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What changed in NorthEast Community Bancorp, Inc./MD/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of NorthEast Community Bancorp, Inc./MD/'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.

+323 added−290 removedSource: 10-K (2026-03-13) vs 10-K (2025-03-14)

Top changes in NorthEast Community Bancorp, Inc./MD/'s 2025 10-K

323 paragraphs added · 290 removed · 263 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

103 edited+15 added−11 removed188 unchanged
Biggest changeFor example, a risk weight of 0% is assigned to cash and U.S. government securities, a risk weight of 50% is generally assigned to prudently underwritten first lien one- to four-family residential mortgages, a risk weight of 100% is assigned to commercial and consumer loans, a risk weight of 150% is assigned to certain past due loans and a risk weight of between 0% to 600% is assigned to permissible equity interests, depending on certain specified factors.
Biggest changeFor example, a risk weight of 0% is assigned to cash and U.S. government securities, a risk weight of 50% is generally assigned to prudently underwritten first lien one- to four-family residential mortgages, a risk weight of 100% is assigned to commercial and consumer loans, a risk weight of 150% is assigned to certain past due loans and a risk weight of between 0% to 600% is assigned to permissible equity interests, depending on certain specified factors. 11 Table of Contents In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements.
The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees, service charges and investment advisory fees.
The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities. The Bank also generates revenues from other income including deposit fees and service charges.
Bank Regulation New York Banking Law . The Bank derives its lending, investment, and other authority primarily from the applicable provisions of New York State banking law and the regulations of the New York State Department of Financial Services, as limited by FDIC regulations.
The Bank derives its lending, investment, and other authority primarily from the applicable provisions of New York State banking law and the regulations of the New York State Department of Financial Services, as limited by FDIC regulations.
Federal Reserve System. The Federal Reserve Act authorizes the Federal Reserve Board to require depository associations to maintain noninterest-earning reserves against their transaction accounts (primarily negotiable order of withdrawal and regular checking accounts).
The Federal Reserve Act authorizes the Federal Reserve Board to require depository associations to maintain noninterest-earning reserves against their transaction accounts (primarily negotiable order of withdrawal and regular checking accounts).
Treasury obligations, securities of various federal agencies and of state and municipal governments, municipal securities, deposits at the Federal Home Loan Bank of New York and certificates of deposit of federally insured institutions.
Treasury obligations, securities of various federal agencies and of state and municipal governments, municipal securities, deposits at the Federal Home Loan Bank of New York and the Federal Reserve Bank of New York, and certificates of deposit of federally insured institutions.
Our largest mixed-use real estate loan had a balance of $4.0 million and was performing according to its terms at December 31, 2024. This loan is secured by a mixed-use building with eight apartment units and a ground floor restaurant commercial unit located in the West Village section of New York City.
Our largest mixed-use real estate loan had a balance of $4.0 million and was performing according to its terms at December 31, 2025. This loan is secured by a mixed-use building with eight apartment units and a ground floor restaurant commercial unit located in the West Village section of New York City.
Generally, in homogeneous communities, units that are under construction have purchase agreements before they are complete. We will make construction loans on condominium buildings, containing between two to more than 250 units or for single family homes and single family housing developments of as many as 400 homes, in each case in high absorption and/or homogeneous areas.
Generally, in homogeneous communities, units that are under construction have purchase agreements before they are completed. We will make construction loans on condominium buildings, containing between two to more than 250 units or for single family homes and single family housing developments of as many as 400 homes, in each case in high absorption and/or homogeneous areas.
Emerging Growth Company Status The Company is an emerging growth company and, for so long as it continues to be an emerging growth company, the Company may choose to take advantage of exemptions from various reporting requirements applicable to 18 Table of Contents other public companies but not to “emerging growth companies,” including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
Emerging Growth Company Status The Company is an emerging growth company and, for so long as it continues to be an emerging growth company, the Company may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to “emerging growth companies,” including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
A bank that ceases to meet any qualifying criteria is provided with a two-quarter grace period to comply with the community bank leverage ratio requirements or the general capital regulations by the federal regulators. As of December 31, 2024, the Bank had not elected the community bank leverage ratio alternative reporting framework.
A bank that ceases to meet any qualifying criteria is provided with a two-quarter grace period to comply with the community bank leverage ratio requirements or the general capital regulations by the federal regulators. As of December 31, 2025, the Bank had not elected the community bank leverage ratio alternative reporting framework.
At December 31, 2024, the majority of our mixed-use real estate loans are secured by properties that are at least 85% residential. Loans secured by multifamily and mixed-use real estate generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans.
At December 31, 2025, the majority of our mixed-use real estate loans are secured by properties that are at least 85% residential. Loans secured by multifamily and mixed-use real estate generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans.
The capital conservation buffer requirement began being phased in starting on January 1, 2016 at 0.625% of risk-weighted assets and increased each year until fully implemented at 2.5% on January 1, 2019. At December 31, 2024, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer.
The capital conservation buffer requirement began being phased in starting on January 1, 2016 at 0.625% of risk-weighted assets and increased each year until fully implemented at 2.5% on January 1, 2019. At December 31, 2025, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer.
All construction, multifamily, mixed use and nonresidential real estate loans and commercial and industrial loans must be approved by a unanimous vote of the members of the Loan Committee, which is composed of the Chairman and Chief Executive Officer, President and Chief Operating Officer, Chief Financial Officer, and a Senior Vice President.
All construction, multifamily, mixed use and nonresidential real estate loans, and commercial and industrial loans must be approved by a unanimous vote of the members of the Loan Committee, which is composed of the Chairman and Chief Executive Officer, President and Chief Operating Officer, Chief Financial Officer, and an Executive Vice President.
We have been originating construction loans secured by the construction of multi-family and single family properties in Massachusetts and by the construction primarily of multi-family, residential condominium properties, and occasionally non-residential properties located in New York State, primarily in Bronx, Orange, Rockland and Sullivan Counties, for more than a decade.
We have been originating construction loans secured by the construction of multi-family, residential condominium properties, and occasionally non-residential properties located in New York State, primarily in Bronx, Orange, Rockland and Sullivan Counties, for more than a decade.
We do not know of any practice, condition or violation that might lead to termination of deposit insurance. Privacy Regulations. FDIC regulations generally require that the Bank disclose its privacy policy, including identifying with whom it shares a customer’s “non-public personal information,” to customers at the time of establishing the customer relationship and annually thereafter.
We do not know of any practice, condition or violation that might lead to termination of deposit insurance. 14 Table of Contents Privacy Regulations. FDIC regulations generally require that the Bank disclose its privacy policy, including identifying with whom it shares a customer’s “non-public personal information,” to customers at the time of establishing the customer relationship and annually thereafter.
Upon a finding by the New York State Department of Financial Services that any director, trustee, or officer of any banking organization has violated any law, or has continued unauthorized or unsafe practices in conducting the business of the banking organization after having been notified by the Superintendent 10 Table of Contents to discontinue such practices, such director, trustee, or officer may be removed from office after notice and an opportunity to be heard.
Upon a finding by the New York State Department of Financial Services that any director, trustee, or officer of any banking organization has violated any law, or has continued unauthorized or unsafe practices in conducting the business of the banking organization after having been notified by the Superintendent to discontinue such practices, such director, trustee, or officer may be removed from office after notice and an opportunity to be heard.
The Federal Deposit Insurance Corporation Improvement Act required each federal banking agency to revise its risk-based capital standards for insured institutions to ensure that those standards take adequate account of interest-rate 11 Table of Contents risk, concentration of credit risk, and the risk of nontraditional activities, as well as to reflect the actual performance and expected risk of loss on multifamily residential loans.
The Federal Deposit Insurance Corporation Improvement Act required each federal banking agency to revise its risk-based capital standards for insured institutions to ensure that those standards take adequate account of interest-rate risk, concentration of credit risk, and the risk of nontraditional activities, as well as to reflect the actual performance and expected risk of loss on multifamily residential loans.
The enforcement authority includes, among other things, the ability to assess civil money penalties, issue cease and desist orders and remove directors and officers. In general, these enforcement actions may be initiated in response to violations of laws and regulations, breaches of fiduciary duty and unsafe or unsound practices. 13 Table of Contents Federal Insurance of Deposit Accounts.
The enforcement authority includes, among other things, the ability to assess civil money penalties, issue cease and desist orders and remove directors and officers. In general, these enforcement actions may be initiated in response to violations of laws and regulations, breaches of fiduciary duty and unsafe or unsound practices. Federal Insurance of Deposit Accounts.
We also provide commercial and industrial loans to real estate developers in the New York 4 Table of Contents Metropolitan Area. Pursuant to our lending policy, we generally limit the aggregate of all loans and lines of credit (including unused commitments) to any one borrower to no more than 10% of our Tier 1 Capital.
We also provide commercial and industrial loans to real estate developers in the New York Metropolitan Area. Pursuant to our lending policy, we generally limit the aggregate of all loans and lines of credit (including unused commitments) to any one borrower to no more than 10% of our Tier 1 Capital.
The deposit operations of the Bank also are subject to, among others, the: ● Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; ● Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and ● Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.
The deposit operations of the Bank also are subject to, among others, the: ● Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; ● Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and ● Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services. 16 Table of Contents Federal Reserve System.
Most buildings in the Bronx are granted real estate tax abatements under New York City’s former 421-A tax abatement program or the new 485-x tax abatement program approved on April 27, 2024 by New York State to replace the expired 421-A tax abatement program. 3 Table of Contents Our average construction loans range from $5.0 million to $10.0 million on buildings and complexes ranging from 20 to 40 units.
Most buildings in the Bronx are granted real estate tax abatements under New York City’s former 421-A tax abatement program or the new 485-x tax abatement program approved on April 27, 2024 by New York State to replace the expired 421-A tax abatement program. 3 Table of Contents Our average construction loans range from $5.0 million to $25.0 million on buildings and complexes ranging from 20 to 100 units.
The regulatory agencies must promulgate regulations implementing the “source of strength” policy that holding companies act as a source of strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress. 17 Table of Contents Dividends and Stock Repurchases.
The regulatory agencies must promulgate regulations implementing the “source of strength” policy that holding companies act as a source of strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress. Dividends and Stock Repurchases.
At December 31, 2024, the largest outstanding commercial and industrial loan was comprised of an unsecured line of credit with an outstanding balance of $10.0 million and no remaining available line of credit.
At December 31, 2025, the largest outstanding commercial and industrial loan was comprised of an unsecured line of credit with an outstanding balance of $10.0 million and no remaining available line of credit.
The Dodd-Frank Act, however, required the Federal Reserve Board to promulgate consolidated capital requirements for depository institution holding companies that are no less stringent, both quantitatively and in terms of components of capital, than those applicable to institutions themselves.
The Dodd-Frank Act, however, required the Federal Reserve Board to promulgate consolidated capital requirements for depository institution holding companies that are no less stringent, both 17 Table of Contents quantitatively and in terms of components of capital, than those applicable to institutions themselves.
Federal law permits well capitalized and well managed bank and savings and loan holding companies to acquire banks in any state, subject to Federal Reserve Board approval, certain concentration limits and other specified conditions. Interstate mergers of banks are also authorized, subject to regulatory approval and other specified conditions.
Federal law permits well capitalized and well managed bank and savings and loan holding companies to acquire banks in any state, subject to Federal Reserve Board approval, certain concentration limits and other specified conditions. Interstate mergers of banks are also authorized, subject to regulatory 12 Table of Contents approval and other specified conditions.
Notification is required for incidents that have materially affected or are reasonably likely to materially affect 15 Table of Contents the viability of a banking organization's operations, its ability to deliver banking products and services, or the stability of the financial sector.
Notification is required for incidents that have materially affected or are reasonably likely to materially affect the viability of a banking organization's operations, its ability to deliver banking products and services, or the stability of the financial sector.
The Cybersecurity Information Sharing Act (the “CISA”) is intended to improve cybersecurity in the U.S. through sharing of information about security threats between the U.S. government and private sector organizations, including financial institutions such as the Company.
The Cybersecurity Information Sharing Act (the “CISA”) is intended to improve cybersecurity in the U.S. through sharing of information about security threats between the U.S. government and private sector 15 Table of Contents organizations, including financial institutions such as the Company.
This loan is secured by a 50,000 square foot four story plus basement commercial building located in Blooming Grove, New York, with a kosher supermarket on the first floor and basement and offices on the second to fourth floors. Based on 28 outstanding non-residential loans as of December 31, 2024, the average balance of non-residential loans was $1.1 million.
This loan is secured by a 50,000 square foot four story plus basement commercial building located in Blooming Grove, New York, with a kosher supermarket on the first floor and basement and offices on the second to fourth floors. Based on 25 outstanding non-residential loans as of December 31, 2025, the average balance of non-residential loans was $1.6 million.
We also lend on projects, completed in stages, of up to $45 million. For projects above $33 million, we generally partner with a participating bank from outside our market area. We typically grant separate land and construction loans and occasionally site development loans secured by the project.
We also lend on projects, completed in stages, of up to $45 million. For projects above $40 million, we may partner with a participating bank from outside our market area. We typically grant separate land and construction loans and occasionally site development loans secured by the project.
Our lending activities follow written, non-discriminatory underwriting standards and loan origination procedures established by our board of directors and management.
Loan Approval Procedures and Authority . Our lending activities follow written, non-discriminatory underwriting standards and loan origination procedures established by our board of directors and management.
Personnel At December 31, 2024, we had 136 full-time employees and seven part-time employees, none of whom are represented by a collective bargaining unit. We believe our relationship with our employees is good. Subsidiaries The Company’s only direct subsidiary is the Bank.
Personnel At December 31, 2025, we had 139 full-time employees and seven part-time employees, none of whom are represented by a collective bargaining unit. We believe our relationship with our employees is good. Subsidiaries The Company’s only direct subsidiary is the Bank.
Interest rates and payments on our commercial and industrial loans are typically indexed to the prime rate as published in the Wall Street Journal and adjusted as the prime rate changes. At December 31, 2024, the average balance of loans in our commercial and industrial loan portfolio was $711,000.
Interest rates and payments on our commercial and industrial loans are typically indexed to the prime rate as published in the Wall Street Journal and adjusted as the prime rate changes. At December 31, 2025, the average balance of loans in our commercial and industrial loan portfolio was $804,000.
When the loan becomes 60 days past due and if the borrower is unresponsive, we generally commence foreclosure proceedings against any real property that secures the loan or attempt to repossess any personal property that secures a commercial and industrial or consumer loan.
When the loan becomes 60 days past due and if the borrower is unresponsive, we generally commence foreclosure proceedings against any real property that secures the loan or attempt to repossess any personal property that secures a commercial 8 Table of Contents and industrial or consumer loan.
Section 23B applies to “covered transactions” as well as to certain other transactions and requires that all such transactions be on terms substantially the same, or at least as favorable, to the institution or subsidiary as those provided to a non-affiliate.
Section 23B applies to “covered transactions” as well as to 13 Table of Contents certain other transactions and requires that all such transactions be on terms substantially the same, or at least as favorable, to the institution or subsidiary as those provided to a non-affiliate.
If we were to combine land, construction and development loans as one loan on a project, the average loan size in our construction loan portfolio was $5.4 million in committed amount, comprised of outstanding disbursed balances of $3.8 million and undisbursed loans in process of $1.5 million at December 31, 2024.
If we were to combine land, construction and development loans as one loan on a project, the average loan size in our construction loan portfolio was $7.3 million in committed amount, comprised of outstanding disbursed balances of $5.4 million and undisbursed loans in process of $1.6 million at December 31, 2025.
At December 31, 2024, our investment portfolio consisted primarily of mutual funds, residential mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae with stated final maturities of 10 years or more, and municipal securities with maturities of one years or more. 8 Table of Contents Our investment portfolio is primarily viewed as a source of liquidity.
