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Loans and Allowance for Credit Losses

3 Months Ended

Sep. 30, 2025

Loans and Allowance for Credit Losses

Note 4: Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:


(dollars in thousands)	September 30, 2025		June 30, 2025

1-4 Family residential real estate	$	1,021,300	$	992,445
Non-owner occupied commercial real estate		918,275		888,317
Owner occupied commercial real estate		454,265		442,984
Multi-family real estate		445,953		422,758
Construction and land development		283,912		332,405
Agriculture real estate		255,610		244,983
Total loans secured by real estate		3,379,315		3,323,892

Commercial and industrial		521,945		510,259
Agriculture production		229,338		206,128
Consumer		56,051		55,387
All other loans		5,094		5,102
Gross loans		4,191,743		4,100,768

Deferred loan fees, net		—		(178)
Allowance for credit losses		(52,081)		(51,629)
Net loans	$	4,139,662	$	4,048,961

The Company’s lending activities consist of originating loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At September 30, 2025, the Bank had purchased participations in 70 loans totaling $155.3 million, as compared to 71 loans totaling $188.0 million at June 30, 2025.

1-4 Family Residential Real Estate Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (ARM) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are generally issued up to 90% of the appraised or estimated value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

Non-Owner Occupied and Owner Occupied Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area; however, the property may be located outside the Company’s primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally.

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property.

Multi-Family Real Estate Lending. The Company originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the Company’s primary market area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand and supply, rental rates, and vacancies, as well as collateral values and borrower leverage.

Construction and Land Development Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction and land development loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multi-family or commercial construction loans typically mature in 12 to 36 months. Once construction is completed, construction loans may be converted to permanent financing with monthly payments using amortization schedules of up to 30 years on residential and generally up to 25

years on commercial real estate. Construction and land development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further provide the Company an opportunity to assess risk.

Agriculture Production and Agriculture Real Estate Lending. Agriculture production and agriculture real estate loans are generally comprised of seasonal operating lines to farmers to plant crops and term loans to fund the purchase of equipment, farmland, or livestock. Agricultural real estate loans generally include loans secured by row crop ground, pasture, and forestry. The Company originates substantially all agriculture production and agriculture real estate lending to borrowers headquartered in the Company’s primary lending area. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Agriculture production operating lines are typically written for one year and secured by the crop. Agricultural real estate terms offered usually have amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Risks to agricultural lending include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland and farm equipment values.

Commercial and Industrial Lending. The Company’s commercial and industrial lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit. The Company offers both fixed and adjustable rate commercial and industrial loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years. Commercial and industrial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally.

Consumer Lending. The Company offers a variety of secured consumer loans, direct and indirect automobile loans, recreational vehicle loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to 66 months.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. Typically, automobile loans are made for terms of up to 66 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

Allowance for Credit Losses. The ACL represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses (PCL) is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate ACL. In determining the adequacy of the ACL, and therefore the provision to be charged to current earnings, the Company relies primarily on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in developing assumptions for the allowance include historical net credit losses, the level and composition of nonaccrual, past due and modified loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting

standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates.

Individually Evaluated Loans. The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified through the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. The reviews use one of the three following alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral values are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. The ACL for individually evaluated loans totaled $6.3 million and $8.2 million at September 30, 2025, and June 30, 2025, respectively.

Non-Individually Evaluated (Pooled) Loans. Non-individually evaluated (pooled) loans comprise the majority of the Company’s total loan portfolio and include loans that were not individually evaluated. The Company primarily utilizes the discounted cash flow (DCF) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal, the Company utilizes the remaining life method. The DCF model implements probability of default (PD) and loss given default (LGD) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. The ACL for non-individually evaluated (pooled) loans totaled $45.8 million and $43.4 million at September 30, 2025, and June 30, 2025, respectively.

Qualitative factors. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.

PCD Loans. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses.

The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s ACL recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (non-PCD) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans.

