v3.26.3
Loans and Allowance for Credit Losses
 6 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses

Note 3 - LOANS AND ALLOWANCE FOR Credit LOSSES

A summary of loans by major category as of September 30, 2026 and March 31, 2026 is as follows:

 

 

 

September 30, 2026

 

 

March 31, 2026

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

16,359

 

 

$

28,633

 

Real Estate - Commercial

 

 

140,604

 

 

 

129,235

 

Real Estate - Residential

 

 

154,150

 

 

 

162,041

 

Commercial Non-Real Estate

 

 

41,077

 

 

 

48,378

 

Agriculture

 

 

72,689

 

 

 

54,655

 

Other Consumer

 

 

8,313

 

 

 

10,158

 

Land Development and Sanitary & Improvement Districts (SIDs)

 

 

13,321

 

 

 

15,306

 

Total loans

 

 

446,513

 

 

 

448,406

 

Allowance for credit losses

 

 

(5,890

)

 

 

(5,809

)

Net deferred origination costs & fees

 

 

(81

)

 

 

(60

)

Total loans, net

 

$

440,542

 

 

$

442,537

 

Related Party Loans: In the normal course of business, loans are made to directors and officers of the Association. Loans to Association directors and key officers outstanding as of September 30, 2026 and March 31, 2026 were $1.7 million. Additionally, the Association had loans totaling $827,000 and $861,000 as of September 30, 2026 and March 31, 2026 to related parties that were originated by the Association, sold to Federal Home Loan Mortgage Company and are serviced by the Association.

The following tables present the activity in the allowance for credit losses for the three and six months ended September 30, 2026 and 2025:

 

 

Three Months Ended September 30, 2026

 

 

 

Beginning

 

 

Provision for

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

(Reversal of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Credit Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

247

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

247

 

Real Estate - Commercial

 

 

1,973

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,973

 

Real Estate - Residential

 

 

1,702

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,702

 

Commercial Non-Real Estate

 

 

981

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

981

 

Agricultural

 

 

694

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

694

 

Other Consumer

 

 

120

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

119

 

Land Development and SIDs

 

 

173

 

 

 

(13

)

 

 

—

 

 

 

14

 

 

 

174

 

Total

 

$

5,890

 

 

$

(13

)

 

$

(1

)

 

$

14

 

 

$

5,890

 

 

 

 

Six Months Ended September 30, 2026

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

Provision for

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Credit Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

356

 

 

$

(109

)

 

$

—

 

 

$

—

 

 

$

247

 

Real Estate - Commercial

 

 

1,787

 

 

 

186

 

 

 

—

 

 

 

—

 

 

 

1,973

 

Real Estate - Residential

 

 

1,784

 

 

 

(82

)

 

 

—

 

 

 

—

 

 

 

1,702

 

Commercial Non-Real Estate

 

 

991

 

 

 

(10

)

 

 

—

 

 

 

—

 

 

 

981

 

Agricultural

 

 

558

 

 

 

136

 

 

 

—

 

 

 

—

 

 

 

694

 

Other Consumer

 

 

135

 

 

 

(11

)

 

 

(5

)

 

 

—

 

 

 

119

 

Land Development and SIDs

 

 

198

 

 

 

(72

)

 

 

—

 

 

 

48

 

 

 

174

 

Total

 

$

5,809

 

 

$

38

 

 

$

(5

)

 

$

48

 

 

$

5,890

 

 

 

 

Three Months Ended September 30, 2025

 

 

 

Beginning

 

 

Provision for

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

(Reversal of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Credit Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

246

 

 

$

39

 

 

$

—

 

 

$

—

 

 

$

285

 

Real Estate - Commercial

 

 

1,572

 

 

 

116

 

 

 

—

 

 

 

—

 

 

 

1,688

 

Real Estate - Residential

 

 

1,925

 

 

 

(125

)

 

 

—

 

 

 

—

 

 

 

1,800

 

Commercial Non-Real Estate

 

 

667

 

 

 

128

 

 

 

—

 

 

 

—

 

 

 

795

 

Agricultural

 

 

476

 

 

 

83

 

 

 

—

 

 

 

—

 

 

 

559

 

Other Consumer

 

 

261

 

 

 

(88

)

 

 

(7

)

 

 

2

 

 

 

168

 