At December 31, 2025, our investment portfolio consisted primarily of mutual funds, residential mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae with stated final maturities of 10 years or more, and municipal securities with maturities of one years or more. Our investment portfolio is primarily viewed as a source of liquidity.
At December 31, 2024, we had no Federal Home Loan Bank advances outstanding and an available borrowing limit of $18.2 million. The Federal Reserve Bank of New York (“FRBNY”) approved on August 30, 2023 the Bank’s eligibility to pledge loans under the Borrower-in-Custody program of the FRBNY thereby allowing the Bank to borrow from the Discount Window at the FRBNY.
At December 31, 2025, we had no Federal Home Loan Bank advances outstanding and an available borrowing limit of $35.8 million. The Federal Reserve Bank of New York (“FRBNY”) approved on August 30, 2023 the Bank’s eligibility to pledge loans under the Borrower-in-Custody program of the FRBNY thereby allowing the Bank to borrow from the Discount Window at the FRBNY.
We have generally required that the properties securing non-residential real estate loans have debt service coverage ratios (the ratio of earnings after subtracting all operating expenses to debt service payments) of between 1.25x and 1.40x. The average non-residential loan debt-service coverage ratio is 2.40x and the average loan-to-value ratio of our non-residential loans is 39.4%.
We have generally required that the properties securing non-residential real estate loans have debt service coverage ratios (the ratio of earnings after subtracting all operating expenses to debt service payments) of between 1.25x and 1.40x. The average non-residential loan debt-service coverage ratio is 2.28x and the average loan-to-value ratio of our non-residential loans is 43.5%.
Our portion of these construction loans had an outstanding balance of $26.7 million and an undisbursed available balance of $594,000 at December 31, 2024 and was performing in accordance with its terms at December 31, 2024. These loans are secured by the development of a 160,000 square foot class A office building located in Monsey, New York.
Our portion of these construction loans had an outstanding balance of $21.7 million and an undisbursed available balance of $70,000 at December 31, 2025 and was performing in accordance with its terms at December 31, 2025. These loans are secured by the development of a 160,000 square foot class A office building located in Monsey, New York.
The Bank maintains the following subsidiaries: New England Commercial Properties LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank.
The Bank maintains the following subsidiaries: New England Commercial Properties LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank. New England Commercial Properties, LLC currently does not own any property.
At December 31, 2024, the largest outstanding non-residential real estate loan had an outstanding balance of $13.9 million and was performing in accordance with its terms.
At December 31, 2025, the largest outstanding non-residential real estate loan had an outstanding balance of $13.6 million and was performing in accordance with its terms.
As a member, we are required to own capital stock in the Federal Home Loan Bank of New York and are authorized to apply for advances on the security of such stock and certain of our mortgage loans and other assets (principally securities that are obligations of, or guaranteed by, the United States), provided certain standards related to credit-worthiness have been met.
Member financial institutions are required to own capital stock in the Federal Home Loan Bank of New York and are authorized to apply for advances on the security of such stock and certain of our mortgage loans and other assets (principally securities that are obligations of, or guaranteed by, the United States), provided certain standards related to credit-worthiness have been 9 Table of Contents met.
The borrower also has two other commercial and industrial loans with total lines of credit of $2.1 million, outstanding balances of $1.3 million, and remaining available line of credit of $750,000 at December 31, 2024.
The borrower also has two other commercial and industrial loans with the Bank with total lines of credit of $2.1 million, aggregate outstanding balances of $1.3 million, and a remaining available line of credit of $750,000 at December 31, 2025.
The Bank is also subject to provisions of the New York State banking law which imposes continuing and affirmative obligations upon banking institutions organized in New York State to serve the credit needs of its local community (the “NYCRA”) which are substantially similar to those imposed by the federal CRA.
The Bank’s latest FDIC CRA rating was “Outstanding.” The Bank is also subject to provisions of the New York State banking law which imposes continuing and affirmative obligations upon banking institutions organized in New York State to serve the credit needs of its local community (the “NYCRA”) which are substantially similar to those imposed by the federal CRA.
Under our loan-refinancing program, borrowers who are current under the terms and conditions of their contractual obligations can apply to refinance their existing loans to the rates and terms then offered on new loans after the payment of their contractual prepayment penalties.
Under our loan-refinancing program, borrowers who are current under the terms and conditions of their contractual obligations and would not be subject to rent freezes can apply to refinance their existing loans to the rates and terms then offered on new loans after the payment of their contractual prepayment penalties.
Our largest committed construction loan project at December 31, 2024 was comprised of five loans with a total commitment of $49.2 million of which 50.0% of the commitment of four of the five loans has been sold to another financial institution thereby reducing our committed portion to $27.4 million.
The loan subsequently paid-off in January 2026. Our largest committed construction loan project at December 31, 2025 was comprised of five loans with a total commitment of $49.2 million of which 50.0% of the commitment of four of the five loans has been sold to another financial institution thereby reducing our committed portion to $27.4 million.
As of December 31, 2024, we had no FRBNY borrowings and an available borrowing limit of $834.7 million. In addition, we are party to a loan agreement with Atlantic Community Bankers Bank under which we can borrow up to $8.0 million in short-term borrowings.
As of December 31, 2025, we had outstanding FRBNY borrowings of $70.0 million and an available borrowing limit of $768.8 million. In addition, we are party to a loan agreement with Atlantic Community Bankers Bank under which we can borrow up to $8.0 million in short-term borrowings.
This subsidiary is currently inactive. 72 West Eckerson LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York. 166 Route 59 Realty LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch located in Airmont, New York. 3 Winterton Realty LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase of real property by the Bank and currently owns the Bank branch located in Bloomingburg, New York. 19 Table of Contents Executive Officers Our executive officers are elected annually by the board of directors and serve at the board’s discretion.
This subsidiary is currently inactive. 72 West Eckerson LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York. 19 Table of Contents 166 Route 59 Realty LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2021 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch located in Airmont, New York. 3 Winterton Realty LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2021 to facilitate the purchase of real property by the Bank and currently owns the Bank branch located in Bloomingburg, New York.
The three commercial and industrial lines of credit had an outstanding balance of $6.2 million and undisbursed available balance of $8.8 million at December 31, 2024. The six stand-by letters of credit have not been drawn upon. All of these loans were performing in accordance with their terms at December 31, 2024.
The five commercial and industrial lines of credit had an outstanding balance of $14.2 million and undisbursed available balance of $5.8 million at December 31, 2025. The eight stand-by letters of credit have not been drawn upon. All of these loans were performing in accordance with their terms at December 31, 2025.
All construction loans were performing according to their terms at December 31, 2024. If we were to count land, construction and development loans as separate loans, the average loan size in our construction loan portfolio was $3.8 million in committed amount, comprised of outstanding disbursed balances of $2.9 million and undisbursed loans in process of $822,000 at December 31, 2024.
All construction loans were performing according to their terms at December 31, 2025. If we were to count land, construction and development loans as separate loans, the average loan size in our construction loan portfolio was $4.1 million in committed amount, comprised of outstanding disbursed balances of $3.0 million and undisbursed loans in process of $909,000 at December 31, 2025.
Our portion of these construction loans had an outstanding balance of $31.6 million and undisbursed loans in process of $6.2 million at December 31, 2024. All of these loans were performing in accordance with their terms at December 31, 2024. Commercial and Industrial Loans. We provide credit to commercial and industrial businesses that are located within our market area.
Our portion of these construction loans had an aggregate outstanding balance of $32.2 million and total undisbursed available balance of $12.7 million. All of these loans were performing in accordance with their terms at December 31, 2025. Commercial and Industrial Loans. We provide credit to commercial and industrial businesses that are located within our market area.
Interest rates on our adjustable-rate loans are adjusted to a rate that equals the applicable one-, two-, three- or five-year Federal Home Loan Bank (“FHLB”) of New York or FHLB of Boston advance 5 Table of Contents rate plus a margin. The balloon loans have a maximum maturity of five years.
Interest rates on our adjustable-rate loans are adjusted to a rate that equals the applicable one-, two-, three- or five-year Federal Home Loan Bank (“FHLB”) of New York advance rate plus a margin. The balloon loans have a maturity of five years to fifteen years with rate adjustments every five years.
Phase 1 environmental surveys are required for most loans and property inspections are required for all loans. At December 31, 2024, we had $29.4 million in non-residential real estate loans outstanding, or 1.6% of total loans.
Phase 1 environmental surveys are required for most loans and property inspections are required for all loans. At December 31, 2025, we had $38.5 million in non-residential real estate loans outstanding, or 2.1% of total loans.
An institution is considered to be “critically undercapitalized” if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2.0%.
An institution is considered to be “critically undercapitalized” if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2.0%. As of December 31, 2025, the Bank was a “well capitalized” institution under FDIC regulations.
At December 31, 2024, if we were to combine land, construction and development loans as one loan on a project, our construction loan portfolio consisted of 269 loans totaling $1.9 billion in committed amount, comprised of outstanding disbursed balance of $1.4 billion and undisbursed loans in process of $398.4 million.
At December 31, 2025, if we were to combine land, construction and development loans as one loan on a project, our construction loan portfolio consisted of 247 loans totaling $1.8 billion in committed amount, comprised of outstanding disbursed balance of $1.3 billion and undisbursed loans in process of $402.7 million.
At December 31, 2024, if we were to count land, construction and development loans as separate loans, our construction loan portfolio consisted of 485 loans totaling $1.9 billion in committed amount, comprised of outstanding disbursed balances of $1.4 billion and undisbursed loans in process of $398.4 million.
At December 31, 2025, if we were to count land, construction and development loans as separate loans, our construction loan portfolio consisted of 443 loans totaling $1.8 billion in committed amount, comprised of outstanding disbursed balances of $1.3 billion and undisbursed loans in process of $402.7 million.
At December 31, 2024, the construction loan portfolio was comprised primarily of 483 New York construction loans with $1.9 billion in committed amount, comprising of outstanding disbursed balances of $1.4 billion and undisbursed loans in process of $398.3 million.
At December 31, 2025, the construction loan portfolio was comprised primarily of 439 New York construction loans with $1.8 billion in committed amount, comprising of outstanding disbursed balances of $1.3 billion and undisbursed loans in process of $402.7 million.
At December 31, 2024, $1.6 billion, or 89.2%, of our portfolio was secured by loans in the New York State/New York Metropolitan Area, $163.1 million, or 9.0%, of our portfolio was secured by loans in the Massachusetts/Boston Metropolitan Area and $32.7 million, or 1.8%, of our portfolio was secured by loans in Connecticut and New Jersey. Construction Loans.
At December 31, 2025, $1.6 billion, or 87.4%, of our portfolio was secured by loans in the New York State/New York Metropolitan Area, $182.7 million, or 9.8%, of our portfolio was secured by loans in the Massachusetts/Boston Metropolitan Area, and $51.9 million, or 2.8%, of our portfolio was secured by loans in New Jersey. Construction Loans.
In addition, this borrower has three construction loans with a total commitment of $16.0 million, an outstanding disbursed balance of $13.4 million, and undisbursed loans in process balance of $2.5 million at December 31, 2024.
In addition, this borrower has three construction loans with a total commitment of $16.0 million and an aggregate outstanding disbursed balance of $16.0 million at December 31, 2025.
Originations, Purchase, Participations and Sales of Loans . Loan originations come from a number of sources. The primary source of loan originations are our in-house loan officers and referrals from customers and, to a much lesser extent, mortgage loan brokers and local realtors. Historically, we have primarily originated our own loans and retained them in our portfolio.
Originations, Purchase, Participations and Sales of Loans . Loan originations come from a number of sources. The primary source of loan originations are our in-house loan officers and referrals from customers and, to a 7 Table of Contents much lesser extent, mortgage loan brokers and local realtors.
At December 31, 2024, our largest outstanding credit relationship with one borrower totaled $51.6 million, comprising of four construction loans with $33.1 million in committed amount, three commercial and industrial lines of credit with $15.0 million in committed amount, and six stand-by letters of credit with $3.5 million in committed amount.
At December 31, 2025, our largest outstanding credit relationship with one borrower totaled $57.1 million, comprising of four construction loans with $33.1 million in committed amount, five commercial and industrial lines of credit with $20.0 million in committed amount, and eight stand-by letters of credit with $4.0 million in committed amount.
Of the $51.6 million in committed amount, $11.2 million of the commitment in construction loans has been sold to two other financial institutions thereby reducing our committed portion to $40.4 million. Our portion of these construction loans had an outstanding balance of $18.8 million and undisbursed loans in process of $480,000 at December 31, 2024.
Of the $57.1 million in committed amount, $11.2 million of the commitment in construction loans has been sold to two other financial institutions thereby reducing our committed portion to $45.9 million. Our portion of these construction loans had an outstanding balance of $16.0 million and undisbursed loans in process of $255,000 at December 31, 2025.
In view of changing conditions in the national economy and in the money markets, it is impossible for management to accurately predict future changes in monetary policy or the effect of such changes on the business or financial condition of the Company and the Bank.
In view of changing conditions in the national economy and in the money markets, it is impossible for management to accurately predict future changes in monetary policy or the effect of such changes on the business or financial condition of the Company and the Bank. 10 Table of Contents Set forth below is a brief description of material regulatory requirements that are applicable to the Bank and the Company.
While in the past we purchased a limited number of participations from one financial institution that also serves high absorption areas in Brooklyn, New York, we currently do not have any purchased participation loans in our portfolio. We also purchased whole residential and non-residential mortgage loans from a Massachusetts financial 7 Table of Contents institution during 2021.
Historically, we have primarily originated our own loans and retained them in our portfolio. While in the past we purchased a limited number of participations from one financial institution that also serves high absorption areas in Brooklyn, New York, we currently do not have any purchased participation loans in our portfolio.
Properties securing non-residential real estate loans are appraised by independent appraisers and inspected by us. We also charge prepayment penalties, with five points of the outstanding loan balance generally being charged on loans that refinance in the first year of the mortgage, scaling down to one point on loans that refinance in year five.
We also charge prepayment penalties, with five points of the outstanding loan balance generally being charged on loans that refinance in the first year of the mortgage, scaling down to one point on loans that refinance in year five.
As of December 31, 2024, the Bank was a “well capitalized” institution under FDIC regulations. 12 Table of Contents At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on the payment of dividends, and restrictions on the acceptance of brokered deposits.
At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on the payment of dividends, and restrictions on the acceptance of brokered deposits.
At December 31, 2024, our largest outstanding commercial and industrial loan relationship with one borrower was comprised of five lines of credit totaling $9.7 million, outstanding balances of $5.4 million, and remaining available lines of credit totaling $4.3 million. The borrower also has two commercial and industrial term loans with outstanding balances of $2.5 million at December 31, 2024.
At December 31, 2025, our largest outstanding commercial and industrial loan relationship with one borrower was comprised of three lines of credit totaling $5.4 million, with aggregate outstanding balances of $3.5 million, and aggregate remaining available lines of credit totaling $1.9 million.
Interest rates and payments on these loans generally are based on the one-, two-, three- or five-year FHLB of New York or FHLB of Boston advance rate plus a margin.
Interest rates and payments on these loans generally are based on the one-, two-, three- or five-year FHLB of New York advance rate plus a margin. The lifetime interest rate cap is five percentage points over the initial interest rate of the loan (four percentage points for loans with one-, two- and three-year terms).
Hom served for 23 years as a bank examiner and financial analyst for a Federal banking regulatory agency and six years as the chief executive officer of a New Jersey community bank. Age 70. ​
Hom joined the Company and the Bank in 2007, serving as Chief Financial Officer since 2013. Prior to joining the Company and the Bank, Mr. Hom served for 23 years as a bank examiner and financial analyst for a Federal banking regulatory agency and six years as the chief executive officer of a New Jersey community bank. Age 71. ​
As of December 31, 2024, the largest outstanding multifamily real estate loan had a balance of $12.8 million and was performing according to its terms. This loan is secured by a 62-unit two building apartment complex located in Boston, Massachusetts.
