% of total loans, at December 31, 2025 and $2.5 million, or 1.51% of total loans, at December 31, 2024.
Removed
We have identified the evaluation of the allowance for credit losses as a critical accounting policy where amounts are sensitive to material variation. On January 1, 2023, the Company adopted the guidance under ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.
Added
SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.
Removed
The main provisions of the ASU have been codified by the FASB under ASC 326. The amendments introduced an impairment model that is based on current expected credit losses, rather than incurred losses, to estimate credit losses on loans.
Added
Not all significant accounting policies require management to make difficult, subjective or complex judgments. However, management believes the policy noted below meet the SEC’s definition of critical accounting policies.
Removed
Available-for-sale securities are reported at fair value and unrealized holding gains and losses, net of tax, on available-for-sale securities are included in other comprehensive income. The fair market values of investment securities are obtained from a third-party service provider, whose prices are based on a combination of observed market prices for identical or similar instruments and various matrix pricing programs.
Added
The efficiency ratio is a non-GAAP financial measure used by the Company that the Company believes is useful to investors in understanding the Company's performance and trends and facilitates comparison with the performance of its peers. The efficiency ratio represents non-interest expense as a percentage of total revenues.
Removed
The fair market values of investment securities are classified within Level 2 of the fair value hierarchy. At December 31, 2024 and 2023, net unrealized losses on available-for-sale securities totaled $4.5 million and $9.2 million, respectively. Unrealized losses on our available-for-sale securities relate principally to the increases in market rates of similar types of securities.
Added
Total revenues is the sum of net interest income and non-interest income. 29 Table of Contents Comparison of Financial Condition at December 31, 2025 and December 31, 2024 Total Assets . Total assets increased $6.2 million, or 2.3%, to $282.9 million at December 31, 2025 from $276.7 million at December 31, 2024.
Removed
During the year ended December 31, 2024, the Company sold 50 available- for-sale investment securities for a total loss of $5.5 million, which is reported in the consolidated statements of income.
Added
The increase was largely driven by an increase in borrowings, which were used to partially fund growth in investment securities and loans. Loans .
Removed
Proceeds from the investment sales totaled $42.6 million, inclusive of accrued interest. ​ The adoption of ASC 326 amended the guidance applicable to measuring and recognizing losses on available-for-sale securities.
Added
At December 31, 2025, the outstanding balance of the converted construction loans totaled $19.0 million. Of the $19.0 million, $4.4 million was classified as one- to four-family residential, $2.9 million was classified as multi-family, and the remaining balance was classified as commercial real estate as of December 31, 2025.
Removed
Under ASC 326, expected credit related losses for available-for-sale debt securities are recorded through an allowance for credit losses, while non-credit related losses will continue to be recognized through other comprehensive income as unrealized holding gains and losses, net of tax. ​ For reporting periods on or after January 1, 2023 and the adoption of ASC 326, management evaluates available-for-sale securities in unrealized loss positions to determine if the decline in the fair value of each security below its amortized cost basis is due to credit-related factors or noncredit-related factors.
Added
The decline in the ratio of the allowance to total loans largely reflects the impact of net charge-offs and a decline in the estimated allowance for credit losses on individually evaluated loans during 2025. The allowance for credit losses on unfunded commitments totaled $211,000, up $90,000 from December 31, 2024.
Removed
Consideration is given to the extent to which that fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period sufficient to allow for any anticipated recovery in fair value.
Added
The following table shows the amounts of our substandard loans and non-performing assets, which include non-accruing loans, accruing loans 90 days or more past due and foreclosed assets at the dates indicated. During 2025, the Company downgraded a $3.3 million non-real estate, commercial loan relationship to substandard due to declines in debt service coverage.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThese trusted third parties help the Bank improve and test its cybersecurity readiness. The Bank engages third-party vendors to monitor and test its network infrastructure. These third-party vendors take an active role in ensuring that the Bank’s systems are protected by testing, reviewing and advising the Bank to strengthen cybersecurity controls when necessary.
Biggest changeThese third-party vendors take an active role in ensuring that the Bank’s systems are protected by testing, reviewing and advising the Bank to strengthen cybersecurity controls when necessary. 22 Table of Contents The Bank has a vendor oversight risk management process that helps to validate the security and integrity of information collected and maintained by third-party vendors that the Bank uses to provide banking services.
