UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

SPECIAL REPORT PURSUANT TO RULE 15d-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

(Contains only the certified consolidated financial statements for the fiscal year ended December 31, 2025)

Commission File Number: 000-56829

URSB Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

Maryland		39-4348578
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

11-15 Cooke Avenue, Carteret, New Jersey		07008
(Address of principal executive offices)		(Zip code)

(732) 541-5445

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered

Securities registered pursuant to Section 12(g) of the Act: Common stock, $0.01 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒	Smaller reporting company	☒

Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant, based on the closing price of the shares of common stock at the end of the last business day of the most recently completed second fiscal quarter on June 30, 2025, was $-0-.

The number of shares of the Registrant’s common stock outstanding as of April 3, 2026, was 2,334,375.

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TABLE OF CONTENTS

		Page No.

Explanatory Note		3

Report of Independent Registered Public Accounting Firm		4

Consolidated Statements of Financial Condition at December 31, 2025 and December 31, 2024		6

Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024		7

Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2025 and 2024		8

Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025 and 2024		9

Consolidated Chanes of Cash Flows for the Years Ended December 31, 2025 and 2024		10

Notes to the Consolidated Financial Statements		11

Exhibit Index		42

Signatures		43

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EXPLANATORY NOTE

On January 9, 2026, the U.S. Securities and Exchange Commission declared effective the Registration Statement on Form S-1, as amended (the “Form S-1”), filed by URSB Bancorp, Inc. (the “Company”) under the Securities Act of 1933, as amended (the “Securities Act”), relating to the shares of the Company’s common stock to be issued in connection with the mutual-to-stock conversion of United Roosevelt, MHC, the mutual holding company of United Roosevelt Savings Bank.

Rule 15d-2 under the Securities Exchange Act of 1934, as amended, generally provides that if a registrant’s registration statement filed under the Securities Act does not contain certified financial statements for its last full fiscal year preceding the year in which the registration statement becomes effective, then the registrant must, within 90 days after the effective date of the registration statement, file a special financial report furnishing certified financial statements for the last full fiscal year meeting the requirements of the form appropriate for the registrant’s annual reports. Rule 15d-2 further provides that the special financial report is to be filed under cover of the facing sheet of the form appropriate for the registrant’s annual reports.

The Form S-1 contains the unaudited consolidated financial statement of United Roosevelt, MHC for the period ended September 30, 2025, but does not contain its certified consolidated financial statements for the fiscal year ended December 31, 2025. Accordingly, the Company is hereby filing the certified consolidated financial statements of United Roosevelt, MHC for the fiscal year ended December 31, 2025 under cover of the facing page of an Annual Report on Form 10-K, as required by Rule 15d-2.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of United Roosevelt MHC:

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial condition of United Roosevelt MHC and its subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

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Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the Company’s auditor since 2023.

/s/ Wolf & Company, P.C.

Boston, Massachusetts

April 9, 2026

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United Roosevelt MHC and Subsidiaries

Consolidated STATEMENTS OF FINANCIAL CONDITION

(In Thousands)


	December 31,
	2025		2024
Assets
Cash and due from banks	$	1,902	$	750
Interest-bearing deposits		6,489		9,977
Cash and cash equivalents		8,391		10,727
Investment in certificates of deposit		—		4,296
Securities available for sale (amortized cost of $26,329 and $19,128, respectively)		25,834		17,906
Securities held to maturity, net of allowance for credit losses of $75 and $86, respectively (fair value of $12,532 and $19,365, respectively)		12,789		20,082
Loans receivable, net of allowance for credit losses of $2,277 and $1,363, respectively		300,438		248,025
Premises and equipment, net		2,509		2,757
Federal Home Loan Bank of New York stock, at cost		2,369		1,941
Atlantic Community Bankers Bank stock, at cost		80		80
Accrued interest receivable		1,481		1,270
Bank owned life insurance (BOLI)		7,026		5,730
Other assets		7,056		3,049
Total assets	$	367,973	$	315,863
Liabilities and Equity
Liabilities:
Deposits	$	290,950	$	246,079
Advance payments by borrowers for taxes and insurance		1,401		1,168
Borrowings		53,572		49,135
Other liabilities		2,056		1,138
Total liabilities		347,979		297,520

Equity:
Retained earnings		20,464		19,961
Accumulated other comprehensive loss		(470)		(1,618)
Total equity		19,994		18,343
Total liabilities and equity	$	367,973	$	315,863

See accompanying notes to consolidated financial statements.

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United Roosevelt MHC and Subsidiaries

Consolidated StatementS of OPERATIONS

(In Thousands)



	Years Ended
	December 31,
	2025		2024
Interest and dividend income:
Loans	$	15,396	$	12,578
Securities		1,341		1,160
Other earning assets		794		1,043
Total interest and dividend income		17,531		14,781
Interest expense:
Deposits:
NOW and money market		1,187		1,551
Savings and club		65		44
Certificates of deposit		5,734		4,381
Borrowings		2,114		1,393
Total interest expense		9,100		7,369
Net interest income		8,431		7,412
Provision for credit losses		801		118
Net interest income after provision for credit losses		7,630		7,294
Non-interest income:
Fees and service charges		212		169
Increase in cash surrender value of BOLI		183		122
Loss on sales of securities		(186)		(119)
Other		24		—
Total non-interest income		233		172
Non-interest expenses:
Salaries and employee benefits		3,788		3,639
Occupancy expense		388		384
Equipment		1,074		915
Directors' compensation		227		256
Professional fees		491		523
Advertising		282		226
Federal deposit insurance premium		341		288
Other		624		534
Total non-interest expenses		7,215		6,765
Net income before taxes		648		701
Income tax expense		145		125
Net income	$	503	$	576

See accompanying notes to consolidated financial statements.