As of December 31, 2025, our largest outstanding multifamily real estate loan had a balance of $19.8 million and was performing according to its terms. This loan is secured by a 70-unit building apartment complex with a ground floor commercial unit located in the Bronx, New York.
Set forth below is a brief description of material regulatory requirements that are applicable to the Bank and the Company. The description is limited to certain material aspects of the statutes and regulations addressed, and is not intended to be a complete description of such statutes and regulations and their effects on the Bank and the Company.
The description is limited to certain material aspects of the statutes and regulations addressed, and is not intended to be a complete description of such statutes and regulations and their effects on the Bank and the Company. Bank Regulation New York Banking Law .
Through our loan participations, we and the other participating lenders generally share ratably in cash flows and points and fees and gains or losses that may result from a borrower’s noncompliance with the contractual terms of the loan. Loan Approval Procedures and Authority .
At December 31, 2025, the Company held $3.1 million in participation interests in construction loans originated by the Bank. Through our loan participations, we and the other participating lenders generally share ratably in cash flows and points and fees and gains or losses that may result from a borrower’s noncompliance with the contractual terms of the loan.
At December 31, 2024, multifamily and mixed-use real estate loans to borrowers in the Massachusetts/Boston Metropolitan Area totaled $156.7 million. We originate a variety of adjustable-rate and balloon multifamily and mixed-use real estate loans.
We generally retain for our portfolio all of the loans that we originate in Massachusetts. At December 31, 2025, multifamily and mixed-use real estate loans to borrowers in the Massachusetts/Boston Metropolitan Area totaled $177.5 million. 5 Table of Contents We have originated a variety of adjustable-rate and balloon multifamily and mixed-use real estate loans.
The first $16.9 million of otherwise reservable balances (subject to adjustments by the Federal Reserve Board) were exempted from the reserve requirements. The Bank complied with the foregoing requirements during 2019.
The first $16.9 million of otherwise reservable balances (subject to adjustments by the Federal Reserve Board) were exempted from the reserve requirements. The Bank complied with the foregoing requirements during 2019. On March 15, 2020, the Federal Reserve Board reduced reserve requirement to 0% effective as of March 26, 2020, which eliminated reserve requirements for all depository institutions.
The remaining two construction loans are located in New Jersey, with $10.6 million in committed amount, $10.5 million in disbursed amount, and undisbursed loans in process of $110,000.
The remaining four construction loans are located in New Jersey, with $24.9 million in committed amount, $24.9 million in disbursed amount, and no undisbursed loans in process.
We have been originating multifamily and mixed-use real estate loans in the New York State/New York Metropolitan Area for 91 years.
In recent years, except for Massachusetts, we have de-emphasized multifamily and mixed-use real estate lending as we have focused more on construction lending. We have been originating multifamily and mixed-use real estate loans in the New York State/New York Metropolitan Area for 92 years.
This loan was performing in accordance with its terms at December 31, 2024 and is secured by the development of a 110 apartment unit multi-family building located in the Bronx, New York.
Our largest outstanding construction loan at December 31, 2025 had a committed amount of $34.8 million, an outstanding balance of $34.8 million, and no undisbursed available balance. This loan was performing in accordance with its terms at December 31, 2025 and is secured by the development of a 131 apartment unit multi-family building located in the Bronx, New York.
We also consider any checking accounts with overdrawn balances as a consumer loan even though the customer typically deposits sufficient funds the next business day to cover the overdrawn balance.
We also consider any checking accounts with overdrawn balances as a consumer loan even though the customer typically deposits sufficient funds the next business day to cover the overdrawn balance. At December 31, 2025, our portfolio of consumer loans was $58,000, or 0.003% of total loans, comprised primarily of five checking accounts with overdrawn balances.
In the New York State/New York Metropolitan Area, our ability to continue to grow our portfolio is dependent on the continuation of our relationships with mortgage brokers, as the multifamily and mixed-use real estate loan market is primarily broker driven.
In the New York State/New York Metropolitan Area, our ability to continue to grow our portfolio is dependent on the continuation of our relationships with existing borrowers and to a lesser extent mortgage brokers.
Holding Company Regulation As a savings and loan holding company, the Company is subject to Federal Reserve Board regulations, examinations, supervision, reporting requirements and regulations regarding its activities. Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to the Bank.
Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to the Bank.
This strategy allows us to match the maturity of these deposits very effectively to the term of our construction loans, which make up a majority of the loans in our loan portfolio. Borrowings. We may utilize advances from the Federal Home Loan Bank of New York to supplement our supply of lendable funds and to meet deposit withdrawal requirements.
This strategy allows us to match the maturity of these deposits very effectively to the term of our construction loans, which make up a majority of the loans in our loan portfolio. Borrowings.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf our reputation is negatively affected by the actions of our employees, by our inability to conduct our operations in a manner that is appealing to current or prospective customers or otherwise, our business and operating results may be materially adversely affected. 26 Table of Contents We are dependent on our information technology and telecommunications systems and third-party service providers; systems failures, interruptions and cybersecurity breaches could have a material adverse effect on us.
Biggest changeIf our reputation is negatively affected by the actions of our employees, by our inability to conduct our operations in a manner that is appealing to current or prospective customers or otherwise, our business and operating results may be materially adversely affected.
See “ Item 1: Business — Regulation and Supervision — Bank Regulation — Capital Requirements” for a discussion of regulatory capital requirements. We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors.
See “ Item 1: Business — Regulation and Supervision — Bank Regulation — Capital Requirements” for a discussion of regulatory capital requirements. 28 Table of Contents We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors.
To strengthen public confidence in the banking system, the FDIC took action to protect funds held in uninsured deposit accounts at Silicon Valley Bank and Signature Bank following the placement of those institutions into receivership. However, the FDIC has not committed to protecting uninsured deposits in other 25 Table of Contents institutions that experience outsized withdrawal demands.
To strengthen public confidence in the banking system, the FDIC took action to protect funds held in uninsured deposit accounts at Silicon Valley Bank and Signature Bank following the placement of those institutions into receivership. However, the FDIC has not committed to protecting uninsured deposits in other institutions that experience outsized withdrawal demands.
Paying higher deposit rates to maintain or replace these types of deposits could adversely affect our net interest margin and operating results. 23 Table of Contents We face a risk of non-compliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
Paying higher deposit rates to maintain or replace these types of deposits could adversely affect our net interest margin and operating results. We face a risk of non-compliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
Competition for non-construction loans comes from the numerous national, regional and local community financial institutions operating in our market area, including a number of independent banks and credit unions, in addition to other financial service companies, such as brokerage firms and other similar entities.
Competition for non-construction loans comes from the 23 Table of Contents numerous national, regional and local community financial institutions operating in our market area, including a number of independent banks and credit unions, in addition to other financial service companies, such as brokerage firms and other similar entities.
Interest rates are highly sensitive to many factors, including government monetary policies, domestic and international economic and political conditions and other factors beyond our control. Ineffective liquidity management could adversely affect our financial results and condition. ​ Effective liquidity management is essential for the operation of our business.
Interest rates are highly sensitive to many factors, including government monetary policies, domestic and international economic and political conditions and other factors beyond our control. ​ 25 Table of Contents Ineffective liquidity management could adversely affect our financial results and condition. ​ Effective liquidity management is essential for the operation of our business.
The ability to keep pace with technological change is important, and the failure to do so, due to cost, proficiency or otherwise, could have a material adverse impact on our business and therefore on our financial condition and results of operations. 27 Table of Contents Acts of terrorism and other external events could impact our business.
The ability to keep pace with technological change is important, and the failure to do so, due to cost, proficiency or otherwise, could have a material adverse impact on our business and therefore on our financial condition and results of operations. Acts of terrorism and other external events could impact our business.
This risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of non-compliance with applicable regulations, adverse business decisions or their implementation, and customer attrition due to potential negative publicity.
This risk of loss also includes the potential legal actions that could 24 Table of Contents arise as a result of an operational deficiency or as a result of non-compliance with applicable regulations, adverse business decisions or their implementation, and customer attrition due to potential negative publicity.
Commercial and industrial loans generally expose a lender to a greater risk of loss than one- to four-family 21 Table of Contents residential loans. Repayment of commercial and industrial loans generally is dependent, in large part, on sufficient income from the business to cover operating expenses and debt service.
Commercial and industrial loans generally expose a lender to a greater risk of loss than one- to four-family residential loans. Repayment of commercial and industrial loans generally is dependent, in large part, on sufficient income from the business to cover operating expenses and debt service.
Companies are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure. Investor advocacy groups, investment funds and influential investors are also increasingly focused on these practices, especially as they relate to, among other things, the environment, health and safety, labor conditions and human rights.
Companies are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure. Investor advocacy groups, investment funds 26 Table of Contents and influential investors are also increasingly focused on these practices, especially as they relate to, among other things, the environment, health and safety, labor conditions and human rights.
Adverse conditions in the local economy such as unemployment, recession, a 22 Table of Contents catastrophic event or other factors beyond our control could impact the ability of our borrowers to repay their loans, which could impact our net interest income.
Adverse conditions in the local economy such as unemployment, recession, a catastrophic event or other factors beyond our control could impact the ability of our borrowers to repay their loans, which could impact our net interest income.
Our emphasis on loan growth, as well as any future credit deterioration, will require us to increase our allowance further in the future. In addition, our banking regulators periodically review our allowance for credit losses – loans and could require us to increase our provision for credit losses.
Our emphasis on loan growth, as well as any future credit deterioration, will require us to increase our allowance further in the future. 22 Table of Contents In addition, our banking regulators periodically review our allowance for credit losses – loans and could require us to increase our provision for credit losses.
We, our customers, and other financial institutions with which we interact, are subject to ongoing, continuous attempts to penetrate key systems by individual hackers, organized criminals, and in some cases, state-sponsored organizations.
We, our customers, and other financial institutions with which we interact, are 27 Table of Contents subject to ongoing, continuous attempts to penetrate key systems by individual hackers, organized criminals, and in some cases, state-sponsored organizations.
We monitor our concentration limits with respect to our construction, multifamily, mixed-use and non-residential real estate loans closely and have implemented various risk management practices to manage our exposure for such loans.
We monitor our concentration limits with respect to our construction, multifamily, mixed-use and non-residential real estate loans closely and have implemented various risk management practices to manage our exposure 21 Table of Contents for such loans.
Construction loans represented 485% of the Bank’s total risk-based capital at December 31, 2024, and our multifamily, mixed-use and nonresidential real estate loan portfolio represented 90% of the Bank’s total risk-based capital on that same date. In December 2015, the Agencies released a new statement on prudent risk management for commercial real estate lending (the “2015 Statement”).
Construction loans represented 392% of the Bank’s total risk-based capital at December 31, 2025, and our multifamily, mixed-use and nonresidential real estate loan portfolio represented 109% of the Bank’s total risk-based capital on that same date. In December 2015, the Agencies released a new statement on prudent risk management for commercial real estate lending (the “2015 Statement”).
This type of lending also typically involves higher loan principal amounts and is often concentrated with a small number of builders.
This type of lending also typically involves 20 Table of Contents higher loan principal amounts and is often concentrated with a small number of builders.
The Company has historically paid a quarterly cash dividend to stockholders. During the 24 Table of Contents year ended December 31, 2024, the Company increased the quarterly cash dividends to $0.10 per share on March 21, 2024 and $0.15 per share on September 19, 2024 from $0.06 per share prior to 2024.
The Company has historically paid a quarterly cash dividend to stockholders. During the year ended December 31, 2025, the Company increased the quarterly cash dividends to $0.20 per share on March 20, 2025 from $0.10 per share on March 21, 2024 and $0.15 per share on September 19, 2024.
In addition, at December 31, 2024, $159.8 million, or 60.9% of our multifamily, mixed use and non-residential real estate loan portfolio and 8.8% of our total loan portfolio, represented loans made in the Boston Metropolitan Area.
In addition, at December 31, 2025, $180.1 million, or 48.7% of our multifamily, mixed use and non-residential real estate loan portfolio and 9.7% of our total loan portfolio, represented loans made in the Boston Metropolitan Area.
For construction loans we originate, we require our borrowers to fund an interest reserve account in advance. 20 Table of Contents Our portfolio of multifamily residential, mixed-use and non-residential real estate lending could expose us to increased lending risks. At December 31, 2024, $262.6 million, or 14.5%, of our loan portfolio consisted of multifamily, mixed-use and non-residential real estate loans.
For construction loans we originate, we require our borrowers to fund an interest reserve account in advance. Our portfolio of multifamily residential, mixed-use and non-residential real estate lending could expose us to increased lending risks. At December 31, 2025, $334.8 million, or 18.0%, of our loan portfolio consisted of multifamily, mixed-use and non-residential real estate loans.
At December 31, 2024, $1.3 billion of our construction loan portfolio, or 92.3% of our construction loan portfolio and 72.7% of our total loan portfolio, represented loans made in the high absorption areas of these four counties of New York.
At December 31, 2025, $1.3 billion of our construction loan portfolio, or 96.6% of our construction loan portfolio and 69.4% of our total loan portfolio, represented loans made in the high absorption areas of these four counties of New York.
Our construction loan portfolio has increased to $1.4 billion, net of loans-in-process of $398.4 million, or 78.6% of total loans, at December 31, 2024 from $251.0 million, net of loans-in-process of $145.8 million, or 39.8% of total loans, at December 31, 2016.
Our construction loan portfolio has increased to $1.3 billion, net of loans-in-process of $402.7 million, or 71.8% of total loans, at December 31, 2025 from $251.0 million, net of loans-in-process of $145.8 million, or 39.8% of total loans, at December 31, 2016.
Furthermore, at December 31, 2024, $96.1 million, or 36.6% of our multifamily, mixed-use and non-residential real estate loan portfolio and 5.3% of our total loan portfolio, represented loans made in the New York Metropolitan Area.
Furthermore, at December 31, 2025, $183.4 million, or 55.3% of our multifamily, mixed-use and non-residential real estate loan portfolio and 9.9% of our total loan portfolio, represented loans made in the New York Metropolitan Area.
Our business is dependent on the successful and uninterrupted functioning of our information technology and telecommunications systems and third-party service providers. The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations.
The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations.
At December 31, 2024, brokered deposits, military deposits and deposits obtained through listing services totaled $489.3 million, or 29.3% of total deposits, of which brokered deposits represents $436.0 million or 26.1% of total deposits. Generally, these deposits may not be as stable as other types of deposits.
At December 31, 2025, brokered deposits, military deposits and deposits obtained through listing services totaled $457.8 million, or 28.3% of total deposits, of which brokered deposits represents $370.5 million or 22.9% of total deposits. Generally, these deposits may not be as stable as other types of deposits.
At December 31, 2024, we had uninsured deposits totaling $346.9 million and $115.0 million in available liquidity, including $78.3 million in cash, as well as $834.7 million in borrowing capacity at the FRBNY which was sufficient to cover our uninsured deposits as of December 31, 2024.
At December 31, 2025, we had uninsured deposits totaling $361.0 million and $126.2 million in available liquidity, including $81.2 million in cash, as well as $768.8 million in borrowing capacity at the FRBNY, $35.8 million in borrowing capacity at the FHLBNY, and $8.0 million in borrowing capacity at ACBB, which was sufficient to cover our uninsured deposits as of December 31, 2025.
Although we have a history of paying cash dividends, we have no obligation to continue paying dividends.
In addition, the Company declared a special dividend of $0.20 per share on October 6, 2025. Although we have a history of paying cash dividends, we have no obligation to continue paying dividends.
See “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Management of Credit Risk.” Our portfolio of commercial and industrial loans may expose us to increased lending risks. At December 31, 2024, $118.7 million, or 6.6%, of our loan portfolio consisted of commercial and industrial loans.
See “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Management of Credit Risk.” Our multifamily and mixed-use loan portfolio may be adversely affected by changes in legislation or regulations.