The following tables present the balance in the ACL based on portfolio segment as of September 30, 2025, and 2024, and activity in the ACL for the three-month periods ended September 30, 2025, and 2024:


	At period end and for the three months ended September 30, 2025
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,274	$	1,310	$	(150)	$	—	$	11,434
Non-owner occupied commercial real estate		12,241		1,148		(2,875)		—		10,514
Owner occupied commercial real estate		4,521		(189)		—		—		4,332
Multi-family real estate		4,329		(350)		—		—		3,979
Construction and land development		4,788		(154)		(161)		—		4,473
Agriculture real estate		4,194		568		—		—		4,762
Commercial and industrial		6,952		1,190		(341)		32		7,833
Agriculture production		3,374		221		(53)		66		3,608
Consumer		952		399		(291)		84		1,144
All other loans		4		(2)		—		—		2
Total	$	51,629	$	4,141	$	(3,871)	$	182	$	52,081


	At period end and for the three months ended September 30, 2024
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,528	$	157	$	(48)	$	—	$	10,637
Non-owner occupied commercial real estate		19,055		1,673		—		—		20,728
Owner occupied commercial real estate		4,815		(1)		—		—		4,814
Multi-family real estate		5,447		(376)		—		47		5,118
Construction and land development		2,901		774		—		—		3,675
Agriculture real estate		2,107		(80)		—		—		2,027
Commercial and industrial		6,233		(85)		(39)		5		6,114
Agriculture production		835		(51)		—		—		784
Consumer		578		13		(72)		7		526
All other loans		17		(3)		—		—		14
Total	$	52,516	$	2,021	$	(159)	$	59	$	54,437

The following tables present the balance in the allowance for off-balance sheet credit exposure based on portfolio segment as of September 30, 2025, and 2024, and activity in the allowance for the three-month periods ended September 30, 2025, and 2024:


	At period end and for the three months ended September 30, 2025
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	202	$	(20)	$	182
Non-owner occupied commercial real estate		134		26		160
Owner occupied commercial real estate		161		(28)		133
Multi-family real estate		—		63		63
Construction and land development		2,279		575		2,854
Agriculture real estate		81		10		91
Commercial and industrial		1,074		(270)		804
Agriculture production		—		—		—
Consumer		—		3		3
All other loans		8		—		8
Total	$	3,939	$	359	$	4,298


	At period end and for the three months ended September 30, 2024
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	140	$	30	$	170
Non-owner occupied commercial real estate		153		22		175
Owner occupied commercial real estate		136		(14)		122
Multi-family real estate		31		3		34
Construction and land development		1,912		88		2,000
Agriculture real estate		60		(8)		52
Commercial and industrial		782		20		802
Agriculture production		37		(3)		34
Consumer		12		—		12
All other loans		—		—		—
Total	$	3,263	$	138	$	3,401

The following tables present year-to-date gross charge-offs by loan class and year of origination for the three-month periods ended September 30, 2025, and 2024:


													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
September 30, 2025
1-4 Family residential real estate	$	—	$	—	$	143	$	—	$	7	$	—	$	—	$	150
Non-owner occupied commercial real estate		—		—		—		2,800		75		—		—		2,875
Construction and land development		—		—		—		—		—		161		—		161
Commercial and industrial		—		188		76		10		67		—		—		341
Agriculture production		—		—		—		33		20		—		—		53
Consumer		164		62		30		20		14		1		—		291
Total gross charge-offs	$	164	$	250	$	249	$	2,863	$	183	$	162	$	—	$	3,871


													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
September 30, 2024
1-4 Family residential real estate	$	—	$	—	$	—	$	—	$	—	$	48	$	—	$	48
Commercial and industrial		—		—		28		—		—		11		—		39
Consumer		—		37		21		11		3		—		—		72
Total gross charge-offs	$	—	$	37	$	49	$	11	$	3	$	59	$	—	$	159

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant 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 as to credit risk. This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. A sample of lending relationships are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring. Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days. This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding. These loans may exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and fiscal year of origination as of September 30, 2025. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:


													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
1-4 Family residential real estate
Pass	$	74,065	$	184,390	$	103,355	$	128,831	$	162,207	$	245,297	$	116,461	$	1,014,606
Watch		—		546		167		499		335		581		11		2,139
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		242		366		883		2,774		290		4,555
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	74,065	$	184,936	$	103,764	$	129,696	$	163,425	$	248,652	$	116,762	$	1,021,300

Non-owner occupied commercial real estate
Pass	$	93,393	$	120,755	$	74,178	$	191,548	$	254,409	$	127,253	$	8,230	$	869,766
Watch		—		—		1,770		14,998		196		—		—		16,964
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		3,560		—		1,696		26,289		—		—		31,545
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	93,393	$	124,315	$	75,948	$	208,242	$	280,894	$	127,253	$	8,230	$	918,275

Owner occupied commercial real estate
Pass	$	48,019	$	65,628	$	59,711	$	79,600	$	70,811	$	101,884	$	20,765	$	446,418
Watch		124		1,062		2,033		286		810		72		400		4,787
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		850		870		886		437		17		3,060
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	48,143	$	66,690	$	62,594	$	80,756	$	72,507	$	102,393	$	21,182	$	454,265

Multi-family real estate
Pass	$	10,960	$	79,601	$	18,140	$	191,878	$	68,667	$	66,611	$	7,171	$	443,028
Watch		—		1,562		—		—		1,363		—		—		2,925
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	10,960	$	81,163	$	18,140	$	191,878	$	70,030	$	66,611	$	7,171	$	445,953

Construction and land development
Pass	$	36,415	$	143,752	$	26,734	$	60,914	$	4,696	$	2,855	$	2,051	$	277,417
Watch		—		—		—		191		—		61		—		252
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		5,743		—		—		500		—		6,243
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	36,415	$	143,752	$	32,477	$	61,105	$	4,696	$	3,416	$	2,051	$	283,912

Agriculture real estate
Pass	$	19,175	$	52,788	$	22,666	$	33,605	$	37,830	$	44,256	$	19,376	$	229,696
Watch		4,903		3,985		1,499		2,082		5,413		4,043		132		22,057
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		44		1,438		257		1,351		767		—		3,857
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	24,078	$	56,817	$	25,603	$	35,944	$	44,594	$	49,066	$	19,508	$	255,610

Commercial and industrial
Pass	$	88,117	$	127,978	$	29,906	$	18,833	$	28,593	$	18,958	$	188,196	$	500,581

Watch		723		2,922		4,496		2,277		—		212		5,159		15,789
Special Mention		—		—		—		—		—		—		—		—
Substandard		73		2,790		67		175		897		332		638		4,972
Doubtful		603		—		—		—		—		—		—		603
Total Commercial and industrial	$	89,516	$	133,690	$	34,469	$	21,285	$	29,490	$	19,502	$	193,993	$	521,945

Agriculture production
Pass	$	9,339	$	45,157	$	11,771	$	5,073	$	1,711	$	3,927	$	132,475	$	209,453
Watch		3,681		1,517		871		—		83		—		13,558		19,710
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		26		49		81		8		11		—		175
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	13,020	$	46,700	$	12,691	$	5,154	$	1,802	$	3,938	$	146,033	$	229,338

Consumer
Pass	$	9,800	$	24,393	$	9,402	$	6,866	$	2,558	$	1,512	$	1,474	$	56,005
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		33		—		13		—		—		—		46
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	9,800	$	24,426	$	9,402	$	6,879	$	2,558	$	1,512	$	1,474	$	56,051

All other loans
Pass	$	259	$	2,379	$	856	$	183	$	41	$	1,376	$	—	$	5,094
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	259	$	2,379	$	856	$	183	$	41	$	1,376	$	—	$	5,094

Total Loans
Pass	$	389,542	$	846,821	$	356,719	$	717,331	$	631,523	$	613,929	$	496,199	$	4,052,064
Watch		9,431		11,594		10,836		20,333		8,200		4,969		19,260		84,623
Special Mention		—		—		—		—		—		—		—		—
Substandard		73		6,453		8,389		3,458		30,314		4,821		945		54,453
Doubtful		603		—		—		—		—		—		—		603
Total	$	399,649	$	864,868	$	375,944	$	741,122	$	670,037	$	623,719	$	516,404	$	4,191,743

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and fiscal year of origination as of June 30, 2025. This table includes PCD loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification:


													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
1-4 Family residential real estate
Pass	$	204,048	$	110,823	$	133,616	$	167,711	$	126,851	$	132,126	$	112,346	$	987,521
Watch		620		261		376		360		277		250		—		2,144
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		734		190		346		33		1,359		118		2,780
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	204,668	$	111,818	$	134,182	$	168,417	$	127,161	$	133,735	$	112,464	$	992,445

Non-owner occupied commercial real estate
Pass	$	115,266	$	82,983	$	213,647	$	273,348	$	76,522	$	70,869	$	7,570	$	840,205
Watch		—		1,770		15,146		213		—		—		—		17,129
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		64		4,490		26,429		—		—		—		30,983
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	115,266	$	84,817	$	233,283	$	299,990	$	76,522	$	70,869	$	7,570	$	888,317

Owner occupied commercial real estate
Pass	$	72,469	$	57,047	$	87,899	$	79,946	$	73,291	$	43,764	$	21,206	$	435,622
Watch		1,440		2,234		287		83		—		73		—		4,117
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		868		969		901		71		436		—		3,245

Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	73,909	$	60,149	$	89,155	$	80,930	$	73,362	$	44,273	$	21,206	$	442,984