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United Roosevelt MHC and Subsidiaries

Consolidated StatementS of COMPREHENSIVE INCOME

(In Thousands)


	Years Ended
	December 31,
	2025		2024

Net income	$	503	$	576
Other comprehensive income:
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains on available for sale securities		541		(42)
Reclassification adjustment for losses realized in income		186		119
Net unrealized gains		727		77
Tax effects		(194)		(24)
Net-of-tax amount		533		53
Defined benefit pension plans:
Gains (losses) arising during the period		856		(76)
Tax effects		(241)		1
Net-of-tax amount		615		(75)
Total other comprehensive income (loss)		1,148		(22)
Comprehensive income	$	1,651	$	554

See accompanying notes to consolidated financial statements.

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United Roosevelt MHC and Subsidiaries

Consolidated StatementS of CHANGES IN EQUITY

(In Thousands)


			Accumulated
			Other
	Retained		Comprehensive
	Earnings		Income (Loss)		Total
Balance, December 31, 2023	$	19,385	$	(1,596)	$	17,789
Net income		576		—		576
Other comprehensive loss		—		(22)		(22)
Balance, December 31, 2024	$	19,961	$	(1,618)	$	18,343
Net income		503		—		503
Other comprehensive income		—		1,148		1,148
Balance, December 31, 2025	$	20,464	$	(470)	$	19,994

See accompanying notes to consolidated financial statements.

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United Roosevelt MHC and Subsidiaries

Consolidated StatementS of Cash flows

(IN Thousands)


	Years Ended
	December 31,
	2025		2024

Cash flows from operating activities:
Net income	$	503	$	576
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provisions for credit losses		801		118
Depreciation of premises and equipment		266		272
Amortization (accretion) of deferred loan fees, net		368		(10)
Amortization (accretion) of premiums and discounts, net		(37)		(3)
Loss on sale of available for sale securities		186		119
Deferred income tax (benefit) expense		(266)		94
Increase in cash surrender value of bank owned life insurance		(183)		(122)
Net change in:
Accrued interest receivable		(211)		(139)
Other assets		(846)		(164)
Other liabilities		959		(298)
Net cash provided by operating activities		1,540		443
Cash flows from investing activities:
Available for sale:
Proceeds from sales		2,815		1,373
Purchases		(14,298)		(9,972)
Proceeds from maturities, calls and principal repayments		4,127		1,143
Held to maturity:
Purchases		—		(7,743)
Proceeds from maturities, calls and principal repayments		7,309		12,988
Purchases of certificate of deposit investments		—		(3,798)
Proceeds from maturity of certificate of deposit investments		4,296		747
Purchases of BOLI investments		(2,000)		(1,000)
Surrender of BOLI investments		887		—
Purchases of annuity investments		(2,473)		—
Loan principal (originations) collections, net		(53,634)		(26,446)
Purchases of premises and equipment		(18)		(73)
Purchase of Federal Home Loan Bank of New York stock		(4,023)		(7,348)
Redemption of Federal Home Loan Bank of New York stock		3,595		6,699
Net cash used in investing activities		(53,417)		(33,430)
Cash flows from financing activities:
Net increase in deposits		44,871		13,923
Net change in FRB short term advances		(5,000)		5,000
Net change in FHLB short term advances		(2,000)		(8,000)
Proceeds from FHLB long term advances		34,112		22,185
Repayment of FHLB long term advances		(23,325)		(500)
Net proceeds from issuance of senior notes		650		1,025
Net proceeds from borrowers for taxes and insurance		233		199
Net cash provided by financing activities		49,541		33,832
Net change in cash and cash equivalents		(2,336)		845
Cash and cash equivalents, beginning of period		10,727		9,882
Cash and cash equivalents, end of period	$	8,391	$	10,727
Supplementary cash flows information
Interest paid	$	9,028	$	7,267
Income taxes paid, net	$	288	$	248

See accompanying notes to consolidated financial statements.

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United Roosevelt MHC and Subsidiaries

NOTES TO Consolidated FINANCIAL StatementS

December 31, 2025 and 2024

1. Organization

United Roosevelt MHC (the “MHC”) is a mutual holding company. United Roosevelt Bancorp, Inc. (the “Bancorp”) is a Stock Holding Company and wholly-owned subsidiary of the MHC. United Roosevelt Savings Bank (the “Bank”) is a state-chartered stock savings bank and is a wholly-owned subsidiary of the Bancorp. United Roosevelt Securities Corp. (the “Investment Corp.”) is a wholly-owned subsidiary of the Bank. Currently, the only business activity of the MHC is to hold all of the outstanding stock of the Bancorp and the only business activity of the Bancorp is to hold all of the outstanding stock of the Bank. The Investment Corp. is a New Jersey investment company formed primarily to hold investments and mortgage-backed securities.

Plan of Reorganization

URSB Bancorp, Inc., a Maryland corporation, was formed on September 8, 2025 to serve as the bank holding company for United Roosevelt Savings Bank and its Subsidiary as part of the Bank's mutual holding company reorganization. As of December 31, 2025 the reorganization had not been completed, and, as of that date, the Registrant had no assets or liabilities, and had not conducted any business other than that of an organizational nature. Accordingly, financial and other information of the MHC is included in this Annual Report.

2. Summary of Significant Accounting Policies

Basis of the Consolidated Financial Statement Presentation

The consolidated financial statements include the accounts of the MHC and its wholly owned subsidiaries, the Bancorp, the Bank and the Investment Corp. (collectively the “Company”), and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financials and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses.

Cash and Cash Equivalents

Cash and cash equivalents include cash and amounts due from depository institutions and interest-bearing deposits having original maturities of three months or less.

Investment in Certificates of Deposit

Certificates of deposit are held with other depository institutions, have maturities less than two years and are carried at cost.

Securities

Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Debt securities not classified as held to maturity are classified as “available for sale” and

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recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income.

Purchase discounts are recognized in interest income using the interest method over the terms of the securities. Purchase premiums are recognized in interest income using the interest method through the earliest call date. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Each reporting period, the Company evaluates all securities classified as available for sale with a decline in fair value below the amortized cost of the investment to determine whether or not an allowance for credit losses should be recorded. The Company first assesses if there is intent to sell, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through a provision for credit losses charged to earnings. For debt securities available for sale that the Company intends to hold, management evaluates whether the decline in fair value has resulted from credit losses or other factors. The Company considers both quantitative and qualitative factors in making this assessment. Credit loss is measured based on discounted cash flow analysis and recorded in a valuation allowance. The allowance is limited by the amount that the fair value is less than the amortized cost basis. Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income, net of applicable taxes. Changes in the allowance is recorded in the period of the change as credit loss expense (or reversal of credit loss expense).

The Company measures expected credit losses on held to maturity securities on a collective basis by major security type in accordance with the current expected credit loss (“CECL”) methodology.

Debt securities are placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income.

Loans Receivable

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for credit losses, premiums on purchased loans, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual lives of the loans. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method or a method that approximates such method.

The loans receivable portfolio is segmented into residential loans, commercial real estate loans, commercial and industrial loans, and consumer loans. Residential loans consist of 1-4 family mortgage loans, home equity term loans, and home equity lines of credit. Commercial real estate loans consist of mortgage loans, multi-family, and construction. Commercial and industrial loans consist of loans secured by other than real estate, unsecured loans, SBA/USDA guaranteed loans purchased, and loans acquired through Bankers Healthcare Group (BHG); the BHG loans are listed as their own category. Consumer loans consist of unsecured loans acquired through BHG, auto loans acquired through Woodside Credit, unsecured loans acquired through Lending Club, advances for taxes and insurance, loans secured by deposit accounts, and overdrafts.

For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90-days past due or when management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest is charged to income in the current year. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six consecutive months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments.

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Concentration of Risk

Financial instruments, which potentially subject the Company and its subsidiaries to concentrations of credit risk, consist of cash and cash equivalents, investment and mortgage-backed securities and loans. Cash and cash equivalents include amounts placed with highly rated financial institutions. Securities primarily include mortgage-backed securities, U.S. Government agency obligations, corporate bonds and subordinated debt. The Company’s lending activity is concentrated in loans collateralized by real estate primarily in the State of New Jersey. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in the State.

Current Expected Credit Loss (CECL)

The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term). The allowance for credit losses on loans is established through a provision for credit losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The Company measures the allowance for credit losses using the SCALE method which is a simple, spreadsheet-based method developed by the Federal Reserve to assist community banks in calculating a CECL compliant allowance for credit losses using proxy expected lifetime loss rates. The SCALE tool is a template designed for smaller community banks with total assets of less than $1 billion. It uses publicly available data from Schedule RI-C of the Call Report to derive the initial proxy lifetime loss rates.

As of December 31, 2025, the Company changed its CECL estimation methodology from WARM to a SCALE framework to better align with its size and complexity, which represents a change in accounting estimate and did not have a material impact on the allowance for credit losses.

Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following: the borrower’s creditworthiness, changes in lending policy and procedures, changes in nature and volume of the loan portfolio and in the terms of loans, changes in experience, ability and depth of lending management and staff, changes in the quality of the loan review system, changes in the value of underlying collateral for collateral-dependent loans, existence and effect of any concentration of credit and changes in the level of such concentrations, effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio, and the current and forecasted direction of the economic and business environment.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not generally grant loans that would be classified as subprime upon origination. The Company has 1^st or 2^nd lien position on property securing equity lines-of-credit. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Commercial real estate – Loans in this segment are primarily income-producing properties throughout New Jersey. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, could have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans. This segment also includes construction loans which primarily include speculative real estate development loans for which payment is

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derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, could have an effect on the credit quality in this segment. In addition, this segment includes a small portion of purchased loans guaranteed by the Small Business Administration (SBA) and/or the U.S. Department of Agriculture (USDA). Because these loans are guaranteed they are not allocated a general reserve; the Company has not experienced losses on such loans and management expects the guarantees will be effective, if necessary.