Land Development and SIDs

 

 

292

 

 

 

(64

)

 

 

—

 

 

 

—

 

 

 

228

 

Total

 

$

5,439

 

 

$

89

 

 

$

(7

)

 

$

2

 

 

$

5,523

 

 

 

 

Six Months Ended September 30, 2025

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

(Reversal of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Credit Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

246

 

 

$

39

 

 

$

—

 

 

$

—

 

 

$

285

 

Real Estate - Commercial

 

 

1,572

 

 

 

116

 

 

 

—

 

 

 

—

 

 

 

1,688

 

Real Estate - Residential

 

 

1,926

 

 

 

(126

)

 

 

—

 

 

 

—

 

 

 

1,800

 

Commercial Non-Real Estate

 

 

667

 

 

 

128

 

 

 

—

 

 

 

—

 

 

 

795

 

Agricultural

 

 

476

 

 

 

83

 

 

 

—

 

 

 

—

 

 

 

559

 

Other Consumer

 

 

262

 

 

 

(90

)

 

 

(7

)

 

 

3

 

 

 

168

 

Land Development and SIDs

 

 

292

 

 

 

(64

)

 

 

—

 

 

 

—

 

 

 

228

 

Total

 

$

5,441

 

 

$

86

 

 

$

(7

)

 

$

3

 

 

$

5,523

 

 

The ACL on loans excludes $215,000 as of September 30, 2026 and March 31, 2026 of allowance for off-balance sheet exposures and is recorded within accounts payable, accrued expenses and other liabilities on the Consolidated Statements of Financial Condition.

Collateral dependent loans individually evaluated for purposes of the ACL by collateral type were as follows at September 30, 2026 and March 31, 2026:

 

 

 

September 30, 2026

 

 

 

Real Estate

 

 

Other

 

 

ACL Allocation

 

 

 

(Dollars in thousands)

 

Portfolio Segment

 

 

 

 

 

 

 

 

 

Real Estate - Construction

 

$

—

 

 

$

—

 

 

$

—

 

Real Estate - Commercial

 

 

—

 

 

 

—

 

 

 

—

 

Real Estate - Residential

 

 

347

 

 

 

—

 

 

 

—

 

Commercial Non-Real Estate

 

 

—

 

 

 

357

 

 

 

165

 

Agricultural

 

 

—

 

 

 

—

 

 

 

—

 

Other Consumer

 

 

—

 

 

 

42

 

 

 

—

 

Land Development and SIDs

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

347

 

 

$

399

 

 

$

165

 

 

 

 

March 31, 2026

 

 

 

Real Estate

 

 

Other

 

 

ACL Allocation

 

 

 

(Dollars in thousands)

 

Portfolio Segment

 

 

 

 

 

 

 

 

 

Real Estate - Construction

 

$

—

 

 

$

—

 

 

$

—

 

Real Estate - Commercial

 

 

—

 

 

 

—

 

 

 

—

 

Real Estate - Residential

 

 

9

 

 

 

—

 

 

 

—

 

Commercial Non-Real Estate

 

 

—

 

 

 

—

 

 

 

—

 

Agricultural

 

 

1,632

 

 

 

—

 

 

 

—

 

Other Consumer

 

 

—

 

 

 

—

 

 

 

—

 

Land Development and SIDs

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,641

 

 

$

—

 

 

$

—

 

Credit Risk—The Association monitors the credit risk within the loan portfolio by assessing the strength of the borrower’s repayment capacity and the probability of default. The Association first assesses the paying capacity of the borrower; then, it analyzes the value of any pledged collateral or guarantees. In estimating the allowance for credit losses management also uses a quarterly Loan Concentration Report to monitor any concentrations that may develop in any specific category of the loan portfolio. It identifies four varying degrees of credit worthiness:

•
Pass Loans: Loans in the pass category are loans that do not raise Association concerns.
•
Special Mention Loans: Loans in this category may have potential weaknesses which, if not corrected, could weaken the asset and increase the risk in the future. By classifying a loan as Special Mention the Association can give the loan the attention needed to remedy any credit deficiencies or potential weaknesses.
•
Substandard Loans: Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the Association will sustain some loss if the deficiencies are not corrected. For loans classified as Substandard, the Association evaluates whether an allowance for credit losses is appropriate based on the requirements of generally accepted accounting principles.
•
Doubtful Loans: Loans in this category have all the weaknesses inherent in Substandard loans 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. If a loan is classified as Doubtful, a determination based upon objective evidence must be made as to any specific or general valuation allowance within the guidelines of generally accepted accounting principles.

 

The following tables present the credit risk profile of the Association's loan portfolio based on risk rating category and year of origination as of September 30, 2026 and March 31, 2026.

 

 

 

As of September 30, 2026

 

 

 

Term Loans by Origination Year (Fiscal Year)

 

 

Revolving

 

 

 

 

 

 

2027

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

Prior

 

 

Loans

 

 

Total

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

4,282

 

 

$

7,675

 

 

$

2,954

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,448

 

 

$

16,359

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate - Construction

 

$

4,282

 

 

$

7,675

 

 

$

2,954

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,448

 

 

$

16,359

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Real Estate - Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

3,863

 

 

 

19,675

 

 

 

24,595

 

 

 

14,688

 

 

 

24,778

 

 

 

51,097

 

 

 

27

 

 

$

138,723

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,881

 

 

 

—

 

 

 

1,881

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate - Commercial

 

$

3,863

 

 

$

19,675

 

 

$

24,595

 

 

$

14,688

 

 

$

24,778

 

 

$

52,978

 

 

$

27

 

 

$

140,604

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Real Estate - Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

7,818

 

 

 

17,671

 

 

 

12,430

 

 

 

10,855

 

 

 

17,362

 

 

 

76,682

 

 

 

10,750

 

 

$

153,568

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

190

 

 

 

28

 

 

 

98

 

 

 

266

 

 

 

—

 

 

 

582

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate - Residential

 

$

7,818

 

 

$

17,671

 

 

$

12,620

 

 

$

10,883

 

 

$

17,460

 

 

$

76,948

 

 

$

10,750

 

 

$

154,150

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial - Non-Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,045

 

 

 

20,586

 

 

 

3,082

 

 

 

3,098

 

 

 

1,015

 

 

 

5,102

 

 

 

6,404

 

 

$

40,332

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

127

 

 

 

—

 

 

 

—

 

 

 

102

 

 

 

186

 

 

 

330

 

 

 

745

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial - Non-Real Estate

 

$

1,045

 

 

$

20,713

 

 

$

3,082

 

 

$

3,098

 

 

$

1,117

 

 

$

5,288

 

 

$

6,734

 

 

$

41,077

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

19,013

 

 

 

13,546

 

 

 

8,195

 

 

 

1,260

 

 

 

2,627

 

 

 

4,260

 

 

 

22,737

 

 

$

71,638

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

592

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

459

 

 

 

1,051

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total - Agricultural

 

$

19,013

 

 

$

14,138

 

 

$

8,195

 

 

$

1,260

 

 

$

2,627

 

 

$

4,260

 

 

$

23,196

 

 

$

72,689

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,221

 

 

 

1,042

 

 

 

877

 

 

 

2,553

 

 

 

2,278

 

 

 

203

 

 

 

—

 

 

$

8,174

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

12

 

 

 

119

 

 

 

—

 

 

 

6

 

 

 

2

 

 

 

—

 

 

 

139

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Other Consumer

 

$

1,221

 

 

$

1,054

 

 

$

996

 

 

$

2,553

 

 

$

2,284

 

 

$

205

 

 

$

—

 

 

$

8,313

 

Current year-to-date gross write-offs

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

Land Development and SIDs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

150

 

 

 

1,495

 

 

 

950

 

 

 

1,136

 

 

 

4,536

 

 

 

5,054

 

 

 

—

 

 

$

13,321

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Land Development and SIDs

 

$

150

 

 

$

1,495

 

 

$

950

 

 

$

1,136

 

 

$

4,536

 

 

$

5,054

 

 

$

—

 

 

$

13,321

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans

 

$

37,392

 

 

$

82,421

 

 

$

53,392

 

 

$

33,618

 

 

$

52,802

 

 

$

144,733

 

 

$

42,155

 

 

$

446,513

 

 

 

 

As of March 31, 2026

 

 

 

Term Loans by Origination Year (Fiscal Year)

 

 

Revolving

 

 

 

 

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Loans

 

 

Total

 

 

 

(Dollars in thousands)

 

Real Estate - Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

13,177

 

 

$

11,698

 

 

$

2,242

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,516

 

 

$

28,633

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate - Construction

 

$

13,177

 

 

$

11,698

 

 

$

2,242

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,516

 

 

$

28,633

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Real Estate - Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

18,117

 

 

 

17,226

 

 

 

13,026

 

 

 

25,608

 

 

 

24,682

 

 

 

28,077

 

 

 

30

 

 

$

126,766

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

382

 

 

 

—

 

 

 

—

 

 

 

2,087

 

 

 

—

 

 

 

2,469

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate - Commercial

 

$

18,117

 

 

$

17,226

 

 

$

13,408

 

 

$

25,608

 

 

$

24,682

 

 

$

30,164

 

 

$

30

 

 

$

129,235

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Real Estate - Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

22,592

 

 

 

15,237

 

 

 

12,185

 

 

 

19,644

 

 

 

42,437

 

 

 

39,282

 

 

 

10,297

 

 

$

161,674

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75

 

 

 

19

 

 

 

273

 

 

 

—

 

 

 

367

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Real Estate - Residential

 

$

22,592

 

 

$

15,237

 

 

$

12,185

 

 

$

19,719

 

 

$

42,456

 

 

$

39,555

 

 

$

10,297

 

 

$

162,041

 

Current year-to-date gross write-offs

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Commercial - Non-Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

24,366

 

 

 

5,590

 

 

 

3,492

 

 

 

1,469

 

 

 

1,404

 

 

 

5,124

 

 

 

6,151

 

 

$

47,596

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

127

 

 

 

—

 

 

 

—

 

 

 

109

 

 

 

—

 

 

 

216

 

 

 

330

 

 

 

782

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Commercial - Non-Real Estate

 

$

24,493

 

 

$

5,590

 

 

$

3,492

 

 

$

1,578

 

 

$

1,404

 

 

$

5,340

 

 

$

6,481

 

 

$

48,378

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

16,708

 

 

 

13,705

 

 

 

1,286

 

 

 

2,692

 

 

 

1,747

 

 

 

2,594

 

 

 

13,245

 

 

$

51,977

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

868

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,810

 

 

 

2,678

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total - Agricultural

 

$

17,576

 

 

$

13,705

 

 

$

1,286

 

 

$

2,692

 

 

$

1,747

 

 

$

2,594

 

 

$

15,055

 

 

$

54,655

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,826

 

 

 

1,416

 

 

 

3,188

 

 

 

3,031

 

 

 

109

 

 

 

478

 

 

 

—

 

 

$

10,048

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

14

 

 

 

43

 

 

 

42

 

 

 

7

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

110

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Other Consumer

 

$

1,840

 

 

$

1,459

 

 

$

3,230

 

 

$

3,038

 

 

$

113

 

 

$

478

 

 

$

—

 

 

$

10,158

 

Current year-to-date gross write-offs

 

 

17

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17

 

Land Development and SIDs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,981

 

 

 

926

 

 

 

1,137

 

 

 

5,308

 

 

 

5,068

 

 

 

886

 

 

 

—

 

 

$

15,306

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Land Development and SIDs

 

$

1,981

 

 

$

926

 

 

$

1,137

 

 

$

5,308

 

 

$

5,068

 

 

$

886

 

 

$

—

 

 

$

15,306

 

Current year-to-date gross write-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans

 

$

99,776

 

 

$

65,841

 

 

$

36,980

 

 

$

57,943

 

 

$

75,470

 

 

$

79,017

 

 

$

33,379

 

 

$

448,406

 

 

Nonperforming and Past-Due Loans—All loans in the Association’s portfolio are considered past due if the required principal and interest payments have not been received as of the date such payments were due.

The following table presents certain information with respect to loans on nonaccrual status as of and for the six months ended September 30, 2026 and March 31, 2026:

 

 

 

Nonaccrual

 

 

Nonaccrual with no

 

 

Nonaccrual with

 

 

Interest Income

 

 

 

loans at

 

 

Allowance for Credit

 

 

Allowance for Credit

 

 

Recognized During

 

 

 

September 30, 2026

 

 

Loss

 

 

Loss

 

 

the Period

 

September 30, 2026

 

 

 

Real Estate - Residential

 

$

347

 

 

$

347

 

 

$

—

 

 

$

—

 

Commercial Non-Real Estate

 

 

357

 

 

 

127

 

 

 

230

 

 

 

—

 

Other Consumer

 

 

42

 

 

 

42

 

 

 

—

 

 

 

—

 

Total

 

$

746

 

 

$

516

 

 

$

230

 

 

$

—

 

 

 

 

Nonaccrual loans

 

 

Nonaccrual with no

 

 

Nonaccrual with

 

 

Interest Income

 

 

 

at March 31,

 

 

Allowance for Credit

 

 

Allowance for Credit

 

 

Recognized During

 

 

 

2026

 

 

Loss

 

 

Loss

 

 

the Period

 

March 31, 2026

 

 

 

Real Estate - Residential

 

$

9

 

 

$

9

 

 

$

—

 

 

$

1

 

Agricultural

 

 

1,632

 

 

 

1,632

 

 

 

—

 

 

 

—

 

Total

 

$

1,641

 

 

$

1,641

 

 

$

—

 

 

$

1

 

 

The following is an aging analysis of the contractually past due loans as of September 30, 2026 and March 31, 2026:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Past

 

 

 

 

 

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

 

 

 

Due 90 Days

 

 

 

30–59 Days

 

 

60–89 Days

 

 

89 Days

 

 

Total

 

 

 

 

 

 

 

 

or More Still

 

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Current

 

 

Total

 

 

Accruing

 

September 30, 2026

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

16,359

 

 

$

16,359

 

 

$

—

 

Real Estate - Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

140,604

 

 

 

140,604

 

 

 

—

 

Real Estate - Residential

 

 

76

 

 

 

66

 

 

 

387

 

 

 

529

 

 

 

153,621

 

 

 

154,150

 

 

 

387

 

Commercial Non-Real Estate

 

 

200

 

 

 

29

 

 

 

230

 

 

 

459

 

 

 

40,618

 

 

 

41,077

 

 

 

—

 

Agricultural

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

72,689

 

 

 

72,689

 

 

 

—

 

Other Consumer

 

 

68

 

 

 

134

 

 

 

187

 

 

 

389

 

 

 

7,924

 

 

 

8,313

 

 

 

145

 

Land Development and SIDs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,321

 

 

 

13,321

 

 

 

—

 

Total

 

$

344

 

 

$

229

 

 

$

804

 

 

$

1,377

 

 

$

445,136

 

 

$

446,513

 

 

$

532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Past

 

 

 

 

 

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

 

 

 

Due 90 Days

 

 

 

30–59 Days

 

 

60–89 Days

 

 

89 Days

 

 

Total

 

 

 

 

 

 

 

 

or More Still

 

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Current

 

 

Total

 

 

Accruing

 

March 31, 2026

 

(Dollars in thousands)

 

Real Estate - Construction

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

28,633

 

 

$

28,633

 

 

$

—

 

Real Estate - Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

129,235

 

 

 

129,235

 

 

 

—

 

Real Estate - Residential

 

 

623

 

 

 

26

 

 

 

96

 

 

 

745

 

 

 

161,296

 

 

 

162,041

 

 

 

96

 

Commercial Non-Real Estate

 

 

235

 

 

 

—

 

 

 

—

 

 

 

235

 

 

 

48,143

 

 

 

48,378

 

 

 

—

 

Agricultural

 

 

1,356

 

 

 

—

 

 

 

—

 

 

 

1,356

 

 

 

53,299

 

 

 

54,655

 

 

 

—

 

Other Consumer

 

 

125

 

 

 

152

 

 

 

138

 

 

 

415

 

 

 

9,743

 

 

 

10,158

 

 

 

138

 

Land Development and SIDs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,306

 

 

 

15,306

 

 

 

—

 

Total

 

$

2,339

 

 

$

178

 

 

$

234

 

 

$

2,751

 

 

$

445,655

 

 

$

448,406

 

 

$

234

 

 

The Association may modify loans to borrowers experiencing financial difficulty by providing modifications to repayment terms; more specifically, modifications to loan interest rates. Management performs an analysis at the time of loan modification. Any reserve required is recorded through a provision to the allowance for credit losses on loans. There were no modifications on loans to borrowers experiencing financial difficulty during the six months ended September 30, 2026 and 2025.