As regulated financial institutions, the Company and Bank are also subject to financial privacy laws and their cybersecurity practices are subject to oversight by the federal banking agencies. For additional information, see “Supervision and Regulation –Cybersecurity” included in Part I. Item 1 – Business of this report. ​ 23 Table of Contents ​
As regulated financial institutions, the Company and Bank are also subject to financial privacy laws and their cybersecurity practices are subject to oversight by the federal banking agencies. For additional information, see “Supervision and Regulation –Cybersecurity” included in Part I. Item 1 – Business of this report. ​
These processes are supported by specialized vendors that assist the Bank’s management and Board of Directors with properly assessing these risks. Finally, the Bank also has an incident response and business continuity program that is intended to address operational concerns, including cybersecurity risks, during contingency scenarios that may create unknown circumstances. This program is tested annually.
Finally, the Bank also has an incident response and business continuity program that is intended to address operational concerns, including cybersecurity risks, during contingency scenarios that may create unknown circumstances. This program is tested annually.
The Bank’s information security program is developed and implemented by the Bank’s Information Security Officer. Together with the Bank’s Information Technology Committee, comprised of relevant information technology and business unit stakeholders within Bank management, the Information Security Officer of the Bank works to manage, control and mitigate cybersecurity risks.
Together with the Bank’s Information Technology Committee, comprised of relevant information technology and business unit stakeholders within Bank management, the Information Security Officer of the Bank works to manage, control and mitigate cybersecurity risks. The Bank’s employees are regularly trained on cybersecurity awareness, and testing is performed to monitor the success of the training.
The Bank’s employees are regularly trained on cybersecurity awareness, and testing is performed to monitor the success of the training. The Board of Directors receives training annually. The Bank engages trusted third parties to audit and examine its processes, review the security of its network infrastructure, and assist the Bank in designing and implementing robust cybersecurity systems.
The Board of Directors receives training annually. The Bank engages third parties to audit and examine its processes, review the security of its network infrastructure, and assist the Bank in designing and implementing robust cybersecurity systems. These third parties help the Bank improve and test its cybersecurity readiness. The Bank engages third-party vendors to monitor and test its network infrastructure.
The Bank has a vendor oversight risk management process that helps to validate the security and integrity of information collected and maintained by third-party vendors that the Bank uses to provide banking services. A key goal of the Bank’s vendor management program includes assessing risks, which include but are not limited to operational, strategic, reputational, cyber, and credit risks.
A key goal of the Bank’s vendor management program includes assessing risks, which include but are not limited to operational, strategic, reputational, cyber, and credit risks. These processes are supported by specialized vendors that assist the Bank’s management and Board of Directors with properly assessing these risks.
Added
Our Information Security Officer has over 20 years of relevant experience in the areas of information security and cyber security risk management. The Bank’s information security program is developed and implemented by the Bank’s Information Security Officer.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties We currently conduct business from our main office and five full-service banking offices. The aggregate net book value of the land, building and leasehold improvements with respect to our offices at December 31, 2024 was $5.3 million. We owned all of such offices at December 31, 2024. No offices were leased.
Biggest changeItem 2. Properties We currently conduct business from our main office and five full-service banking offices. The aggregate net book value of the land, building and leasehold improvements with respect to our offices at December 31, 2025 was $5.1 million. We owned all of such offices at December 31, 2025. No offices were leased.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings ​ Catalyst Bancorp and Catalyst Bank are not involved in any pending legal proceedings other than nonmaterial legal proceedings occurring in the ordinary course of business. ​ Item 4. Mine Safety Disclosures ​ Not applicable. ​ ​ PART II
Biggest changeItem 3. Legal Proceedings ​ Catalyst Bancorp and Catalyst Bank are not involved in any pending legal proceedings other than nonmaterial legal proceedings occurring in the ordinary course of business. ​ Item 4. Mine Safety Disclosures ​ Not applicable. ​ ​ 23 Table of Contents PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 24 PART II. ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6. [Reserved.] 25 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 47 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 23 PART II. ​ ​ Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6. [Reserved.] 24 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 47 Item 8.
