PSB Financial, Inc._ June 30, 2026

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file Number: 000-56852

PSB Financial, Inc.

(Exact Name of Registrant as Specified in its Charter)


Maryland	39-4296886
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
202 North Main Street P.O. Box 191 Deer Lodge, Montana	59722
(Address of principal executive offices)	(Zip Code)

(406) 846-2202

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of August 14, 2026, there were 1,719,250 shares outstanding of the registrant’s common stock.

Table of Contents

PSB Financial, Inc.

INDEX


PART I – FINANCIAL INFORMATION	3
Item 1 – Condensed Consolidated Financial Statements	3
Condensed Consolidated Balance Sheets (unaudited)	3
Condensed Consolidated Statements of Operations (unaudited)	4
Condensed Consolidated Statements of Comprehensive Income (unaudited)	5
Condensed Consolidated Statements of Shareholders’ Equity (unaudited)	6
Condensed Consolidated Statements of Cash Flows (unaudited)	7
Notes to Condensed Consolidated Financial Statements	8
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3 – Quantitative and Qualitative Disclosures About Market Risk	35
Item 4 – Controls and Procedures	37
PART II – OTHER INFORMATION	38
Item 1 – Legal Proceedings	38
Item 1A – Risk Factors	38
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3 – Defaults Upon Senior Securities	38
Item 4 – Mine Safety Disclosures	38
Item 5 – Other Information	38
Item 6 – Exhibits	39

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1 – Condensed Consolidated Financial Statements

PSB Financial, Inc. and Subsidiary

Condensed Consolidated Balance Sheets


		Unaudited			December 31,
As of		June 30, 2026			2025
ASSETS
Cash and due from banks		$	780,129		$	360,992
Interest-bearing deposits			21,002,109			8,833,868
Cash and cash equivalents			21,782,238			9,194,860
Investment securities available for sale, net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025 (amortized cost of $8,794,555 and $9,095,188 at June 30, 2026 and December 31, 2025, respectively)			8,367,925			8,686,675
Investment securities held to maturity, net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025 (fair value of $1,377,371 and $1,488,818 at June 30, 2026 and December 31, 2025, respectively)			1,416,188			1,515,807
Loans, net of allowance for credit losses of $1,118,851 and $1,138,600 at June 30, 2026 and December 31, 2025, respectively			92,220,076			89,761,496
Premises and equipment, net			4,727,584			4,864,836
Other investments			739,890			728,559
Accrued interest receivable			411,118			359,568
Cash value of life insurance			2,276,540			2,232,345
Accrued income taxes receivable			46,405			46,405
Deferred tax asset			926,910			388,318
Prepaid conversion costs			—			2,002,360
Other assets			334,061			219,993
Total Assets		$	133,248,935		$	120,001,222
LIABILITIES
Interest-bearing deposits		$	87,012,652		$	84,491,349
Noninterest-bearing deposits			7,683,700			8,183,958
Total deposits			94,696,352			92,675,307
Advance payments by borrowers for taxes and insurance			209,537			120,461
Federal Home Loan Bank advances			8,000,000			8,000,000
Accrued interest payable			56,742			56,633
Deferred compensation			280,754			308,622
Reserve for unfunded loan commitments			66,014			47,183
Other liabilities			702,629			319,578
Total Liabilities			104,012,028			101,527,784
SHAREHOLDERS' EQUITY
Preferred stock, $0.01 par value, 500,000 shares authorized, none issued			—			—
Common stock, $0.01 par value, 5,000,000 shares authorized, 1,719,250 issued and outstanding at June 30, 2026			17,193			—
Additional paid-in capital			13,535,550			—
Unallocated common stock of ESOP			(1,365,375)			—
Retained earnings			17,245,044			18,655,595
Accumulated other comprehensive loss			(195,505)			(182,157)
Total Shareholders' Equity			29,236,907			18,473,438
Total Liabilities and Shareholders' Equity		$	133,248,935		$	120,001,222

See accompanying notes to condensed consolidated financial statements.

Table of Contents

PSB Financial, Inc. and Subsidiary

Condensed Consolidated Statements of Operations (unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Interest income:
Loans, including fees	$	1,311,503	$	1,177,341	$	2,594,303	$	2,321,963
Investment securities:
Taxable		43,562		50,976		87,795		102,708
Tax-exempt		28,715		28,068		52,377		55,100
Other		107,116		68,777		166,316		120,592
Total interest income		1,490,896		1,325,162		2,900,791		2,600,363
Interest expense:
Deposits		472,587		335,953		886,065		694,126
FHLB advances		86,983		86,956		172,983		172,956
Total interest expense		559,570		422,909		1,059,048		867,082
Net interest income		931,326		902,253		1,841,743		1,733,281
Provision for (recovery of) credit losses on loans		(53,418)		(11,243)		(23,188)		(104,378)
Provision for (recovery of) credit losses on unfunded loan commitments		(266)		—		18,831		—
Net interest income after provision for credit losses		985,010		913,496		1,846,100		1,837,659
Noninterest income:
Service fees		16,840		14,349		33,992		30,001
Interchange fees		29,687		33,578		61,812		87,100
Increase in cash value of life insurance		22,357		4,994		44,195		9,890
Other noninterest income		16,987		729		19,265		1,351
Total noninterest income		85,871		53,650		159,264		128,342
Noninterest expense:
Salaries and employee benefits		439,685		426,382		831,999		828,569
Occupancy		132,976		133,127		261,409		268,826
Data processing		397,261		111,134		2,213,889		220,421
Advertising		31,879		29,115		59,321		56,894
Professional fees		170,085		122,205		288,053		152,649
Directors fees		28,350		28,350		56,700		56,700
Insurance		8,400		11,595		21,246		23,184
Loan costs		20,070		11,557		36,901		29,692
ATM fee expense		3,832		19,264		20,459		30,300
Donations and contributions		11,000		16,500		27,500		33,000
Other noninterest expense		48,393		52,504		125,918		131,044
Total noninterest expense		1,291,931		961,733		3,943,395		1,831,279
Net (loss) income before income taxes		(221,050)		5,413		(1,938,031)		134,722
Income tax (benefit) expense		(72,637)		(31,273)		(527,480)		8,936
Net (loss) income	$	(148,413)	$	36,686	$	(1,410,551)	$	125,786

Earnings (loss) per share:
Basic	$	(0.09)		n/a	$	(0.89)		n/a
Diluted	$	(0.09)		n/a	$	(0.89)		n/a

See accompanying notes to condensed consolidated financial statements.

Table of Contents

PSB Financial, Inc. and Subsidiary

Condensed Consolidated Statements of Comprehensive Income (unaudited)


		Three Months Ended June 30,					Six Months Ended June 30,
		2026			2025		2026			2025
Net (loss) income		$	(148,413)		$	36,686	$	(1,410,551)		$	125,786
Other comprehensive income (loss):
Unrealized (loss) gain on investment securities available for sale			(3,753)			76,597		(18,117)			202,396
Related tax effect			987			(20,168)		4,769			(53,290)
Other comprehensive (loss) income, net of tax			(2,766)			56,429		(13,348)			149,106
Total comprehensive (loss) income		$	(151,179)		$	93,115	$	(1,423,899)		$	274,892

See accompanying notes to condensed consolidated financial statements.

Table of Contents

PSB Financial, Inc. and Subsidiary

Condensed Consolidated Statements of Shareholders’ Equity (unaudited)


																Accumulated
		Shares of					Additional			Unallocated						Other
For the three months ended		Common		Common			Paid-in			Common Stock			Retained			Comprehensive
June 30, 2026		Stock		Stock			Capital			of ESOP			Earnings			Income (Loss)			Total
Balances at March 31, 2026			—	$	—		$	—		$	—		$	17,393,457		$	(192,739)		$	17,200,718
Proceeds from issuance of common stock, net of offering costs			1,719,250		17,193			13,534,374			—			—			—			13,551,567
Purchase of ESOP shares (137,540 shares)			—		—			—			(1,375,400)			—			—			(1,375,400)
Net loss			—		—			—			—			(148,413)			—			(148,413)
Release of ESOP shares (1,003 shares)			—		—			1,176			10,025			—			—			11,201
Other comprehensive loss			—		—			—			—			—			(2,766)			(2,766)
Balances at June 30, 2026			1,719,250	$	17,193		$	13,535,550		$	(1,365,375)		$	17,245,044		$	(195,505)		$	29,236,907

For the six months ended June 30, 2026
Balances at December 31, 2025			—	$	—		$	—		$	—		$	18,655,595		$	(182,157)		$	18,473,438
Proceeds from issuance of common stock, net of offering costs			1,719,250		17,193			13,534,374			—			—			—			13,551,567
Purchase of ESOP shares (137,540 shares)			—		—			—			(1,375,400)			—			—			(1,375,400)
Net loss			—		—			—			—			(1,410,551)			—			(1,410,551)
Release of ESOP shares (1,003 shares)			—		—			1,176			10,025			—			—			11,201
Other comprehensive loss			—		—			—			—			—			(13,348)			(13,348)
Balances at June 30, 2026			1,719,250	$	17,193		$	13,535,550		$	(1,365,375)		$	17,245,044		$	(195,505)		$	29,236,907

For the three months ended June 30, 2025
Balances at March 31, 2025			—	$	—		$	—		$	—		$	18,696,541		$	(361,233)		$	18,335,308
Net income			—		—			—			—			36,686			—			36,686
Other comprehensive income			—		—			—			—			—			56,429			56,429
Balances at June 30, 2025			—	$	—		$	—		$	—		$	18,733,227		$	(304,804)		$	18,428,423

For the six months ended June 30, 2025
Balances at December 31, 2024			—	$	—		$	—		$	—		$	18,607,441		$	(453,910)		$	18,153,531
Net income			—		—			—			—			125,786			—			125,786
Other comprehensive income			—		—			—			—			—			149,106			149,106
Balances at June 30, 2025			—	$	—		$	—		$	—		$	18,733,227		$	(304,804)		$	18,428,423

See accompanying notes to condensed consolidated financial statements.

