v3.26.1
Loans Receivable And Allowance For Loan Losses
 9 Months Ended
Jun. 30, 2026
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans Receivable And Allowance For Loan Losses LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
Loans receivable by portfolio segment consisted of the following at June 30, 2026 and September 30, 2025 (dollars in thousands):
June 30,
2026		September 30,
2025
AmountPercentAmountPercent
Mortgage loans:
One- to four-family (1)$299,921 18.5 %$317,691 20.1 %
Multi-family214,583 13.2 207,767 13.2 
Commercial real estate646,376 39.9 610,692 38.7 
Construction - custom and owner/builder113,303 7.0 130,341 8.3 
Construction - speculative one- to four-family28,445 1.8 10,745 0.7 
Construction - commercial12,991 0.8 21,818 1.4 
Construction - multi-family91,271 5.6 45,660 2.9 
Construction - land development530 — 15,324 1.0 
Land37,416 2.3 35,952 2.3 
Total mortgage loans1,444,836 89.1 1,395,990 88.6 
Consumer loans:
Home equity and second mortgage54,971 3.4 50,479 3.2 
Other1,915 0.1 2,034 0.1 
Total consumer loans56,886 3.5 52,513 3.3 
Commercial loans:
Commercial business118,852 7.4 126,937 8.1 
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans— — 58 — 
    Total commercial loans118,852 7.4 126,995 8.1 
Total loans receivable1,620,574 100.0 %1,575,498 100.0 %
Less:
Undisbursed portion of construction loans in process ("LIP")100,275 88,289 
Deferred loan origination fees, net5,399 5,528 
ACL19,249 18,091 
Subtotal124,923 111,908 
Loans receivable, net$1,495,651 $1,463,590 
__________________
(1) Does not include one- to four-family loans held for sale totaling $2.77 million and $1.13 million at June 30, 2026 and September 30, 2025, respectively.

Loans receivable at June 30, 2026 and September 30, 2025, are reported net of unamortized discounts totaling $25,000 and $51,000, respectively.

Credit Quality Indicators

The Company uses credit risk grades that reflect the Company’s assessment of a loan’s risk or loss potential.  The Company categorizes loans into risk grade categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors such as the estimated fair value of the collateral.  The Company uses the following definitions for credit risk ratings as part of the ongoing monitoring of the credit quality of its loan portfolio:

Pass:  Pass loans are defined as loans that meet acceptable quality underwriting standards.

Watch:  Watch loans are defined as loans that still exhibit acceptable quality, but have some concerns that justify greater attention.  If these concerns are not corrected, a potential for further adverse categorization exists.  These concerns could relate to a specific condition peculiar to the borrower, its industry segment or the general economic environment.

Special Mention: Special mention loans are defined as loans deemed by management to have some potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the loan. 

Substandard:  Substandard loans are defined as loans that are inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. If the weakness or weaknesses are not corrected, there is a distinct possibility that some loss will be sustained.

Doubtful: Loans in this classification have the weaknesses of substandard loans with the additional characteristic that the weaknesses make the collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. At June 30, 2026, no loans were classified as doubtful. At September 30, 2025, there was one loan classified as doubtful which was supported by an SBA guarantee of the remaining balance.

Loss:  Loans in this classification are considered uncollectible and of such little value that continuance as an asset is not warranted.  This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though partial recovery may be realized in the future. At June 30, 2026 and September 30, 2025, there were no loans classified as loss.

The following table sets forth the Company's loan portfolio at June 30, 2026 by risk attribute and year of origination as well as current period gross charge-offs (dollars in thousands):
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20262025202420232022PriorRevolving LoansTotal Loans Receivable
One-to four-family
Risk Rating
Pass$2,993 $15,596 $30,008 $63,822 $92,151 $86,139 $— $290,709 
Watch— — — 545 1,681 268 — 2,494 
Special Mention— — — — 4,788 — — 4,788 
Substandard— — — 1,731 199 — — 1,930 
Total one- to four-family$2,993 $15,596 $30,008 $66,098 $98,819 $86,407 $— $299,921 
Multi-family
Risk Rating
Pass$17,238 $16,165 $13,088 $34,845 $38,583 $81,953 $1,708 $203,580 
Watch— — — — — 11,003 — 11,003 
Total multi-family$17,238 $16,165 $13,088 $34,845 $38,583 $92,956 $1,708 $214,583 
Commercial real estate
Risk Rating
Pass$54,836 $53,455 $24,130 $77,555 $121,322 $289,790 $7,783 $628,871 
Watch— — 767 — — 12,204 — 12,971 
Substandard— — — — 224 4,310 — 4,534 
Total commercial real estate$54,836 $53,455 $24,897 $77,555 $121,546 $306,304 $7,783 $646,376 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20262025202420232022PriorRevolving LoansTotal Loans Receivable
Construction-custom & owner/builder (1)
Risk Rating
Pass$18,681 $36,182 $— $— $— $— $— $54,863 
Watch— 2,860 5,244 4,060 1,719 — — 13,883 
Total construction-custom & owner/builder$18,681 $39,042 $5,244 $4,060 $1,719 $— $— $68,746 
Construction-speculative one-to four-family (1)
Risk Rating
Pass$11,284 $1,617 $— $— $— $— $— $12,901 
Total construction-speculative one-to four-family$11,284 $1,617 $— $— $— $— $— $12,901 
Construction-commercial (1)
Risk Rating
Pass$1,773 $7,033 $3,100 $— $— $— $— $11,906 
Total construction-commercial $1,773 $7,033 $3,100 $— $— $— $— $11,906 
Construction-multi-family (1)
Risk Rating
Pass$14,558 $29,942 $7,800 $— $— $— $— $52,300 
Total construction-multi-family$14,558 $29,942 $7,800 $— $— $— $— $52,300 
Construction-land development (1)
Risk Rating
Pass$412 $— $— $— $— $— $— $412 
Total construction-land development$412 $— $— $— $— $— $— $412 
Land
Risk Rating
Pass$9,731 $7,562 $8,202 $2,214 $4,556 $3,690 $379 $36,334 
Watch— — 248 — 294 432 — 974 
Substandard— — 108 — — — — 108 
Total land$9,731 $7,562 $8,558 $2,214 $4,850 $4,122 $379 $37,416 
Home equity and second mortgage
Risk Rating
Pass$1,484 $1,911 $3,904 $2,636 $1,270 $2,451 $40,667 $54,323 
Watch— 184 — — — 12 — 196 
Substandard— — — 132 — 54 266 452 
Total home equity and second mortgage$1,484 $2,095 $3,904 $2,768 $1,270 $2,517 $40,933 $54,971 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20262025202420232022PriorRevolving LoansTotal Loans Receivable
Other consumer
Risk Rating
Pass$732 $35 $431 $358 $67 $241 $31 $1,895 
Substandard— — — — — — 20 20 
Total other consumer$732 $35 $431 $358 $67 $241 $51 $1,915 
Commercial business
Risk Rating
Pass$7,211 $12,060 $11,458 $12,486 $22,526 $11,092 $38,741 $115,574 
Watch— — — — — 269 1,389 1,658 
Substandard— — — 159 134 383 944 1,620 
Total commercial business$7,211 $12,060 $11,458 $12,645 $22,660 $11,744 $41,074 $118,852 
Total loans receivable, gross (1)
Risk Rating
Pass$140,933 $181,558 $102,121 $193,916 $280,475 $475,356 $89,309 $1,463,668 
Watch— 3,044 6,259 4,605 3,694 24,188 1,389 43,179 
Special Mention— — — — 4,788 — — 4,788 
Substandard— — 108 2,022 557 4,747 1,230 8,664 
Total loans receivable$140,933 $184,602 $108,488 $200,543 $289,514 $504,291 $91,928 $1,520,299 
Current period gross charge-off$— $— $— $— $— $— $— $— 
_____________________
(1) Net of construction LIP
The following table sets forth the Company's loan portfolio at September 30, 2025, by risk attribute and year of origination as well as gross charges offs in the year ending September 30, 2025:

Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
One-to four-family
Risk Rating
Pass$10,885 $25,692 $79,193 $102,942 $45,274 $47,078 $— $311,064 
Special Mention— — — 4,846 — — — 4,846 
Substandard— — 1,781 — — — — 1,781 
Total one- to four-family$10,885 $25,692 $80,974 $107,788 $45,274 $47,078 $— $317,691 
Multi-family
Risk Rating
Pass$16,305 $13,129 $40,004 $39,064 $22,489 $62,516 $1,334 $194,841 
Watch— — — — — 3,264 — 3,264 
Substandard— — — — 9,662 — — 9,662 
Total multi-family$16,305 $13,129 $40,004 $39,064 $32,151 $65,780 $1,334 $207,767 
Commercial real estate
Risk Rating
Pass$47,145 $25,419 $79,692 $123,631 $82,507 $225,019 $10,212 $593,625 
Watch— — — 238 — 9,307 — 9,545 
Special Mention— — — — — 32 — 32 
Substandard— — — — — 7,490 — 7,490 
Total commercial real estate$47,145 $25,419 $79,692 $123,869 $82,507 $241,848 $10,212 $610,692 
Construction-custom & owner/builder (1)
Risk Rating
Pass$32,733 $33,785 $560 $— $758 $— $— $67,836 
Watch— 3,875 5,367 1,855 1,232 — — 12,329 
Substandard— — — 553 — — — 553 
Total construction-custom & owner/builder$32,733 $37,660 $5,927 $2,408 $1,990 $— $— $80,718 
Construction-speculative one-to four-family (1)
Risk Rating
Pass$6,375 $16 $44 $— $— $— $— $6,435 
Watch— — 488 — — — — 488 
Total construction-speculative one-to four-family$6,375 $16 $532 $— $— $— $— $6,923 
Construction-commercial (1)
Risk Rating
Pass$10,284 $2,725 $2,725 $— $— $— $— $15,734 
Total construction-commercial$10,284 $2,725 $2,725 $— $— $— $— $15,734 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Construction-multi-family (1)
Risk Rating
Pass$11,084 $7,604 $— $— $— $— $— $18,688 
Total construction-multi-family$11,084 $7,604 $— $— $— $— $— $18,688 
Construction-land development (1)
Risk Rating
Pass$— $358 $1,629 $— $— $— $— $1,987 
Substandard— — — 11,549 — — — 11,549 
Total construction-land development$— $358 $1,629 $11,549 $— $— $— $13,536 
Land
Risk Rating
Pass$11,667 $9,393 $3,741 $5,805 $1,951 $2,339 $303 $35,199 
Watch— — — 298 — 455 — 753 
Total land$11,667 $9,393 $3,741 $6,103 $1,951 $2,794 $303 $35,952 
Home equity and second mortgage
Risk Rating
Pass$2,528 $5,154 $3,574 $1,556 $237 $2,112 $34,649 $49,810 
Watch— — — — — 10 — 10 
Substandard— — — — — 57 602 659 
Total home equity and second mortgage$2,528 $5,154 $3,574 $1,556 $237 $2,179 $35,251 $50,479 
Other consumer
Risk Rating
Pass$565 $459 $390 $82 $48 $423 $38 $2,005 
Watch— — — — — 7 — 7 
Substandard— — — — — — 22 22 
Total other consumer$565 $459 $390 $82 $48 $430 $60 $2,034 
Current period gross write-offs$4 $1 $— $— $— $— $1 $6 
Commercial business
Risk Rating
Pass$10,686 $12,875 $17,674 $27,359 $5,793 $9,870 $40,048 $124,305 
Watch— — — — 649 — — 649 
Special Mention— — — 187 304 201 — 692 
Substandard— — 159 140 — 790 — 1,089 
Doubtful— — 202 — — — — 202 
Total commercial business$10,686 $12,875 $18,035 $27,686 $6,746 $10,861 $40,048 $126,937 
Current period gross write-offs$— $— $— $241 $— $— $— $241 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
SBA PPP
Risk Rating
Pass$— $— $— $— $58 $— $— $58 
Total SBA PPP$— $— $— $— $58 $— $— $58 
Total loans receivable, gross (1)
Risk Rating
Pass$160,257 $136,609 $229,226 $300,439 $159,115 $349,357 $86,584 $1,421,587 
Watch— 3,875 5,855 2,391 1,881 13,043 — 27,045 
Special Mention— — — 5,033 304 233 — 5,570 
Substandard— — 1,940 12,242 9,662 8,337 624 32,805 
Doubtful— — 202 — — — — 202 
Total loans receivable$160,257 $140,484 $237,223 $320,105 $170,962 $370,970 $87,208 $1,487,209 
Current period gross charge-off$4 $1 $— $241 $— $— $1 $247 
_____________________
(1) Net of construction LIP

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost. The ACL is evaluated and calculated on a collective basis for loans that share similar risk characteristics. For loans that do not share similar risk characteristics and cannot be evaluated on a collective basis, the Company evaluates the loan individually. The Company estimates expected credit losses over the loans' contractual terms, adjusted for expected prepayments. The ACL is calculated for loan segments utilizing loan level information and relevant information from internal and external sources related to past events and current conditions. Management has adopted the discounted cash flow ("DCF") methodology for all segments. The Company incorporates a reasonable and supportable forecast using current period national gross domestic product ("GDP") and national unemployment figures. All loan segments are impacted by those factors. Prepayment rates are established for each segment based on historical averages, which management believes is representative of future prepayment activity. Loans that are evaluated individually are not included in the collective analysis. The ACL on loans that are evaluated individually may be estimated based on their expected cash flows, or in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, is measured based on the fair value of the collateral less estimated selling costs.

When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the ACL. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not demonstrated the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; and/or the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement.

Management's evaluation of the ACL is based on ongoing, quarterly assessments of the known and inherent risks in the loan portfolio. Loss factors are based on the Company's historical loss experience with additional consideration and adjustments made for changes in economic conditions, changes in the amount and composition of the loan portfolio, delinquency rates, changes in collateral values, seasoning of the loan portfolio, duration of the current business cycle, a detailed analysis of individually evaluated loans and other factors deemed appropriate by management. Management also assesses the risk related to the reasonable and supportable forecasts. These factors are evaluated on a quarterly basis. Loss rates used by the Company are affected by changes in these factors from quarter to quarter. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's ACL and may require the Company to make adjustments to the ACL based on their judgment about information available to them at the time of their examinations.
The following tables set forth information for the three and nine months ended June 30, 2026 and 2025 regarding activity in the ACL by portfolio segment (dollars in thousands):
Three Months Ended June 30, 2026
Beginning
Allowance		Provision for
(Recapture of) Credit Losses		Charge-
Offs		RecoveriesEnding
Allowance
Mortgage loans:
One- to four-family$2,821 $(285)$— $— $2,536 
Multi-family1,639 (86)— — 1,553 
Commercial real estate7,479 409 — — 7,888 
Construction – custom and owner/builder1,175 324 — — 1,499 
Construction – speculative one- to four-family181 111 — — 292 
Construction – commercial257 81 — — 338 
Construction – multi-family969 484 — — 1,453 
Construction – land development80 (68)— — 12 
Land684 (112)— — 572 
Consumer loans:
Home equity and second mortgage452 (88)— — 364 
Other51 1 — 1 53 
Commercial business loans2,860 (171)— — 2,689 
Total$18,648 $600 $— $1 $19,249 

Three Months Ended June 30, 2025
Beginning
Allowance		Provision for
(Recapture of) Credit Losses		Charge-
Offs		RecoveriesEnding
Allowance
Mortgage loans:
  One- to four-family$2,800 $93 $— $— $2,893 
  Multi-family1,315265— — 1,580 
  Commercial real estate6,983180— — 7,163 
  Construction – custom and owner/builder1,21725— — 1,242 
  Construction – speculative one- to four-family898— — 97 
  Construction – commercial358(101)— — 257 
Construction – multi-family543 (165)— — 378 
  Construction – land development375 38 — — 413 
  Land852(39)— — 813 
Consumer loans:
  Home equity and second mortgage34566— — 411 
  Other334— 1 38 
Commercial business loans2,615(23)— 1 2,593 
Total$17,525 $351 $— $2 $17,878 
Nine Months Ended June 30, 2026
Beginning
Allowance		Provision for
(Recapture of) Credit Losses		Charge-
Offs		RecoveriesEnding
Allowance
Mortgage loans:
One-to four-family$2,892 $(356)$— $— $2,536 
Multi-family1,625 (72)— — 1,553 
Commercial real estate7,147 741 — — 7,888 
Construction – custom and owner/builder1,268 231 — — 1,499 
Construction – speculative one- to four-family112 180 — — 292 
Construction – commercial348 (10)— — 338 
Construction – multi-family400 1,053 — — 1,453 
Construction – land development412 (400)— — 12 
Land797 (225)— — 572 
Consumer loans:
Home equity and second mortgage435 (71)— — 364 
Other58 (6)— 1 53 
Commercial business loans2,597 75 — 17 2,689 
Total$18,091 $1,140 $— $18 $19,249 

Nine Months Ended June 30, 2025
Beginning
Allowance		Provision for
(Recapture of) Credit Losses		Charge-
Offs		RecoveriesEnding
Allowance
Mortgage loans:
  One-to four-family$2,632 $261 $— $— $2,893 
  Multi-family1,308 272 — — 1,580
  Commercial real estate6,934 229 — — 7,163
  Construction – custom and owner/builder1,328 (86)— — 1,242
  Construction – speculative one-to four-family128 (31)— — 97
  Construction – commercial537 (280)— — 257
Construction – multi-family456 (78)— — 378 
  Construction – land development335 78 — — 413 
  Land793 20 — — 813
Consumer loans:
  Home equity and second mortgage348 63 — — 411
  Other39 2 (4)1 38
Commercial business loans2,640 190 (241)4 2,593
Total$17,478 $640 $(245)$5 $17,878 
Non-Accrual Loans

When a loan is 90 days delinquent the accrual of interest is generally discontinued and the loan is placed on non-accrual. All interest accrued but not collected for loans placed on non-accrual is reversed out of interest income. Generally, payments received on non-accrual loans are applied to reduce the outstanding principal balance of the loan. At times interest may be accounted for on a cash basis, depending on the collateral value and the borrower's payment history. A loan is generally not removed from non-accrual until all delinquent principal, interest and late fees have been brought current and the borrower demonstrates repayment ability over a period of not less than six months and all taxes are current.

The following tables present an analysis of loans by aging category and portfolio segment at June 30, 2026 and September 30, 2025 (dollars in thousands):
30–59
Days
Past Due		60-89
Days
Past Due		Non-
Accrual (1)		Past Due
90 Days
or More
and Still
Accruing		Total
Past Due		CurrentTotal
Loans
June 30, 2026
Mortgage loans:
One- to four-family$— $— $1,930 $— $1,930 $297,991 $299,921 
Multi-family18 — — — 18 214,565 214,583 
Commercial real estate— — 4,534 — 4,534 641,842 646,376 
Construction – custom and owner/builder (2)
— — — — — 68,746 68,746 
Construction – speculative one- to four-family (2)
— — — — — 12,901 12,901 
Construction – commercial (2)
— — — — — 11,906 11,906 
Construction – multi-family (2)
— — — — — 52,300 52,300 
Construction – land development (2)
— — — — — 412 412 
Land— — — — — 37,416 37,416 
Consumer loans:
Home equity and second mortgage— — 452 — 452 54,519 54,971 
Other— — 20 — 20 1,895 1,915 
Commercial business loans— 134 1,620 — 1,754 117,098 118,852 
Total$18 $134 $8,556 $— $8,708 $1,511,591 $1,520,299 
(1) Includes loans past due 90 days or more and other loans classified as non-accrual.
(2) Net of construction LIP.
30–59
Days
Past Due		60-89
Days
Past Due		Non-
Accrual (1)		Past Due
90 Days
or More
and Still
Accruing		Total
Past Due		CurrentTotal
Loans
September 30, 2025
Mortgage loans:
One- to four-family$— $210 $1,781 $— $1,991 $315,700 $317,691 
Multi-family— — — — — 207,767 207,767 
Commercial real estate— 255 159 — 414 610,278 610,692 
Construction – custom and owner/builder (2)
— — 553 — 553 80,165 80,718 
Construction – speculative one- to four-family (2)
— — — — — 6,923 6,923 
Construction – commercial (2)
— — — — — 15,734 15,734 
Construction – multi-family (2)
— — — — — 18,688 18,688 
Construction – land development (2)
— — — — — 13,536 13,536 
Land— — — — — 35,952 35,952 
Consumer loans:
Home equity and second mortgage— 411 602 — 1,013 49,466 50,479 
Other— — 22 — 22 2,012 2,034 
Commercial business loans374 — 1,290 — 1,664 125,273 126,937 
SBA PPP loans— — — — — 58 58 
Total$374 $876 $4,407 $— $5,657 $1,481,552 $1,487,209 
(1) Includes loans past due 90 days or more and other loans classified as non-accrual.
(2) Net of construction LIP.

At June 30, 2026, the Company had $5.53 million of non-accrual loans with an ACL of $1.03 million and $3.03 million of non-accrual loans with no ACL. The following table is a summary of the amortized cost of collateral dependent non-accrual loans as of June 30, 2026 (in thousands):

Recorded InvestmentRelated ACL
Mortgage loans:
One- to four-family$1,930 $— 
Commercial real estate4,534 480 
Consumer loans:
Home equity and second mortgage452 — 
   Other20 20 
Commercial business loans1,620 530 
Total$8,556 $1,030 
At September 30, 2025, the Company had $1.31 million of non-accrual loans with an ACL of $360,000 and $3.10 million of non-accrual loans with no ACL. The following table is a summary of the amortized cost of collateral dependent non-accrual loans as of September 30, 2025 (in thousands):
Recorded InvestmentRelated ACL
Mortgage loans:
One- to four-family$1,781 $— 
Commercial real estate159 — 
Construction - custom and owner/builder553 — 
Consumer loans:
Home equity and second mortgage602 — 
   Other22 22 
Commercial business loans1,290 338 
Total$4,407 $360 

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or any combination of these. When principal forgiveness is provided, the amount of the forgiveness is charged-off against the ACL for loans. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL for loans is adjusted by the same amount. The ACL on modified loans is measured using the same credit loss estimation methods used to determine the ACL for all other loans held for investment. These methods incorporate the post-modification of loan terms, as well as defaults and charge-offs associated with historical modified loans.

The following tables present the amortized cost basis of loans that were experiencing financial difficulty and modified during the nine months ended June 30, 2026, by loan class and modification type (dollars in thousands):
Term Extension
June 30, 2026Amortized Cost Basis% of Total Loan TypeFinancial Effect
Home Equity and Second Mortgage$54 0.10 %
Loan extended five years.
Combination - Term Extension and Interest and Payment Modification
June 30, 2026Amortized Cost Basis% of Total Loan TypeFinancial Effect
Commercial Business Loan$2 — %
Loan extended 18 months, interest rate increased and loan payment decreased.

All loans modified during the past twelve months are performing according to modified terms.

The following tables present the amortized cost basis of loans that were experiencing financial difficulty and modified during the nine months ended June 30, 2025, by loan class and modification type (dollars in thousands):
Combination - Term Extension and Collateral Addition
June 30, 2025Amortized Cost Basis% of Total Loan TypeFinancial Effect
Commercial Business Loan$256 0.20 %
Loan extended three months and secured a deed of trust on a land parcel
Combination - Term Extension and Payment Modification
June 30, 2025Amortized Cost Basis% of Total Loan TypeFinancial Effect
Commercial Business Loan$2 — %
Loan extended seven months, monthly payment reduced with principal payments due at time of change in terms and 1.5 months after signing.