Added
Financial Statements and Supplementary Data 48 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 89 Item 9A. Controls and Procedures 89 Item 9B. Other Information 90

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeUnder the November 2024 Repurchase Plan, the Company may purchase up to 215,000 shares, or approximately 5%, of the Company's outstanding common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Month Ended ​ Total Number of Shares Purchased ​ Average Price Paid per Share ​ Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ​ Maximum Number of Shares that May Yet be Purchased Under Plans or Programs October 31, 2024 ​ ​ 51,077 ​ $ 11.49 ​ ​ 51,077 ​ ​ 42,050 November 30, 2024 ​ ​ 34,915 ​ ​ 11.52 ​ ​ 34,915 ​ ​ 222,135 December 31, 2024 ​ ​ 34,985 ​ ​ 11.63 ​ ​ 34,985 ​ ​ 187,150 Total ​ ​ 120,977 ​ $ 11.54 ​ ​ 120,977 ​ ​ ​ ​ Since January 1, 2025 through March 24, 2025, the Company repurchased 71,479 shares of its common stock at an average cost per share of $11.86 under the November 2024 Repurchase Plan. ​ ​
Biggest changeUnder the November 2025 Repurchase Plan, the Company may purchase up to 205,000 shares, or approximately 5%, of the Company's outstanding common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Month Ended ​ Total Number of Shares Purchased ​ Average Price Paid per Share ​ Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ​ Maximum Number of Shares that May Yet be Purchased Under Plans or Programs October 31, 2025 ​ ​ 14,455 ​ $ 13.35 ​ ​ 14,455 ​ ​ 24,149 November 30, 2025 ​ ​ 19,251 ​ ​ 14.87 ​ ​ 19,251 ​ ​ 209,898 December 31, 2025 ​ ​ 20,987 ​ ​ 15.12 ​ ​ 20,987 ​ ​ 188,911 Total ​ ​ 54,693 ​ $ 14.56 ​ ​ 54,693 ​ ​ ​ ​ ​ ​ ​
Under the May 2024 Repurchase Plan, the Company purchased 227,000 shares, or approximately 5%, of the Company's outstanding common stock. The Company completed the May 2024 Repurchase Plan in December 2024. On November 25, 2024, the Company’s Board of Directors approved the Company’s fifth share repurchase program (the “November 2024 Repurchase Plan”).
(c) On November 25, 2024, the Company’s Board of Directors approved the Company’s fifth share repurchase program (the “November 2024 Repurchase Plan”). Under the November 2024 Repurchase Plan, the Company purchased 215,000 shares, or approximately 5%, of the Company's outstanding common stock. The Company completed the November 2024 Repurchase Plan in December 2025.
As of the close of business on December 31, 2024, there were 4,278,150 shares of common stock outstanding, held by approximately 226 shareholders of record, not including the number of persons or entities whose stock is held in nominee or “street” name through various brokerage firms and banks.
As of the close of business on December 31, 2025, there were 4,074,911 shares of common stock outstanding, held by approximately 210 shareholders of record, not including the number of persons or entities whose stock is held in nominee or “street” name through various brokerage firms and banks. (b) Not applicable.
Removed
The following table sets forth the high and low prices of the Company’s common stock as reported by the Nasdaq Capital Market.
Added
On November 20, 2025, the Company announced its sixth share repurchase plan (the “November 2025 Repurchase Plan”).
Removed
To date, no dividends have been declared by the Company on its common stock. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended ​ High ​ Low ​ Cash Dividends Declared December 31, 2021 ​ $ 14.09 ​ $ 13.31 ​ $ - March 31, 2022 ​ ​ 14.00 ​ ​ 13.46 ​ ​ - June 30, 2022 ​ ​ 13.88 ​ ​ 12.03 ​ ​ - September 30, 2022 ​ ​ 13.60 ​ ​ 12.20 ​ ​ - December 31, 2022 ​ ​ 13.40 ​ ​ 12.35 ​ ​ - March 31, 2023 ​ ​ 13.10 ​ ​ 11.50 ​ ​ - June 30, 2023 ​ ​ 11.74 ​ ​ 9.26 ​ ​ - September 30, 2023 ​ ​ 12.71 ​ ​ 11.06 ​ ​ - December 31, 2023 ​ ​ 11.85 ​ ​ 10.60 ​ ​ - March 31, 2024 ​ ​ 12.10 ​ ​ 10.90 ​ ​ - June 30, 2024 ​ ​ 11.93 ​ ​ 11.26 ​ ​ - September 30, 2024 ​ ​ 12.10 ​ ​ 10.78 ​ ​ - December 31, 2024 ​ ​ 11.95 ​ ​ 11.16 ​ ​ - ​ (b) Not applicable. ​ 24 Table of Contents (c) On May 2, 2024, the Company’s Board of Directors approved the Company’s fourth share repurchase program (the “May 2024 Repurchase Plan”).

Other CLST 10-K year-over-year comparisons