Table of Contents

PSB Financial, Inc. and Subsidiary

Condensed Consolidated Statements of Cash Flows (unaudited)


Six Months Ended June 30,		2026			2025
Change in cash and cash equivalents:
Cash flows (used in) from operating activities:
Net (loss) income		$	(1,410,551)		$	125,786
Adjustments to reconcile net income to net cash (used in) from operating activities:
Net amortization of investment securities			(18,778)			25,151
Provision for (recovery of) credit losses			(4,357)			(104,378)
Depreciation			159,463			170,399
Net change in cash value of life insurance			(44,195)			(9,890)
ESOP expense			11,201			—
(Benefit from) provision for deferred income tax			(533,822)			25,577
Changes in operating assets and liabilities:
Accrued interest receivable			(51,550)			(23,284)
Other assets			1,888,292			(62,761)
Accrued interest payable			109			(10,649)
Other liabilities			355,183			51,334
Net cash (used in) from operating activities			350,995			187,285
Cash flows (used in) from investing activities:
Proceeds from calls, paydowns, and maturities of investment securities held to maturity			99,348			156,293
Proceeds from calls, paydowns, and maturities of investment securities available for sale			319,681			302,596
Net change in other investments			(11,331)			14,574
Net (increase) decrease in loans			(2,435,392)			1,299,793
Purchases of premises and equipment			(22,211)			(29,075)
Net cash (used in) from investing activities			(2,049,905)			1,744,181
Cash flows (used in) from financing activities:
Net increase (decrease) in deposits			2,021,045			752,877
Net increase in advance payments by borrowers for taxes and insurance			89,076			81,102
Gross proceeds from issuance of common stock			17,192,500			—
Stock offering costs, net			(3,640,933)			—
Purchase of ESOP shares			(1,375,400)			—
Net cash (used in) from financing activities			14,286,288			833,979
Net change in cash and cash equivalents			12,587,378			2,765,445
Cash and cash equivalents at beginning of period			9,194,860			6,433,487
Cash and cash equivalents at end of period		$	21,782,238		$	9,198,932
Supplemental cash flow information:
Cash paid during the period for:
Interest		$	1,058,939		$	877,731
Income taxes			6,343			4,000
Noncash investing and financing activities:
Change in unrealized (loss) gain on investment securities available for sale			(18,117)			202,396

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NOTE 1:NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Operations

PSB Financial, Inc. (the “Company”) is a Maryland corporation incorporated on September 10, 2025 to serve as the bank holding company for Pioneer State Bank (the “Bank”) in connection with the conversion of Pioneer Federal Savings and Loan Association (the “Association”) from a mutual form of organization to a stock form of organization (the “Conversion”) through the merger of the Association with and into the Bank, with the Bank as the surviving entity. The Conversion was completed on May 21, 2026. In connection with the Conversion, the Company acquired 100% ownership of the Bank and the Company sold 1,719,250 shares of its common stock at $10.00 per share, for gross offering proceeds of $17,192,500. The cost of the conversion and issuance of common stock was $3,640,933, which was deducted from the gross offering proceeds. The Company’s employee stock ownership plan (the “ESOP”) purchased 137,540 shares of the common stock sold by the Company, which was equal to 8% of the shares of common stock issued by the Company. The ESOP purchased the shares using a loan from the Company. The Company contributed $6,775,783 of the net proceeds from the offering to the Bank, loaned $1,375,400 of the net proceeds to the ESOP and retained approximately $5,400,383 of the net proceeds.

The Bank provides a variety of financial services to individuals and corporate members through its branches in Dillon and Deer Lodge, Montana. The Bank’s primary source of revenue is residential single-family loans.

The conversion was accounted for as a change in corporate form with the historic basis of the Association’s assets, liabilities, and equity unchanged as a result. The Company is an “emerging growth company”, as defined in the JOBS Act, and, for as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to “emerging growth companies.” The Company intends to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

Segment Information

The Bank’s reportable segment is determined by the President/Chief Executive Officer (CEO) based upon information provided about the Bank’s products and services offered, which relate primarily to banking operations. The segment is also distinguished by the level of information provided by the CEO, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar. The CEO will evaluate the financial performance of the Bank’s business components such as evaluating revenue streams, significant expenses, and budget to actual results in assessing the Bank’s segment and in the determination of allocating resources. The CEO uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CEO uses net income to benchmark the Bank against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposit product service fees provide the revenues in the banking operation. Interest expense and salaries and employee benefits, as reported on the statements of operations, provide the significant expenses in the banking operation. All operations are domestic.

The Bank operates under a single segment. Segment performance is evaluated using net income. The measure of segment assets is reported on the balance sheets as total assets. Noncash items, such as depreciation and amortization, as well as expenditures for premises and equipment, are reported on the statements of cash flows.

Table of Contents

Basis of Presentation

The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited interim condensed financial statements and notes should be read in conjunction with the Bank’s audited financial statements and notes thereto for the year ended December 31, 2025, filed as part of the Company’s Registration Statement on Form S-1 filed in connection with the Conversion, as declared effective by the SEC on March 16, 2026 (the “Form S-1”). In the opinion of management, all adjustments necessary for a fair statement have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the entire year.

Significant Accounting Policies and Use of Estimates in Preparation of Financial Statements

The Bank has adopted various accounting policies, which govern the application of accounting principles generally accepted in the United States in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to the audited financial statements for the year ended December 31, 2025, filed as part of the Form S-1. Certain accounting policies involve significant judgments and assumptions by management, which have a material impact on the carrying value of certain assets and liabilities, and, as such, have a greater possibility of producing results that could be materially different than originally reported. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Because of the nature of the judgments and assumptions we make, actual results could differ from these judgments and estimates which could have a material impact on our carrying values of assets and liabilities and our results of operations. There have been no significant changes to the application of significant accounting policies since December 31, 2025.

The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

Employee Stock Ownership Plan (ESOP)

In connection with the conversion completed on May 21, 2026, the Company established an Employee Stock Ownership Plan ("ESOP"). The ESOP purchased 137,540 shares of the Company's common stock using a loan from the Company.

In accordance with ASC 718-40, Employee Stock Ownership Plans, shares acquired by the ESOP and not yet allocated to participants are reported as unallocated ESOP shares and reflected as a reduction of shareholders' equity. Compensation expense is recognized as shares are committed to be released to participants based on the fair value of the shares released during the period. The ESOP loan receivable is eliminated in consolidation. Unearned ESOP shares are reflected as a reduction of shareholders’ equity until committed for release.

Table of Contents

NOTE 2:INVESTMENT SECURITIES

The amortized cost, allowance for credit losses, and estimated fair value of investment securities available for sale with gross unrealized gains and losses at June 30, 2026 and December 31, 2025 follows:


					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value
June 30, 2026
U.S. government and agency securities		$	1,071,037		$	—		$	(64,955)		$	1,006,082
Obligations of states and political subdivisions			2,878,309			5,254			(75,582)			2,807,981
Mortgage-backed securities			4,845,209			6,538			(297,885)			4,553,862
Total investment securities available for sale		$	8,794,555		$	11,792		$	(438,422)		$	8,367,925

December 31, 2025
U.S. government and agency securities		$	1,089,563		$	—		$	(56,630)		$	1,032,933
Obligations of states and political subdivisions			2,889,318			7,002			(77,788)			2,818,532
Mortgage-backed securities			5,116,307			12,394			(293,491)			4,835,210
Total investment securities available for sale		$	9,095,188		$	19,396		$	(427,909)		$	8,686,675

There was no allowance for credit losses on investment securities available for sale at June 30, 2026 and December 31, 2025.

The following table shows the fair value and gross unrealized losses of investment securities available for sale with unrealized losses at June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:


		Less Than 12 Months						12 Months or More						Total
					Unrealized						Unrealized						Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
June 30, 2026
U.S. government and agency securities		$	—		$	—		$	1,006,082		$	(64,955)		$	1,006,082		$	(64,955)
Obligations of states and political subdivisions			—			—			1,861,875			(75,582)			1,861,875			(75,582)
Mortgage-backed securities			883,911			(6,544)			3,472,678			(291,341)			4,356,589			(297,885)
Totals		$	883,911		$	(6,544)		$	6,340,635		$	(431,878)		$	7,224,546		$	(438,422)

December 31, 2025
U.S. government and agency securities		$	—		$	—		$	1,032,933		$	(56,630)		$	1,032,933		$	(56,630)
Obligations of states and political subdivisions			—			—			1,868,907			(77,788)			1,868,907			(77,788)
Mortgage-backed securities			—			—			3,663,436			(293,491)			3,663,436			(293,491)
Totals		$	—		$	—		$	6,565,276		$	(427,909)		$	6,565,276		$	(427,909)

Table of Contents

The following table presents the number and aggregate depreciation from the Bank’s amortized cost basis of investment securities available for sale in a continuous unrealized loss position by security type at June 30, 2026 and December 31, 2025:


		June 30, 2026				December 31, 2025
		Number of		Aggregate		Number of		Aggregate
		Securities		Depreciation		Securities		Depreciation
U.S. government and agency securities		2		6.06	%	2		5.20	%
Obligations of states and political subdivisions		6		3.90	%	7		4.00	%
Mortgage-backed securities		16		6.40	%	13		7.42	%

These unrealized losses relate principally to the changes in interest rates and are not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements.

In reaching the conclusion that an allowance for credit losses is unnecessary, management observed that the securities were issued by a government body or agency, the securities continue to be highly rated (AA or better) where applicable, the issuer continues to make contractual payments, and the quality of any underlying assets or credit enhancements has not changed. Since management has the ability to hold investment securities for the foreseeable future, the Bank expects to recover the amortized cost basis of these securities before they are sold or mature.

The amortized cost, allowance for credit losses, gross unrealized gains and losses, and estimated fair value of investment securities held to maturity at June 30, 2026 and December 31, 2025 follows:


					Gross			Gross
					Unrealized			Unrealized			Allowance for			Estimated
		Amortized Cost			Gains			Losses			Credit Losses			Fair Value
June 30, 2026
U.S. government and agency securities		$	68,808		$	—		$	(3,299)		$	—		$	65,509
Obligations of states and political subdivisions			755,313			—			(37,134)			—			718,179
Mortgage-backed securities			592,067			8,017			(6,401)			—			593,683
Total investment securities held to maturity		$	1,416,188		$	8,017		$	(46,834)		$	—		$	1,377,371

December 31, 2025
U.S. government and agency securities		$	78,809		$	—		$	(2,309)		$	—		$	76,500
Obligations of states and political subdivisions			755,336			—			(32,339)			—			722,997
Mortgage-backed securities			681,662			9,771			(2,112)			—			689,321
Total investment securities held to maturity		$	1,515,807		$	9,771		$	(36,760)		$	—		$	1,488,818

The Bank regularly evaluates various attributes of securities held to maturity to determine the appropriateness of the allowance for credit losses. The credit quality indicators monitored differ depending on the major security type.

