Loans Receivable

3 Months Ended

Sep. 30, 2026

3.	Loans Receivable

Loans receivable are summarized as follows:

	September, 2026			June 30, 2026
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	160,407		$	164,214
Commercial		142,751			141,002
Multi-Family Residential		35,506			30,641
Land		34,154			34,825
Construction		31,117			25,435
Equity and Second Mortgage		3,074			3,177
Equity Lines of Credit		23,207			21,657

Total Mortgage Loans		430,216			420,951

Commercial Loans		57,832			58,866
Consumer Loans
Loans on Savings Accounts		1,074			436
Other Consumer Loans		198			247

Total Consumer Loans		1,272			683
Total Loans		489,320			480,500

Less: Allowance for Credit Losses		(4,902	)		(4,926	)
Unamortized Loan Fees		(86	)		(83	)

Net Loans Receivable	$	484,332		$	475,491

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans according to credit risk. Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until: (a) they become past due; (b) management becomes aware of a deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.

The Company uses the following definitions for risk ratings:

•

Pass - Loans classified as pass are well protected by the current net worth or paying capacity of the obligor or by the fair value, less cost to acquire and sell the underlying collateral in a timely manner.

•

Pass Watch - Loans are considered marginal, meaning some weakness has been identified which could cause future impairment of repayment. However, these relationships are currently protected from any apparent loss by collateral and are still considered a pass.

•

Special Mention - Loans identified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

•

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•

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

•

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted. Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans. Accordingly, these loans are charged-off before period end.

The following tables summarize designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2026

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	14,125	$	14,232	$	12,708	$	34,280	$	28,497	$	51,560	$	-	$	155,402
Pass watch		-		71		806		385		509		1,407		-		3,178
Special mention		-		-		229		-		-		862		-		1,091
Substandard	$	-	$	-	$	153	$	181	$	194	$	208	$	-	$	736
Total one-to-four family residential	$	14,125	$	14,303	$	13,896	$	34,846	$	29,200	$	54,037	$	-	$	160,407
Current period gross charge-offs		-		-		-		-		-		-		-		-

Commercial
Risk rating
Pass	$	18,688	$	24,423	$	5,845	$	8,984	$	20,436	$	56,710	$	-	$	135,086
Pass watch		-		-		71		-		5,348		101		-		5,520
Special mention		-		-		-		99		2,032		-		-		2,131
Substandard		-		-		-		-		14		-		-		14
Total commercial	$	18,688	$	24,423	$	5,916	$	9,083	$	27,830	$	56,811	$	-	$	142,751
Current period gross charge-offs	$	-	$	435	$	12	$	-	$	-	$	-	$	-	$	447

Multi-family residential
Risk rating
Pass	$	6,040	$	7,461	$	-	$	-	$	316	$	14,659	$	-	$	28,476
Pass watch		-		-		1,108		1,787		-		4,135		-		7,030
Total multi-family residential	$	6,040	$	7,461	$	1,108	$	1,787	$	316	$	18,794	$	-	$	35,506
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk rating
Pass	$	5,137	$	9,945	$	2,111	$	1,745	$	3,230	$	11,986	$	-	$	34,154
Total land	$	5,137	$	9,945	$	2,111	$	1,745	$	3,230	$	11,986	$	-	$	34,154
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk rating
Pass	$	6,385	$	19,036	$	5,260	$	-	$	-	$	436	$	-	$	31,117
Total construction	$	6,385	$	19,036	$	5,260	$	-	$	-	$	436	$	-	$	31,117
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
Equity loans and lines of credit and second mortgage
Risk rating
Pass	$	442	$	551	$	526	$	357	$	589	$	383	$	22,911	$	25,759
Special mention		-		-		-		84		-		-		71		155
Substandard		-		-		-		142		-		-		225		367
Total home equity and lines of credit and second mortgage	$	442	$	551	$	526	$	583	$	589	$	383	$	23,207	$	26,281
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Loans
Risk rating
Pass	$	13,763	$	10,892	$	14,599	$	5,270	$	1,544	$	10,787	$	-	$	56,855
Pass watch		10		-		558		6		294		-		-		868
Special mention		-		-		-		105		-		-		-		105
Substandard		-		-		-		-		-		4		-		4
Total commercial loans	$	13,773	$	10,892	$	15,157	$	5,381	$	1,838	$	10,791	$	-	$	57,832
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer Loans
Risk rating
Pass	$	845	$	139	$	138	$	32	$	37	$	78	$	-	$	1,269
Substandard		-		-		-		3		-		-		-		3
Total consumer loans	$	845	$	139	$	138	$	35	$	37	$	78	$	-	$	1,272
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk rating
Pass	$	65,425	$	86,679	$	41,187	$	50,668	$	54,649	$	146,599	$	22,911	$	468,118
Pass watch		10		71		2,543		2,178		6,151		5,643		-		16,596
Special mention		-		-		229		288		2,032		862		71		3,482
Substandard		-		-		153		326		208		212		225		1,124
Total	$	65,435	$	86,750	$	44,112	$	53,460	$	63,040	$	153,316	$	23,207	$	489,320
Current period gross charge-offs	$	-	$	435	$	12	$	-	$	-	$	-	$	-	$	447

