Loans Held for Investment

12 Months Ended

Jun. 30, 2026

Note 3: Loans Held for Investment

Loans held for investment consisted of the following at June 30, 2026 and 2025:


(In Thousands)	June 30, 2026		June 30, 2025
Mortgage loans:
Single-family	$	565,930	$	544,425
Multi-family		395,882		423,417
Commercial real estate		66,731		72,766
Construction		—		402
Other		—		89
Commercial business loans		—		1,267
Consumer loans		58		57
Total loans held for investment, gross		1,028,601		1,042,423

Advance payments of escrows		129		293
Deferred loan costs, net		9,802		9,453
ACL on loans		(5,850)		(6,424)
Total loans held for investment, net	$	1,032,682	$	1,045,745

The following table sets forth information at June 30, 2026 regarding the dollar amount of loans held for investment that are contractually repricing during the periods indicated, segregated between adjustable rate loans and fixed rate loans. Fixed rate loans comprised 10% of loans held for investment at both June 30, 2026 and 2025. Adjustable rate loans with no stated repricing date that reprice when the index to which they are tied (e.g. prime rate index) and checking account overdrafts are reported as repricing within one year, subject to periodic and maximum rate caps. The table does not reflect estimated prepayments, which may cause the loan portfolio’s actual repricing experience to differ materially from that shown.


		Adjustable Rate
					After			After			After
		Within			One Year			3 Years			5 Years
(In Thousands)		One Year			Through 3 Years			Through 5 Years			Through 10 Years			Fixed Rate			Total
Mortgage loans:
Single-family		$	51,748		$	84,213		$	132,899		$	194,425		$	102,645		$	565,930
Multi-family			228,892			116,596			48,166			2,139			89			395,882
Commercial real estate			36,103			22,505			7,764			—			359			66,731
Consumer loans			58			—			—			—			—			58
Total loans held for investment, gross		$	316,801		$	223,314		$	188,829		$	196,564		$	103,093		$	1,028,601

The following tables present the Corporation’s commercial real estate loans by property type and loan-to-value (“LTV”) as of June 30, 2026 and 2025:


	Owner			Non-Owner			% of Total		Weighted
June 30, 2026	Occupied Loan			Occupied Loan		Total	Commercial		Average
(Dollars In Thousands)	Balance			Balance		Balance	Real Estate		LTV ⁽¹⁾
Office	$	5,053	$	16,166	$	21,219	32	%	38	%
Mixed use⁽²⁾		264		14,392		14,656	22		33	%
Retail		—		9,231		9,231	14		34	%
Warehouse		1,290		7,056		8,346	12		29	%
Mobile home park		—		6,087		6,087	9		34	%
Medical/dental office		2,458		3,015		5,473	8		40	%
Restaurant/fast food		670		487		1,157	2		45	%
Automotive - non gasoline		—		562		562	1		25	%
Total commercial real estate	$	9,735	$	56,996	$	66,731	100	%	35	%

(1)Current loan balance as a percentage of the original appraised value.

(2)	Mixed use includes $6.2 million in Office/Retail, $5.2 million in Multi-family/Retail, $2.2 million in Other Mixed Use, $724 thousand in Multi-family/Commercial and $383 thousand in Multi-family/Office.


	Owner		Non-Owner				% of Total		Weighted
June 30, 2025	Occupied Loan		Occupied Loan			Total	Commercial		Average
(Dollars In Thousands)	Balance		Balance			Balance	Real Estate		LTV ⁽¹⁾
Office	$	5,666	$	19,895	$	25,561	35	%	41	%
Mixed use⁽²⁾		279		14,330		14,609	20		33	%
Warehouse		1,332		7,869		9,201	13		30	%
Retail		—		8,001		8,001	11		31	%
Medical/dental office		2,511		4,377		6,888	9		43	%
Mobile home park		—		6,761		6,761	9		37	%
Restaurant/fast food		681		493		1,174	2		46	%
Automotive - non gasoline		—		571		571	1		26	%
Total commercial real estate	$	10,469	$	62,297	$	72,766	100	%	37	%

(1)	Current loan balance as a percentage of the original appraised value.

(2)	Mixed use includes $6.4 million in Office/Retail, $5.3 million in Multi-family/Retail, $1.6 million in Other Mixed Use, $739 thousand in Multi-family/Commercial and $559 thousand in Multi-family/Office.

The following tables present the Corporation’s commercial real estate loans by geographic concentration as of June 30, 2026 and 2025:


	Inland				Southern				Other
June 30, 2026	Empire⁽¹⁾				California⁽²⁾				California				Total
(Dollars in Thousands)	Balance		%		Balance		%		Balance		%		Balance		%
Owner occupied:
Office	$	137	3	%	$	4,740	94	%	$	176	3	%	$	5,053	100	%
Mixed use		—	—	%		—	—	%		264	100	%		264	100	%
Warehouse		—	—	%		931	72	%		359	28	%		1,290	100	%
Medical/dental office		264	11	%		2,194	89	%		—	—	%		2,458	100	%
Restaurant/fast food		—	—	%		670	100	%		—	—	%		670	100	%
Total owner occupied		401	4	%		8,535	88	%		799	8	%		9,735	100	%

Non-owner occupied:
Office		3,516	22	%		10,203	63	%		2,447	15	%		16,166	100	%
Mixed use		1,014	7	%		6,382	44	%		6,996	49	%		14,392	100	%
Retail		1,156	13	%		4,662	50	%		3,413	37	%		9,231	100	%
Warehouse		468	7	%		3,826	54	%		2,762	39	%		7,056	100	%
Mobile home park		4,125	68	%		344	6	%		1,618	26	%		6,087	100	%
Medical/dental office		1,179	39	%		1,836	61	%		—	—	%		3,015	100	%
Automotive - non gasoline		—	—	%		562	100	%		—	—	%		562	100	%
Restaurant/fast food		—	—	%		487	100	%		—	—	%		487	100	%
Total non-owner occupied		11,458	20	%		28,302	50	%		17,236	30	%		56,996	100	%

Total commercial real estate	$	11,859	18	%	$	36,837	55	%	$	18,035	27	%	$	66,731	100	%

(1)Inland Empire comprised of San Bernardino and Riverside counties.

(2)Other than the Inland Empire.


	Inland				Southern				Other
June 30, 2025	Empire⁽¹⁾				California⁽²⁾				California				Total
(Dollars in Thousands)	Balance		%		Balance		%		Balance		%		Balance		%
Owner occupied:
Office	$	630	11	%	$	4,852	86	%	$	184	3	%	$	5,666	100	%
Mixed use		—	—	%		—	—	%		279	100	%		279	100	%
Warehouse		—	—	%		959	72	%		373	28	%		1,332	100	%
Medical/dental office		271	11	%		2,240	89	%		—	—	%		2,511	100	%
Restaurant/fast food		—	—	%		681	100	%		—	—	%		681	100	%
Total owner occupied		901	9	%		8,732	83	%		836	8	%		10,469	100	%

Non-owner occupied:
Office		3,837	19	%		13,488	68	%		2,570	13	%		19,895	100	%
Mixed use		449	3	%		6,297	44	%		7,584	53	%		14,330	100	%
Retail		1,026	13	%		3,296	41	%		3,679	46	%		8,001	100	%
Warehouse		1,064	13	%		3,992	51	%		2,813	36	%		7,869	100	%
Mobile home park		4,754	70	%		351	5	%		1,656	25	%		6,761	100	%
Medical/dental office		1,713	39	%		1,993	46	%		671	15	%		4,377	100	%
Restaurant/fast food		—	—	%		493	100	%		—	—	%		493	100	%
Automotive - non gasoline		—	—	%		571	100	%		—	—	%		571	100	%
Total non-owner occupied		12,843	21	%		30,481	49	%		18,973	30	%		62,297	100	%

Total commercial real estate	$	13,744	19	%	$	39,213	54	%	$	19,809	27	%	$	72,766	100	%

(1)Inland Empire comprised of San Bernardino and Riverside counties.

(2)Other than the Inland Empire.

Management continuously evaluates the credit quality of the loan portfolio and conducts a quarterly review of the adequacy of the ACL. The two primary components that are used during the loan review process to determine the proper ACL levels are individually evaluated allowances and collectively evaluated allowances. The collectively evaluated allowance is based on a pooling method for groups of homogeneous loans sharing similar loan characteristics to calculate an allowance which reflects an estimate of lifetime expected credit losses using historical experience, current conditions, and reasonable and supportable forecasts. Loans identified to be individually evaluated may have an allowance that is based upon the appraised value of the collateral, less selling costs, or discounted cash flow with an appropriate default factor.

The Corporation uses an internal risk rating system which categorizes all loans held for investment into risk categories of pass, special mention, substandard, doubtful or loss based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades with respect to credit quality of each loan is as follows:

●

Pass - A pass loan ranges from minimal credit risk to average, but still acceptable, credit risk. The likelihood of loss is considered remote.

●

Special Mention - A special mention loan has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Corporation is currently protected and loss is considered unlikely and not imminent.

●

Substandard - A substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

●

Doubtful - A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

●

Loss - A loss loan is considered uncollectible and of such little value that continuance as an asset of the Corporation is not warranted.

The following table presents the Corporation’s recorded investment in loans by risk categories and gross charge-offs by year of origination as of June 30, 2026:


June 30, 2026	Term Loans by Year of Origination												Revolving
(In Thousands)	2026		2025		2024		2023		2022		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	65,608	$	63,347	$	29,851	$	38,692	$	182,177	$	186,043	$	-	$	565,718
Special Mention		-		-		-		-		-		160		-		160
Substandard		-		-		-		-		-		52		-		52
Total single-family		65,608		63,347		29,851		38,692		182,177		186,255		-		565,930
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family:
Pass		22,944		29,591		18,303		23,035		66,781		234,163		-		394,817
Special Mention		-		-		-		-		-		610		-		610
Substandard		-		-		-		-		-		455		-		455
Total multi-family		22,944		29,591		18,303		23,035		66,781		235,228		-		395,882
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate:
Pass		1,533		5,873		4,965		11,394		22,168		19,629		-		65,562
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		1,169		-		1,169
Total commercial real estate		1,533		5,873		4,965		11,394		22,168		20,798		-		66,731
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans:
Not graded		15		-		-		-		-		-		-		15
Pass		-		-		-		-		-		-		43		43
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		15		-		-		-		-		-		43		58
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total loans held for investment, gross	$	90,100	$	98,811	$	53,119	$	73,121	$	271,126	$	442,281	$	43	$	1,028,601
Total current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The following table presents the Corporation’s recorded investment in loans by risk categories by year of origination as of June 30, 2025:


June 30, 2025	Term Loans by Year of Origination												Revolving
(In Thousands)	2025		2024		2023		2022		2021		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	39,385	$	55,276	$	52,083	$	194,501	$	141,614	$	60,282	$	5	$	543,146
Special Mention		-		-		-		-		-		62		-		62
Substandard		-		-		-		-		-		1,217		-		1,217
Total single-family		39,385		55,276		52,083		194,501		141,614		61,561		5		544,425
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family:
Pass		13,412		21,687		27,255		73,495		83,224		201,660		-		420,733
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		467		2,217		-		2,684
Total multi-family		13,412		21,687		27,255		73,495		83,691		203,877		-		423,417
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate:
Pass		2,149		5,429		12,609		22,750		3,889		24,936		-		71,762
Special Mention		-		-		-		-		-		1,004		-		1,004
Substandard		-		-		-		-		-		-		-		-
Total commercial real estate		2,149		5,429		12,609		22,750		3,889		25,940		-		72,766
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction:
Pass		196		206		-		-		-		-		-		402
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction		196		206		-		-		-		-		-		402
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other:
Pass		-		-		-		-		-		89		-		89
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total other		-		-		-		-		-		89		-		89
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial business loans:
Pass		-		-		-		-		-		-		1,267		1,267
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total commercial business loans		-		-		-		-		-		-		1,267		1,267
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans:
Not graded		17		-		-		-		-		-		-		17
Pass		-		-		-		-		-		-		40		40
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		17		-		-		-		-		-		40		57
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total loans held for investment, gross	$	55,159	$	82,598	$	91,947	$	290,746	$	229,194	$	291,467	$	1,312	$	1,042,423
Total current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Under ASC 326, the ACL is a valuation account that is deducted from the related loans’ amortized cost basis to present the net amount expected to be collected on the loans. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Corporation’s ACL is calculated quarterly, with any difference between the calculated ACL and the recorded ACL adjusted through an entry to the provision for (recovery of) credit losses. Management calculates the quantitative portion of the collectively evaluated allowance using a historical loss-rate methodology based primarily on the Corporation's historical net charge-off experience, and generally evaluates collectively evaluated loans by Call Report code to group and determine portfolio loan segments with similar risk characteristics. The Corporation primarily utilizes historical loss rates for the ACL calculation based on its own specific historical losses and/or with peer loss history, where applicable.

The expected loss rates are applied to expected monthly loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The prepayment assumptions applied to expected cash flow over the contractual life of the loans are estimated based on historical and bank-specific experience and the consideration of current and expected conditions and circumstances including the level of interest rates. The prepayment assumptions may be updated by management in the event that changing conditions impact management’s estimate or additional historical data gathered has resulted in the need for a reevaluation.

For its reasonable and supportable forecasting of current expected credit losses, the Corporation utilizes a regression model using forecasted economic metrics and historical loss data. The regression model utilized upon implementation of CECL and as of June 30, 2026 and 2025 is based on reasonable and supportable 12-month forecasts of the National Unemployment Rate and change in the Real Gross Domestic Product, after which it reverts to a historical loss rate. Management selected the National Unemployment Rate and the Real Gross Domestic Product as the drivers of the forward-looking component of the collectively evaluated allowance, primarily as a result of high correlation coefficients identified in regression modeling, the availability of forecasts (including the quarterly Federal Open Market Committee forecast), and the widespread familiarity of these economic metrics.

Management recognizes that there are additional factors impacting the risk of loss in the loan portfolio beyond what is captured in the quantitative portion of allowance on collectively evaluated loans. As current and expected conditions may vary compared with conditions over the historical lookback period, which is utilized in the calculation of the quantitative allowance, management considers whether additional or reduced allowance levels on collectively evaluated loans may be warranted, given the consideration of a variety of qualitative factors. The following qualitative factors (“Q-factors”) considered by management reflect the regulatory guidance on the Q-factors:

●

Changes in the experience, ability, and depth of lending management and other relevant staff.

●

Changes in the value of underlying collateral for collateral-dependent loans.

●

The existence and effect of any concentrations of credit, and changes in the level of such concentrations.

●

Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments.

●

The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution's existing portfolio.

●

Changes in the volume and severity of past due loans, the volume of non-performing loans, and the volume and severity of adversely classified or graded loans.

●

Changes in the quality of the Corporation’s loan review system.

●

Changes in the nature, volume and terms of loans in the portfolio.

●

Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses.

The qualitative portion of the Corporation’s allowance on collectively evaluated loans is calculated using management’s judgment to determine risk categorizations in each of the Q-factors presented above. The amount of qualitative allowance is also contingent upon the relative weighting of the Q-factors, as determined by management’s judgment.

Loans that do not share similar risk characteristics are evaluated on an individual basis. When management determines that foreclosure is probable or the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date, less selling costs, or discounted cash flow with an appropriate default factor.

Accrued interest receivable for loans is included in accrued interest receivable in the Consolidated Statements of Financial Condition. The Corporation elected not to measure an allowance for accrued interest receivable and instead elected to reverse accrued interest income on loans that are placed on non-performing status. Generally, a loan is placed on non-performing status when it becomes 90 days past due as to principal or interest or after considering economic and business conditions and collection efforts, where the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. The Corporation believes this policy results in the timely reversal of potentially uncollectible interest.

Pursuant to ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures,” the Corporation may agree to different types of modifications, including principal forgiveness, interest rate reductions, term extension, significant payment delay or any combination of modifications noted above. During the fiscal years ended June 30, 2026 and 2025, there were no loan modifications to borrowers experiencing financial difficulties.

Management believes the ACL on loans held for investment is maintained at a level sufficient to provide for expected losses on the Corporation’s loans held for investment based on historical loss experience, current conditions, and reasonable and supportable forecasts. The provision for (recovery of) credit losses is charged (credited) against operations on a quarterly basis, as necessary, to maintain the ACL at appropriate levels. Future adjustments to the ACL may be necessary and results of operations could be significantly and adversely affected as a result of economic, operating, regulatory, and other conditions beyond the Corporation’s control.

Non-performing loans are charged down to the estimated fair value of the collateral, less estimated disposition costs, in the period the loans, or portions thereof, are deemed uncollectible. This generally occurs after the loan becomes 150 days delinquent for real estate-secured first trust deed loans and 120 days delinquent for commercial business or real estate-secured second trust deed loans. For loans that were previously modified from their original terms, subsequently re-underwritten, and identified as modified loans, the charge-off occurs when the loan becomes 90 days delinquent. In cases where borrowers file bankruptcy, the charge-off occurs when the loan becomes 60 days delinquent. The amount of the charge-off is determined by comparing the loan balance to the estimated fair value of the underlying collateral, less estimated disposition costs, with the loan balance in excess of the estimated fair value charged off against the ACL. For modified loans that are less than 90 days delinquent, the ACL is determined based on either (a) individually evaluated allowances for loans with applicable discounted cash flow calculations that remain within their modification period, are classified below pass, and contain an embedded loss component, or (b) collectively evaluated allowances based on the aggregated pooling method. For non-performing loans less than 60 days delinquent where the borrower has filed bankruptcy, the collectively evaluated allowances are assigned based on the aggregated pooling method. For non-performing commercial real estate loans, an individually evaluated allowance is determined based on either the loan's discounted cash flow (for modified loans) or the collateral's fair value less estimated disposition costs. If the fair value of the collateral exceeds the loan balance, no allowance is required. A non-performing loan may be restored to accrual status when a borrower is current in payments for six consecutive months.

The following tables summarize the Corporation’s ACL and recorded investment in gross loans, by portfolio type, at the dates and for the years indicated:


	Year Ended June 30, 2026
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total
ACL:
ACL, beginning of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424
Recovery of credit losses		(430)			(112)			(12)			(12)			(2)			(6)			—			(574)
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	5,304		$	503		$	43		$	—		$	—		$	—		$	—		$	5,850

ACL:
Individually evaluated for allowances	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for allowances		5,304			503			43			—			—			—			—			5,850
ACL, end of period	$	5,304		$	503		$	43		$	—		$	—		$	—		$	—		$	5,850