The Bank evaluates securities issued by the U.S. government and U.S. government-sponsored agencies (e.g., FNMA (“Fannie Mae”), GNMA (“Ginnie Mae”), and FHLMC (“Freddie Mac”) mortgage-backed securities) by considering the creditworthiness and performance of the securities and the strength of guarantees. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Based on this analysis, the Bank believes it will collect all amounts owed on these securities and has not recognized an allowance for credit losses on these securities.

Table of Contents

Obligations of states and political subdivisions held to maturity are generally evaluated using credit ratings, which are a key indicator of an investment security’s probability of default. The Bank uses credit ratings issued by S&P or Moody’s (or both), consisting of the upper- and lower-case letters to identify an investment security’s credit quality rating. “AAA” and “AA” (high credit quality) and “A” and “BBB” (medium credit quality) are considered investment grade. Credit ratings for investment securities below these designations are considered low credit quality. These ratings are updated monthly. The Bank may also consider other relevant information that becomes known about the issuer’s or the security’s performance.

Information regarding credit ratings for investment securities held to maturity by major security type as of June 30, 2026 and December 31, 2025 follows:


		AAA			AA			A			BBB			Not Rated			Total
June 30, 2026
Obligations of states and political subdivisions		$	—		$	550,000		$	205,313		$	—		$	—		$	755,313

December 31, 2025
Obligations of states and political subdivisions		$	—		$	550,000		$	205,336		$	—		$	—		$	755,336

No accrued interest was written off during the three months ended June 30, 2026 and 2025. No investment securities held to maturity were past due or on nonaccrual as of June 30, 2026 and December 31, 2025.

Fair values of investment securities are generally estimated based on financial models or prices paid for similar securities. It is possible interest rates or other key inputs to the valuation estimate could change considerably, resulting in a material change in the estimated fair value of investment securities.

The following is a summary of amortized cost (or net carrying amount) and estimated fair value of investment securities by contractual maturity as of June 30, 2026. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties.


		Available for Sale						Held to Maturity
		Amortized			Estimated			Net Carrying			Estimated
		Cost			Fair Value			Amount			Fair Value
Due in one year or less		$	931,227		$	929,448		$	—		$	—
Due after one year through five years			1,835,497			1,762,804			—			—
Due after five years through ten years			149,118			147,926			820,269			779,841
Due after ten years			1,033,504			973,885			3,852			3,847
Subtotal			3,949,346			3,814,063			824,121			783,688
Mortgage-backed securities			4,845,209			4,553,862			592,067			593,683
Total		$	8,794,555		$	8,367,925		$	1,416,188		$	1,377,371

There were no sales of investment securities during the six months ended June 30, 2026 and 2025.

At June 30, 2026, the amortized cost and estimated fair value of investment securities pledged to secure public deposits was $1,000,000 and $936,010, respectively. At December 31, 2025, the amortized cost and estimated fair value of investment securities pledged to secure public deposits was $1,000,000 and $944,600, respectively.

Table of Contents

NOTE 3:LOANS

The following table presents total loans at June 30, 2026 and December 31, 2025, by portfolio segment and class of loan:


		June 30, 2026			December 31, 2025
Commercial:
Other construction and land/land development		$	1,129,192		$	1,087,189
Commercial real estate			7,041,679			7,147,826
Commercial and industrial			2,684,216			2,317,079
Municipal			43,576			46,214
Residential real estate:
Residential construction			1,689,671			888,416
Revolving, open-end			4,427,561			3,464,812
First liens			74,508,106			73,906,730
Junior liens			1,250,912			1,263,727
Consumer			981,811			1,199,819
Subtotal			93,756,724			91,321,812
Allowance for credit losses			(1,118,851)			(1,138,600)
Net deferred loan fees			(417,797)			(421,716)
Loans, net		$	92,220,076		$	89,761,496

Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others totaled $686,182 at June 30, 2026 and $760,034 at December 31, 2025. Mortgage servicing rights are not material to the financial statements.

Deposit accounts in an overdraft position and reclassified as loans totaled $3,238 at June 30, 2026 and $3,769 at December 31, 2025.

Table of Contents

Activity in the allowance for credit losses on loans by portfolio segment follows:


					Residential
		Commercial			Real Estate			Consumer			Total
For the three months ended June 30, 2026
Allowance for credit losses:
Balances at March 31, 2026		$	130,195		$	1,033,149		$	5,523		$	1,168,867
Recovery of credit losses on loans			(7,064)			(43,010)			(3,344)			(53,418)
Loans charged off			—			—			—			—
Recoveries of loans previously charged off			—			—			3,402			3,402
Balances at June 30, 2026			123,131			990,139			5,581			1,118,851

Reserve for unfunded loan commitments
Balance at March 31, 2026											$	66,280
Recovery of credit losses on unfunded loan commitments												(266)
Balance at June 30, 2026											$	66,014

For the six months ended June 30, 2026
Allowance for credit losses:
Balances at December 31, 2025			137,257			995,084			6,259			1,138,600
Recovery of credit losses on loans			(14,126)			(4,945)			(4,117)			(23,188)
Loans charged off			—			—			(891)			(891)
Recoveries of loans previously charged off			—			—			4,330			4,330
Balances at June 30, 2026		$	123,131		$	990,139		$	5,581		$	1,118,851

Reserve for unfunded loan commitments
Balance at December 31, 2025											$	47,183
Provision for credit losses on unfunded loan commitments												18,831
Balance at June 30, 2026											$	66,014

For the three months ended June 30, 2025
Allowance for credit losses:
Balances at March 31, 2025		$	56,652		$	1,046,443		$	8,513		$	1,111,608
Provision for (recovery of) credit losses on loans			520			(8,084)			(3,679)			(11,243)
Loans charged off			—			—			(1,504)			(1,504)
Recoveries of loans previously charged off			—			—			—			—
Balances at June 30, 2025			57,172			1,038,359			3,330			1,098,861

Reserve for unfunded loan commitments
Balance at March 31, 2025											$	35,041
Provision for credit losses on unfunded loan commitments												—
Balance at June 30, 2025											$	35,041

For the six months ended June 30, 2025
Allowance for credit losses:
Balance at December 31, 2024		$	63,531		$	1,138,183		$	6,435		$	1,208,149
Provision for (recovery of) credit losses on loans			(6,359)			(99,824)			1,805			(104,378)
Loans charged off			—			—			(4,910)			(4,910)
Recoveries of loans previously charged off			—			—			—			—
Balance at June 30, 2025			57,172			1,038,359			3,330			1,098,861

Reserve for unfunded loan commitments
Balance at December 31, 2024											$	35,041
Provision for credit losses on unfunded loan commitments												—
Balance at June 30, 2025											$	35,041

Table of Contents

During the six months ended June 30, 2026, accrued interest that was written off, related to loans placed in nonaccrual status during the period, amounted to approximately $16,000, all related to residential real estate first liens loans. During the six months ended June 30, 2025, there was no accrued interest that was written off, related to loans placed in nonaccrual status during the period.

There were no collateral dependent loans as of June 30, 2026 and December 31, 2025.

The Bank regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses on loans. The credit quality indicators monitored differ depending on the class of loan.

Loans are generally evaluated using the following internally prepared ratings:

●

Pass: These loans are supported by reliable and current financial statements and the Bank is protected by adequate collateral margins. The business may not have secondary means of payment, may be relatively new, but has adequate liquidity, equity and profitability.

●

Special Mention: These loans are currently protected but show potential financial, operational or other deterioration or weaknesses that need to be corrected. These credits are still strong enough and/or have ample collateral to ensure that liquidation of the loan is not threatened but could reach that point and become further classified. If weaknesses are significant, even though well secured, the loan should be considered for more serious criticism.

●

Substandard: These loans are no longer protected by the current sound net worth and paying capacity of the obligor. These loans exhibit defined credit weaknesses which, if not corrected, could expose the Bank to loss, including all loans which have gone to foreclosure or which have become reliant upon liquidation of collateral for repayment.

●

Doubtful: These loans have deteriorated to the point where collection or liquidation in full, on the basis of currently existing facts, conditions and values, is highly questionable and improbable. If the loss portion of the loan can be reasonably estimated and there are no pending actions which may strengthen or protect the Bank from loss, a partial charge-off should be considered.

Internally prepared ratings for loans are updated at least annually.

Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan as of the balance sheet date. Loans past due 90 days or more and loans on nonaccrual are considered nonperforming.