Added
At December 31, 2025, we had approximately $16.3 million of New York City multifamily and mixed-use loans that have some form of rent stabilization or rent control, which represents 0.9% of our total loan portfolio as of that date.
Added
In 2019, the New York State legislature passed the Housing Stability and Tenant Protection Act of 2019, impacting about one million rent regulated apartment units.
Added
Among other things, the legislation: (i) curtails rent increases from material capital improvements and individual apartment improvements; (ii) all but eliminates the ability for apartments to exit rent regulation; (iii) does away with vacancy decontrol and high-income deregulation; and (iv) repealed the 20% vacancy bonus.
Added
This legislation generally limits a landlord’s ability to increase rents on rent-regulated apartments and makes it more difficult to convert rent regulated apartments to market rate apartments.
Added
For example, the New York City Rent Guidelines Board established that on certain apartments, for a one-year lease beginning on or after September 30, 2024, the maximum rent increase is 3.0%, even when the overall inflation rate has increased at a higher rate. ​ The recent election of Zohran Mamdani as Mayor of New York City introduces potential policy changes that could affect the city’s multifamily housing market.
Added
The administration has expressed support for rent freezes and expanded tenant protections, which, if enacted, may reduce rental income and property values across multifamily properties. These market dynamics could adversely impact the credit quality of our borrowers. Lower property cash flows may impair borrowers’ ability to service existing debt.
Added
In addition, a sustained decline in collateral values could elevate loan-to-value ratios and reduce recovery prospects in the event of foreclosure. Our portfolio of commercial and industrial loans may expose us to increased lending risks. At December 31, 2025, $150.4 million, or 8.1%, of our loan portfolio consisted of commercial and industrial loans.
Added
We are dependent on our information technology and telecommunications systems and third-party service providers; systems failures, interruptions and cybersecurity breaches could have a material adverse effect on us. Our business is dependent on the successful and uninterrupted functioning of our information technology and telecommunications systems and third-party service providers.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThese reports include updates on the Company’s cyber risks and threats, the status of projects to strengthen our information security systems, assessments of the information security program, and the emerging threat landscape. Our program is regularly evaluated by internal and external experts with 28 Table of Contents the results of those reviews reported to senior management and the Board.
Biggest changeThese reports include updates on the Company’s cyber risks and threats, the status of projects to strengthen our information security systems, assessments of the information security program, and the emerging threat landscape. Our program is regularly evaluated by internal and external experts with the results of those reviews reported to senior management and the Board.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe previously operated a leased wealth management office in Westport, Connecticut. However, we no longer maintain this office following the sale of all of the Bank’s assets relating to Harbor West Wealth Management Group to a third party in January 2024, which the third party is currently leasing the office from us.
Biggest changeWe previously operated a leased wealth management office in Westport, Connecticut. However, we no longer maintain this office following the sale of all of the Bank’s assets relating to Harbor West Wealth Management Group to a third party in January 2024.
PROPERTIES At December 31, 2024, we conducted business through our administrative headquarters located in White Plains, New York and through our eleven branch offices located in Bronx, New York, Rockland, Orange, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in White Plains and New City, New York and Danvers, Massachusetts.
PROPERTIES At December 31, 2025, we conducted business through our administrative headquarters located in White Plains, New York and through our eleven branch offices located in Bronx, New York, Rockland, Orange, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in White Plains and New City, New York and Danvers, Massachusetts.
At December 31, 2024, we leased five of our offices, and the total net book value of our land, buildings, furniture, fixtures and equipment was $24.8 million. ​
At December 31, 2025, we leased five of our offices, and the total net book value of our land, buildings, furniture, fixtures and equipment was $25.4 million. ​

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS From time to time, the Company and the Bank are involved in routine legal proceedings in the ordinary course of business. At December 31, 2024, such routine legal proceedings, in the aggregate, are believed by management to be immaterial to our financial condition, results of operations and cash flows. ​
Biggest changeITEM 3. LEGAL PROCEEDINGS From time to time, the Company and the Bank are involved in routine legal proceedings in the ordinary course of business. At December 31, 2025, such routine legal proceedings, in the aggregate, are believed by management to be immaterial to our financial condition, results of operations and cash flows. ​

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAs previously disclosed, the Company’s Board of Directors also declared a one-time special cash dividend of $0.15 per share, which was paid on November 6, 2024, to shareholders of record at the close of business on October 6, 2024 and $0.18 per share, which was paid on May 31, 2022, to shareholders of record at the close of business on May 16, 2022.
Biggest changeAs previously disclosed, the Company’s Board of Directors also declared a one-time special cash dividend of $0.20 per share, which was paid on October 6, 2025, to shareholders of record at the close of business on September 8, 2025.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The common stock of the Company is traded on the Nasdaq Capital Market under the ticker symbol “NECB.” Holders The number of shareholders of record of the Company at March 11, 2025 was 301.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The common stock of the Company is traded on the Nasdaq Capital Market under the ticker symbol “NECB.” Holders The number of shareholders of record of the Company at March 10, 2026 was 294.
Securities Authorized for Issuance Under Equity Compensation Plans The following table sets forth information regarding outstanding options and shares outstanding under the Company’s previously disclosed 2022 Equity Incentive Plan at December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) ​ ​ (b) ​ (c) ​ ​ ​ ​ ​ ​ ​ Numbers of Securities ​ ​ ​ ​ ​ ​ ​ Remaining Available ​ ​ ​ ​ ​ ​ ​ for Future Issuance ​ ​ Numbers of Securities to ​ ​ Weighted-Average ​ Under Equity ​ ​ be Issued Upon Exercise ​ ​ Exercise Price of ​ Compensation Plans ​ of Outstanding Options, ​ Outstanding Options, (Excluding Securities Period ​ Warrants and Rights ​ ​ Warrants and Rights ​ Reflected in Column (a)) Equity compensation plan approved by security holders ​ 842,896 $ 13.72 98,311 Equity compensation plan not approved by security holders ​ - ​ ​ - ​ - Total ​ 842,896 ​ ​ ​ ​ 98,311 ​ Issuer Purchases of Equity Securities On July 27, 2022, the Company announced that its Board of Directors had authorized a stock repurchase program to acquire up to 1,637,794 shares, or 10%, of the Company's currently issued and outstanding common stock commencing on August 1, 2022.
Securities Authorized for Issuance Under Equity Compensation Plans The following table sets forth information regarding outstanding options and shares outstanding under the Company’s previously disclosed 2022 Equity Incentive Plan at December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) ​ ​ (b) ​ (c) ​ ​ ​ ​ ​ ​ ​ Numbers of Securities ​ ​ ​ ​ ​ ​ ​ Remaining Available ​ ​ ​ ​ ​ ​ ​ for Future Issuance ​ ​ Numbers of Securities to ​ ​ Weighted-Average ​ Under Equity ​ ​ be Issued Upon Exercise ​ ​ Exercise Price of ​ Compensation Plans ​ ​ ​ ​ of Outstanding Options, ​ ​ ​ ​ Outstanding Options, ​ ​ ​ (Excluding Securities Period ​ Warrants and Rights ​ ​ Warrants and Rights ​ Reflected in Column (a)) Equity compensation plan approved by security holders ​ 878,416 $ 14.42 19,335 Equity compensation plan not approved by security holders ​ - ​ ​ - ​ - Total ​ 878,416 ​ ​ ​ ​ 19,335 ​ Issuer Purchases of Equity Securities On July 27, 2022, the Company announced that its Board of Directors had authorized a stock repurchase program to acquire up to 1,637,794 shares, or 10%, of the Company's currently issued and outstanding common stock commencing on August 1, 2022.
The following table provides information on repurchases by the Company of its common stock under the Company’s stock repurchase program during the quarter ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares ​ Maximum Number of ​ ​ ​ ​ ​ ​ ​ Purchased as Part of Shares that May Yet Be ​ Total Number of ​ Average Price Paid Publicly Announced Purchased Under the Period ​ Shares Purchased ​ ​ Per Share ​ Plans or Programs ​ Plans or Programs October 1 - 31, 2024 ​ - $ - - 418,044 November 1 - 30, 2024 ​ - ​ ​ - ​ - ​ 418,044 December 1 - 31, 2024 ​ - ​ ​ - ​ - ​ 418,044 Total ​ - ​ ​ ​ ​ - ​ ​ ​ ​ ​
The following table provides information on repurchases by the Company of its common stock under the Company’s stock repurchase program during the quarter ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares ​ Maximum Number of ​ ​ ​ ​ ​ ​ ​ Purchased as Part of ​ ​ ​ Shares that May Yet Be ​ ​ ​ ​ Total Number of ​ ​ ​ ​ Average Price Paid ​ ​ ​ Publicly Announced ​ ​ ​ Purchased Under the Period ​ Shares Purchased ​ ​ Per Share ​ Plans or Programs ​ Plans or Programs October 1 - 31, 2025 ​ - $ - - 1,400,435 November 1 - 30, 2025 ​ - ​ ​ - ​ - ​ 1,400,435 December 1 - 31, 2025 ​ 40,924 ​ ​ 22.88 ​ 40,924 ​ 1,359,511 Total ​ 40,924 ​ ​ ​ ​ 40,924 ​ ​ ​ ​ ​
Dividends The Company has historically paid a quarterly cash dividend to stockholders. During the year ended December 31, 2024, the Company increased the quarterly cash dividends to $0.10 per share on March 21, 2024 and $0.15 per share on September 19, 2024 from $0.06 per share prior to 2024.
Dividends The Company has historically paid a quarterly cash dividend to stockholders. During the year ended December 31, 2025, the Company increased the quarterly cash dividends to $0.20 per share on March 20, 2025 from $0.15 per share prior to 2025.
The stock repurchase program was the Company’s first repurchase program since completing its second-step conversion and related stock offering in July 2021. 30 Table of Contents On May 30, 2023, following the completion of the Company’s first stock repurchase program, the Company announced that its Board of Directors had authorized a second stock repurchase program to acquire up to an additional 1,509,218 shares, or 10%, of the Company’s currently issued and outstanding common stock.
The Company repurchased 1,637,794 shares, at an average cost of $14.05 per share, including commission costs and Federal excise taxes. ​ 30 Table of Contents On May 30, 2023, following the completion of the Company’s first stock repurchase program, the Company announced that its Board of Directors had authorized a second stock repurchase program to acquire up to an additional 1,509,218 shares, or 10%, of the Company’s currently issued and outstanding common stock.
Added
The stock repurchase program was the Company’s first repurchase program since completing its second-step conversion and related stock offering in July 2021.
Added
The Company repurchased 1,091,174 shares, at an average cost of $15.78 per share, including commission costs and Federal excise taxes, under the second stock repurchase program prior to its expiration and no shares currently remain available for repurchase under the second stock repurchase program. ​ On December 8, 2025, the Company announced that its Board of Directors had authorized a third stock repurchase program to acquire up to an additional 1,400,435, or 10%, of the Company’s currently issued and outstanding common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

122 edited+35 added−16 removed93 unchanged
Biggest changeDemand loans having no stated schedule of repayments and no stated maturity are reported as due in one year or less. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to ​ ​ ​ ​ ​ ​ ​ Residential ​ ​ ​ ​ Commercial ​ ​ ​ ​ ​ ​ ​ ​ Four- ​ Multi- ​ Mixed- ​ Real ​ ​ ​ ​ and ​ ​ ​ ​ Total December 31, 2024 Family Family Use Estate Construction Industrial Consumer Loans ​ ​ (Dollars in thousands) Amounts due in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ — ​ $ 1,688 ​ $ 1,733 ​ $ 947 ​ $ 1,039,799 ​ $ 93,222 ​ $ 1,648 ​ $ 1,139,037 More than 1-5 years ​ ​ 453 ​ ​ 144,589 ​ ​ 9,901 ​ ​ 10,033 ​ ​ 386,368 ​ ​ 16,780 ​ ​ 1 ​ ​ 568,125 More than 5-15 years ​ ​ 317 ​ ​ 57,860 ​ ​ 14,937 ​ ​ 18,466 ​ ​ — ​ ​ 8,734 ​ ​ — ​ ​ 100,314 More than 15 years ​ ​ 2,702 ​ ​ 2,469 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 5,171 Total ​ $ 3,472 ​ $ 206,606 ​ $ 26,571 ​ $ 29,446 ​ $ 1,426,167 ​ $ 118,736 ​ $ 1,649 ​ $ 1,812,647 ​ The following table sets forth all loans at December 31, 2024 that are due after December 31, 2025 and have either fixed interest rates or floating or adjustable interest rates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Floating or Total at ​ ​ Fixed Rates ​ Adjustable Rates ​ December 31, 2024 ​ ​ (Dollars in thousands) Residential real estate loans: ​ ​ ​ One- to four-family ​ $ 3,019 ​ $ 453 ​ $ 3,472 Multifamily ​ 140,138 ​ 64,780 ​ 204,918 Mixed-use ​ 2,320 ​ 22,518 ​ 24,838 Non-residential real estate loans ​ 1,328 ​ 27,171 ​ 28,499 Construction loans ​ — ​ 386,368 ​ 386,368 Commercial and industrial loans ​ 17,085 ​ 7,429 ​ 24,514 Consumer loans ​ 1 ​ — ​ 1 Total ​ $ 163,891 ​ $ 508,719 ​ $ 672,610 ​ 36 Table of Contents Securities Our investment portfolio consists primarily of mutual funds, residential mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae primarily with stated final maturities of 10 years or more, and municipal securities with maturities of one year or more.
Biggest changeDemand loans having no stated schedule of repayments and no stated maturity are reported as due in one year or less. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential ​ Residential ​ ​ ​ ​ Commercial ​ ​ ​ ​ ​ ​ ​ ​ Real ​ Real ​ ​ ​ ​ and ​ ​ ​ ​ Total December 31, 2025 ​ ​ ​ Estate ​ ​ ​ Estate ​ ​ ​ Construction ​ ​ ​ Industrial ​ ​ ​ Consumer ​ ​ ​ Loans ​ ​ (Dollars in thousands) Amounts due in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ 14,057 ​ $ 15,728 ​ $ 960,856 ​ $ 108,624 ​ $ 58 ​ $ 1,099,323 More than 1-5 years ​ ​ 201,494 ​ ​ 5,982 ​ ​ 375,473 ​ ​ 35,306 ​ ​ — ​ ​ 618,255 More than 5-15 years ​ ​ 114,372 ​ ​ 16,753 ​ ​ — ​ ​ 6,467 ​ ​ — ​ ​ 137,592 More than 15 years ​ ​ 4,896 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,896 Total ​ $ 334,819 ​ $ 38,463 ​ $ 1,336,329 ​ $ 150,397 ​ $ 58 ​ $ 1,860,066 ​ The following table sets forth all loans at December 31, 2025 that are due after December 31, 2025 and have either fixed interest rates or floating or adjustable interest rates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Floating or ​ ​ ​ Total at ​ ​ Fixed Rates ​ Adjustable Rates ​ December 31, 2025 ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ Residential real estate loans ​ $ 194,268 ​ $ 126,494 ​ $ 320,762 Non-residential real estate loans ​ 1,245 ​ 21,490 ​ 22,735 Construction loans ​ — ​ 375,473 ​ 375,473 Commercial and industrial loans ​ 22,626 ​ 19,147 ​ 41,773 Total ​ $ 218,139 ​ $ 542,604 ​ $ 760,743 ​ Securities Our investment portfolio consists primarily of mutual funds, residential mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae primarily with stated final maturities of 10 years or more, and municipal securities with maturities of one year or more.
These two perspectives give rise to income simulation and economic value simulation, each of which presents a unique picture of our risk of any movement in interest rates. Income simulation identifies the timing and magnitude of changes in income resulting from changes in prevailing interest rates over a short-term time horizon (usually one or 50 Table of Contents two years).
