URSB Bancorp, Inc.

URSB Bancorp, Inc. is a financial institution that offers various loan products. The company originates Small Business Administration (SBA) and/or U.S. Department of Agriculture (USDA) guaranteed loans. These guaranteed loans do not have a general reserve allocated to them, and the company has not experienced losses on them. URSB Bancorp also acquires commercial loans from BHG, a non-bank lender specializing in small business loans. Consumer loans historically included those secured by certificates of deposit or savings accounts, as well as advances for taxes and insurance on respective loans. Starting in 2025, the company began purchasing unsecured consumer loans from Lending Club, Woodside Credit, and BHG, with repayment dependent on the individual borrower's credit quality. Loans that lack shared risk characteristics are evaluated individually. For collateral-dependent loans where repayment relies substantially on the operation or sale of collateral due to borrower financial difficulty, expected credit losses are based on the collateral's fair value at the reporting date, adjusted for selling costs. The company also manages off-balance sheet credit exposures, including commitments to extend credit, standby letters of credit, and commercial letters of credit. Expected credit losses for these off-balance sheet instruments are estimated over the contractual period of exposure, unless the obligation is unconditionally cancellable by the company. The allowance for credit losses on these exposures is recorded in other liabilities on the consolidated statements of financial condition, with adjustments recognized in the provision for credit losses in the consolidated statements of operation.