Loans held for investment:
Individually evaluated for allowances	$	—		$	455		$	—		$	—		$	—		$	—		$	—		$	455
Collectively evaluated for allowances		565,930			395,427			66,731			—			—			—			58			1,028,146
Total loans held for investment, gross	$	565,930		$	395,882		$	66,731		$	—		$	—		$	—		$	58		$	1,028,601
ACL on loans as a percentage of gross loans held for investment		0.94	%		0.13	%		0.06	%		—	%		—	%		—	%		—	%		0.57	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%


	Year Ended June 30, 2025
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total
ACL:
ACL, beginning of period	$	6,295		$	595		$	66		$	97		$	1		$	11		$	—		$	7,065
(Recovery of) provision for credit losses		(561)			20			(11)			(85)			1			(5)			—			(641)
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424

ACL:
Individually evaluated for allowances	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for allowances		5,734			615			55			12			2			6			—			6,424
ACL, end of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424

Loans held for investment:
Individually evaluated for allowances	$	369		$	467		$	—		$	—		$	—		$	—		$	—		$	836
Collectively evaluated for allowances		544,056			422,950			72,766			402			89			1,267			57			1,041,587
Total loans held for investment, gross	$	544,425		$	423,417		$	72,766		$	402		$	89		$	1,267		$	57		$	1,042,423
ACL on loans as a percentage of gross loans held for investment		1.05	%		0.15	%		0.08	%		2.99	%		2.25	%		0.47	%		—	%		0.62	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%

The following summarizes the components of the net change in the allowance for credit losses for the years indicated:


		Year Ended June 30,
(In Thousands)		2026			2025

Balance, beginning of year		$	6,424		$	7,065
Recovery of credit losses			(574)			(641)
Recoveries			—			—
Charge-offs			—			—
Balance, end of year		$	5,850		$	6,424

The following tables identify the Corporation’s total recorded investment in non-performing loans by type at the dates and for the periods indicated. Generally, a loan is placed on non-performing status when it becomes 90 days past due as to principal or interest or when, after considering economic and business conditions and collection efforts, management determines that collection of the contractual principal or interest is doubtful. In addition, interest income is not recognized on any loan where management has determined that collection is not reasonably assured. A non-performing loan may be restored to accrual status when delinquent principal and interest payments are brought current, the borrower(s) has demonstrated sustained payment performance and future monthly principal and interest payments are expected to be collected on a timely basis. Loans with a related allowance were evaluated either (a) collectively using a pooling method or (b) individually using either a discounted cash flow analysis or, for collateral-dependent loans, current appraisals less estimated costs to sell, to determine the estimated realizable value. This analysis may identify a specific allowance amount needed or may conclude that no allowance is needed.


		At or For the Year Ended June 30, 2026
		Unpaid												Net			Average			Interest
		Principal			Related			Recorded						Recorded			Recorded			Income
(In Thousands)		Balance			Charge-offs			Investment			ACL⁽¹⁾			Investment			Investment			Recognized

Mortgage loans:
Single-family:
With a related allowance		$	52		$	—		$	52		$	(2)		$	50		$	430		$	41
Without a related allowance⁽²⁾			25			(25)			—			—			—			64			11
Total single-family loans			77			(25)			52			(2)			50			494			52

Multi-family:
Without a related allowance⁽²⁾			455			—			455			—			455			532			33
Total multi-family loans			455			—			455			—			455			532			33

Total non-performing loans		$	532		$	(25)		$	507		$	(2)		$	505		$	1,026		$	85

(1)	ACL specifically assigned to the individual loan.

(2)	There was no related ACL because the loans were charged-down to their estimated fair value or because the estimated fair value of the collateral exceeded the loan balance.


