The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and advance funds on lines of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.

At June 30, 2025 and 2024, the following financial instruments were outstanding whose contract amounts represent credit risk:


(In thousands)	June 30, 2025		June 30, 2024
Commitments to grant loans	$	585	$	775
Unadvanced funds on equity lines of credit		3,698		4,107
Unadvanced funds on commercial and other lines of credit		1,878		1,998

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for construction loans and lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis and the commitments are collateralized by real estate.

The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2022, using the modified retrospective transition method. Therefore, periods prior to that date were not restated. The Company elected the package of practical expedients, which permits the Company not to reassess prior conclusions about lease identifications, lease classification and direct costs. The Company did not elect to apply the hindsight expedient pertaining to using hindsight knowledge as of the effective date when determining lease terms and impairment.

As of June 30, 2025, the Company had entered into two noncancelable operating lease agreements for branch locations. The Company, by policy, does not include renewal options for leases as part of its ROU assets and lease liabilities unless they are deemed reasonably certain to exercise.

The Company’s ROU asset related to operating leases totaled $764,000 and $860,000 at June 30, 2025 and June 30, 2024, respectively and is recognized in the Company's consolidated balance sheet as an operating lease right of use asset.

The weighted average remaining lease term for operating leases was 6.88 years and 7.88 years as of June 30, 2025 and June 30, 2024, respectively. The weighted average discount rate used in the measurement of operating lease liabilities was 3.56% as of June 30, 2025 and 2024. The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at June 30, 2025 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in the Company's consolidated balance sheet in operating lease liability.


	Years ending
(In thousands)	June 30,
2026	$	117
2027		119
2028		134
2029		134
2030		134
Thereafter		252
Total minimum lease payments	$	890
Less: Imputed interest		(101	)
Total lease liability	$	789

The cost of lease payments is not included above. Total rent expense for the years ended June 30, 2025 and 2024 amounted to $137,000 and $139,000, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $117,000 for the years ended June 30, 2025 and 2024.

The Company maintains employment agreements with two executives (each for a term of three years), which provide for a specified annual compensation and certain other benefits as defined in the agreement. Commencing on the first anniversary of the effective date of the agreement and continuing on each anniversary thereafter, members of the Board of Directors may extend the agreement for an additional year.

The Company also maintains change in control agreements with certain executives setting forth the terms and conditions of payment due to the executive and the rights and obligations of the parties in the event of a change in control as defined in the agreement. The agreements are subject to renewal each year by the Board of Directors prior to the anniversary of the effective date.

Various legal claims also arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements.