The Association is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Association’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Association’s capital amounts, and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios as set forth in the following tables of tangible, core, and total risk-based capital. To be considered well-capitalized under the regulatory framework for Prompt Corrective Action provisions, the Association must maintain minimum Tier I leverage, Tier I risk- based, common equity Tier 1, and total risk-based capital ratios (as defined) as set forth in the following tables.

As of December 31, 2025 and March 31, 2025, the Association was well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Association must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the tables. There are no conditions or events since December 31, 2025, that management believes have changed the Association’s category.

The Association’s actual capital amounts and ratios as of December 31, 2025 and March 31, 2025, are also presented in the table below:


	Actual					Minimum Required for Capital Adequacy Purposes					Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions
As of December 31, 2025	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
Total Capital (to Risk- Weighted Assets)	$	77,219		17.54	%	$	35,211		8.00	%	$	44,014		10.00	%

Tier 1 Capital (to Risk- Weighted Assets)	$	71,714		16.29	%	$	26,408		6.00	%	$	35,211		8.00	%

Common Equity Tier 1 Capital to Risk-Weighted Assets	$	71,714		16.29	%	$	19,806		4.50	%	$	28,609		6.50	%

Tier 1 Capital (to Average Assets)	$	71,714		13.96	%	$	20,545		4.00	%	$	25,681		5.00	%

As of March 31, 2025	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital (to Risk- Weighted Assets)	$	72,977		17.83	%	$	32,734		8.00	%	$	40,918		10.00	%

Tier 1 Capital (to Risk- Weighted Assets)	$	67,856		16.58	%	$	24,551		6.00	%	$	32,734		8.00	%

Common Equity Tier 1 Capital to Risk-Weighted Assets	$	67,856		16.58	%	$	18,413		4.50	%	$	26,597		6.50	%

Tier 1 Capital (to Average Assets)	$	67,856		13.78	%	$	19,701		4.00	%	$	24,626		5.00	%