BHG Commercial Loans – Loans in this segment are commercial loans acquired from BHG. BHG is a non-bank lender generating small business loans. A weakened economy, and resultant decreased consumer spending, could have an effect on the credit quality in this segment.

Consumer loans – Historically, loans in this segment include loans that are secured by certificates of deposit or savings accounts; this category also includes advances for taxes and insurance on respective loans. Beginning in 2025, the Company began purchasing consumer loans from Lending Club, Woodside Credit, and BHG which are unsecured. Repayment is generally dependent on the credit quality of the individual borrower.

Individually Evaluated Loans

Loans that do not have shared risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. For loans that are collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Allowance for Credit Losses – Off-Balance Sheet Credit Exposures

The Company has off-balance sheet financial instruments, which include commitments to extend credit, standby letters of credit and commercial letters of credit. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Company’s allowance for credit losses on off-balance sheet credit exposures is recognized in other liabilities on the consolidated statements of financial condition, with adjustments to the reserve recognized in the provision for credit losses in the consolidated statements of operation. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Premises and Equipment

Premises and equipment are comprised of land, at cost, and building, building improvements, and furnishings and equipment, at cost, less accumulated depreciation. Depreciation charges are computed using the straight-line method over the following estimated useful lives:


		Years
Buildings and improvements		10-40
Furnishings and equipment		3-10
Software		1-7

Significant renewals and betterments are charged to the premises and equipment account. Maintenance and repair expenses are charged to operations in the year incurred.

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Leases

The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in other assets and operating lease liabilities are included in other liabilities in the consolidated statements of financial condition. The Company does not have any finance leases.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company used the incremental borrowing rate, which is generally the Federal Home Loan Bank classic advance rate, based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset is net of lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For operating leases, lease expense is recognized on a straight-line basis over the lease term.

Federal Home Loan Bank of New York (“FHLB”) Stock

Federal law requires a member institution of the Federal Home Loan Bank system to hold restricted stock of its district Federal Home Loan Bank according to a predetermined Form ula which is reviewed at least annually. The restricted stock is carried at cost.

Management evaluates the restricted stock for impairment. Management’s determination of whether this investment is impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management believes no impairment charge is necessary related to the FHLB stock as of December 31, 2025 and 2024.

Atlantic Community Bankers Bank (“ACBB”) Stock

ACBB shareholders receive an annual dividend, as well as a monthly loyalty benefit, which offsets service charges. Institutions are not required to be shareholders, although shareholders receive additional benefits. Shareholder institutions may apply for a formal loan arrangement or an overnight Federal Funds Borrowing facility from ACBB (subject to underwriting and approval). In addition, shareholders receive preferential borrowing rates and priority funding on overnight Federal Funds borrowings. Management evaluates the stock for impairment. Management’s determination of whether this investment is impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Management believes no impairment charge is necessary related to the ACBB stock as of December 31, 2025 and 2024.

Real Estate Owned

Real estate owned is property acquired through foreclosure or deed in lieu of foreclosure. When property is acquired, it is initially recorded at fair value, less estimated costs to sell, at the date of foreclosure establishing a new cost basis. After acquisition, foreclosed properties are held for sale and carried at the lower of cost or fair value less estimated selling costs. Fair value is estimated through current appraisals, where practical, or an inspection and a comparison of the property securing the loan with similar properties in the area by either a licensed appraiser or real estate broker. Subsequent provisions for losses, which may result from the ongoing periodic valuations of these properties, are charged to income in the period in which they are identified. Carrying costs, such as maintenance and taxes, are charged to operating expenses as incurred. As of December 31, 2025 and 2024, the Company had no real estate owned.

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Bank Owned Life Insurance

Bank owned life insurance (“BOLI”) is recorded at its realizable value. The change in the net asset value is recorded as non-interest income. BOLI involves purchasing life insurance by the Company on an eligible employee or director. The Company is the owner and the Company and covered employee/directors are the beneficiaries of the policies. The employee/director receive split payouts which applies when death occurs. The payout for the CEO is the net at risk amount. The payout for the Non-CEO director is $125,000. The payout for the CFO is $50,000.

Income Taxes

The Company files a consolidated federal income tax return. Income taxes are allocated to the MHC and its subsidiaries based on the contribution of their income or use of their losses in the consolidated return. Separate state income tax returns are filed by the MHC and its subsidiaries.

Federal and state income taxes have been provided on the basis of reported income. The amounts reflected on the tax returns differ from those provisions due principally to temporary differences in the reporting of certain items for financial reporting and income tax reporting purposes. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed, and a valuation allowance provided, when necessary, for that portion of the asset which is not likely to be realized. Management believes, based upon current facts, that it is more likely than not that there will be sufficient taxable income in future years to realize all deferred tax assets.

The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements in accordance with accounting guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the Company’s evaluation, no significant income tax uncertainties have been identified. Therefore, the Company recognized no adjustment for unrecognized income tax benefits for the years ended December 31, 2025 and 2024. The Company recognizes interest and penalties, if any, on unrecognized tax benefits in income taxes expense in the Consolidated Statement of Operations. There were no interest and penalties included in income tax expense for the years ended December 31, 2025 and 2024. The tax years subject to examination by the taxing authorities are the years ended December 31, 2022, through 2025 for federal and the years ended December 31, 2022 through 2025 for New Jersey.