Multi-family real estate
Pass	$	79,658	$	19,078	$	179,905	$	69,862	$	56,328	$	13,577	$	1,402	$	419,810
Watch		1,571		—		—		1,377		—		—		—		2,948
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	81,229	$	19,078	$	179,905	$	71,239	$	56,328	$	13,577	$	1,402	$	422,758

Construction and land development
Pass	$	161,995	$	32,148	$	117,395	$	9,144	$	1,829	$	1,396	$	2,020	$	325,927
Watch		—		—		—		—		—		63		—		63
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		5,743		—		—		—		672		—		6,415
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	161,995	$	37,891	$	117,395	$	9,144	$	1,829	$	2,131	$	2,020	$	332,405

Agriculture real estate
Pass	$	56,350	$	24,526	$	36,351	$	40,456	$	37,094	$	11,570	$	18,747	$	225,094
Watch		3,883		1,092		2,145		5,603		4,043		—		475		17,241
Special Mention		—		—		—		—		—		—		—		—
Substandard		35		2,206		257		150		—		—		—		2,648
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	60,268	$	27,824	$	38,753	$	46,209	$	41,137	$	11,570	$	19,222	$	244,983

Commercial and industrial
Pass	$	169,734	$	38,321	$	36,459	$	31,607	$	16,918	$	6,016	$	192,310	$	491,365
Watch		3,966		4,565		2,453		—		250		13		4,437		15,684
Special Mention		—		—		—		—		—		—		—		—
Substandard		753		111		165		935		53		239		954		3,210
Doubtful		—		—		—		—		—		—		—		—
Total Commercial and industrial	$	174,453	$	42,997	$	39,077	$	32,542	$	17,221	$	6,268	$	197,701	$	510,259

Agriculture production
Pass	$	43,446	$	13,230	$	5,631	$	1,910	$	4,363	$	302	$	119,345	$	188,227
Watch		3,319		888		—		83		—		—		13,357		17,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		26		127		81		8		—		12		—		254
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	46,791	$	14,245	$	5,712	$	2,001	$	4,363	$	314	$	132,702	$	206,128

Consumer
Pass	$	29,912	$	11,264	$	8,330	$	3,189	$	938	$	172	$	1,483	$	55,288
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		50		20		12		17		—		—		—		99
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	29,962	$	11,284	$	8,342	$	3,206	$	938	$	172	$	1,483	$	55,387

All other loans
Pass	$	2,334	$	869	$	245	$	82	$	132	$	1,440	$	—	$	5,102
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	2,334	$	869	$	245	$	82	$	132	$	1,440	$	—	$	5,102

Total Loans
Pass	$	935,212	$	390,289	$	819,478	$	677,255	$	394,266	$	281,232	$	476,429	$	3,974,161
Watch		14,799		10,810		20,407		7,719		4,570		399		18,269		76,973
Special Mention		—		—		—		—		—		—		—		—
Substandard		864		9,873		6,164		28,786		157		2,718		1,072		49,634
Doubtful		—		—		—		—		—		—		—		—
Total	$	950,875	$	410,972	$	846,049	$	713,760	$	398,993	$	284,349	$	495,770	$	4,100,768

Past-due Loans. The following tables present the Company’s loan portfolio aging analysis as of September 30, 2025, and June 30, 2025. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:


	September 30, 2025
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 Family residential real estate	$	1,295	$	1,275	$	4,145	$	6,715	$	1,014,585	$	1,021,300	$	—
Non-owner occupied commercial real estate		4,390		—		2,836		7,226		911,049		918,275		—
Owner occupied commercial real estate		623		—		43		666		453,599		454,265		—
Multi-family real estate		—		—		—		—		445,953		445,953		—
Construction and land development		34		—		5,893		5,927		277,985		283,912		—
Agriculture real estate		385		294		2,463		3,142		252,468		255,610		—
Commercial and industrial		3,229		482		1,217		4,928		517,017		521,945		—
Agriculture production		16		—		199		215		229,123		229,338		—
Consumer		320		101		38		459		55,592		56,051		—
All other loans		—		—		—		—		5,094		5,094		—
Total loans	$	10,292	$	2,152	$	16,834	$	29,278	$	4,162,465	$	4,191,743	$	—


