v3.25.4
Loans
6 Months Ended
Dec. 31, 2025
Loans  
Loans

Note 4- Loans

The Company’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Company has elected to exclude accrued interest receivable, totaling $670,442 at December 31, 2025 and $603,309 as of June 30, 2025, from the amortized cost basis of loans and measurement of credit loss.

A summary of loans by major category follows:

Unaudited

  ​ ​ ​

December 31, 2025

  ​ ​ ​

June 30, 2025

(Dollars in thousands)

Commercial real estate

$

90,819

$

91,867

Commercial and industrial

 

3,659

 

3,876

Construction

 

800

 

733

One-to-four-family residential

 

64,008

 

56,330

Multi-family real estate

 

51,679

 

47,808

Consumer

 

2,767

 

1,957

Total loans

 

213,732

 

202,571

Deferred loan fees

 

(116)

 

(67)

Allowance for credit losses

 

(1,703)

 

(1,708)

Loans, net

$

211,913

$

200,796

The following tables summarize the activity in the allowance for credit losses - loans by loan class for the three and six months ended December 31, 2025 and 2024:

Allowance for Credit Losses-Loans-Three Months Ended December 31, 2025

(Dollars in thousands)

Provision for

(Recovery of)

Credit

Beginning

Losses-

Ending

Balance

Charge-offs

Recoveries

Loans

Balance

  ​ ​ ​

October 1, 2025

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

December 31, 2025

Commercial real estate

$

418

$

$

$

(51)

$

367

Commercial and industrial

14

(4)

10

Construction

5

(4)

1

One-to-four-family residential

979

121

1,100

Multi-family real estate

236

(29)

207

Consumer

17

1

18

Total loans

$

1,669

$

$

1

$

33

$

1,703

Allowance for Credit Losses-Loans-Three Months Ended December 31, 2024

(Dollars in thousands)

Provision for

(Recovery of)

Credit

Beginning

Losses-

Ending

Balance

Charge-offs

Recoveries

Loans

Balance

  ​ ​ ​

October 1, 2024

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

December 31, 2024

Commercial real estate

$

244

$

$

$

18

$

262

Commercial and industrial

15

(1)

14

Construction

One-to-four-family residential

1,210

(1)

1,209

Multi-family real estate

168

(11)

157

Consumer

5

1

3

9

Total loans

$

1,642

$

$

1

$

8

$

1,651

Allowance for Credit Losses-Loans-Six Months Ended December 31, 2025

(Dollars in thousands)

Provision for

(Recovery of)

Credit

Beginning

Losses-

Ending

Balance

Charge-offs

Recoveries

Loans

Balance

  ​ ​ ​

July 1, 2025

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

December 31, 2025

Commercial real estate

$

390

$

$

$

(23)

$

367

Commercial and industrial

11

(1)

10

Construction

4

(3)

1

One-to-four-family residential

1,123

(23)

1,100

Multi-family real estate

171

36

207

Consumer

9

2

7

18

Total loans

$

1,708

$

$

2

$

(7)

$

1,703

Allowance for Credit Losses-Loans-Six Months Ended December 31, 2024

(Dollars in thousands)

Provision for

(Recovery of)

Credit

Beginning

Losses-

Ending

Balance

Charge-offs

Recoveries

Loans

Balance

  ​ ​ ​

July 1, 2024

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

December 31, 2024

Commercial real estate

$

259

$

$

$

3

$

262

Commercial and industrial

16

(2)

14

Construction

28

(28)

One-to-four-family residential

1,314

(105)

1,209

Multi-family real estate

175

(18)

157

Consumer

5

1

3

9

Total loans

$

1,797

$

$

1

$

(147)

$

1,651

The following table presents a breakdown of the provision for (recovery of) credit losses for the periods indicated:

Three Months

Six Months

Ended

Ended

December 31,

December 31,

  ​ ​

2025

  ​ ​

2024

  ​ ​

2025

  ​ ​

2024

Provision for (recovery of) credit losses:

Provision for (recovery of) loans

$

33,000

$

8,000

$

(7,000)

$

(147,000)

Provision for unfunded commitments

Total provision for (recovery of) credit losses

$

33,000

$

8,000

$

(7,000)

$

(147,000)

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, collateral adequacy, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial and industrial, commercial real estate loans and multi-family real estate loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings:

Pass – Loans classified as pass represent loans that are evaluated and are performing under the stated terms. Pass rated assets are analyzed by the paying capacity, the current net worth, and the value of the loan collateral of the obligor.

Watch -    A watch grade is assigned to any credit that is adequately secured and performing but monitored for a number of indicators.  These characteristics may include, but are not limited to:  any unexpected short-term adverse financial performance from budgeted projections or prior period results (i.e., declining profits, sales, margins, cash flow, or increased reliance on leverage, including adverse balance sheet ratios, trade debt issues, etc.), any managerial or personal problems of company management, a decline in the entire industry or local economic conditions, failure to provide financial information or other documentation as requested, issues regarding delinquency, overdrafts, or renewals, and any other issues that cause concern for the Company. 

Special Mention – The characteristics of a special mention asset have potential weaknesses that deserve the Company’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.  Special mention assets are considered criticized assets.  Characteristics of special mention loans may include:  continued adverse financial trends relating to declining sales, profits, margins, balance sheet ratios, increasing debt to worth, and trade debt issues; cash flows declining in coverage, a repeated lack of compliance with Bank requests for information, correction of a violation of loan covenants, lack of current or adequate financial information or documentation, or more serious managerial or declining industry conditions.  Weakness identified in a special mention credit should be short-term in nature. 

Substandard – Loans classified as substandard are inadequately protected by the current net worth, paying capacity of the obligor, or by the collateral pledged. Substandard loans must have a well-defined weakness or weaknesses that jeopardize the repayment of the debt as originally contracted. They are characterized by the distinct possibility that the Company will sustain a loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have the weaknesses of those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans in this category are individually evaluated for impairment or charged-off if deemed uncollectible.

Residential and Consumer Grading System-One-to-four-family residential real estate and consumer loans are graded as either non-performing or performing.

 

Non-performing-Non-performing loans are loans in which the borrower has not made the scheduled payments of principal or interest, and are generally loans over 90 days past due and still accruing interest, and loans on non-accrual status.

 Performing-Performing loans are those loans in which the borrower is making timely payments of both principal and interest as upon the agreed loan terms.

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of watch, special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2025 based on fiscal year of origination:

Revolving

Loans

Revolving

Converted to

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

Prior

  ​ ​ ​

Loans

  ​ ​ ​

Term Loans

  ​ ​ ​

Total

(Dollars in thousands)