These two perspectives give rise to income simulation and economic value simulation, each of which presents a unique picture of our risk of any movement in interest rates. Income simulation identifies the timing and magnitude of 50 Table of Contents changes in income resulting from changes in prevailing interest rates over a short-term time horizon (usually one or two years).
The simulation uses projected repricing of assets and liabilities at December 31, 2024. The income simulation analysis presented represents a one-year impact of the interest scenario assuming a static balance sheet. Various assumptions are made regarding the prepayment speed and optionality of loans, investment securities and deposits, which are based on analysis and market information.
The simulation uses projected repricing of assets and liabilities at December 31, 2025. The income simulation analysis presented represents a one-year impact of the interest scenario assuming a static balance sheet. Various assumptions are made regarding the prepayment speed and optionality of loans, investment securities and deposits, which are based on analysis and market information.
Overall, our December 31, 2024 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk and that all interest rate risk results continue to be within our policy guidelines. Liquidity and Capital Resources We maintain liquid assets at levels we believe are adequate to meet our liquidity needs.
Overall, our December 31, 2025 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk and that all interest rate risk results continue to be within our policy guidelines. Liquidity and Capital Resources We maintain liquid assets at levels we believe are adequate to meet our liquidity needs.
The results at December 31, 2024 indicate the level of risk within the parameters of our model. Our management believes that the December 31, 2024 results indicate a profile that reflects interest rate risk exposures in both rising and declining rate environments for both net interest income and economic value. Model Simulation Analysis.
The results at December 31, 2025 indicate the level of risk within the parameters of our model. Our management believes that the December 31, 2025 results indicate a profile that reflects interest rate risk exposures in both rising and declining rate environments for both net interest income and economic value. Model Simulation Analysis.
Off-Balance Sheet Arrangements For the year ended December 31, 2024, we did not engage in any off-balance sheet transactions reasonably likely to have a material adverse effect on our financial condition, results of operations or cash-flows.
Off-Balance Sheet Arrangements For the year ended December 31, 2025, we did not engage in any off-balance sheet transactions reasonably likely to have a material adverse effect on our financial condition, results of operations or cash-flows.
When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, the loan’s observable market price or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable.
When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, the loan’s observable market price or, for collateral-dependent loans, the fair 33 Table of Contents value of the collateral as of the reporting date, less estimated selling costs, as applicable.
The following table sets forth the stated maturities and weighted average yields of investment securities at December 31, 2024. Weighted average yields on tax-exempt securities are presented on a tax equivalent basis using a combined federal and state marginal rate of 28.4%.
The following table sets forth the stated maturities and weighted average yields of investment securities at December 31, 2025. Weighted average yields on tax-exempt securities are presented on a tax equivalent basis using a combined federal and state marginal rate of 28.4%.
Additionally, we reserve for certain inherent, but undetected, losses that are probable within the loan portfolio. This is due to several factors, such as, but not limited to, inherent delays in obtaining 47 Table of Contents information regarding a customer’s financial condition or changes in their unique business conditions and the interpretation of economic trends.
Additionally, we reserve for certain inherent, but undetected, losses that are probable within the loan portfolio. This is due to several factors, such as, but not limited to, inherent delays in obtaining information regarding a customer’s financial condition or changes in their unique business conditions and the interpretation of economic trends.
As part of its risk management process, the Bank conducts stress testing on its commercial real estate portfolio, performs a global cash flow analysis for loans associated with multiple properties and/or guarantors and also operates a 44 Table of Contents loan review program for all real estate loans (including construction loans) with terms more than 12 months.
As part of its risk management process, the Bank conducts stress testing on its commercial real estate portfolio, performs a global cash flow analysis for loans associated with multiple properties and/or guarantors and also operates a loan review program for all real estate loans (including construction loans) with terms more than 12 months.
Our principal focus, therefore, is on the adequacy of the total allowance for credit losses. ​ Although we believe we have established and maintained the ACL on loans at appropriate levels, changes in reserves may be necessary if actual economic and other conditions differ substantially from the forecast used in estimating the ACL.
Our principal focus, therefore, is on the adequacy of the total allowance for credit losses. ​ Although we believe we have established and maintained the ACL on loans at appropriate levels, changes in reserves may be necessary if actual economic and other conditions differ substantially from the forecast used in estimating 47 Table of Contents the ACL.
Impact of Inflation and Changing Prices The consolidated financial statements and related notes of the Company have been prepared in accordance with GAAP, which generally requires the measurement of financial position and operating results in terms of historical 53 Table of Contents dollars without consideration for changes in the relative purchasing power of money over time due to inflation.
Impact of Inflation and Changing Prices The consolidated financial statements and related notes of the Company have been prepared in accordance with GAAP, which generally requires the measurement of financial position and operating results in terms of historical dollars without consideration for changes in the relative purchasing power of money over time due to inflation.
There continues to be a significant need for construction financing within the high absorption, homogeneous communities served by the Bank and we intend to continue to support the growth of these communities through the financing of condominium and apartment construction loans within the communities. Maintaining strong asset quality and managing credit risk.
There continues to be a significant need for construction financing within the high absorption, homogeneous 31 Table of Contents communities served by the Bank and we intend to continue to support the growth of these communities through the financing of condominium and apartment construction loans within the communities. Maintaining strong asset quality and managing credit risk.
The following table sets forth certain information at December 31, 2024 regarding the dollar amount of loan principal repayments becoming due during the periods indicated. The tables do not include any estimate of prepayments which significantly shorten the average life of all loans and may cause our actual repayment experience to differ from that shown below.
The following table sets forth certain information at December 31, 2025 regarding the dollar amount of loan principal repayments becoming due during the periods indicated. The tables do not include any estimate of prepayments which significantly shorten the average life of all loans and may cause our actual repayment experience 36 Table of Contents to differ from that shown below.
We attribute this credit quality to a 31 Table of Contents conservative credit culture and an effective credit risk management environment. We have an experienced team of credit professionals, well-defined and implemented credit policies and procedures, what we believe to be conservative loan underwriting criteria, and active credit monitoring policies and procedures.
We attribute this credit quality to a conservative credit culture and an effective credit risk management environment. We have an experienced team of credit professionals, well-defined and implemented credit policies and procedures, what we believe to be conservative loan underwriting criteria, and active credit monitoring policies and procedures.
Strong asset quality is a key to the long-term financial success of any financial institution. We have been successful in maintaining strong asset quality in recent years. Our ratio of non-performing assets to total assets was 0.25%, 0.33%, and 0.10%, at December 31, 2024, 2023 and 2022, respectively.
Strong asset quality is a key to the long-term financial success of any financial institution. We have been successful in maintaining strong asset quality in recent years. Our ratio of non-performing assets to total assets was 0.00%, 0.25%, and 0.33%, at December 31, 2025, 2024 and 2023, respectively.
The ACL is maintained at a level that management considers adequate to provide for estimated losses and impairment based upon an 46 Table of Contents evaluation of known and inherent risk in the loan portfolio.
The ACL is maintained at a level that management considers adequate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio.
We also establish targets of 2.0% for the Cash Liquidity ratio, 8.0% for the On Balance Sheet Liquidity ratio, and 20.0% for the On Balance Sheet Liquidity & Borrowing Capacity ratio.
We also establish targets of 2.0% for the Cash Liquidity ratio, 5.0% for the On Balance Sheet Liquidity ratio, and 20.0% for the On Balance Sheet Liquidity & Borrowing Capacity ratio.
Delinquent Loans The following table provides information about delinquencies in our loan portfolio at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ Days Past Due ​ Days Past Due ​ ​ 30 – 59 60 – 89 90 or more 30 – 59 60 – 89 90 or more ​ ​ (In thousands) Residential real estate loans: ​ ​ ​ ​ ​ ​ ​ Multi-family ​ $ 931 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Consumer loan: ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ — ​ ​ — Construction loan: ​ — ​ — ​ — ​ 2,319 ​ — ​ 4,385 Total ​ $ 931 ​ $ — ​ $ — ​ $ 2,320 ​ $ — ​ $ 4,385 ​ Analysis and Determination of the Allowance for Credit Losses - Loans ​ The allowance for credit losses (“ACL”) is a valuation account that reflects management's evaluation of expected future losses in the loan portfolio.
Delinquent Loans The following table provides information about delinquencies in our loan portfolio at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ Days Past Due ​ Days Past Due ​ ​ 30 – 59 ​ ​ ​ 60 – 89 ​ ​ ​ 90 or more ​ ​ ​ 30 – 59 ​ ​ ​ 60 – 89 ​ ​ ​ 90 or more ​ ​ (In thousands) Residential real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Multi-family ​ $ — ​ $ — ​ $ — ​ $ 931 ​ $ — ​ $ — Consumer loan: ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Construction loan: ​ — ​ — ​ — ​ — ​ — ​ — Total ​ $ — ​ $ — ​ $ — ​ $ 931 ​ $ — ​ $ — ​ Analysis and Determination of the Allowance for Credit Losses - Loans ​ The allowance for credit losses (“ACL”) is a valuation account that reflects management's evaluation of expected future losses in the loan portfolio.
Our primary investing activities are the origination of construction loans, commercial and industrial loans, multifamily loans, and to a lesser extent, mixed-use real estate loans and other loans. For the years ended December 31, 2024 and 2023, our loan originations totaled $656.0 million and $815.8 million, respectively.
Our primary investing activities are the origination of construction loans, commercial and industrial loans, multifamily loans, and to a lesser extent, mixed-use real estate loans and other loans. For the years ended December 31, 2025 and 2024, our loan originations totaled $860.7 million and $656.0 million, respectively.
We had no FRBNY borrowings at December 31, 2024 compared to $50.0 million in FRBNY borrowings at December 31, 2023 In addition, we have a borrowing agreement with Atlantic Community Bankers Bank (“ACBB”) to provide short-term borrowings of $8.0 million at December 31, 2024 and 2023. There were no outstanding borrowings with ACBB at December 31, 2024 and 2023.
In addition, we have a borrowing agreement with Atlantic Community Bankers Bank (“ACBB”) to provide short-term borrowings of $8.0 million at December 31, 2025 and 2024. There were no outstanding borrowings with ACBB at December 31, 2025 and 2024.
Non-performing assets within these loan portfolios are transferred to the Special Assets Department for workout or litigation. The Special Assets Department reports directly to the Executive Committee.
Non-performing assets within 46 Table of Contents these loan portfolios are transferred to the Special Assets Department for workout or litigation. The Special Assets Department reports directly to the Executive Committee.
One-year net interest income would decrease by approximately 8.93% to 28.08% in a declining interest rate environment over the same period. Economic value at risk would be positively impacted by a rise in interest rates and negatively impacted by a decline in interest rates. We have established an interest rate floor of zero percent for measuring interest rate risk.
One-year net interest income would decrease by approximately 9.61% to 27.76% in a declining interest rate environment over the same period. Economic value at risk would be positively impacted by a rise in interest rates and negatively impacted by a decline in interest rates. We have established an interest rate floor of zero percent for measuring interest rate risk.
Net income for the year ended December 31, 2024 was greater than the year ended December 31, 2023 primarily due to an increase in net interest income and provision for credit losses reduction, partially offset by a decrease in non-interest income, an increase in non-interest expenses, and an increase in income tax expense.
Net income for the year ended December 31, 2025 was lower than net income for the year ended December 31, 2024 primarily due to a decrease in net interest income and an increase in non-interest expense, partially offset by a decrease in the provision for credit losses, an increase in non-interest income, and a decrease in income tax expense.
Salaries and employee benefits increased by $2.1 million, or 11.2%, to $20.9 million in 2024 from $18.8 million in 2023 primarily due to the hiring of additional personnel to support the growth of the Company, an increase in personnel compensation in order to remain competitive in recruiting and retaining personnel, an increase in the ESOP compensation cost due to an increase in the value of the Company’s stock, an increase in the amortization of expenses related to the 2022 Equity Incentive Plan awards of restricted stocks and options, and a decrease in loan origination expenses related to loan origination fees due to a decrease in loan originations.
Salaries and employee benefits increased by $2.2 million, or 10.7%, to $23.2 million in 2025 from $20.9 million in 2024 primarily due to the hiring of additional personnel to support the growth of the Company, an increase in personnel compensation and benefits cost in order to remain competitive in recruiting and retaining personnel, an increase in the ESOP compensation cost due to an increase in the value of the Company’s stock, and an increase in the amortization of expenses related to the 2022 Equity Incentive Plan awards of restricted stocks and options, partially offset by an increase in loan origination offset expenses related to loan origination fees due to an increase in loan originations.
Our Cash Liquidity ratio, On Balance Sheet Liquidity ratio, and On Balance Sheet Liquidity & Borrowing Capacity ratio averaged 6.7%, 8.8%, and 65.6%, respectively, for the year ended December 31, 2024 compared to 6.7%, 9.6%, and 32.7%, respectively, for the year ended December 31, 2023.
Our Cash Liquidity ratio, On Balance Sheet Liquidity ratio, and On Balance Sheet Liquidity & Borrowing Capacity ratio averaged 5.0%, 7.4%, and 59.9%, respectively, for the year ended December 31, 2025 compared to 6.7%, 8.8%, and 65.6%, respectively, for the year ended December 31, 2024.
At December 31, 2024, the Company had liquid assets of $5.8 million and $15.2 million in loan participations originated by the Bank which are held by the Company.
At December 31, 2025, the Company had liquid assets of $5.2 million and $3.1 million in loan participations originated by the Bank which are held by the Company.
At December 31, 2024, $1.4 billion, or 78.6%, of our total loan portfolio, net of loans in process, consisted of construction loans primarily located in high demand and high absorption areas in the New York Metropolitan Area.
At December 31, 2025, $1.3 billion, or 71.8%, of our total loan portfolio, net of loans in process, consisted of construction loans primarily located in high demand and high absorption areas in the New York Metropolitan Area.
We recorded no recoveries from previously charged-off loans during the year ended December 31, 2024 and 2023. ​ Based on a review of our loan portfolio, held-to-maturity investment securities, and off-balance sheet commitments at December 31, 2024, management believes that the allowance is maintained at a level that represents its best estimate of expected future losses in the loan portfolio, held-to-maturity investment securities, and off-balance sheet commitments that were both probable and reasonably estimable. ​ Management uses available information to establish the appropriate level of the allowance for credit losses.
Based on a review of our loan portfolio, held-to-maturity investment securities, and off-balance sheet commitments at December 31, 2025, management believes that the allowance is maintained at a level that represents its best estimate of expected future losses in the loan portfolio, held-to-maturity investment securities, and off-balance sheet commitments that were both probable and reasonably estimable. ​ Management uses available information to establish the appropriate level of the allowance for credit losses.
The increase in the average balances of interest bearing certificates of deposits and interest bearing demand deposits were used primarily to fund the loan portfolio growth and decreases in savings and club deposits and non-interest bearing demand deposits.
The increase in the average balances of interest-bearing demand deposits and borrowed money was used primarily to fund the loan portfolio growth and the decreases in other interest-earning assets, interest-bearing certificates of deposits, savings and club deposits, and non-interest bearing demand deposits.
A credit loss expense of $740,000 was recorded for the year ended December 31, 2024 as compared to a credit loss expense of $972,000 for the year ended December 31, 2023.
A credit loss expense reduction of $97,000 was recorded for the year ended December 31, 2025 compared to a credit loss expense of $740,000 for the year ended December 31, 2024.
We have no deposits that are uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance. ​ The following table sets forth the portion of the Bank’s certificates of deposit, by remaining time until maturity, that are in excess of the FDIC insurance limit as of December 31, 2024: ​ ​ ​ ​ ​ At ​ ​ December 31, 2024 ​ ​ (In thousands) Maturity Period: ​ Three months or less ​ $ 54,390 Over three through six months ​ 111,482 Over six through twelve months ​ 6,045 Over twelve months ​ 15,260 Total ​ $ 187,177 ​ ​ 38 Table of Contents Average Balance Sheets The following tables set forth average balance sheets, average yields and costs, and certain other information for the years indicated.
We have no deposits that are uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance. ​ The following table sets forth the portion of the Bank’s certificates of deposit, by remaining time until maturity, that are in excess of the FDIC insurance limit as of December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ At ​ ​ December 31, 2025 ​ ​ (In thousands) Maturity Period: ​ ​ Three months or less ​ $ 28,547 Over three through six months ​ 20,485 Over six through twelve months ​ 100,340 Over twelve months ​ 22,662 Total ​ $ 172,034 ​ ​ 38 Table of Contents Average Balance Sheets The following tables set forth average balance sheets, average yields and costs, and certain other information for the years indicated.
In addition, we rely on brokered, listing and military deposits, which represent a viable and cost effective addition to our deposit gathering and maintenance strategy, often at a lower “all-in” cost when compared to our retail branch network. Use of these types of deposits allows us to match the maturity of these deposits to the term of our construction loans.
In addition, we rely on brokered, listing and military deposits, which represent a viable and cost effective addition to our deposit gathering and maintenance strategy, often at a lower “all-in” cost when compared to our retail branch network.
Cash received from the sales, calls, maturities and pay-downs on securities totaled $1.2 million and $11.2 million for the years ended December 31, 2024 and 2023, respectively.
Cash received from the sales, calls, maturities and pay-downs on securities totaled $1.1 million and $1.2 million for the years ended December 31, 2025 and 2024, respectively. We purchased $8.8 million and $4.0 million in securities for the years ended December 31, 2025 and 2024, respectively.
Deferred loan fees totaled $49,000 and deferred loan costs totaled $176,000 for the years ended December 31, 2024 and 2023, respectively.
Deferred loan cost totaled $268,000 and deferred loan fees totaled $49,000 for the years ended December 31, 2025 and 2024, respectively.
We had an available borrowing limit of $18.2 million and $29.7 million from the Federal Home Loan Bank of New York as of December 31, 2024 and 2023, respectively. We had no Federal Home Loan Bank advances at December 31, 2024 compared to $14.0 million in Federal Home Loan Bank advances at December 31, 2023.
We had an available borrowing limit of $35.8 million and $18.2 million from the Federal Home Loan Bank of New York as of December 31, 2025 and 2024, respectively. We had no Federal Home Loan Bank advances at December 31, 2025 and 2024.
Loans, net of the allowance for credit losses, increased $226.0 million, or 14.3%, to $1.8 billion at December 31, 2024 from $1.6 billion at December 31, 2023.
Loans, net of the allowance for credit losses, increased $47.8 million, or 2.6%, to $1.9 billion at December 31, 2025 from $1.8 billion at December 31, 2024.
The loan portfolio is reviewed on a regular basis to determine whether any loans require classification in accordance with applicable regulations. Not all classified assets constitute non-performing assets.
There were no assets classified as doubtful or loss at December 31, 2025 or 2024. The loan portfolio is reviewed on a regular basis to determine whether any loans require classification in accordance with applicable regulations. Not all classified assets constitute non-performing assets.
The following table summarizes classified and criticized assets of all portfolio types at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 2023 ​ ​ (In thousands) Classified loans: ​ ​ ​ Substandard ​ $ 241 ​ $ 4,385 Doubtful ​ — ​ — Loss ​ — ​ — Total classified loans ​ 241 ​ 4,385 Special mention ​ — ​ 915 Total criticized loans ​ $ 241 ​ $ 5,300 ​ On the basis of management’s review of our assets, we had one loan with a balance of $241,000 classified as substandard at December 31, 2024 compared to two loans totaling $4.4 million classified as substandard at December 31, 2023.
At December 31, 2025 and 2024, we had no loans modified to borrowers experiencing financial difficulty. 45 Table of Contents The following table summarizes classified and criticized assets of all portfolio types at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) Classified loans: ​ ​ ​ ​ ​ Substandard ​ $ — ​ $ 241 Doubtful ​ — ​ — Loss ​ — ​ — Total classified loans ​ — ​ 241 Special mention ​ 226 ​ — Total criticized loans ​ $ 226 ​ $ 241 ​ On the basis of management’s review of our assets, we had no loans classified as substandard at December 31, 2025 compared to one loan with a balance of $241,000 classified as substandard at December 31, 2024.
Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, non-residential real estate, construction, commercial and industrial business, and consumer.
The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, non-residential real estate, construction, commercial and industrial business, and consumer.
The write down of $689,000 on the fair market value of the Pittsburgh, Pennsylvania foreclosed property in 2024 was due to the decrease in demand for office space in that area.
In 2024, we wrote down $689,000 in the value of the Pittsburgh foreclosed property and experienced operating expenses totaling $42,000. The write downs on the fair market value of the Pittsburgh foreclosed property in 2025 and 2024 was due to the decrease in demand for office space in that area.
If we require funds beyond our ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of New York to provide advances.
Liquidity management is both a daily and long-term function of business management. If we require funds beyond our ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of New York to provide advances.
The increase in equity securities was attributable to the purchase of $4.0 million in equity securities during the second half of 2024, offset by market depreciation of $109,000 due to market interest rate volatility during the year ended December 31, 2024.
The increase in equity securities was attributable to the purchase of $4.0 million in equity securities during the year ended December 31, 2025 and market appreciation of $521,000 due to market interest rate volatility during the year ended December 31, 2025.
Other assets increased $3.5 million, or 44.0%, to $11.6 million at December 31, 2024 from $8.0 million at December 31, 2023 due to increases of $3.1 million in tax assets, $476,000 in suspense accounts, and $6,000 in miscellaneous assets, partially offset by decreases of $40,000 in prepaid expenses and $2,000 in securities receivables.
Other assets decreased $621,000, or 5.4%, to $11.0 million at December 31, 2025 from $11.6 million at December 31, 2024 due to decreases of $2.5 million in tax assets and $9,000 in miscellaneous assets, partially offset by increases of $1.1 million in prepaid expenses and $819,000 in suspense accounts.
Net interest margin decreased by 79 basis points, or 12.3%, for the year ended December 31, 2024 to 5.62% compared to 6.41% for the year ended December 31, 2023.
Net interest margin decreased 37 basis points, or 6.6%, to 5.25% for the year ended December 31, 2025 compared to 5.62% for the year ended December 31, 2024.
Outside data processing expense increased by $394,000, or 17.8%, to $2.6 million in 2024 from $2.2 million in 2023 due to an increase in transactions and additional services required in 2024 to support the Company’s expansion.
Outside data processing expense increased by $474,000, or 18.2%, to $3.1 million in 2025 from $2.6 million in 2024 to an increase in transactions and additional services required in 2025 to support the Company’s growth.
The allowance for credit losses related to loans is measured on a collective (pool) basis when similar risk characteristics exist. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics.
If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis.
Cash and cash equivalents increased $9.6 million, or 14.0%, to $78.3 million at December 31, 2024 from $68.7 million at December 31, 2023.
Cash and cash equivalents increased $2.9 million, or 3.7%, to $81.2 million at December 31, 2025 from $78.3 million at December 31, 2024.
The credit loss expense reduction for held-to-maturity investment securities of $10,000 for the year ended December 31, 41 Table of Contents 2024 was primarily attributed to a reduction of $708,000 in the level of applicable held-to-maturity investment securities.
The credit loss expense reduction for held-to-maturity investment securities of $10,000 for the year ended December 31, 2024 was primarily attributed to a reduction of $708,000 in the level of applicable held-to-maturity investment securities. We charged-off $702,000 during the year ended December 31, 2025 as compared to charge-offs of $347,000 during the year ended December 31, 2024.
As a result, our banking regulators could require us to increase our allowance for credit losses - loans. ​ The following table sets forth the breakdown of the allowance for credit losses by loan category at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ ​ 2023 ​ ​ ​ ​ % of Allowance % of Loans in ​ ​ ​ % of Allowance % of Loans in ​ ​ ​ ​ ​ Amount to Total ​ Category to Total ​ ​ ​ ​ ​ Amount to Total ​ Category to Total ​ ​ Amount ​ Allowance ​ Loans ​ ​ Amount ​ Allowance ​ Loans ​ ​ (Dollars in thousands) ​ Residential real estate loans ​ $ 1,900 39.34 % 13.06 % ​ $ 2,433 47.77 % 14.74 % Non-residential real estate loans ​ 308 6.38 1.62 ​ 126 2.47 1.33 ​ Construction loans ​ 1,937 40.10 78.68 ​ 1,914 37.58 76.85 ​ Commercial and industrial ​ 520 10.77 6.55 ​ 472 9.27 7.00 ​ Consumer loans ​ 165 3.42 0.09 ​ 148 2.91 0.08 ​ Total allowance for credit losses ​ $ 4,830 100.00 % 100.00 % ​ $ 5,093 100.00 % 100.00 % ​ 48 Table of Contents The following table sets forth an analysis of the activity in the allowance for credit losses related to loans for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended December 31, ​ ​ ​ 2024 2023 ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans net of deferred (fees) costs ​ $ 1,812,598 ​ $ 1,586,897 ​ Average loans outstanding ​ 1,701,079 ​ 1,401,492 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance at beginning of period ​ $ 5,093 ​ $ 5,474 ​ ​ ​ ​ ​ ​ ​ ​ ​ Impact of adopting ASC 326 ​ ​ — ​ ​ (1,584) ​ Net charge-offs: ​ ​ ​ Residential real estate loans: ​ ​ ​ One- to four-family ​ — ​ — ​ Multifamily ​ — ​ — ​ Mixed-use ​ — ​ — ​ Total residential real estate loans ​ — ​ — ​ Non-residential real estate loans ​ — ​ — ​ Construction loans ​ — ​ 159 ​ Commercial and industrial loans ​ 1,000 ​ — ​ Consumer loans ​ 347 ​ 154 ​ Total net charge-offs ​ 1,347 ​ 313 ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for credit losses ​ 1,084 ​ 1,516 ​ Allowance at end of period ​ $ 4,830 ​ $ 5,093 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average loan outstanding: ​ ​ ​ Residential real estate loans: ​ ​ ​ One- to four-family ​ 4,213 ​ 5,240 ​ Multifamily ​ 198,372 ​ 141,836 ​ Mixed-use ​ 27,965 ​ 28,034 ​ Total residential real estate loans ​ 230,550 ​ 175,110 ​ Non-residential real estate loans ​ 26,152 ​ 23,196 ​ Construction loans ​ 1,327,180 ​ 1,088,219 ​ Commercial and industrial loans ​ 115,807 ​ 113,908 ​ Consumer loans ​ 1,390 ​ 1,059 ​ Total ​ 1,701,079 ​ 1,401,492 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net charge-offs as a percentage of average loans outstanding ​ ​ ​ Residential real estate loans: ​ ​ ​ One- to four-family ​ — % — % Multifamily ​ — ​ — ​ Mixed-use ​ — ​ — ​ Total residential real estate loans ​ — ​ — ​ Non-residential real estate loans ​ — ​ — ​ Construction loans ​ — ​ 0.01 ​ Commercial and industrial loans ​ 0.86 ​ — ​ Consumer loans ​ 24.96 ​ 14.54 ​ Total net charge-offs ​ 0.08 % 0.02 % ​ ​ ​ ​ ​ ​ ​ ​ Credit Quality Ratios: ​ ​ ​ ​ ​ ​ ​ As a percentage of year-end loans, net of deferred fees: ​ ​ ​ ​ ​ ​ ​ Allowance for credit loss ​ 0.27 % 0.32 % Nonaccrual loans ​ ​ — % ​ 0.28 % Nonperforming loans ​ ​ — % ​ 0.28 % Allowance for credit losses to nonaccrual loans ​ NA % 116.15 % Allowance for credit losses to nonperforming loans ​ NA % 116.15 % ​ 49 Table of Contents The allowance for credit losses related to loans decreased by $263,000 to $4.8 million at December 31, 2024 from $5.1 million at December 31, 2023.
As a result, our banking regulators could require us to increase our allowance for credit losses - loans. ​ The following table sets forth the breakdown of the allowance for credit losses by loan category at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ % of Allowance ​ ​ ​ % of Loans in ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Allowance ​ ​ ​ % of Loans in ​ ​ ​ ​ ​ Amount to Total ​ Category to Total ​ ​ ​ ​ ​ Amount to Total ​ Category to Total ​ ​ Amount ​ Allowance ​ Loans ​ ​ Amount ​ Allowance ​ Loans ​ ​ (Dollars in thousands) ​ Residential real estate loans ​ $ 1,646 34.79 % 18.00 % ​ $ 1,900 39.33 % 13.06 % Non-residential real estate loans ​ 249 5.26 2.07 ​ 308 6.38 1.62 ​ Construction loans ​ 2,035 43.01 71.84 ​ 1,937 40.10 78.68 ​ Commercial and industrial ​ 743 15.70 8.09 ​ 520 10.77 6.55 ​ Consumer loans ​ 58 1.23 0.00 ​ 165 3.42 0.09 ​ Total allowance for credit losses ​ $ 4,731 100.00 % 100.00 % ​ $ 4,830 100.00 % 100.00 % ​ 48 Table of Contents The following table sets forth an analysis of the activity in the allowance for credit losses related to loans for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended December 31, ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans net of deferred (fees) costs ​ $ 1,860,334 ​ $ 1,812,598 ​ Average loans outstanding ​ 1,805,645 ​ 1,701,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance at beginning of period ​ $ 4,830 ​ $ 5,093 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net charge-offs: ​ ​ ​ ​ ​ Residential real estate loans: ​ ​ ​ ​ ​ One- to four-family ​ — ​ — ​ Multifamily ​ — ​ — ​ Mixed-use ​ — ​ — ​ Total residential real estate loans ​ — ​ — ​ Non-residential real estate loans ​ (350) ​ — ​ Construction loans ​ (334) ​ — ​ Commercial and industrial loans ​ — ​ 1,000 ​ Consumer loans ​ 511 ​ 347 ​ Total net (recovery) charge-offs ​ (173) ​ 1,347 ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for credit losses ​ (272) ​ 1,084 ​ Allowance at end of period ​ $ 4,731 ​ $ 4,830 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average loan outstanding: ​ ​ ​ ​ ​ Residential real estate loans: ​ ​ ​ ​ ​ One- to four-family ​ 3,756 ​ 4,213 ​ Multifamily ​ 265,725 ​ 198,372 ​ Mixed-use ​ 28,305 ​ 27,965 ​ Total residential real estate loans ​ 297,786 ​ 230,550 ​ Non-residential real estate loans ​ 36,276 ​ 26,152 ​ Construction loans ​ 1,346,021 ​ 1,327,180 ​ Commercial and industrial loans ​ 124,642 ​ 115,807 ​ Consumer loans ​ 920 ​ 1,390 ​ Total ​ 1,805,645 ​ 1,701,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (recovery) charge-offs as a percentage of average loans outstanding ​ ​ ​ ​ ​ Residential real estate loans: ​ ​ ​ ​ ​ One- to four-family ​ — % — % Multifamily ​ — ​ — ​ Mixed-use ​ — ​ — ​ Total residential real estate loans ​ — ​ — ​ Non-residential real estate loans ​ (0.96) ​ — ​ Construction loans ​ (0.02) ​ — ​ Commercial and industrial loans ​ — ​ 0.86 ​ Consumer loans ​ 55.54 ​ 24.96 ​ Total net (recovery) charge-offs ​ (0.01) % 0.08 % ​ ​ ​ ​ ​ ​ ​ ​ Credit Quality Ratios: ​ ​ ​ ​ ​ ​ ​ As a percentage of year-end loans, net of deferred fees: ​ ​ ​ ​ ​ ​ ​ Allowance for credit loss ​ 0.25 % 0.27 % Nonaccrual loans ​ ​ — % ​ — % Nonperforming loans ​ ​ — % ​ — % Allowance for credit losses to nonaccrual loans ​ NA % NA % Allowance for credit losses to nonperforming loans ​ NA % NA % ​ 49 Table of Contents The allowance for credit losses related to loans decreased by $99,000 to $4.7 million at December 31, 2025 from $4.8 million at December 31, 2024.