Fair Value Hierarchy

The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar

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techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Interest Rate Risk

The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to primarily make loans secured by real estate and to purchase securities. The potential for interest-rate risk exists as a result of the generally shorter duration of the Company’s interest-sensitive liabilities compared to the generally longer duration of its interest-sensitive assets. In a rising rate environment, liabilities will reprice faster than assets, thereby reducing net interest income. For this reason, management regularly monitors the maturity structure of the Company’s interest-sensitive assets and interest-bearing liabilities in order to measure its level of interest-rate risk and its plan for future volatility.

Transfers of Financial Assets

Transfers of financial assets, including loan and loan participation sales, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

As of December 31, 2025 and 2024, the Company has not recorded loan servicing assets due to the immateriality of the amount that would have been capitalized.

Advertising Costs

The Company follows the policy of charging the costs of advertising to expense as incurred.

Retirement Plan

The compensation cost of an employee’s pension benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes.

The Company accounts for its defined benefit pension plan using an actuarial model that allocates pension costs over the service period of employees in the plan. The Company accounts for the over-funded or under-funded status of its defined benefit plan as an asset or liability in its consolidated statements of financial condition and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss.

Other Comprehensive Income

The Company records unrealized gains and losses, net of deferred income taxes, on available for sale securities in accumulated other comprehensive income. Realized gains and losses, if any, are reclassified to non-interest income upon sale of the related securities or upon the recognition of an impairment loss. Other comprehensive income also includes benefit plan amounts recognized, net of tax, for transition obligations, prior service costs, and unrealized net actuarial gains and losses.

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The components of accumulated other comprehensive loss included in equity are as follows:



	December 31,
	2025		2024

	(In thousands)
Net unrealized loss on securities available for sale	$	(495)	$	(1,222)
Tax effect		147		341
Net of tax amount		(348)		(881)
Benefit plan adjustments		(169)		(1,025)
Tax effect		47		288
Net of tax amount		(122)		(737)
Accumulated other comprehensive loss	$	(470)	$	(1,618)

Reclassification

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation when necessary.

Operating Segments

Management, which includes the Chief Executive Officer who acts as the Chief Operating Decision Maker (“CODM”), monitors the revenue streams of its various products and services, operating results and financial performance on a company-wide basis. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The CODM uses net income reporting in the Company’s consolidated statements of operations to make operating and strategic decisions. Accordingly, there is only one reportable segment. The Company adopted ASU 2023-07 during the year ended December 31, 2024 noting no material impact.

Recently Adopted Accounting Pronouncements

On January 1, 2025, the Company adopted Accounting Standards Update (ASU) 2023-09, Income Taxes – Improvements to Income Tax Disclosures (Topic 740), which requires entities to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. On an annual basis, entities must disclose: (1) the amount of income taxes paid, net of refunds, disaggregated by federal, state, and foreign; and (2) the amount of income taxes paid, net of refunds, disaggregated by individual jurisdictions in which income taxes paid, net of refunds received, for amounts equal to or greater than 5% or total income taxes paid. Further, the amendments also require entities to disclose: (1) income or loss from continued operations before income tax expense (or benefit) disaggregated between domestic and foreign sources; and (2) income or loss from continued operations disaggregated by federal, state, and foreign sources. The adoption of ASU 2023-09 did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncement

As an emerging growth company, we have elected to use the extended transition period to delay the adoption of new or re-issued accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326): Purchased Loans. The amendments in this Update expand the population of acquired financial assets subject to the gross-up approach in Topic 326. In accordance with the amendments in this Update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” (defined below) are purchased seasoned loans and accounted for using the gross-up approach at acquisition. Specifically, after an entity determines that a loan is a non-PCD asset based on its assessment of credit deterioration experienced since origination, the entity should apply the guidance described in the amendments to determine whether the loan is seasoned and, therefore, should be accounted for using the gross-up

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approach. The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is not expecting a significant impact on its financial statements as a result of this Update.

3. Securities Available for Sale

The carrying value and estimated fair value of securities available for sale are presented below by contractual final maturity. Actual maturities may differ from below as the loans underlying some securities are subject to prepayment and regular monthly principal repayment.


	December 31, 2025
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value

	(In thousands)
Mortgage-Backed Securities:
Due after one through five years	$	1	$	—	$	—	$	1
Due after ten years		4,250		33		(555)		3,728
		4,251		33		(555)		3,729
Collateralized Mortgage Obligations (CMO):
Due within one year		578		—		(2)		576
Due after ten years		13,387		164		—		13,551
		13,965		164		(2)		14,127
Corporate Bonds:
Due after five through ten years		1,000		15		—		1,015
		1,000		15		—		1,015
Agency Securities
Due after one through five years		2,000		—		(114)		1,886
		2,000		—		(114)		1,886
Small Business Administration:
Due after ten years		5,113		—		(36)		5,077
		5,113		—		(36)		5,077

	$	26,329	$	212	$	(707)	$	25,834

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The age of unrealized losses and fair value of related securities available for sale were as follows:


	December 31, 2025
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses

	(In thousands)
Mortgage-Backed Securities	$	—	$	—	$	2,652	$	(555)	$	2,652	$	(555)
CMO		—		—		576		(2)		576		(2)
Agency Securities		—		—		1,886		(114)		1,886		(114)
Small Business Admin.		—		—		5,077		(36)		5,077		(36)
	$	—	$	—	$	10,191	$	(707)	$	10,191	$	(707)


	December 31, 2024
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value

	(In thousands)
Mortgage-Backed Securities:
Due within one year	$	1	$	—	$	—	$	1
Due after one through five years		4		—		—		4
Due after ten years		3,473		—		(713)		2,760
		3,478		—		(713)		2,765
CMO:
Due after one through five years		597		—		(2)		595
Due after ten years		4,190		—		(23)		4,167
		4,787		—		(25)		4,762
Corporate Bonds:
Due after one through five years		2,000		—		(153)		1,847
		2,000		—		(153)		1,847
Agency Securities
Due after one through five years		3,000		—		(281)		2,719
		3,000		—		(281)		2,719
Small Business Administration:
Due after ten years		5,863		—		(50)		5,813
		5,863		—		(50)		5,813

	$	19,128	$	—	$	(1,222)	$	17,906

The age of unrealized losses and fair value of related securities available for sale were as follows:


	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses

	(In thousands)
Mortgage-Backed Securities	$	—	$	—	$	2,762	$	(713)	$	2,762	$	(713)
CMO		3,290		(23)		595		(2)		3,885		(25)
Corporate Bonds		—		—		1,847		(153)		1,847		(153)
Agency Securities		—		—		2,719		(281)		2,719		(281)
Small Business Admin.		5,812		(50)		—		—		5,812		(50)
	$	9,102	$	(73)	$	7,923	$	(1,149)	$	17,025	$	(1,222)

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For the year ended December 31, 2025, proceeds from sales of securities available for sale amounted to $2,815,000. Gross realized losses amounted to $186,000. There were no gains realized on any sales during this twelve-month period.

For the year ended December 31, 2024, proceeds from sales of securities available for sale amounted to $1,373,000. Gross realized losses amounted to $119,000. There were no gains realized on any sales in 2024.

At December 31, 2025, seventeen AFS debt securities had unrealized losses with aggregate depreciation of 6.5% from the Company’s amortized cost basis.

At December 31, 2024, twenty-five AFS debt securities had unrealized losses with aggregate depreciation of 6.7% from the Company’s amortized cost basis.

Management does not believe that any individual unrealized loss at December 31, 2025 and 2024 represent a credit-related unrealized loss. Management believes that all unrealized losses are due to changes in interest rates.

Management does not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell the securities reflected in the above tables prior to full recovery of fair value to a level which equals or exceeds amortized cost. All mortgage-backed securities are issued by U.S. Government sponsored entities and are collateralized by residential mortgages.

Allowance for Credit Losses – Available for Sale Securities

Available for sale securities which are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company’s investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company’s investments. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise’s ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government’s implicit guarantee on such securities. There were no allowance for credit losses established on available for sale debt securities during the year ended December 31, 2025 or 2024.

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4. Securities HELD TO MATURITY

The carrying value and estimated fair value of securities held to maturity are presented below by contractual final maturity. Actual maturities may differ from below as the loans underlying some securities are subject to prepayment and regular monthly principal repayment.


	December 31, 2025
	Amortized		Allowance for		Gross Unrealized				Fair
	Cost		Credit Losses		Gains		Losses		Value

	(In thousands)
Mortgage-Backed Securities:
Due after ten years	$	864	$	—	$	25	$	—	$	889
		864		—		25		—		889
Corporate Bonds:
Due after one through five years		2,500		(30)		—		(77)		2,393
Due after five through ten years		4,500		(45)		28		(139)		4,344
		7,000		(75)		28		(216)		6,737
Agency Securities
Due within one year		4,000		—		—		(41)		3,959
Due after one through five years		1,000		—		—		(53)		947
		5,000		—		—		(94)		4,906
	$	12,864	$	(75)	$	53	$	(310)	$	12,532


	December 31, 2024
	Amortized		Allowance for		Gross Unrealized				Fair
	Cost		Credit Losses		Gains		Losses		Value

	(In thousands)
Mortgage-Backed Securities:
Due after ten years	$	918	$	—	$	1	$	(3)	$	916
		918		—		1		(3)		916
Corporate Bonds:
Due after one through five years		2,500		(36)		—		(183)		2,281
Due after five through ten years		5,000		(50)		34		(240)		4,744
		7,500		(86)		34		(423)		7,025
Agency Securities
Due within one year		5,750		—		—		(62)		5,688
Due after one through five years		6,000		—		—		(264)		5,736
		11,750		—		—		(326)		11,424
	$	20,168	$	(86)	$	35	$	(752)	$	19,365

At December 31, 2025 and 2024, U.S. Government obligations with a carrying value of $30,190,000 and $21,959,000, respectively, were pledged to secure public deposits.

Allowance for Credit Losses – Securities Held to Maturity

Held to maturity securities which are issued by the United States Treasury or are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company’s investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company’s investments. The Company will evaluate this position no less than annually, however,

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certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise’s ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government’s implicit guarantee on such securities. Any expected credit losses on held to maturity securities would be presented as an allowance for credit loss.

The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the periods ended December 31, 2025 and 2024:


	Corporate
	Bonds
	(In thousands)
Balance at December 31, 2023	$	—
Provision (reversal) for credit losses		86
Balance at December 31, 2024		86
Provision (reversal) for credit losses		(11)
Balance at December 31, 2025	$	75

5. LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

A summary of the balances of loans follows:



	December 31,
	2025		2024

	(In thousands)
Residential real estate	$	143,600	$	111,556
Commercial real estate		88,100		86,876
Commercial and industrial		7,940		10,890
BHG loans		34,778		39,073
Consumer loans		26,544		137
Total loans		300,962		248,532
Allowance for credit losses on loans		(2,277)		(1,363)
Premiums on loans purchased		566		23
Deferred loan fees, net		1,187		833
		(524)		(507)
Net loans	$	300,438	$	248,025

The Company grants loans to its officers and directors and to their associates. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collectability. Activity in such loans for the year ended December 31, 2025 and 2024 is as follows:


	December 31,
	2025		2024

	(In thousands)
Balance, beginning	$	680	$	707
Loans originated		34		—
Collection of principal		(59)		(27)
Balance, ending	$	655	$	680

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The following tables summarize the activity in the allowance for credit losses by loan class and information in regard to the allowance for credit losses and the recorded investment in loans receivable by loan class as of December 31, 2025 and 2024:


	Year Ended December 31, 2025
	Allowance for Credit Losses on Loans
	Beginning		Charge-				Provisions		Ending
	Balance		offs		Recoveries		(Credits)		Balance

	(In thousands)
Residential	$	142	$	—	$	—	$	636	$	778
Commercial real estate		1,034		—		—		(376)		658
Commercial and industrial		90		—		90		(112)		68
BHG Commercial loans		97		—		—		(65)		32
Consumer		—		(29)		—		770		741
Unallocated		—		—		—		—		—
	$	1,363	$	(29)	$	90	$	853	$	2,277


	Year Ended December 31, 2024
	Allowance for Credit Losses on Loans
	Beginning		Charge-				Provisions		Ending
	Balance		offs		Recoveries		(Credits)		Balance

	(In thousands)
Residential	$	788	$	—	$	—	$	(646)	$	142
Commercial real estate		438		—		—		596		1,034
Commercial and industrial		24		(90)		—		156		90
BHG loans		136		—		—		(39)		97
Consumer		15		—		—		(15)		—
Unallocated		77		—		—		(77)		—
	$	1,478	$	(90)	$	—	$	(25)	$	1,363

The Company experienced significant loan growth in 2025 along with an increase in consumer loans resulting in a large increase to the allowance for credit loss.

The following tables summarize the activity in the allowance for credit losses by all credit categories as of and for the year ended December 31, 2025 and 2024:


	December 31, 2025
			Unfunded		Debt
	Loans		Loan		Securities		Aggregate
	Receivable		Commitments		(HTM)		ACL

	(In thousands)
Beginning balance	$	1,363	$	57	$	86	$	1,506
Provisions, net of credit adjustments		853		(41)		(11)		801
Recoveries, net of charge-offs		61		—		—		61
Ending balance	$	2,277	$	16	$	75	$	2,368

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	December 31, 2024
			Unfunded		Debt
	Loans		Loan		Securities		Aggregate
	Receivable		Commitments		(HTM)		ACL

	(In thousands)
Beginning balance	$	1,478	$	—	$	—	$	1,478
Provisions, net of credit adjustments		(25)		57		86		118
Charge-offs, net of recoveries		(90)		—		—		(90)
Ending balance	$	1,363	$	57	$	86	$	1,506

The Company utilizes an eight-grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

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

Loans rated 6: Loans in this category are considered “watch”. The loans show no signs of serious problems but do not meet all the criteria for a satisfactory loan. These loans will be followed closely in order to promptly detect any sign of deterioration.

Loans rated 7: Loans in this category are considered “special mention”. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.

Loans rated 8: Loans in this category are considered “substandard”. Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. Additionally, the Company engages an independent third-party to review a significant portion of loans within these segments on an annual basis. Management uses the results of these reviews as part of its own annual review process. In addition, management utilizes delinquency reports, the watch list and other loan reports to monitor credit quality of other loan segments.

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2025 and 2024. Residential real estate and consumer loans are grouped as performing or nonperforming based on

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accrual status and retail credit guidance. Gross write-offs for the year ended December 31, 2025 and 2024 are also presented in the tables below:


	December 31, 2025
	Loans By Risk Rating by Origination Year
	2025		2024		2023		2022		2021		2020		Prior		Total

Rating:	(In thousands)
Residential real estate:
Performing	$	42,621	$	29,684	$	27,356	$	8,878	$	10,777	$	4,543	$	19,699	$	143,558
Nonperforming		—		—		42		—		—		—		—		42
Total	$	42,621	$	29,684	$	27,398	$	8,878	$	10,777	$	4,543	$	19,699	$	143,600
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Pass	$	6,251	$	12,710	$	11,054	$	23,473	$	18,277	$	6,810	$	8,505	$	87,080
Special mention		—		941		—		—		—		—		—		941
Substandard		—		—		70		—		9		—		—		79
Total	$	6,251	$	13,651	$	11,124	$	23,473	$	18,286	$	6,810	$	8,505	$	88,100
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