Commercial real estate

Pass

$

10,166

$

27,727

$

2,034

$

3,236

$

22,246

$

24,596

$

161

$

$

90,166

Watch

653

653

Special Mention

Substandard

Nonaccrual

Total commercial real estate

$

10,166

$

27,727

$

2,034

$

3,889

$

22,246

$

24,596

$

161

$

$

90,819

Commercial and industrial

Pass

$

432

$

380

$

72

$

398

$

902

$

1,466

$

9

$

$

3,659

Watch

Special Mention

Substandard

Nonaccrual

Total commercial and industrial

$

432

$

380

$

72

$

398

$

902

$

1,466

$

9

$

$

3,659

Construction

Pass

$

$

800

$

$

$

$

$

$

$

800

Watch

Special Mention

Substandard

Nonaccrual

Total construction

$

$

800

$

$

$

$

$

$

$

800

Multi-family real estate

Pass

$

12,629

$

3,627

$

1,241

$

2,547

$

15,569

$

16,034

$

32

$

$

51,679

Watch

Special Mention

Substandard

Nonaccrual

Total multi-family real estate

$

12,629

$

3,627

$

1,241

$

2,547

$

15,569

$

16,034

$

32

$

$

51,679

One-to-four-family residential

Performing

$

12,297

$

9,474

$

2,606

$

6,042

$

9,310

$

24,089

$

$

$

63,818

Non-performing

123

67

190

Total one-to-four-family

$

12,297

$

9,474

$

2,606

$

6,165

$

9,310

$

24,156

$

$

$

64,008

Consumer

Performing

$

$

156

$

32

$

25

$

58

$

$

2,496

$

$

2,767

Non-performing

Total consumer

$

$

156

$

32

$

25

$

58

$

$

2,496

$

$

2,767

Total loans

$

35,524

$

42,164

$

5,985

$

13,024

$

48,085

$

66,252

$

2,698

$

$

213,732

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of watch, special mention, substandard and doubtful within the Company’s internal risk rating system as of June 30, 2025 based on fiscal year of origination:

Revolving

Loans

Revolving

Converted to

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

Prior

  ​ ​ ​

Loans

  ​ ​ ​

Term Loans

  ​ ​ ​

Total

(Dollars in thousands)

Commercial real estate

Pass

$

27,952

$

4,203

$

4,041

$

25,549

$

18,297

$

11,029

$

139

$

$

91,210

Watch

657

657

Special Mention

Substandard

Nonaccrual

Total commercial real estate

$

27,952

$

4,203

$

4,698

$

25,549

$

18,297

$

11,029

$

139

$

$

91,867

Commercial and industrial

Pass

$

415

$

64

$

513

$

1,125

$

1,483

$

264

$

12

$

$

3,876

Watch

Special Mention

Substandard

Nonaccrual

Total commercial and industrial

$

415

$

64

$

513

$

1,125

$

1,483

$

264

$

12

$

$

3,876

Construction

Pass

$

733

$

$

$

$

$

$

$

$

733

Watch

Special Mention

Substandard

Nonaccrual

Total construction

$

733

$

$

$

$

$

$

$

$

733

Multi-family real estate

Pass

$

5,444

$

1,617

$

7,696

$

16,275

$

13,043

$

3,193

$

46

$

$

47,314

Watch

494

494

Special Mention

Substandard

Nonaccrual

Total multi-family real estate

$

5,444

$

1,617

$

8,190

$

16,275

$

13,043

$

3,193

$

46

$

$

47,808

One-to-four-family residential

Performing

$

9,565

$

3,196

$

6,667

$

10,699

$

9,886

$

16,250

$

$

$

56,263

Non-performing

67

67

Total one-to-four-family

$

9,565

$

3,196

$

6,667

$

10,699

$

9,886

$

16,317

$

$

$

56,330

Consumer

Performing

$

179

$

38

$

31

$

85

$

$

$

1,624

$

$

1,957

Non-performing

Total consumer

$

179

$

38

$

31

$

85

$

$

$

1,624

$

$

1,957

Total loans

$

44,288

$

9,118

$

20,099

$

53,733

$

42,709

$

30,803

$

1,821

$

$

202,571

The following tables summarize the aging of the past due and nonaccrual loans by loan class within the portfolio segments as of December 31, 2025 and June 30, 2025:

  ​ ​ ​

Still Accruing

30-59 Days

60-89 Days

Over 90 Days

Nonaccrual

  ​ ​ ​

Past Due

  ​ ​ ​

Past Due

  ​ ​ ​

Past Due

  ​ ​ ​

Balance

December 31, 2025

 

  ​

 

  ​

 

  ​

 

  ​

Commercial real estate

$

$

$

$

Commercial and industrial

 

 

 

 

Construction

 

 

 

 

One-to-four-family residential

 

24,068

 

 

 

190,013

Multi-family real estate

 

 

 

 

Consumer

 

 

 

 