Non-Interest Expense The following table sets forth an analysis of non-interest expense for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2024 ​ 2023 ​ ​ (Dollars in thousands) Salaries and employee benefits ​ $ 20,942 ​ $ 18,839 Occupancy expense ​ 2,828 ​ 2,595 Equipment ​ 890 ​ 1,055 Outside data processing ​ 2,604 ​ 2,210 Advertising ​ 418 ​ 521 Loss on disposition of business ​ ​ — ​ ​ 138 Real estate owned expense ​ 731 ​ 93 Other ​ 10,649 ​ 9,770 Total ​ $ 39,062 ​ $ 35,221 ​ Non-interest expense increased $3.8 million, or 10.9%, to $39.1 million for the year ended December 31, 2024 from $35.2 million for the year ended December 31, 2023.
Non-Interest Expense The following table sets forth an analysis of non-interest expense for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2025 ​ 2024 ​ ​ (Dollars in thousands) Salaries and employee benefits ​ $ 23,184 ​ $ 20,942 Occupancy expense ​ 2,992 ​ 2,828 Equipment ​ 868 ​ 890 Outside data processing ​ 3,078 ​ 2,604 Advertising ​ 426 ​ 418 Real estate owned expense ​ 845 ​ 731 Other ​ 11,275 ​ 10,649 Total ​ $ 42,668 ​ $ 39,062 ​ Non-interest expense increased $3.6 million, or 9.2%, to $42.7 million for the year ended December 31, 2025 from $39.1 million for the year ended December 31, 2024.
The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 77 basis points from 3.58% for the year ended December 31, 2023 to 4.35% for the year ended December 31, 2024, and an increase in average interest bearing liabilities of $328.9 million, or 33.3%, to $1.3 billion for the year ended December 31, 2024 from $986.3 million for the year ended December 31, 2023.
The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 46 basis points from 4.35% for the year ended December 31, 2024 to 3.89% for the year ended December 31, 2025, partially offset by an increase in average interest-bearing liabilities of $56.7 million, or 4.3%, to $1.4 billion for the year ended December 31, 2025 from $1.3 billion for the year ended December 31, 2024.
The increase in stockholders’ equity was due to net income of $47.1 million for the year ended December 31, 2024, the amortization expense of $2.0 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $1.3 million in earned employee stock ownership plan shares coupled with a reduction of $475,000 in unearned employee stock ownership plan shares, and an exercise of stock options totaling $14,000, partially offset by dividends paid and declared of $8.7 million, stock repurchases and stock repurchase excise taxes totaling $2.5 million, awarding restricted stock totaling $725,000. and $93,000 in other comprehensive income.
The increase in stockholders’ equity was due to net income of $44.4 million for 35 Table of Contents the year ended December 31, 2025, an increase of $1.1 million in earned employee stock ownership plan shares coupled with a reduction of $869,000 in unearned employee stock ownership plan shares, the amortization expense of $2.0 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, and $9,000 in other comprehensive income, partially offset by dividends declared of $13.4 million, stock repurchases of $1.6 million, and $18,000 in stock options exercised.
The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $312.3 million, or 20.6%, to $1.8 billion for the year ended December 31, 2024 from $1.5 billion for the year ended December 31, 2023 and an increase in the yield on interest earning assets by two basis points from 8.73% for the year ended December 31, 2023 to 8.75% for the year ended December 31, 2024.
The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 71 basis points from 8.75% for the year ended December 31, 2024 to 8.04% for the year ended December 31, 2025, partially offset by an increase in the average balance of interest-earning assets of $88.2 million, or 4.8%, to $1.9 billion for the year ended December 31, 2025 from $1.8 billion for the year ended December 31, 2024.
The following table sets forth the deposits as a percentage of total deposits for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ Average ​ Outstanding ​ ​ ​ ​ Average ​ Balance Percent Rate Balance Percent Rate ​ ​ (Dollars in thousands) Demand deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest bearing ​ $ 277,957 ​ ​ 17.82% — ​ $ 322,185 ​ ​ 25.18% — ​ NOW and money market ​ 209,993 ​ ​ 13.46% 3.41% ​ 93,426 ​ ​ 7.30% 3.07% ​ Total ​ ​ 487,950 ​ ​ 31.28% ​ 1.56% ​ ​ 415,611 ​ ​ 32.48% ​ 1.00% ​ Savings accounts ​ 154,430 ​ ​ 9.90% 2.16% ​ 248,755 ​ ​ 19.44% 2.71% ​ Certificates of deposit ​ 917,665 ​ ​ 58.82% 4.71% ​ 615,124 ​ ​ 48.08% 4.62% ​ Total ​ $ 1,560,045 ​ ​ 100.00% 3.50% ​ $ 1,279,490 ​ ​ 100.00% 3.20% ​ ​ As of December 31, 2024 and 2023, the aggregate amount of uninsured deposits (deposits in amounts greater than or equal to $250,000, which is the maximum amount for federal deposit insurance) was $346.9 million and $344.8 million, respectively.
The following table sets forth the deposits as a percentage of total deposits for the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ Average ​ Outstanding ​ ​ ​ ​ Average ​ ​ ​ ​ Balance ​ ​ ​ Percent ​ ​ ​ Rate ​ ​ ​ Balance ​ ​ ​ Percent ​ ​ ​ Rate ​ ​ (Dollars in thousands) Demand deposits: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest bearing ​ $ 274,033 ​ ​ 17.54% — ​ $ 277,957 ​ ​ 17.82% — ​ NOW and money market ​ 292,998 ​ ​ 18.76% 3.09% ​ 209,993 ​ ​ 13.46% 3.41% ​ Total ​ ​ 567,031 ​ ​ 36.30% ​ 1.63% ​ ​ 487,950 ​ ​ 31.28% ​ 1.56% ​ Savings accounts ​ 136,894 ​ ​ 8.76% 2.05% ​ 154,430 ​ ​ 9.90% 2.16% ​ Certificates of deposit ​ 858,115 ​ ​ 54.94% 3.97% ​ 917,665 ​ ​ 58.82% 4.71% ​ Total ​ $ 1,562,040 ​ ​ 100.00% 2.97% ​ $ 1,560,045 ​ ​ 100.00% 3.50% ​ ​ As of December 31, 2025 and 2024, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $361.0 million and $346.9 million, respectively.
In addition, as of December 31, 2024, the aggregate amount of all our uninsured certificates of 37 Table of Contents deposit was $187.2 million.
In addition, as of December 31, 2025, the aggregate amount of all our uninsured certificates of deposit was $172.0 million.
Loans evaluated collectively totaled $1.8 billion at December 31, 2024 compared to $1.6 billion at December 31, 2023. Loans evaluated individually totaled $241,000 at December 31, 2024 compared to $4.4 million at December 31, 2023.
Loans evaluated collectively totaled $1.9 billion at December 31, 2025 compared to $1.8 billion at December 31, 2024. We had no loans evaluated individually at December 31, 2025 compared to $241,000 at December 31, 2024.
The following table sets forth information with respect to our non-performing assets at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 ​ 2023 ​ ​ (Dollars in thousands) Total non-accrual loans ​ $ — ​ ​ $ 4,385 ​ Total accruing loans past due 90 days or more ​ ​ — ​ ​ — ​ Total non-performing loans ​ ​ — ​ ​ 4,385 ​ Real estate owned ​ ​ 5,120 ​ ​ 1,456 ​ Total non-performing assets ​ $ 5,120 ​ ​ $ 5,841 ​ Total non-performing loans to total loans ​ — % ​ 0.37 % Total non-performing assets to total assets ​ 0.25 % ​ 0.33 % ​ During the year ended December 31, 2024, non-performing assets decreased by $721,000, or 12.3%, to $5.1 million as of December 31, 2024 from $5.8 million as of December 31, 2023.
The following table sets forth information with respect to our non-performing assets at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ ​ 2024 ​ ​ (Dollars in thousands) Total non-accrual loans ​ $ — ​ ​ $ — ​ Total accruing loans past due 90 days or more ​ ​ — ​ ​ — ​ Total non-performing loans ​ ​ — ​ ​ — ​ Real estate owned ​ ​ — ​ ​ 5,120 ​ Total non-performing assets ​ $ — ​ ​ $ 5,120 ​ Total non-performing loans to total loans ​ — % ​ — % Total non-performing assets to total assets ​ — % ​ 0.25 % ​ We had no non-performing assets at December 31, 2025 compared to $5.1 million in non-performing assets at December 31, 2024.
In 2023, we collected no interest income from loans that were in non-accrual status in 2023. From time to time, as part of our loss mitigation strategy, we may modify loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction.
From time to time, as part of our loss mitigation strategy, we may modify loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.
The increase in assets was primarily due to increases in net loans of $226.0 million, cash and cash equivalents of $9.6 million, equity securities of $3.9 million, real estate owned of $3.7 million, and other assets of $3.5 million.
The increase in assets was primarily due to increases in net loans of $47.8 million, equity securities of $4.6 million, securities held-to-maturity of $3.7 million, and cash and cash equivalents of $2.9 million, partially offset by decreases in real estate owned of $5.1 million and accrued interest receivable of $1.3 million.
We also have a limited amount of one- to four-family residential real estate loans, which we no longer originate, and consumer loans, which we originate on a very limited basis. ​ 35 Table of Contents The following table shows the loan portfolio at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ ​ Amount Percent Amount Percent ​ ​ (Dollars in thousands) Residential real estate loans: ​ ​ ​ ​ One- to four-family ​ $ 3,472 0.19 % $ 5,252 0.33 % Multifamily ​ 206,606 11.40 ​ 198,927 12.54 ​ Mixed-use ​ 26,571 1.47 ​ 29,643 1.87 ​ Total residential real estate loans ​ 236,649 13.06 ​ 233,822 14.74 ​ Non-residential real estate loans ​ 29,446 1.62 ​ 21,130 1.33 ​ Construction loans ​ 1,426,167 78.68 ​ 1,219,413 76.85 ​ Commercial and industrial loans ​ 118,736 6.55 ​ 111,116 7.00 ​ Consumer loans ​ 1,649 0.09 ​ 1,240 0.08 ​ Total loans ​ 1,812,647 100.00 % 1,586,721 100.00 % Allowance for credit losses ​ (4,830) ​ ​ (5,093) ​ Deferred loan (fees) costs, net ​ (49) ​ ​ 176 ​ Loans, net ​ $ 1,807,768 ​ ​ ​ $ 1,581,804 ​ ​ Loan Maturity .
We also have a limited amount of one- to four-family residential real estate loans, which we no longer originate, and consumer loans, which we originate on a very limited basis. ​ The following table shows the loan portfolio at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ (Dollars in thousands) Residential real estate loans: ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family ​ $ 3,114 0.17 % $ 3,472 0.19 % Multifamily ​ 306,508 16.48 ​ 206,606 11.40 ​ Mixed-use ​ 25,197 1.35 ​ 26,571 1.47 ​ Total residential real estate loans ​ 334,819 18.00 ​ 236,649 13.06 ​ Non-residential real estate loans ​ 38,463 2.07 ​ 29,446 1.62 ​ Construction loans ​ 1,336,329 71.84 ​ 1,426,167 78.68 ​ Commercial and industrial loans ​ 150,397 8.09 ​ 118,736 6.55 ​ Consumer loans ​ 58 0.00 ​ 1,649 0.09 ​ Total loans ​ 1,860,066 100.00 % 1,812,647 100.00 % Allowance for credit losses ​ (4,731) ​ ​ (4,830) ​ ​ Deferred loan (fees) costs, net ​ 268 ​ ​ (49) ​ ​ Loans, net ​ $ 1,855,603 ​ ​ ​ $ 1,807,768 ​ ​ ​ Loan Maturity .
Regarding the sale/disposition of fixed assets, we recorded gains of $22,000 during the year ended December 31, 2024 compared to losses of $18,000 during the year ended December 31, 2023.
The increase in BOLI income of $39,000 was due to an increase in the yield on BOLI assets. Regarding the sale/disposition of fixed assets, we recorded losses of $6,000 during the year ended December 31, 2025 compared to gains of $22,000 during the year ended December 31, 2024.
Total interest and dividend income increased $27.5 million, or 20.8%, to $160.0 million for the year ended December 31, 2024 from $132.5 million for the year ended December 31, 2023.
Total interest and dividend income decreased $5.9 million, or 3.7%, to $154.1 million for the year ended December 31, 2025 from $160.0 million for the year ended December 31, 2024.
Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case.
At December 31, 2025, certificates of deposit scheduled to mature in less than one year totaled $832.2 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case.
The average balances of our non-interest bearing demand deposits decreased by $44.2 million, or 13.7%, from $322.2 million for the year ended December 31, 2023 to $278.0 million for the year ended December 31, 2024.
In addition, the average balances of our non-interest bearing demand deposits decreased by $3.9 million, or 1.4%, from $277.9 million for the year ended December 31, 2024 to $274.0 million for the year ended December 31, 2025.
Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans.
The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The allowance for credit losses related to loans is measured on a collective (pool) basis when similar risk characteristics exist.
Interest expense increased $21.9 million, or 62.1%, to $57.2 million for the year ended December 31, 2024 from $35.3 million for the year ended December 31, 2023.
Interest expense decreased $3.9 million, or 6.7%, to $53.4 million for the year ended December 31, 2025 from $57.2 million for the year ended December 31, 2024.
Securities held-to-maturity decreased $1.3 million, or 7.8%, to $14.6 million at December 31, 2024 from $15.9 million at December 31, 2023 due to $1.3 million in maturities and pay-downs of various investment securities, partially offset by a decrease of $10,000 in the allowance for credit losses for held-to-maturity securities.
Securities held-to-maturity increased $3.7 million, or 25.3%, to $18.3 million at December 31, 2025 from $14.6 million at December 31, 2024 due to purchases of $4.8 million in municipal bonds, partially offset by $1.1 million in maturities and pay-downs of various investment securities.
The table presents contractual maturities for mortgage-backed securities and does not reflect repricing or the effect of prepayments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due after One but within ​ Due after Five but within ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due within One Year ​ Five Years ​ Ten Years ​ Due after Ten Years ​ Total ​ ​ ​ ​ Weighted ​ Weighted ​ Weighted ​ Weighted ​ Weighted ​ ​ Carrying ​ Average ​ Carrying ​ Average ​ Carrying ​ Average ​ Carrying ​ Average ​ Carrying ​ Average December 31, 2024 ​ Value ​ Yield ​ Value ​ Yield ​ Value ​ Yield ​ Value ​ Yield ​ Value ​ Yield ​ ​ (Dollars in thousands) Securities held-to-maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ — — % $ 3 4.62 % $ 1,008 2.10 % $ 1,855 2.24 % $ 2,866 2.20 % U.S. agency collateralized mortgage obligations ​ ​ — — ​ ​ — — ​ ​ — — ​ ​ 2,782 1.49 ​ ​ 2,782 1.49 ​ Municipal bonds ​ ​ 527 1.73 ​ ​ 1,818 1.76 ​ ​ 1,715 1.45 ​ ​ 5,034 1.46 ​ ​ 9,094 1.53 ​ Total held-to-maturity ​ $ 527 1.73 % $ 1,821 1.76 % $ 2,723 1.69 % $ 9,671 1.62 % $ 14,742 1.65 % Total investment securities ​ $ 527 1.73 % $ 1,821 1.76 % $ 2,723 1.69 % $ 9,671 1.62 % $ 14,742 1.65 % ​ Deposits Deposits are a major source of our funds for lending and other investment purposes, and our deposits are provided primarily by individuals within our market area.