Table of Contents

Information regarding the loan portfolio by risk classification and origination year as of June 30, 2026, follows:


																						Revolving
																						Loans
																						Converted to
	2026			2025			2024			2023			2022			Prior			Revolving			Term Loans			Total
Other construction and land/land development
Pass	$	181,236		$	259,462		$	545,630		$	32,077		$	55,970		$	54,817		$	—		$	—		$	1,129,192
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Totals		181,236			259,462			545,630			32,077			55,970			54,817			—			—			1,129,192
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Commercial real estate
Pass		1,575,432			2,234,902			1,262,634			—			827,298			1,081,553			59,860			—			7,041,679
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Totals		1,575,432			2,234,902			1,262,634			—			827,298			1,081,553			59,860			—			7,041,679
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Commercial and industrial
Pass		158,098			1,642,544			15,831			—			—			—			867,743			—			2,684,216
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Totals		158,098			1,642,544			15,831			—			—			—			867,743			—			2,684,216
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Municipal
Pass		—			—			—			—			—			43,576			—			—			43,576
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Totals	$	—		$	—		$	—		$	—		$	—		$	43,576		$	—		$	—		$	43,576
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Residential construction
Performing	$	849,615		$	840,056		$	—		$	—		$	—		$	—		$	—		$	—		$	1,689,671
Nonperforming		—			—			—			—			—			—			—			—			—
Totals		849,615			840,056			—			—			—			—			—			—			1,689,671
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Revolving, open-end
Performing		—			—			—			—			—			—			4,427,561			—			4,427,561
Nonperforming		—			—			—			—			—			—			—			—			—
Totals		—			—			—			—			—			—			4,427,561			—			4,427,561
Current period gross charge offs		—			—			—			—			—			—			—			—			—
First liens
Performing		5,215,114			6,100,229			7,203,833			7,115,759			10,905,012			37,512,937			—			—			74,052,884
Nonperforming		—			—			—			455,222			—			—			—			—			455,222
Totals		5,215,114			6,100,229			7,203,833			7,570,981			10,905,012			37,512,937			—			—			74,508,106
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Junior liens
Performing		273,982			471,799			336,679			37,341			118,998			12,113			—			—			1,250,912
Nonperforming		—			—			—			—			—			—			—			—			—
Totals		273,982			471,799			336,679			37,341			118,998			12,113			—			—			1,250,912
Current period gross charge offs		—			—			—			—			—			—			—			—			—
Consumer
Performing		197,025			383,622			158,729			135,247			5,278			101,910			—			—			981,811
Nonperforming		—			—			—			—			—			—			—			—			—
Totals	$	197,025		$	383,622		$	158,729		$	135,247		$	5,278		$	101,910		$	—		$	—		$	981,811
Current period gross charge offs		—			891			—			—			—			—			—			—			891

Table of Contents

Information regarding the loan portfolio by risk classification and origination year as of December 31, 2025, follows:


															Revolving
															Loans
															Converted to
	2025		2024		2023		2022		2021		Prior		Revolving		Term Loans		Total
Other construction and land/land development
Pass	$	354,590	$	575,616	$	34,818	$	61,851	$	47,771	$	12,543	$	—	$	—	$	1,087,189
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Totals		354,590		575,616		34,818		61,851		47,771		12,543		—		—		1,087,189
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Commercial real estate
Pass		2,855,732		1,326,304		—		860,452		966,081		1,115,255		24,002		—		7,147,826
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Totals		2,855,732		1,326,304		—		860,452		966,081		1,115,255		24,002		—		7,147,826
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Commercial and industrial
Pass		1,470,768		21,623		2,865		—		—		65,974		657,840		—		2,219,070
Special Mention		98,009		—		—		—		—		—		—		—		98,009
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Totals		1,568,777		21,623		2,865		—		—		65,974		657,840		—		2,317,079
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Municipal
Pass		—		—		—		—		—		46,214		—		—		46,214
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Totals		—		—		—		—		—		46,214		—		—		46,214
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Residential construction
Performing	$	888,416	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	888,416
Nonperforming		—		—		—		—		—		—		—		—		—
Totals		888,416		—		—		—		—		—		—		—		888,416
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Revolving, open-end
Performing		—		—		—		—		—		—		3,464,812		—		3,464,812
Nonperforming		—		—		—		—		—		—		—		—		—
Totals		—		—		—		—		—		—		3,464,812		—		3,464,812
Current period gross charge offs		—		—		—		—		—		—		—		—		—
First liens
Performing		5,423,253		8,611,224		8,115,642		11,451,615		13,761,538		25,692,748		—		—		73,056,020
Nonperforming		—		—		792,885		—		—		57,825		—		—		850,710
Totals		5,423,253		8,611,224		8,908,527		11,451,615		13,761,538		25,750,573		—		—		73,906,730
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Junior liens
Performing		638,011		390,630		79,447		125,061		—		30,578		—		—		1,263,727
Nonperforming		—		—		—		—		—		—		—		—		—
Totals		638,011		390,630		79,447		125,061		—		30,578		—		—		1,263,727
Current period gross charge offs		—		—		—		—		—		—		—		—		—
Consumer
Performing		569,215		284,421		195,104		27,231		59,335		63,622		—		—		1,198,928
Nonperforming		891		—		—		—		—		—		—		—		891
Totals	$	570,106	$	284,421	$	195,104	$	27,231	$	59,335	$	63,622	$	—	$	—	$	1,199,819
Current period gross charge offs		—		928		1,504		3,406		—		—		—		—		5,838

Table of Contents

Loan aging information as of June 30, 2026 and December 31, 2025 follows:


					Loans Past Due			Loans Past Due			Loans Past Due
		Current Loans			30 – 59 Days			60 – 89 Days			90+ Days			Total Loans
June 30, 2026
Other construction and land/land development		$	1,129,192		$	—		$	—		$	—		$	1,129,192
Commercial real estate			7,041,679			—			—			—			7,041,679
Commercial and industrial			2,684,216			—			—			—			2,684,216
Municipal			43,576			—			—			—			43,576
Residential construction			1,689,671			—			—			—			1,689,671
Revolving, open-end			4,227,811			199,750			—			—			4,427,561
First liens			74,016,671			—			36,213			455,222			74,508,106
Junior liens			1,250,912			—			—			—			1,250,912
Consumer			981,811			—			—			—			981,811
Total		$	93,065,539		$	199,750		$	36,213		$	455,222		$	93,756,724
December 31, 2025
Other construction and land/land development		$	1,087,189		$	—		$	—		$	—		$	1,087,189
Commercial real estate			7,147,826			—			—			—			7,147,826
Commercial and industrial			2,317,079			—			—			—			2,317,079
Municipal			46,214			—			—			—			46,214
Residential construction			888,416			—			—			—			888,416
Revolving, open-end			3,464,812			—			—			—			3,464,812
First liens			73,056,020			336,238			514,472			—			73,906,730
Junior liens			1,263,727			—			—			—			1,263,727
Consumer			1,198,928			891			—			—			1,199,819
Total		$	90,470,211		$	337,129		$	514,472		$	—		$	91,321,812

Nonaccrual loans as of June 30, 2026 follows:


														Amortized
											Interest			Cost Basis of
		Nonaccrual			Nonaccrual						Income			Loans 90+
		Loans With No			Loans With an			Total			Recognized on			Days Past Due
		Allowance for			Allowance for			Nonaccrual			Nonaccrual			Not on
		Credit Losses			Credit Losses			Loans			Loans			Nonaccrual
June 30, 2026
First liens		$	455,222		$	—		$	455,222		$	—		$	—
Total		$	455,222		$	—		$	455,222		$	—		$	—

As of December 31, 2025, there were no loans on nonaccrual.

The Bank did not have any loan modifications to borrowers experiencing financial difficulty during the six months ended June 30, 2026 and 2025.

Directors and executive officers of the Bank, including their families and businesses in which they are principal owners, are considered related parties. All loans to these related parties were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and did not involve more than the normal risk of collectability or present other unfavorable features.

Table of Contents

A summary of loans to directors, executive officers, and their affiliates as of June 30, 2026 and December 31, 2025 is as follows:


		June 30,			December 31,
		2026			2025
Beginning balance		$	553,843		$	607,052
New loans			218,697			14,970
Repayments			(30,122)			(68,179)
Ending balance		$	742,418		$	553,843

NOTE 4:FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Some assets and liabilities, such as investment securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as collateral dependent loans, may be measured at fair value on a nonrecurring basis.

Following is a description of the valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy.

Investment securities available for sale — Investment securities available for sale may be classified as Level 1, Level 2, or Level 3 measurements within the fair value hierarchy. Level 1 securities include investment securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, and mortgage-backed securities. The fair value measurement of a Level 2 security is obtained from monthly brokerage account statements and is based on recent sales of similar securities and other observable market data.

Loans — Loans are not measured at fair value on a recurring basis. However, individually evaluated loans may be measured at fair value on a nonrecurring basis. The fair value measurement of a loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies — typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other individually evaluated loan measurements are based on other loss estimation methodologies and, thus, are not fair value measurements.

Mutual funds — Mutual funds are considered equity securities with a readily determinable fair value and are measured at fair value on a recurring basis. The fair value measurement of equity securities with a readily determinable fair value are based on the quoted price of the security and is considered a Level 1 fair value measurement.

Table of Contents

Information regarding the fair value of assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 follows:


		Recurring Fair Value Measurements Using
		Quoted Prices
		in Active		Significant
		Markets for		Other		Significant
		Identical		Observable		Unobservable
		Instruments		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2026
Assets:
Investment securities available for sale		$	—	$	8,367,925	$	—	$	8,367,925
Other investments – mutual funds			307,890		—		—		307,890
Totals		$	307,890	$	8,367,925	$	—	$	8,675,815

December 31, 2025
Assets: Investment securities available for sale		$	—	$	8,686,675	$	—	$	8,686,675
Other investments – mutual funds			301,159		—		—		301,159
Totals		$	301,159	$	8,686,675	$	—	$	8,987,834

There were no assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2026 and December 31, 2025.

The Bank estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by the Bank to estimate fair value of financial instruments not previously discussed.

Cash and cash equivalents — The carrying value approximates fair value.

Investment securities held to maturity — Fair value of investment securities held to maturity is based on dealer quotations on similar securities near period-end.

Loans – Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Fair value of variable rate loans that reprice frequently is based on carrying values. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair value of individually analyzed and other non-performing loans is estimated using discounted expected cash flows or fair value of the underlying collateral, if applicable.

FHLB stock — The carrying value approximates fair value.

Accrued interest receivable — The carrying value approximates fair value.

Cash value of life insurance — The carrying value approximates fair value.

Deposits — Fair value of deposits with no stated maturity, such as NOW, passbook, and insured money market accounts, by definition, is the amount payable on demand on the reporting date. Fair value of certificates of deposit is estimated using discounted cash flows applying interest rates currently offered on issue of similar time deposits.

Advance payments by borrowers for taxes and insurance — The carrying value approximates fair value.

Federal Home Loan Bank advances — Federal Home Loan Bank advances are carried at cost, and the fair value is obtained from a third party using actual Bank data and current market rates.

Table of Contents

Accrued interest payable — The carrying value approximates fair value.

The carrying value and estimated fair value of financial instruments at June 30, 2026 and December 31, 2025 follows:


	Carrying		Estimated		Fair Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
June 30, 2026
Financial assets:
Cash and cash equivalents	$	21,782,238	$	21,782,238	$	21,782,238	$	—	$	—
Investment securities available for sale		8,367,925		8,367,925		—		8,367,925		—
Investment securities held to maturity		1,416,188		1,377,371		—		1,377,371		—
Loans, net		92,220,076		87,258,443		—		—		87,258,443
FHLB stock		432,000		432,000		—		432,000		—
Mutual funds		307,890		307,890		307,890		—		—
Accrued interest receivable		411,118		411,118		411,118		—		—
Cash value of life insurance		2,276,540		2,276,540		—		2,276,540		—
Total	$	127,213,975	$	122,213,525	$	22,501,246	$	12,453,836	$	87,258,443
Financial liabilities:
Deposits	$	94,696,352	$	94,611,351	$	55,574,909	$	—	$	39,036,442
Federal Home Loan Bank advances		8,000,000		8,006,000		—		8,006,000		—
Accrued interest payable		56,742		56,742		56,742		—		—
Total	$	102,753,094	$	102,674,093	$	55,631,651	$	8,006,000	$	39,036,442


	Carrying		Estimated		Fair Value Hierarchy
	Value		Fair Value		Level 1		Level 2		Level 3
December 31, 2025
Financial assets:
Cash and cash equivalents	$	9,194,860	$	9,194,860	$	9,194,860	$	—	$	—
Investment securities available for sale		8,686,675		8,686,675		—		8,686,675		—
Investment securities held to maturity		1,515,807		1,488,818		—		1,488,818		—
Loans, net		89,761,496		84,201,789		—		—		84,201,789
FHLB stock		427,400		427,400		—		427,400		—
Mutual funds		301,159		301,159		301,159		—		—
Accrued interest receivable		359,568		359,568		359,568		—		—
Cash value of life insurance		2,232,345		2,232,345		—		2,232,345		—
Total	$	112,479,310	$	106,892,614	$	9,855,587	$	12,835,238	$	84,201,789
Financial liabilities:
Deposits	$	92,675,307	$	92,633,307	$	58,338,645	$	—	$	34,294,662
Advance payments by borrowers for taxes and insurance		120,461		120,461		—		120,461		—
Federal Home Loan Bank advances		8,000,000		8,149,000		—		8,149,000		—
Accrued interest payable		56,633		56,633		56,633		—		—
Total	$	100,852,401	$	100,959,401	$	58,395,278	$	8,269,461	$	34,294,662

Table of Contents

Limitations — The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Bank’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Bank.

Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the balance sheet. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

NOTE 5:REGULATORY MATTERS

The Bank 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 Bank’s financial statements.

In September 2019, the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy known as the community bank leverage ratio (CBLR) framework. In order to qualify for the CBLR framework, the Bank must have a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities.

Under the final rule, an eligible community banking organization can opt out of the CBLR framework and revert back to a risk-weighting framework without restriction.

As of June 30, 2026 and December 31, 2025, the Bank qualified for and elected to use the CBLR framework. An institution opting into the CBLR framework and meeting all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital.

As of June 30, 2026, the most recent notification from the regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s eligibility to opt into the CBLR framework.

Table of Contents

The Bank’s actual capital amounts and ratios as of June 30, 2026 and December 31, 2025, are presented in the following table:


							To Be Well Capitalized
							Under Prompt Corrective
		Actual					Action Provisions
(Dollars in Thousands)		Amount			Ratio		Amount		Ratio
June 30, 2026
Community Bank Leverage Ratio		$	22,951		16.80	%	$	12,294		≥9.00	%
December 31, 2025
Community Bank Leverage Ratio		$	18,882		16.05	%	$	10,587		≥9.00	%

NOTE 6: EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)

In connection with the Conversion, the Company established an Employee Stock Ownership Plan (“ESOP”) for the exclusive benefit of eligible employees. It is expected that the Bank will make annual contributions to the ESOP in amounts as defined by the ESOP loan documents. The contributions will be used to repay the ESOP loan. Certain ESOP shares are pledged as collateral for the ESOP loan. As the ESOP loan is repaid, shares are released from collateral and allocated to eligible participants, based on the proportion of loan repayments paid in the year. Shares allocated to eligible participants vest over a five year graded schedule and will become 100% vested upon completion of five years of service with the Bank.

At June 30, 2026, there were no shares allocated to participants. There were 1,003 shares committed to be released to participants and 136,537 unallocated shares. The fair value of unallocated ESOP shares totaled $1,549,700 at June 30, 2026.

In connection with the Company’s Conversion, the ESOP borrowed $1,375,400 from the Company for the purpose of purchasing shares of the Company’s stock. A total of 137,540 shares were purchased with the loan proceeds. Company stock purchased by the ESOP is shown as a reduction of shareholders’ equity. The ESOP loan is expected to be repaid over a period of 25 years.

The annual contribution to the ESOP will be made during the period ending December 31, 2026, as loan payments are scheduled to be made annually on December 31 of each year. Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $11,201 for both the three and six months ended June 30, 2026. There was no ESOP compensation expense for the three- and six-month periods ended June 30, 2025.

NOTE 7: EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Unallocated common shares held by the ESOP are shown as a reduction in shareholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted earnings per share calculations until they are committed to be released.

The Company had no dilutive or potentially dilutive securities during the three- and six-month periods ended June 30, 2026.

Weighted-average shares outstanding for the three- and six-month periods ended June 30, 2026, have been calculated assuming the shares were outstanding at the beginning of each respective period.

Table of Contents

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net (loss) income	$	(148,413)	$	36,686	$	(1,410,551)	$	125,786
Weighted-average common shares outstanding, gross		1,719,250		—		1,719,250		—
Less unallocated ESOP shares		(137,027)		—		(137,027)		—
Weighted-average common shares outstanding		1,582,223		—		1,582,223		—
Earnings per share - basic	$	(0.09)		n/a	$	(0.89)		n/a
Earnings per share - diluted	$	(0.09)		n/a	$	(0.89)		n/a

NOTE 8: SUBSEQUENT EVENTS

Management has evaluated subsequent events for recognition and disclosure through August 14, 2026, which is the date the financial statements were available to be issued. Following completion of the Company's core processing system conversion in July 2026, certain remaining conversion-related service fees totaling approximately $68,000 were incurred and paid. These amounts primarily consisted of July 2026 processing services and temporary post-conversion system access provided by the former core processing vendor. These costs were included in Other assets at June 30, 2026 and were recognized as expense during the third quarter of 2026 as the related services were received. No other material subsequent events requiring recognition or disclosure were identified.

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion and analysis reflects our financial information and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results of operations. The information in this section has been derived from the accompanying unaudited financial statements and the audited financial statements included with the Form S-1.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “believe,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

●

statements of our goals, intentions and expectations;

●

statements regarding our business plans, prospects, growth and operating strategies;

●

statements regarding the asset quality of our loan and investment portfolios; and

●

estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report.

Table of Contents

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

●

general economic conditions, either nationally or in our market areas, which are worse than expected including as a result of employment levels and labor shortages, and the effects of inflation, a potential recession or slowing of economic growth;

●

inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments, our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and will make in the future;

●

changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

●

our ability to access cost-effective funding;

●

our ability to maintain adequate liquidity, primarily through deposits;

●

fluctuations in real estate values and in the conditions of the residential real estate and commercial real estate markets;

●

demand for loans and deposits in our market area;

●

our ability to implement and change our business strategies, and the expense related to such implementation;

●

increased competition among depository and other banking and non-banking institutions;

●

adverse changes in the securities markets;

●

changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums;

●

changes in the quality or composition of our loan or investment portfolios;

●

technological changes that may be more difficult, resources intensive or expensive than expected;

●

the inability of third-party providers to perform as expected;

●

a failure or breach of our operational or information security systems or infrastructure, including cyberattacks;

●

our ability to manage market risk, credit risk and operational risk;

●

our ability to efficiently and successfully enter new markets and capitalize on growth opportunities;

●

changes in consumer spending, borrowing and savings habits;

●

changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC or the Public Company Accounting Oversight Board;

●

our ability to retain key employees; and

●

changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

Critical Accounting Policies and Use of Critical Accounting Estimates

The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with generally accepted accounting principles used in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical accounting policies. The estimates and assumptions that we use with respect to critical accounting policies are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

Table of Contents

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company,” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards.

The following represent our critical accounting policies:

Allowance for Credit Losses (ACL). The allowance for credit losses is the estimated amount considered necessary to cover expected credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for credit losses on loans which is charged against income; in determining the allowance for credit losses, management makes significant estimates and has identified this policy as one of our most critical accounting policies. The Bank adopted the Current Expected Credit Loss (CECL) accounting standard effective January 1, 2023, using the Weighted Average Remaining Maturity (WARM) method. The WARM method calculates an average annualized historical Net Charge-off (NCO) rate for a specific segment of a loan portfolio over a defined lookback period. The WARM factor represents the estimated remaining life of the loan portfolio segment, adjusted for scheduled amortization and estimated prepayments. Qualitative adjustments (Q factors) are incorporated to account for factors not captured by the historical data, such as current economic conditions and forecasts that might differ from historical trends. The ACL calculation is the average annual NCO rates multiplied by the estimated remaining life of the loan portfolio segment (WARM factor) and then adjusted by the Q factors to arrive at the estimated ACL.

Management performs a quarterly evaluation of the allowance for credit losses. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.

The analysis has two components, specific and general allowances. The specific allowance is for unconfirmed losses related to loans that require individual evaluation with expected credit losses being measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. If the fair value of the loan is less than the loan’s carrying value, a charge is recorded for the difference. The general allowance, which is for loans reviewed collectively, is determined by segregating the remaining loans by type of loan, risk weighting (if applicable) and payment history. We also analyze historical loss experience, delinquency trends, general economic conditions and geographic and industry concentrations. This analysis establishes historical loss percentages and qualitative factors that are applied to the loan groups to determine the amount of the allowance for credit losses necessary for loans that are reviewed collectively. The qualitative component is critical in determining the allowance for credit losses as certain trends may indicate the need for changes to the allowance for credit losses based on factors beyond the historical loss history. Not incorporating a qualitative component could misstate the allowance for credit losses. Actual credit losses may be significantly more than the allowances we have established which could result in a material negative effect on our financial results.

Deferred Tax Assets. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax asset will not be realized. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are

Table of Contents

reviewed on a continual basis as regulatory and business factors change. Determining the proper valuation allowance for deferred taxes is critical in properly valuing the deferred tax asset and the related recognition of income tax expense or benefit. Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets.

Fair Value Measurements. The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. We estimate the fair value of a financial instrument and any related asset impairment using a variety of valuation methods. Where financial instruments are actively traded and have quoted market prices, quoted market prices are used for fair value. When the financial instruments are not actively traded, other observable market inputs, such as quoted prices of securities with similar characteristics, may be used, if available, to determine fair value. When observable market prices do not exist, we estimate fair value. These estimates are subjective in nature and imprecision in estimating these factors can impact the amount of gain or loss recorded. For a detailed description of the fair values measured at each level of the fair value hierarchy and the methodology we use, see Note 4 of the notes to the financial statements.

Comparison of Financial Condition at June 30, 2026 and December 31, 2025

Total Assets. Total assets increased $13.2 million, or 11.0%, since December 31, 2025. The increase was primarily comprised of increases in cash and cash equivalents of $12.6 million, net loans of $2.5 million, deferred tax asset of $539,000, and other assets of $114,000, which was partially offset by decreases in prepaid Conversion costs of $2.0 million, investment securities available for sale of $319,000, and investment securities held to maturity of $100,000.

Cash and Cash Equivalents. Cash and cash equivalents increased by $12.6 million, to $21.8 million at June 30, 2026, compared to $9.2 million at December 31, 2025. This increase was primarily due to net proceeds received from the issuance of common stock totaling $13.6 million as part of the Conversion as well as maturities and payments received on investment securities available for sale and investment securities held to maturity, which was partially offset by the purchase of ESOP shares of $1.4 million.

Investment Securities Available for Sale. Investment securities available for sale decreased by $319,000, or 3.7%, since December 31, 2025. The decline was a result of maturities and principal payments on mortgage-backed securities. No purchases of investment securities available for sale occurred during the six months ended June 30, 2026. The unrealized loss on investment securities available for sale increased $18,000 during the six months ended June 30, 2026 from $409,000 at December 31, 2025 to $427,000 at June 30, 2026.

Investment Securities Held to Maturity. Investment securities held to maturity decreased by $100,000, or 6.6%, from December 31, 2025 to $1.4 million at June 30, 2026. This decrease was the result of principal payments on mortgage-backed securities.

Gross Loans. Gross loans increased $2.4 million, or 2.7%, to $93.8 million at June 30, 2026 compared to December 31, 2025, primarily reflecting growth in residential one- to four-family mortgage loans, including residential construction loans. The increase was partially offset by decreases in consumer and commercial real estate loans.

Residential one- to four-family mortgage loans (including residential construction loans) increased $2.4 million, or 3.0%, from $79.5 million at December 31, 2025 to $81.9 million at June 30, 2026. Commercial loans (commercial and industrial and municipal loan segments) increased $364,000, or 15.4%, to $2.7 million at June 30, 2026. Commercial construction and land development loans increased by $42,000, or 3.9%, to $1.1 million at June 30, 2026. Commercial real estate loans decreased $106,000, or 1.5%, from December 31, 2025 to $7.0 million at June 30, 2026. Consumer loans decreased $218,000, or 18.2%, to $1.0 million at June 30, 2026.

Table of Contents

Deposits. Deposits increased to $94.7 million at June 30, 2026, an increase of $2.0 million, or 2.2%, from $92.7 million at December 31, 2025. Non-maturity deposits decreased $2.9 million and time deposits increased by $4.9 million. The decrease in non-maturity deposits was primarily due to timing of payroll runs with a few larger business customers as well as customers moving from non-maturity savings accounts to time deposits, specifically the flex CD product. The increase in time deposits was primarily due to customers moving from non-maturity savings accounts to time deposits, specifically the flex CD product. The majority of the increase in time deposits was in certificates of deposit with maturities of less than one year.

Borrowings. Federal Home Loan Bank advances totaled $8.0 million outstanding at both June 30, 2026 and December 31, 2025. The borrowing originated in September 2023 to finance the construction of our new facility in Deer Lodge and to support loan growth. At June 30, 2026, the Bank had access to up to $45.3 million of additional advances from the Federal Home Loan Bank compared to $42.1 million at December 31, 2025.

Total Shareholders’ Equity. Total shareholders’ equity increased $10.8 million, or 58.3%, to $29.2 million at June 30, 2026, compared to $18.5 million at December 31, 2025. The increase was due primarily to the completion of the common stock offering and issuance of the common stock, resulting in total proceeds, net of offering costs, of $13.6 million, partially offset by decreases from the purchase of ESOP shares of $1.4 million, net losses of $1.4 million and an increase in accumulated other comprehensive loss of $13,000 during the six months ended June 30, 2026.

Table of Contents

Average Balances and Yields. The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects are immaterial. Average balances are daily average balances. Non-accrual loans are included in average balances only. Average yields include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Net deferred loan fees/costs amounts are immaterial.


		For the Three Months Ended June 30,
		2026							2025
		Average							Average
		Outstanding					Average		Outstanding					Average
		Balance			Interest		Yield/Rate⁽⁴⁾		Balance			Interest		Yield/Rate⁽⁴⁾

Interest-earning assets:		(Dollars in thousands)
Interest-bearing deposits		$	13,141		$	97	2.95	%	$	6,775		$	59	3.48	%
Investment securities			10,331			72	2.79	%		11,984			79	2.64	%
Loans			92,805			1,311	5.65	%		86,537			1,177	5.44	%
Other investments			432			10	9.26	%		427			10	9.37	%
Total interest-earning assets			116,709			1,490	5.11	%		105,723			1,325	5.01	%
Noninterest-earning assets			7,987							7,222
Allowance for credit losses			(1,170)							(1,204)
Total assets		$	123,526						$	111,741
Interest-bearing liabilities:
Interest-bearing demand deposits		$	13,740			7	0.20	%	$	13,054			7	0.21	%
Savings deposits			33,462			113	1.35	%		34,927			99	1.13	%
Certificates of deposit			40,241			352	3.50	%		29,794			230	3.09	%
Total interest-bearing deposits			87,443			472	2.16	%		77,775			336	1.73	%
Federal Home Loan Bank advances			8,003			87	4.35	%		8,000			87	4.35	%
Total interest-bearing liabilities			95,446			559	2.34	%		85,775			423	1.97	%
Noninterest-bearing demand deposits			6,766							6,706
Other noninterest-bearing liabilities			827							920
Total liabilities			103,039							93,401
Total equity capital			20,487							18,340
Total liabilities and equity capital		$	123,526						$	111,741
Net interest income					$	931						$	902
Net interest rate spread⁽¹⁾							2.76	%						3.04	%
Net interest-earning assets⁽²⁾		$	21,263						$	19,948
Net interest margin⁽³⁾							3.19	%						3.41	%
Average interest-earning assets to interest-bearing liabilities			122.28	%						123.26	%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.


		Three Months Ended June 30, 2026 vs. June 30, 2025
		Increase (Decrease) Due to:				Total Increase
		Volume		Rate		(Decrease)

		(ln thousands)
Interest-earning assets:
Interest-bearing deposits		45		(7)		38
Investment securities		(12)		5		(7)
Loans		87		47		134
Other investments		—		—		—
Total interest-earning assets		120		45		165
Interest-bearing liabilities:
Interest-bearing demand deposits		—		—		—
Savings deposits		(4)		18		14
Certificates of deposit		88		34		122
Total interest-bearing deposits		84		52		136
Federal Home Loan Bank advances		—		—		—
Total interest-bearing liabilities		84		52		136
Change in net interest income		36		(7)		29

Table of Contents


		For the Six Months Ended June 30,
		2026							2025
		Average							Average
		Outstanding					Average		Outstanding					Average
		Balance			Interest		Yield/Rate⁽⁴⁾		Balance			Interest		Yield/Rate⁽⁴⁾

Interest-earning assets:		(Dollars in thousands)
Interest-bearing deposits		$	9,930		$	146	2.94	%	$	5,893		$	100	3.39	%
Investment securities			10,442			140	2.68	%		12,126			158	2.61	%
Loans			92,097			2,594	5.63	%		87,271			2,322	5.32	%
Other investments			430			20	9.30	%		428			20	9.35	%
Total interest-earning assets			112,899			2,900	5.14	%		105,718			2,600	4.92	%
Noninterest-earning assets			9,244							7,503
Allowance for credit losses			(1,155)							(1,175)
Total assets		$	120,988						$	112,046
Interest-bearing liabilities:
Interest-bearing demand deposits		$	13,743			14	0.20	%	$	12,845			13	0.20	%
Savings deposits			34,168			209	1.22	%		34,192			192	1.12	%
Certificates of deposit			37,999			663	3.49	%		30,904			489	3.16	%
Total interest-bearing deposits			85,910			886	2.06	%		77,941			694	1.78	%
Federal Home Loan Bank advances			8,001			173	4.32	%		8,000			173	4.33	%
Total interest-bearing liabilities			93,911			1,059	2.26	%		85,941			867	2.02	%
Noninterest-bearing demand deposits			6,723							6,578
Other noninterest-bearing liabilities			870							1,005
Total liabilities			101,504							93,524
Total equity capital			19,484							18,522
Total liabilities and equity capital		$	120,988						$	112,046
Net interest income					$	1,841						$	1,733
Net interest rate spread⁽¹⁾							2.88	%						2.90	%
Net interest-earning assets⁽²⁾		$	18,988						$	19,777
Net interest margin⁽³⁾							3.26	%						3.28	%
Average interest-earning assets to interest-bearing liabilities			120.22	%						123.01	%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.


		Six Months Ended June 30, 2026 vs. June 30, 2025
		Increase (Decrease) Due to:				Total Increase
		Volume		Rate		(Decrease)

		(ln thousands)
Interest-earning assets:
Interest-bearing deposits		57		(11)		46
Investment securities		(23)		5		(18)
Loans		132		140		272
Other investments		—		—		—
Total interest-earning assets		166		134		300
Interest-bearing liabilities:
Interest-bearing demand deposits		1		—		1
Savings deposits		—		17		17
Certificates of deposit		120		54		174
Total interest-bearing deposits		121		71		192
Federal Home Loan Bank advances		—		—		—
Total interest-bearing liabilities		121		71		192
Change in net interest income		45		63		108

Table of Contents

Comparison of Operating Results for the Three Months ended June 30, 2026 and 2025

General. Net loss for the three months ended June 30, 2026 was $148,000, a decrease of $185,000, compared to net income of $37,000 for the three months ended June 30, 2025. The decrease in net income was primarily due to an increase of $286,000 in data processing for conversion costs of our core data processing platform to a new platform completed in July 2026, an increase in professional fees of $48,000 incurred in 2026 for the stock offering and Conversion, partially offset by increases of $29,000 in net interest income, $42,000 recoveries of credit losses, $32,000 noninterest income, and a $41,000 decrease in income tax.

Interest Income. Interest income increased by $166,000, or 12.5%, to $1.5 million at June 30, 2026 from $1.3 million at June 30, 2025. The increase in interest income is attributed primarily to a $134,000, or 11.4% increase in loan interest income. The increased loan interest income primarily resulted from the lagged impact of elevated 2023 and 2024 loan yields on the portfolio, as those loans had not yet repriced lower by June 30, 2025, partially offset by later 2025 rate declines.

The average balance of loans during the three months ended June 30, 2026 increased by $6.3 million, or 7.2%, from the three months ended June 30, 2025. The average yield on loans increased to 5.65% for the three months ended June 30, 2026, from 5.44% for the three months ended June 30, 2025.

The average balance of investment securities decreased $1.7 million, or 13.8% to $10.3 million for the three months ended June 30, 2026, from $12.0 million for the three months ended June 30, 2025. The average yield on investment securities increased to 2.79% for the three months ended June 30, 2026, from 2.64% for the three months ended June 30, 2025.

Interest Expense. Total interest expense increased $136,000, or 32.2%, to $559,000 for the three months ended June 30, 2026 from June 30, 2025. The increase was primarily attributable to the increased average balance of certificates of deposit during the year, reflecting increased customer demand for certificates of deposit with the additional offering of the flex certificates of deposit accounts.

There was an increase in the average cost of interest-bearing deposits to 2.16% for the three months ended June 30, 2026 from 1.73% for the three months ended June 30, 2025, reflecting the renewals of time deposits in the current market interest rate environment. The average balance of interest-bearing deposits increased by $9.7 million, or 12.4%, to $87.4 million for the three months ended June 30, 2026 from $77.8 million for the three months ended June 30, 2025.

Interest paid on FHLB borrowings remained stable with no significant changes in borrowings from June 30, 2025 to June 30, 2026.

Net Interest Income. Net interest income increased $29,000, or 3.2%, to $931,000 for the three months ended June 30, 2026 compared to $902,000 for the three months ended June 30, 2025. The increase reflects the increase in average net interest-earning assets of $1.3 million or 6.6%, to $21.3 million for the three months ended June 30, 2026 from $19.9 million for the three months ended June 30, 2025, while the interest rate spread decreased to 2.76% for the three months ended June 30, 2026 from 3.04% for the three months ended June 30, 2025. The net interest margin decreased to 3.19% for the three months ended June 30, 2026 from 3.41% for the three months ended June 30, 2025. Both the interest rate spread and net interest margin decreased due to the declining interest rate environment, along with interest-earning assets repricing more slowly than interest-bearing liabilities.

Provision for (Recovery of) Credit Losses. The provision for (recovery of) credit losses on loans for the three months ended June 30, 2026 was ($53,000) compared to ($11,000) for the three months ended June 30, 2025, a decrease of $42,000. The allowance for credit losses increased by $20,000, or 1.8%, to $1.1 million at June 30, 2026. The allowance for credit losses represented 1.19% of total loans at June 30, 2026 and 1.27% of total loans at June 30, 2025. The determination of the adequacy of the allowance for credit losses was based primarily on the low balances of nonperforming loans, delinquent loans and net charge offs in both periods. The provision for (recovery of) credit losses on unfunded loan commitments decreased by $300 for the three months ended June 30, 2026

Table of Contents

compared to the three months ended June 30, 2025. The reserve for unfunded loan commitments increased $31,000, or 88.4%, to $66,000 at June 30, 2026 from $35,000 at June 30, 2025.

The decrease in the provision for credit losses was primarily attributable to decreases in loans past due 30 or more days during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Total loans past due 30 or more days improved $1.8 million during the three months ended June 30, 2026 and were $691,000 at June 30, 2026, compared to $2.6 million at March 31, 2026. Total loans past due 30 or more days improved much less significantly of $609,000 during the three months ended June 30, 2025 and were $718,000 at June 30, 2025, compared to $1.3 million at March 31, 2025. Nonperforming loans totaled $455,000 at June 30, 2026 compared to zero at December 31, 2025 and consisted of a single residential one- to four-family mortgage relationship.

The allowance for credit losses reflects the estimate management believes to be appropriate to cover current expected credit losses which were inherent in the loan portfolio at June 30, 2026 and December 31, 2025. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any such increase in future provisions that may be required may adversely impact the Bank’s financial condition and results of operations. Furthermore, as an integral part of its examination process, the FDIC will periodically review our allowance for credit losses. The FDIC may have judgments different than those of management, and we may determine to increase our allowance as a result of these regulatory reviews.

Noninterest Income. Noninterest income totaled $86,000 for the three months ended June 30, 2026, an increase of $32,000, or 60.1%, from $54,000 for the three months ended June 30, 2025. The increase was primarily due to a $17,000 increase in cash value of life insurance from an additional $1.5 million policy purchased in September 2025, and a $16,000 increase in other noninterest income.

Noninterest Expense. Noninterest expense increased $330,000, or 34.3%, to $1.3 million for the three months ended June 30, 2026, compared to $962,000 for the three months ended June 30, 2025. The increase was primarily attributable to an increase of $286,000 in data processing for conversion costs of our core data processing platform to a new platform completed in July 2026, and in professional fees of $48,000 incurred in 2026 for the stock offering and Conversion.

Provision for Income Taxes. The provision for income taxes decreased by $42,000, to a benefit of $73,000 for the three months ended June 30, 2026, compared to a benefit of $31,000 for the three months ended June 30, 2025. The increased tax benefit was primarily attributable to the decrease in net income and an increase in tax benefit related to cash value of life insurance of $22,000. The effective tax rates were 32.9% and (577.7%) for the three months ended June 30, 2026 and 2025, respectively.

Comparison of Operating Results for the Six Months ended June 30, 2026 and 2025

General. Net loss for the six months ended June 30, 2026 was $1.4 million, a decrease of $1.5 million, compared to net income of $126,000 for the six months ended June 30, 2025. The decrease in net income was primarily due to a one-time expense of $2.0 million for conversion costs for our core data processing platform to a new platform completed in July 2026, a decrease in recovery of credit losses on loans and unfunded commitments of $100,000 as compared to a $104,000 recovery in the six months ended June 30, 2025, and an increase in professional fees of $135,000 incurred in 2026 for the stock offering and conversion, partially offset by an increase of $108,000 in net interest income and a $536,000 decrease in income tax.

Interest Income. Interest income increased by $300,000, or 11.6%, to $2.9 million at June 30, 2026 from $2.6 million at June 30, 2025. The increase in interest income is attributed primarily to a $272,000, or 11.7% increase in loan interest income. The increased loan interest income primarily resulted from the lagged impact of elevated 2023 and 2024 loan yields on the portfolio, as those loans had not yet repriced lower by June 30, 2025, partially offset by later 2025 rate declines.

Table of Contents

The average balance of loans during the six months ended June 30, 2026 increased by $4.8 million, or 5.5%, from the six months ended June 30, 2025. The average yield on loans increased to 5.63% for the six months ended June 30, 2026, from 5.32% for the six months ended June 30, 2025.

The average balance of investment securities decreased $1.7 million, or 13.9% to $10.4 million for the six months ended June 30, 2026, from $12.1 million for the six months ended June 30, 2025. The average yield on investment securities increased to 2.68% for the six months ended June 30, 2026 compared to 2.61% for the six months ended June 30, 2025.

Interest Expense. Total interest expense increased $192,000, or 22.1%, to $1.0 million for the six months ended June 30, 2026 from June 30, 2025. The increase was primarily attributable to the increased average balance of certificates of deposit during the year, reflecting increased customer demand for certificates of deposit with the additional offering of the flex certificates of deposit accounts.

There was an increase in the average cost of interest-bearing deposits to 2.06% for the six months ended June 30, 2026 from 1.78% for the six months ended June 30, 2025, reflecting the renewals of time deposits in the current market interest rate environment. The average balance of interest-bearing deposits increased by $8.0 million, or 10.2%, to $85.9 million for the six months ended June 30, 2026 from $77.9 million for the six months ended June 30, 2025.

Interest paid on FHLB borrowings remained stable with no significant changes in borrowings from June 30, 2025 to June 30, 2026.

Net Interest Income. Net interest income increased $108,000, or 6.3%, to $1.8 million for the six months ended June 30, 2026 compared to $1.7 million for the six months ended June 30, 2025. The increase reflects the decrease in the interest rate spread to 2.88% for the six months ended June 30, 2026 from 2.90% for the six months ended June 30, 2025, while average net interest-earning assets decreased $789,000 year-to-year. The net interest margin decreased to 3.26% for the six months ended June 30, 2026 from 3.28% for the six months ended June 30, 2025. Both the interest rate spread and net interest margin decreased due to the declining interest rate environment, along with interest-earning assets repricing more slowly than interest-bearing liabilities.

Provision for (Recovery of) Credit Losses. The provision for (recovery of) credit losses on loans for the six months ended June 30, 2026 was ($23,000) compared to ($104,000) for the six months ended June 30, 2025, an increase of $81,000. The allowance for credit losses increased by $20,000, or 1.8%, to $1.1 million at June 30, 2026 from June 30, 2025. The allowance for credit losses represented 1.19% of total loans at June 30, 2026 and 1.27% of total loans at June 30, 2025. The determination of the adequacy of the allowance for credit losses was based primarily on the low balances of nonperforming loans, delinquent loans and net charge offs in both periods. The provision for (recovery of) credit losses on unfunded loan commitments increased by $19,000 for the six months ended June 30, 2026 from the six months ended June 30, 2025. The reserve for unfunded loan commitments increased $31,000, or 88.4%, to $66,000 at June 30, 2026 from $35,000 at June 30, 2025.

The increase in the provision for credit losses was primarily attributable to increases in gross loans of $2.4 million or 2.7% during the six months ended June 30, 2026 compared to decreases in gross loans of $1.3 million or 1.5% during the six months ended June 30, 2025.

Table of Contents

judgments different than those of management, and we may determine to increase our allowance as a result of these regulatory reviews.

Noninterest Income. Noninterest income totaled $159,000 for the six months ended June 30, 2026, an increase of $31,000, or 24.1%, from $128,000 for the six months ended June 30, 2025. The increase was primarily due to a $34,000 increase in cash value of life insurance from an additional $1.5 million policy purchased in September 2025 and an $18,000 increase in other noninterest income as mostly offset by a $25,000 decrease in interchange fees.

Noninterest Expense. Noninterest expense increased $2.1 million, or 115.3%, to $3.9 million for the six months ended June 30, 2026, compared to $1.8 million for the six months ended June 30, 2025. The increase was primarily attributable to a one-time expense of $2.0 million for conversion costs for our core data processing platform to a new platform completed in July 2026, and an increase in professional fees of $135,000 incurred in 2026 for the stock offering and conversion.

Provision for Income Taxes. The provision for income taxes decreased by $536,000, to ($527,000) for the six months ended June 30, 2026, compared to $9,000 for the six months ended June 30, 2025. The decrease was due primarily to the decrease in pre-tax income of $2.0 million. The effective tax rates were 27.2% and 6.6% for the six months ended June 30, 2026 and 2025, respectively.

Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB. At June 30, 2026, we had $8.0 million in borrowings from the FHLB with additional capacity to borrow $45.3 million.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets depend on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For the six months ended June 30, 2026, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $12.6 million. Net cash from operating activities amounted to $351,000, primarily due to net losses of $1.4 million and net increases in deferred tax asset, as offset by net decreases in other assets of $1.9 million. Net cash used in investing activities amounted to $2.0 million, primarily due to a net increase in loans as partially offset by paydowns on investment securities. Net cash provided by financing activities amounted to $14.3 million, primarily due to net proceeds from issuance of common stock in connection with the Conversion and net increase in deposits as partially offset by the purchase of ESOP shares.

For the six months ended June 30, 2025, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $2.8 million. Net cash from operating activities amounted to $187,000, primarily due to net income of $126,000. Net cash from investing activities amounted to $1.7 million, primarily due to a net decrease in loans of $1.3 million and paydowns on investment securities. Net cash from financing activities amounted to $834,000, primarily due to a net increase in deposits.

Table of Contents

We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

At June 30, 2026, the Bank was categorized as well-capitalized under regulatory capital guidelines. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see Note 5 in the notes to condensed consolidated financial statements appearing elsewhere in this report.

Off-Balance Sheet Arrangements. At June 30, 2026, we had $1.1 million of outstanding commitments to originate loans, $1.9 million in unused commercial line of credit commitments, $1.9 million of remaining draws on construction loans and $2.9 million of unfunded home equity loans. At June 30, 2026, certificates of deposit and individual retirement accounts that are scheduled to mature on or before June 30, 2027 totaled $35.6 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize FHLB advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

Management of Market Risk

General. Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of our financial condition and results of operations to changes in market interest rates. All directors participate in discussions during the regular board meetings evaluating the interest rate risk inherent in our assets and liabilities, and the level of risk that is appropriate. These discussions take into consideration our business strategy, operating environment, capital, liquidity and performance objectives consistent with the policy and guidelines approved by them.

Table of Contents

Our asset/liability management strategy attempts to manage the impact of changes in interest rates on net interest income, our primary source of earnings. Among the techniques we are using to manage interest rate risk are:

●

maintaining capital levels that exceed the thresholds for well-capitalized status under federal regulations;

●

maintaining a high level of liquidity;

●

growing our core deposit accounts;

●

managing our investment securities portfolio so as to reduce the average maturity and effective life of the portfolio; and

●

continuing to diversify our loan portfolio by adding more commercial real estate loans and commercial loans, which typically have shorter maturities and/or balloon payments.

By following these strategies, we believe that we are better positioned to react to increases and decreases in market interest rates.

We have not engaged in hedging activities, such as engaging in futures or options. We do not anticipate entering into similar transactions in the future.

Economic Value of Equity. We compute amounts by which the net present value of our assets and liabilities (economic value of equity or “EVE”) would change in the event of a range of assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value. The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions that the United States Treasury yield curve increases instantaneously by 100, 200 and 300 basis point increments or decreases instantaneously by 100, 200 and 300 basis point increments.

The following table sets forth, as of June 30, 2026, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.


At June 30, 2026
					EVE as a Percentage of Present
					Value of Assets⁽³⁾
		Estimated Increase (Decrease) in					Increase
Change in Interest Rates	Estimated	EVE					(Decrease)
(basis points)⁽¹⁾	EVE⁽²⁾	Amount	Percent		EVE Ratio⁽⁴⁾		(basis points)

	(Dollars in thousands)
300	23,805	(5,432)	(18.58)	%	17.87	%	(408)
200	25,336	(3,901)	(13.34)	%	19.01	%	(293)
100	27,137	(2,100)	(7.18)	%	20.37	%	(158)
-	29,237	—	—		21.94	%	—
(100)	31,554	2,317	7.92	%	23.68	%	174
(200)	34,271	5,034	17.22	%	25.72	%	378
(300)	37,463	8,226	28.14	%	28.12	%	617

(1)

Assumes an immediate uniform change in interest rates at all maturities.

(2)

EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3)

Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4)

EVE Ratio represents EVE divided by the present value of assets.

Table of Contents

The table above indicates that at June 30, 2026, we would have experienced a 17.22% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates and a 13.34% decrease in EVE in the event of an instantaneous 200 basis point increase in market interest rates.

Change in Net Interest Income. The following table sets forth, at June 30, 2026, the calculation of the estimated changes in our net interest income (“NII”) that would result from the designated immediate changes in the United States Treasury yield curve.


At June 30, 2026
Change in Interest Rates	Net Interest Income Year 1
(basis points)⁽¹⁾	Forecast	Year 1 Change from Level

	(Dollars in thousands)
+300	4,499	5.93	%
+200	4,415	3.96	%
+100	4,332	2.00	%
Level	4,247	-	%
-100	4,151	(2.26)	%
-200	4,044	(4.78)	%
-300	3,927	(7.53)	%

(1)

Assumes an immediate uniform change in interest rates at all maturities.

The table above indicates that at June 30, 2026, we would have experienced a 4.78% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates and a 3.96% increase in net interest income in the event of an instantaneous 200 basis point increase in market interest rates.

Certain shortcomings are inherent in the methodologies used in the interest rate risk modeling methodologies summarized above. Modeling changes in EVE and NII require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. For instance, the EVE and NII tables presented above assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. However, the shape of the yield curve changes constantly and the value and pricing of our assets and liabilities, including our deposits, may not closely correlate with changes in market interest rates. Accordingly, although the EVE and NII tables may provide an indication of our interest rate risk exposure at a particular point in time and in the context of a particular yield curve, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on EVE and NII and will differ from actual results.

EVE and NII calculations also may not reflect the fair values of financial instruments. For example, a decrease in market interest rates can increase the fair values of our loans, deposits and borrowings. Conversely, an increase in market interest rates can decrease the fair value of our loans, deposits and borrowings.

Item 4 – Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer, who serves as the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended) as of June 30, 2026. Based on that evaluation, the Company’s management, including the Chief Executive Officer, in his capacity as both principal executive officer and principal financial officer, concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2026.

Table of Contents

During the quarter ended June 30, 2026, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1 – Legal Proceedings

We are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. In the opinion of management, we are not presently involved in any legal proceedings the resolution of which we believe would have a material adverse effect on our business, financial condition or results of operations.

Item 1A – Risk Factors

Not applicable

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

On May 21, 2026, the Company completed its stock offering in connection with the Conversion. Net proceeds totaled approximately $13.6 million after deducting offering expenses. Through June 30, 2026, the Company has (i) contributed approximately $6.8 million to Pioneer State Bank, (ii) loaned approximately $1.4 million to the Company's employee stock ownership plan and (iii) retained the balance in cash and cash equivalents for general corporate purposes and future deployment. There has been no material change in the planned use of proceeds described in the prospectus contained in the Form S-1.

Item 3 – Defaults Upon Senior Securities

Not applicable

Item 4 – Mine Safety Disclosures

Not applicable

Item 5 – Other Information

During the three months ended June 30, 2026, no director or Section 16 officer of the Company adopted or terminated a “Rule 10b5-1 trading agreement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Table of Contents

Item 6 – Exhibits


Exhibit No.		Description
10.1		Employment Agreement, dated July 14, 2026, by and between Pioneer State Bank and Mr. Willett, incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K, dated July 14, 2026.
10.2		Change of Control Agreement, dated July 14, 2026, by and between Pioneer State Bank and Mr. Willett, incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K, dated July 14, 2026.
10.3		Supplemental Executive Retirement Plan Agreement, dated July 14, 2026, by and between Pioneer State Bank and Mr. Willett, incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K, dated July 14, 2026.
10.4		Restrictive Covenant Agreement, dated July 14, 2026, by and between Pioneer State Bank and Mr. Willett, incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K, dated July 14, 2026.
31		Rule 13a-14(a) / 15d-14(a) Certification of the Principal Executive Officer and Principal Financial Officer
32		Section 1350 Certification of the Principal Executive Officer and Principal Financial Officer
101		The following materials from PSB Financial, Inc. Form 10-Q for the three- and six-month periods ended June 30, 2026, formatted in Extensible Business Reporting Language (Inline XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Shareholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) related notes.
104		Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PSB Financial, Inc.

(registrant)

Mar
Date: August 14, 2026		/s/ Phillip K. Willett
		Phillip K. Willett
		President and Chief Executive Officer (On behalf of Registrant and as Principal Financial Officer)