Total

$

24,068

$

$

$

190,013

  ​ ​ ​

Still Accruing

30-59 Days

60-89 Days

Over 90 Days

Nonaccrual

  ​ ​ ​

Past Due

  ​ ​ ​

Past Due

  ​ ​ ​

Past Due

  ​ ​ ​

Balance

June 30, 2025

 

  ​

 

  ​

 

  ​

 

  ​

Commercial real estate

$

$

$

$

Commercial and industrial

 

 

 

 

Construction

 

 

 

 

One-to-four-family residential

 

252,723

 

 

 

66,645

Multi-family real estate

 

 

 

 

Consumer

 

 

 

 

Total

$

252,723

$

$

$

66,645

Individually Evaluated Loans

Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis in accordance with ASC 326. Information for loans evaluated individually is set forth below.

The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses as of December 31, 2025 and June 30, 2025 and interest income recorded on nonaccrual loans in each of the three and six month periods then ended.

December 31, 2025

Nonaccrual loans

Loans Past Due

Without an Allowance

Over 90 Days

Interest Income

  ​ ​ ​

  ​ ​ ​

For Credit Loss

  ​ ​ ​

Still Accruing

  ​ ​ ​

Three Months Ended

  ​ ​ ​

Six Months Ended

Commercial real estate

$

$

$

$

Commercial and industrial

Construction

One-to-four-family residential

190,013

Multi-family real estate

Consumer

Total loans

$

190,013

$

$

$

June 30, 2025

Nonaccrual loans

Loans Past Due

Without an Allowance

Over 90 Days

Interest Income

  ​ ​ ​

  ​ ​ ​

For Credit Loss

  ​ ​ ​

Still Accruing

  ​ ​ ​

Year Ended

  ​ ​ ​

Commercial real estate

$

$

$

Commercial and industrial

Construction

One-to-four-family residential

66,645

2,492

Multi-family real estate

Consumer

Total loans

$

66,645

$

$

2,492

The following table presents the amortized cost basis of collateral-dependent loans by loan class as of December 31, 2025 and June 30, 2025.

December 31, 2025

Real Estate

Non-Real Estate

Total Collateral

Allowance for

Secured

Secured

Dependent

Credit Losses-

  ​ ​ ​

Loans

  ​ ​ ​

Loans

  ​ ​ ​

Loans

  ​ ​ ​

Loans

Commercial real estate

$

$

$

$

Commercial and industrial

Construction

One-to-four-family residential

190,013

190,013

Multi-family real estate

Consumer

Total

$

190,013

$

$

190,013

$

June 30, 2025

Real Estate

Non-Real Estate

Total Collateral

Allowance for

Secured

Secured

Dependent

Credit Losses-

  ​ ​ ​

Loans

  ​ ​ ​

Loans

  ​ ​ ​

Loans

  ​ ​ ​

Loans

Commercial real estate

$

$

$

$

Commercial and industrial

Construction

One-to-four-family residential

66,645

66,645

Multi-family real estate

Consumer

Total

$

66,645

$

$

66,645

$

There were no loans during the three and six months ended December 31, 2025 and 2024 that were modified to borrowers experiencing financial difficulty.

The Company maintains a collateral pledge agreement with the FHLB covering secured advances whereby the Company has agreed to retain, free of all other pledges, liens, and encumbrances, commercial and industrial, commercial real estate, and one-to-four family residential real estate loans. The pledged loans are discounted at a factor of 24% to 38% when aggregating the amount of loans required by the pledge agreement. The amount of eligible collateral was $94,902,016 and $70,573,734 as of December 31, 2025 and June 30, 2025, respectively. There was also FHLB stock of $1,329,413 as of December 31, 2025 and June 30, 2025. The Company also has a collateral pledge agreement with the FRB securing multi-family real estate loans. These pledged loans have discounted margins applied ranging from 45% - 95% as required by the pledging agreement. The amount of eligible collateral was $16,469,725 and $17,487,584 as of December 31, 2025 and June 30, 2025, respectively.