		At or For the Year Ended June 30, 2025
		Unpaid												Net			Average			Interest
		Principal			Related			Recorded						Recorded			Recorded			Income
(In Thousands)		Balance			Charge-offs			Investment			ACL⁽¹⁾			Investment			Investment			Recognized

Mortgage loans:
Single-family:
With a related allowance		$	560		$	—		$	560		$	(7)		$	553		$	1,158		$	95
Without a related allowance⁽²⁾			420			(25)			395			—			395			631			106
Total single-family loans			980			(25)			955			(7)			948			1,789			201

Multi-family:
Without a related allowance⁽²⁾			466			—			466			—			466			156			5
Total multi-family loans			466			—			466			—			466			156			5

Commercial real estate:
Without a related allowance⁽²⁾			—			—			—			—			—			149			36
Total commercial real estate loans			—			—			—			—			—			149			36

Total non-performing loans		$	1,446		$	(25)		$	1,421		$	(7)		$	1,414		$	2,094		$	242

(1)	ACL specifically assigned to the individual loan.

(2)	There was no related ACL because the loans were charged-down to their estimated fair value or because the estimated fair value of the collateral exceeded the loan balance.

At June 30, 2026 and 2025, there were no commitments to lend additional funds to those borrowers whose loans were classified as non-performing.

During fiscal years ended June 30, 2026 and 2025, the Corporation’s average non-performing loans were $1.0 million and $2.1 million, respectively. The Corporation records payments received on non-performing loans using either the cash basis or cost recovery method of accounting during periods when the loans are on non-performing status. For the fiscal years ended June 30, 2026 and 2025, the Corporation received $85,000 and $242,000, respectively, in interest payments from non-performing loans. All such payments were recognized as interest income under the cash basis method and none were applied to reduce loan balances under the cost recovery method.

The Bank includes the off-balance sheet reserve for unfunded loan commitments within the provision for (recovery of) credit losses.

The following table provides information regarding the unfunded loan commitment reserve for the fiscal years ended June 30, 2026 and 2025:


		Year Ended
		June 30,
(In Thousands)		2026			2025
Balance, beginning of the year		$	32		$	57
Provision for (recovery of) credit losses			21			(25)
Balance, end of the year		$	53		$	32

The method for calculating the unfunded loan commitment reserve is based on a historical funding rate applied to the undisbursed loan commitment amount to estimate the expected funded amount over the life of the loan commitment. The Corporation applies the same assumptions and methodologies used for funded loans held for investment, grouped by loan category, to determine the reserve rate applied to unfunded loan commitments and the related reserve. These assumptions are evaluated by management periodically as part of the CECL procedures. The unfunded loan commitment reserve is recorded in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition.

The following tables provide information on the past due status of the Corporation’s loans held for investment, gross, at the dates indicated:


		June 30, 2026
					30-89 Days Past						Total Loans Held for
(In Thousands)		Current			Due			Non-Accrual⁽¹⁾			Investment, Gross

Mortgage loans:
Single-family		$	565,878		$	—		$	52		$	565,930
Multi-family			395,427			—			455			395,882
Commercial real estate			66,731			—			—			66,731
Consumer loans			57			1			—			58
Total loans held for investment, gross		$	1,028,093		$	1		$	507		$	1,028,601

(1)	All loans 90 days or greater past due are placed on non-accrual status.


		June 30, 2025
					30-89 Days Past						Total Loans Held for
(In Thousands)		Current			Due			Non-Accrual⁽¹⁾			Investment, Gross

Mortgage loans:
Single-family		$	543,496		$	—		$	929		$	544,425
Multi-family			422,951			—			466			423,417
Commercial real estate			72,766			—			—			72,766
Construction			402			—			—			402
Other			89			—			—			89
Commercial business loans			1,267			—			—			1,267
Consumer loans			55			2			—			57
Total loans held for investment, gross		$	1,041,026		$	2		$	1,395		$	1,042,423

(1)	All loans 90 days or greater past due are placed on non-accrual status.

In the ordinary course of business, the Bank may offer loans to its directors, officers and employees on substantially the same terms and conditions as those prevailing at the time for comparable transactions with unaffiliated borrowers. During fiscal year 2026 and 2025, there were no related-party loan transactions, and as of June 30, 2026 and 2025, there were no outstanding related-party loans.