The following tables summarize designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2026:

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	8,265	$	15,620	$	13,051	$	34,844	$	30,024	$	55,262	$	-	$	157,066
Pass watch		-		72		1,421		390		755		1,393		-		4,031
Special mention		-		-		-		-		-		841		-		841
Substandard		-		578		554		183		752		209		-		2,276
Total One-to-four family residential	$	8,265	$	16,270	$	15,026	$	35,417	$	31,531	$	57,705	$	-	$	164,214
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial
Risk rating
Pass	$	12,343	$	24,819	$	5,919	$	9,152	$	21,632	$	59,263	$	-	$	133,128
Pass watch		-		-		74		98		5,383		103		-		5,658
Special mention		-		-		-		-		2,052		150		-		2,202
Substandard		-		-		-		-		14		-		-		14
Total commercial	$	12,343	$	24,819	$	5,993	$	9,250	$	29,081	$	59,516	$	-	$	141,002
Current period gross charge-offs	$	-	$	-	$	-	$	60	$	-	$	145	$	-	$	205

Multi-family residential
Risk rating
Pass	$	-	$	6,969	$	-	$	1,801	$	319	$	16,286	$	-	$	25,375
Pass watch		-		-		1,112		-		-		4,154		-		5,266
Total multi-family residential	$	-	$	6,969	$	1,112	$	1,801	$	319	$	20,440	$	-	$	30,641
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk rating
Pass	$	4,415	$	9,846	$	2,308	$	1,737	$	3,331	$	13,031	$	-	$	34,668
Pass watch		-		157		-		-		-		-		-		157
Total land	$	4,415	$	10,003	$	2,308	$	1,737	$	3,331	$	13,031	$	-	$	34,825
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	10	$	-	$	-	$	10

Construction
Risk rating
Pass	$	1,746	$	17,896	$	5,113	$	580	$	-	$	100	$	-	$	25,435
Total construction	$	1,746	$	17,896	$	5,113	$	580	$	-	$	100	$	-	$	25,435
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
Equity loans and lines of credit
Risk rating
Pass	$	444	$	559	$	538	$	415	$	599	$	394	$	21,361	$	24,310
Pass watch		-		-		-		-		-		-		-		-
Special mention		-		-		-		86		-		-		71		157
Substandard		-		-		-		142		-		-		225		367
Total home equity and lines of credit	$	444	$	559	$	538	$	643	$	599	$	394	$	21,657	$	24,834
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Loans
Risk rating
Pass	$	9,235	$	9,460	$	14,841	$	4,410	$	1,906	$	13,516	$	-	$	53,368
Pass watch		623		1,827		1,080		1,500		317		-		-		5,347
Special mention		-		-		-		146		-		-		-		146
Substandard		-		-		-		-		-		5		-		5
Total commercial loans	$	9,858	$	11,287	$	15,921	$	6,056	$	2,223	$	13,521	$	-	$	58,866
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	16	$	-	$	-	$	16

Consumer Loans
Risk rating
Pass	$	124	$	169	$	187	$	50	$	43	$	106	$	-	$	679
Substandard		-		-		-		4		-		-		-		4
Total consumer loans	$	124	$	169	$	187	$	54	$	43	$	106	$	-	$	683
Current period gross charge-offs	$	-	$	1	$	23	$	1	$	-	$	-	$	-	$	25

Total
Risk rating
Pass	$	36,572	$	85,338	$	41,957	$	52,989	$	57,854	$	157,958	$	21,361	$	454,029
Pass watch		623		2,056		3,687		1,988		6,455		5,650		-		20,459
Special mention		-		-		-		232		2,052		991		71		3,346
Substandard		-		578		554		329		766		214		225		2,666
Total	$	37,195	$	87,972	$	46,198	$	55,538	$	67,127	$	164,813	$	21,657	$	480,500
Current period gross charge-offs	$	-	$	1	$	23	$	61	$	26	$	145	$	-	$	256

