URSB Bancorp, Inc.

URSB Bancorp, Inc. is a financial institution that provides various lending products. The company offers Small Business Administration (SBA) and 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. Another segment includes BHG Commercial Loans, which are commercial loans acquired from BHG, a non-bank lender specializing in small business loans. The credit quality in this segment could be affected by a weakened economy and decreased consumer spending. Historically, the company's consumer loans were secured by certificates of deposit or savings accounts and included advances for taxes and insurance on respective loans. Starting in 2025, URSB Bancorp, Inc. began purchasing unsecured consumer loans from Lending Club, Woodside Credit, and BHG, with repayment generally dependent on the individual borrower's credit quality. The company also evaluates loans individually if they do not share common risk characteristics, especially when repayment is expected primarily from the operation or sale of collateral due to the borrower's financial difficulty. For these collateral-dependent loans, expected credit losses are based on the collateral's fair value at the reporting date, adjusted for selling costs. URSB Bancorp, Inc. also manages off-balance sheet credit exposures, including commitments to extend credit, standby letters of credit, and commercial letters of credit. The company estimates expected credit losses for these exposures over the contractual period of credit risk, unless the obligation is unconditionally cancellable. The allowance for these off-balance sheet credit losses 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.