	June 30, 2025
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 Family residential real estate	$	1,317	$	1,973	$	2,442	$	5,732	$	986,713	$	992,445	$	—
Non-owner occupied commercial real estate		62		—		5,784		5,846		882,471		888,317		—
Owner occupied commercial real estate		—		116		989		1,105		441,879		442,984		—
Multi-family real estate		—		—		—		—		422,758		422,758		—
Construction and land development		315		12		5,743		6,070		326,335		332,405		—
Agriculture real estate		178		11		2,613		2,802		242,181		244,983		—
Commercial and industrial		1,055		219		1,837		3,111		507,148		510,259		—
Agriculture production		163		164		78		405		205,723		206,128		—
Consumer		380		98		74		552		54,835		55,387		—
All other loans		—		—		—		—		5,102		5,102		—
Total loans	$	3,470	$	2,593	$	19,560	$	25,623	$	4,075,145	$	4,100,768	$	—

At September 30, 2025, there were two PCD loans totaling $6.2 million greater than 90 days past due, compared to three PCD loans totaling $6.2 million that were greater than 90 days past due at June 30, 2025.

Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

Collateral Dependent Loans. The following tables present the Company’s collateral dependent loans and related ACL at September 30, 2025, and June 30, 2025:



									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
September 30, 2025	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	2,913	$	—	$	—	$	2,913	$	724
Non-owner occupied commercial real estate		32,327		—		—		32,327		4,234
Owner occupied commercial real estate		3,657		—		468		4,125		240
Multi-family real estate		—		—		—		—		—
Construction and land development		5,743		500		—		6,243		—
Agriculture real estate		2,463		1,210		—		3,673		—
Commercial and industrial		—		—		5,421		5,421		1,120
Agriculture production		—		—		12		12		—
Total loans	$	47,103	$	1,710	$	5,901	$	54,714	$	6,318



									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
June 30, 2025	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	752	$	—	$	—	$	752	$	117
Non-owner occupied commercial real estate		31,764		—		—		31,764		6,456
Owner occupied commercial real estate		811		—		541		1,352		290
Construction and land development		5,743		661		—		6,404		161
Agriculture real estate		1,695		—		—		1,695		—
Commercial and industrial		494		—		3,128		3,622		1,129
Total loans	$	41,259	$	661	$	3,669	$	45,589	$	8,153

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at September 30, 2025, and June 30, 2025. The table excludes performing modifications to borrowers experiencing financial difficulty.



(dollars in thousands)	September 30, 2025		June 30, 2025
1-4 Family residential real estate	$	4,607	$	2,847
Non-owner occupied commercial real estate		6,396		5,784
Owner occupied commercial real estate		394		1,309
Construction and land development		5,928		5,789
Agriculture real estate		2,899		3,268
Commercial and industrial		5,500		3,442
Agriculture production		269		505
Consumer		38		96
Total loans	$	26,031	$	23,040

At September 30, 2025, there were 36 nonaccrual loans totaling $17.9 million, and at June 30, 2025 there were four nonaccrual loans totaling $7.4 million, that were individually evaluated for which no ACL was recorded. The increase in nonperforming loans (NPLs) compared to June 30, 2025, was primarily attributable to one commercial relationship consisting of two loans collateralized by commercial real estate and equipment, as well as three unrelated loans secured by one-to-four family residential properties, all of which were placed on nonaccrual status during the first quarter of fiscal 2026.

Modifications to Borrowers Experiencing Financial Difficulty. During the three-month period ended September 30, 2025, there was one loan modification, totaling $603,000, made to a borrower experiencing financial difficulty. During the three-month period ended September 30, 2024, there were no loan modifications made to borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding at

September 30, 2025 are shown in the following table segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.


	September 30, 2025
					Term		Interest		Total Class of
	Principal		Payment		Extension		Rate		Financing
	Forgiveness		Delays		Modifications		Reduction		Receivable
(dollars in thousands)
1-4 Family residential real estate	$	—	$	—	$	—	$	—	—	%
Non-owner occupied commercial real estate		—		—		—		—	—	%
Owner occupied commercial real estate		—		—		—		—	—	%
Multi-family real estate		—		—		—		—	—	%
Construction and land development		—		—		—		—	—	%
Agriculture real estate		—		—		—		—	—	%
Commercial and industrial		—		603		—		—	0.12	%
Agriculture production		—		—		—		—	—	%
Consumer		—		—		—		—	—	%
All other loans		—		—		—		—	—	%
Total	$	—	$	603	$	—	$	—	0.01	%

The loan modification made during fiscal 2026 was made to delay payments. The modified loan was not past due at September 30, 2025.

Residential Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of September 30, 2025, and June 30, 2025, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $345,000 and $0, respectively. In addition, as of September 30, 2025, and June 30, 2025, the Company had residential mortgage loans and home equity loans with a carrying value of $2.3 million and $769,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.