The following tables present an aging analysis of past due loans, segregated by class of loans, as of September 30, 2026 and June 30, 2026:

September 30, 2026	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	537	$	1,713	$	633	$	2,883	$	157,524	$	160,407	$	-
Commercial		99		-		14		113		142,638		142,751		-
Multi-Family Residential		-		-		-		0		35,506		35,506		-
Land		-		24		-		24		34,130		34,154		-
Construction		-		-		-		0		31,117		31,117		-
Equity and Second Mortgage		-		-		142		142		2,932		3,074		-
Equity Lines of Credit		26		-		225		251		22,956		23,207		-
Commercial Loans		24		4		-		28		57,804		57,832		-
Consumer Loans		-		-		-		0		1,272		1,272		-
Total	$	686	$	1,741	$	1,014	$	3,441	$	485,879	$	489,320	$	-

June 30, 2026	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	780	$	389	$	2,607	$	3,776	$	160,438	$	164,214	$	453
Commercial		14		-		-		14		140,988		141,002		-
Multi-Family Residential		-		-		-		0		30,641		30,641		-
Land		-		-		-		0		34,825		34,825		-
Construction		-		-		-		0		25,435		25,435		-
Equity and Second Mortgage		-		-		142		142		3,035		3,177		-
Equity Lines of Credit		-		-		225		225		21,432		21,657		-
Commercial Loans		205		-		-		205		58,661		58,866		-
Consumer Loans		15		-		-		15		668		683		-
Total	$	1,014	$	389	$	2,974	$	4,377	$	476,123	$	480,500	$	453

There was no interest income recognized on non-accrual loans during the three months ended September 30, 2026, or the year ended June 30, 2026. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the three months ended September 30, 2026 and the year ended June 30, 2026 was approximately $23,000 and $120,000, respectively.

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2026 and year ended June 30, 2026 was as follows:

September 30, 2026

	Real Estate Loans
	1-4 Family Residential			Commercial			Multi- Family		Land		Construction		Home Equity Loans and Lines of Credit		Commercial Loans		Consumer Loans		Total
	(In Thousands)
Allowance for credit losses:
Beginning Balances	$	2,349		$	1,277		$	108	$	248	$	195	$	190	$	541	$	18	$	4,926
Charge-Offs		-			(447	)		-		-		-		-		-		-		(447	)
Recoveries		1			140			-		1		-		1		2		3		148
Current Provision		(544	)		355			88		84		126		111		32		23		275
Ending Balances	$	1,806		$	1,325		$	196	$	333	$	321	$	302	$	575	$	44	$	4,902

June 30, 2026

	Real Estate Loans
	1-4 Family Residential		Commercial			Multi- Family			Land			Construction		Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans			Total
	(In Thousands)
Allowance for credit losses:
Beginning Balances	$	2,202	$	1,202		$	113		$	165		$	74	$	182		$	538		$	8		$	4,484
Charge-Offs		-		(205	)		-			(10	)		-		-			(16	)		(25	)		(256	)
Recoveries		6		60			-			2			-		22			2			12			104
Current Provision		141		220			(5	)		91			121		(14	)		17			23			594
Ending Balances	$	2,349	$	1,277		$	108		$	248		$	195	$	190		$	541		$	18		$	4,926

The Company held loans that were individually evaluated for credit losses at September 30, 2026 and June 30, 2026 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the types of collateral that secure collateral dependent loans:

•

One-to-four-family first mortgages are primarily secured by first liens on residential real estate.

•

Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including self-storage facilities, hotels and restaurants.

•

Multi-family loans are primarily secured by residential property that include five or more housing units.

•

Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.

•

Home equity loans and lines are primarily secured by first and junior liens on residential real estate.

•

Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment.

•

Consumer loans considered collateral dependent are primarily secured by titled vehicles.

The following table presents loans individually evaluated for impairment, segregated by class of loans, as of September 30, 2026 and June 30, 2026:

	September 30, 2026				June 30, 2026
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,815	$	53	$	3,364	$	505
Commercial		14		-		20		-
Land		77		3		79		3
Home Equity Loans and Lines of Credit		367		57		367		6
Commercial Loans		4		-		5		-

Total	$	2,277	$	113	$	3,835	$	514

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. As of September 30, 2026, there were $409,000 of residential loans in the process of foreclosure.

As of September 30, 2026, there were no loans whose terms were modified for borrowers who may be experiencing financial difficulties.

At September 30, 2026 and June 30, 2026, accrued interest receivable on loans was $1.711 million and $1.713 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.