The table presents contractual maturities for mortgage-backed securities and does not reflect repricing or the effect of prepayments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due after One but within ​ Due after Five but within ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due within One Year ​ Five Years ​ Ten Years ​ Due after Ten Years ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Carrying ​ Average ​ Carrying ​ Average ​ Carrying ​ Average ​ Carrying ​ Average ​ Carrying ​ Average December 31, 2025 ​ Value ​ Yield ​ Value ​ Yield ​ Value ​ Yield ​ Value ​ Yield ​ Value ​ Yield ​ ​ (Dollars in thousands) Securities held-to-maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities ​ $ — — % $ 3 5.51 % $ 808 2.15 % $ 1,590 2.31 % $ 2,401 2.27 % U.S. agency collateralized mortgage obligations ​ ​ — — ​ ​ — — ​ ​ — — ​ ​ 2,673 1.48 ​ ​ 2,673 1.48 ​ Municipal bonds ​ ​ 881 3.89 ​ ​ 3,591 2.27 ​ ​ 3,385 2.13 ​ ​ 5,510 1.58 ​ ​ 13,367 2.06 ​ Total held-to-maturity ​ $ 881 3.89 % $ 3,594 2.27 % $ 4,193 2.13 % $ 9,773 1.67 % $ 18,441 2.00 % Total investment securities ​ $ 881 3.89 % $ 3,594 2.27 % $ 4,193 2.13 % $ 9,773 1.67 % $ 18,441 2.00 % ​ Deposits Deposits are a major source of our funds for lending and other investment purposes, and our deposits are provided primarily by individuals within our market area.
Loan balances exclude loans held for sale. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2024 ​ ​ 2023 ​ ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ ​ Average ​ ​ Outstanding ​ ​ ​ ​ ​ Average ​ ​ ​ ​ Balance ​ ​ Interest ​ Yield/Rate ​ ​ Balance ​ ​ Interest ​ Yield/Rate ​ ​ ​ (Dollars in thousands) ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable ​ $ 1,701,079 ​ ​ $ 153,902 9.05 % ​ $ 1,401,492 ​ ​ $ 127,486 9.10 % ​ Securities ​ ​ 34,765 ​ ​ ​ 839 2.41 ​ ​ ​ 37,819 ​ ​ ​ 777 2.05 ​ ​ Federal Home Loan Bank stock ​ ​ 677 ​ ​ ​ 70 10.34 ​ ​ ​ 984 ​ ​ ​ 82 8.33 ​ ​ Other interest-earning assets ​ ​ 92,610 ​ ​ ​ 5,202 5.62 ​ ​ ​ 76,542 ​ ​ ​ 4,143 5.41 ​ ​ Total interest-earning assets ​ ​ 1,829,131 ​ ​ ​ 160,013 8.75 ​ ​ ​ 1,516,837 ​ ​ ​ 132,488 8.73 ​ ​ Allowance for credit losses ​ ​ (4,940) ​ ​ ​ ​ ​ ​ ​ ​ ​ (4,676) ​ ​ ​ ​ ​ ​ ​ ​ Noninterest-earning assets ​ ​ 90,675 ​ ​ ​ ​ ​ ​ ​ ​ 84,287 ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 1,914,866 ​ ​ ​ ​ ​ ​ ​ ​ $ 1,596,448 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 209,993 ​ ​ $ 8,498 ​ 4.05 % ​ $ 93,426 ​ ​ $ 2,459 ​ 2.63 % ​ Savings and club accounts ​ ​ 154,430 ​ ​ ​ 3,799 ​ 2.46 ​ ​ ​ 248,755 ​ ​ ​ 6,777 ​ 2.72 ​ ​ Certificates of deposit ​ ​ 917,665 ​ ​ ​ 43,322 ​ 4.72 ​ ​ ​ 615,124 ​ ​ ​ 24,945 ​ 4.06 ​ ​ Interest-bearing deposits ​ ​ 1,282,088 ​ ​ ​ 55,619 ​ 4.34 ​ ​ ​ 957,305 ​ ​ ​ 34,181 3.57 ​ ​ Federal Home Loan Bank advances and other ​ ​ 33,117 ​ ​ ​ 1,602 ​ 4.84 ​ ​ ​ 29,007 ​ ​ ​ 1,116 ​ 3.85 ​ ​ Total interest-bearing liabilities ​ ​ 1,315,205 ​ ​ $ 57,221 ​ 4.35 ​ ​ ​ 986,312 ​ ​ $ 35,297 3.58 ​ ​ Noninterest-bearing demand deposits ​ ​ 277,957 ​ ​ ​ ​ ​ ​ ​ ​ ​ 322,185 ​ ​ ​ ​ ​ ​ ​ ​ Other noninterest-bearing liabilities ​ ​ 19,739 ​ ​ ​ ​ ​ ​ ​ ​ ​ 17,139 ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ 1,612,901 ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,325,636 ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders’ equity ​ ​ 301,965 ​ ​ ​ ​ ​ ​ ​ ​ ​ 270,812 ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and shareholders’ equity ​ $ 1,914,866 ​ ​ ​ ​ ​ ​ ​ ​ $ 1,596,448 ​ ​ ​ ​ ​ ​ ​ ​ Net interest income ​ ​ ​ ​ ​ $ 102,792 ​ ​ ​ ​ ​ ​ ​ ​ $ 97,191 ​ ​ ​ Net interest rate spread (1) ​ ​ ​ ​ ​ ​ ​ ​ 4.40 % ​ ​ ​ ​ ​ ​ ​ ​ 5.15 % ​ Net interest margin (3) ​ ​ ​ ​ ​ ​ ​ ​ 5.62 % ​ ​ ​ ​ ​ ​ ​ ​ 6.41 % ​ Net interest-earning assets (2) ​ $ 513,926 ​ ​ ​ ​ ​ ​ ​ ​ $ 530,525 ​ ​ ​ ​ ​ ​ ​ ​ Average interest-earning assets to interest-bearing liabilities ​ ​ 139.08 % ​ ​ ​ ​ ​ ​ ​ ​ 153.79 % ​ ​ ​ ​ ​ ​ ​ (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Loan balances exclude loans held for sale. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ ​ 2024 ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ ​ Average ​ ​ Outstanding ​ ​ ​ ​ ​ Average ​ ​ ​ ​ Balance ​ ​ Interest ​ Yield/Rate ​ ​ Balance ​ ​ Interest ​ Yield/Rate ​ ​ ​ (Dollars in thousands) ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable ​ $ 1,805,645 ​ ​ $ 149,624 8.29 % ​ $ 1,701,079 ​ ​ $ 153,902 9.05 % ​ Securities ​ ​ 39,311 ​ ​ ​ 1,082 2.75 ​ ​ ​ 34,765 ​ ​ ​ 839 2.41 ​ ​ Federal Home Loan Bank stock ​ ​ 580 ​ ​ ​ 42 7.24 ​ ​ ​ 677 ​ ​ ​ 70 10.34 ​ ​ Other interest-earning assets ​ ​ 71,763 ​ ​ ​ 3,370 4.70 ​ ​ ​ 92,610 ​ ​ ​ 5,202 5.62 ​ ​ Total interest-earning assets ​ ​ 1,917,299 ​ ​ ​ 154,118 8.04 ​ ​ ​ 1,829,131 ​ ​ ​ 160,013 8.75 ​ ​ Allowance for credit losses ​ ​ (4,856) ​ ​ ​ ​ ​ ​ ​ ​ ​ (4,940) ​ ​ ​ ​ ​ ​ ​ ​ Noninterest-earning assets ​ ​ 93,183 ​ ​ ​ ​ ​ ​ ​ ​ 90,675 ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 2,005,626 ​ ​ ​ ​ ​ ​ ​ ​ $ 1,914,866 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 292,998 ​ ​ $ 9,881 ​ 3.37 % ​ $ 209,993 ​ ​ $ 8,498 ​ 4.05 % ​ Savings and club accounts ​ ​ 136,894 ​ ​ ​ 2,942 ​ 2.15 ​ ​ ​ 154,430 ​ ​ ​ 3,799 ​ 2.46 ​ ​ Certificates of deposit ​ ​ 858,115 ​ ​ ​ 36,895 ​ 4.30 ​ ​ ​ 917,665 ​ ​ ​ 43,322 ​ 4.72 ​ ​ Interest-bearing deposits ​ ​ 1,288,007 ​ ​ ​ 49,718 ​ 3.86 ​ ​ ​ 1,282,088 ​ ​ ​ 55,619 4.34 ​ ​ Borrowings ​ ​ 83,933 ​ ​ ​ 3,664 ​ 4.37 ​ ​ ​ 33,117 ​ ​ ​ 1,602 ​ 4.84 ​ ​ Total interest-bearing liabilities ​ ​ 1,371,940 ​ ​ $ 53,382 ​ 3.89 ​ ​ ​ 1,315,205 ​ ​ $ 57,221 4.35 ​ ​ Noninterest-bearing demand deposits ​ ​ 274,033 ​ ​ ​ ​ ​ ​ ​ ​ ​ 277,957 ​ ​ ​ ​ ​ ​ ​ ​ Other noninterest-bearing liabilities ​ ​ 21,194 ​ ​ ​ ​ ​ ​ ​ ​ ​ 19,739 ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ ​ 1,667,167 ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,612,901 ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders’ equity ​ ​ 338,459 ​ ​ ​ ​ ​ ​ ​ ​ ​ 301,965 ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and shareholders’ equity ​ $ 2,005,626 ​ ​ ​ ​ ​ ​ ​ ​ $ 1,914,866 ​ ​ ​ ​ ​ ​ ​ ​ Net interest income ​ ​ ​ ​ ​ $ 100,736 ​ ​ ​ ​ ​ ​ ​ ​ $ 102,792 ​ ​ ​ Net interest rate spread (1) ​ ​ ​ ​ ​ ​ ​ ​ 4.15 % ​ ​ ​ ​ ​ ​ ​ ​ 4.40 % ​ Net interest margin (3) ​ ​ ​ ​ ​ ​ ​ ​ 5.25 % ​ ​ ​ ​ ​ ​ ​ ​ 5.62 % ​ Net interest-earning assets (2) ​ $ 545,359 ​ ​ ​ ​ ​ ​ ​ ​ $ 513,926 ​ ​ ​ ​ ​ ​ ​ ​ Average interest-earning assets to interest-bearing liabilities ​ ​ 139.75 % ​ ​ ​ ​ ​ ​ ​ ​ 139.08 % ​ ​ ​ ​ ​ ​ ​ (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
As a result of the transaction, the Bank no longer generates investment advisory fees. The decrease in unrealized gain (loss) on equity securities was due to an unrealized loss of $109,000 on equity securities during the year ended December 31, 2024 compared to an unrealized gain of $294,000 on equity securities during the year ended December 31, 2023.
The increase in unrealized gain on equity securities was due to an unrealized gain of $577,000 on equity securities during the year ended December 31, 2025 compared to an unrealized loss of $109,000 on equity securities during the year ended December 31, 2024.
The Company recorded income tax expense of $18.7 million and $18.5 million for the years ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2024, the Company had approximately $802,000 in tax exempt income, compared to $1.1 million in tax exempt income for the year ended December 31, 2023.
For the year ended December 31, 2025, the Company had approximately $867,000 in tax exempt income, compared to $$802,000 in tax exempt income for the year ended December 31, 2024.
The decrease in the allowances for credit losses was due primarily to the charge-offs of $1.3 million during the year ended December 31, 2024 that were comprised of a complete charge-off of $1.0 million against a potential non-performing commercial and industrial loan whereby the borrower pleaded guilty and faces incarceration due to loan fraud not related to our commercial and industrial loan and charge-offs totaling $347,000 against various unpaid overdrafts in our demand deposit accounts, partially offset by provision for credit losses related to loans totaling $1.0 million during 2024.
The decrease in the allowances for credit losses was due primarily to the charge-offs of $702,000 during the year ended December 31, 2025 that were comprised of charge-offs against various unpaid overdrafts in our demand deposit accounts, partially offset by a provision for credit losses reduction of $272,000 and recoveries totaling $875,000.
Allowance for Credit Losses - Loans The allowance for credit losses related to loans is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.
Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations. 32 Table of Contents Allowance for Credit Losses - Loans The allowance for credit losses related to loans is a valuation reserve established and maintained by charges against income and is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.
Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. 32 Table of Contents The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions.
The ACL is an estimate of expected credit losses, measured over the contractual life of a loan, that considers our historical loss experience, current conditions and forecasts of future economic conditions. Determination of an appropriate ACL is inherently subjective and may have significant changes from period to period.
In addition, we track our board approved limits for each commercial real estate category on a monthly basis. Analysis of Non-Performing, Troubled Debt Restructurings and Classified Assets. Classified Assets . FDIC regulations and our Asset Classification Policy provide that loans and other assets considered to be of lesser quality be classified as “substandard,” “doubtful” or “loss” assets.
In addition, we track our board approved limits for each commercial real estate category on a monthly basis. 44 Table of Contents Analysis of Non-Performing, Troubled Debt Restructurings and Classified Assets. Classified Assets .
As a result, at December 31, 2024, we had two non-performing assets consisting of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania. In 2024, we collected no interest income from loans that were in non-accrual status in 2024.
Non-performing assets as of December 31, 2024 consisted of a foreclosed property totaling $4.3 million located in the Bronx, New York and a foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.
The table below sets forth, as of December 31, 2024, the Bank’s net portfolio value, the estimated changes in our net portfolio value and net interest income that would result from the designated instantaneous parallel changes in market interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twelve Month ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Interest Income ​ ​ Net Portfolio Value ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ Change in Interest Rates (Basis Points) of Change ​ Estimated NPV of Change ​ +300 23.83 % ​ $ 364,108 4.64 % ​ +200 16.09 ​ ​ ​ 359,276 3.25 ​ ​ +100 8.20 ​ ​ 354,127 1.77 ​ ​ 0 — ​ ​ 347,958 — ​ ​ -100 (8.93) % ​ $ 338,651 (2.67) % ​ -200 (18.03) ​ ​ ​ 327,376 (5.92) ​ ​ -300 (28.08) ​ ​ ​ 313,474 (9.91) ​ ​ ​ As of December 31, 2024, based on the scenarios above, net interest income would increase by approximately 8.20% to 23.83%, over a one-year time horizon in a rising interest rate environment.
The table below sets forth, as of December 31, 2025, the Bank’s net portfolio value, the estimated changes in our net portfolio value and net interest income that would result from the designated instantaneous parallel changes in market interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twelve Month ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Interest Income ​ ​ Net Portfolio Value ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ Change in Interest Rates (Basis Points) ​ ​ ​ of Change ​ ​ ​ ​ Estimated NPV ​ ​ ​ of Change ​ +300 25.83 % ​ $ 386,025 2.50 % ​ +200 17.36 ​ ​ ​ 383,474 1.82 ​ ​ +100 8.69 ​ ​ 380,641 1.07 ​ ​ 0 — ​ ​ 376,603 — ​ ​ -100 (9.61) % ​ $ 369,509 (1.88) % ​ -200 (19.27) ​ ​ ​ 358,709 (4.75) ​ ​ -300 (27.76) ​ ​ ​ 346,848 (7.90) ​ ​ ​ As of December 31, 2025, based on the scenarios above, net interest income would increase by approximately 8.69% to 25.83%, over a one-year time horizon in a rising interest rate environment.
Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible.
Loans, or portions thereof, are charged off against the ACL when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
The allowance for credit losses related to held-to-maturity of debt securities decreased by $10,000 to $126,000 at December 31, 2024 from $136,000 at December 31, 2023 due primarily to a decrease in the amount of applicable held-to-maturity debt securities.
The allowance for credit losses related to off-balance sheet commitments increased by $175,000 to $879,000 at December 31, 2025 from $704,000 at December 31, 2024 due primarily to an increase in the amount of off-balance sheet commitments. The allowance for credit losses related to held-to-maturity of debt securities remained the same at $126,000 at December 31, 2025 and 2024.

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