C&I - Other:
Pass	$	3,811	$	2,084	$	1,582	$	362	$	101	$	—	$	—	$	7,940
Total	$	3,811	$	2,084	$	1,582	$	362	$	101	$	—	$	—	$	7,940
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

C&I - Bankers Health Group:
Pass	$	7,718	$	9,049	$	6,739	$	6,643	$	732	$	773	$	285	$	31,939
Substandard		—		106		901		1,386		29		340		77		2,839
Total	$	7,718	$	9,155	$	7,640	$	8,029	$	761	$	1,113	$	362	$	34,778
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Performing	$	26,442	$	60	$	—	$	—	$	—	$	—	$	42	$	26,544
Nonperforming		—		—		—		—		—		—		—		—
Total	$	26,442	$	60	$	—	$	—	$	—	$	—	$	42	$	26,544
Current period gross write-offs	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	29

Grand Total	$	86,843	$	54,634	$	47,744	$	40,742	$	29,925	$	12,466	$	28,608	$	300,962
Current period gross write-offs	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	29

Table of Contents


	December 31, 2024
	Loans By Risk Rating by Origination Year
	2024		2023		2022		2021		2020		2019		Prior		Total

Rating:	(In thousands)
Residential real estate:
Performing	$	32,585	$	28,919	$	9,703	$	12,199	$	5,201	$	3,198	$	18,962	$	110,767
Nonperforming		532		—		—		—		—		129		128		789
Total	$	33,117	$	28,919	$	9,703	$	12,199	$	5,201	$	3,327	$	19,090	$	111,556
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial real estate:
Pass	$	10,742	$	13,429	$	24,386	$	19,596	$	7,004	$	2,779	$	6,472	$	84,408
Special Mention		—		886		—		602		—		—		—		1,488
Substandard		—		—		980		—		—		—		—		980
Total	$	10,742	$	14,315	$	25,366	$	20,198	$	7,004	$	2,779	$	6,472	$	86,876
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

C&I - Other:
Pass	$	3,482	$	2,802	$	463	$	1,391	$	—	$	1,494	$	753	$	10,385
Special Mention		—		423		—		—		—		—		—		423
Substandard		—		82		—		—		—		—		—		82
Total	$	3,482	$	3,307	$	463	$	1,391	$	—	$	1,494	$	753	$	10,890
Current period gross write-offs	$	—	$	90	$	—	$	—	$	—	$	—	$	—	$	90

C&I - Bankers Health Group:
Pass	$	12,261	$	10,000	$	10,273	$	1,433	$	1,564	$	489	$	312	$	36,332
Substandard		91		1,008		1,084		58		311		144		45		2,741
Total	$	12,352	$	11,008	$	11,357	$	1,491	$	1,875	$	633	$	357	$	39,073
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Performing	$	86	$	—	$	—	$	—	$	—	$	51	$	—	$	137
Nonperforming		—		—		—		—		—		—		—		—
Total	$	86	$	—	$	—	$	—	$	—	$	51	$	—	$	137
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Grand Total	$	59,779	$	57,549	$	46,889	$	35,279	$	14,080	$	8,284	$	26,672	$	248,532
Current period gross write-offs	$	—	$	90	$	—	$	—	$	—	$	—	$	—	$	90

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2025 and 2024:


		December 31, 2025
																				Loans
																				Receivable
		30-59			60-89			Greater									Total			>90 Days
		Days			Days			Than			Total						Loans			and
		Past Due			Past Due			90 Days			Past Due			Current			Receivables			Accruing

		(In thousands)
Residential		$	—		$	—		$	—		$	—		$	143,600		$	143,600		$	—
Commercial real estate			—			—			79			79			88,021			88,100			—
Commercial and industrial			449			—			—			449			7,491			7,940			—
BHG loans			—			—			—			—			34,778			34,778			—
Consumer			—			—			—			—			26,544			26,544			—
		$	449		$	—		$	79		$	528		$	300,434		$	300,962		$	—

Table of Contents


		December 31, 2024
																				Loans
																				Receivable
		30-59			60-89			Greater									Total			>90 Days
		Days			Days			Than			Total						Loans			and
		Past Due			Past Due			90 Days			Past Due			Current			Receivables			Accruing

		(In thousands)
Residential		$	796		$	—		$	129		$	925		$	110,631		$	111,556		$	—
Commercial real estate			—			—			—			—			86,876			86,876			—
Commercial and industrial			98			—			—			98			10,792			10,890			—
BHG loans			—			—			—			—			39,073			39,073			—
Consumer			—			—			—			—			137			137			—
		$	894		$	—		$	129		$	1,023		$	247,509		$	248,532		$	—

At December 31, 2025, there were three loans in non-accrual status totaling $121,000; one residential mortgage loan totaling $42,000 was not included in the above table because it was current as of December 31, 2025, however continued payment performance is required in order to return the loan to accrued status.

At December 31, 2024, there were four loans in non-accrual status totaling $868,000.

The following table presents information regarding non-accrual loans:


	December 31, 2025
		Non-accrual Loans
	Non-accrual Loans	without Allowance

URSB Bancorp, Inc. 10-K