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Loans Held for Investment

3 Months Ended

Sep. 30, 2025

Note 5: Loans Held for Investment

Loans held for investment, net of fair value adjustments, consisted of the following:


	September 30,		June 30,
(In Thousands)	2025		2025
Mortgage loans:
Single-family	$	549,535	$	544,425
Multi-family		415,175		423,417
Commercial real estate		71,010		72,766
Construction		632		402
Other		88		89
Commercial business loans		1,324		1,267
Consumer loans		61		57
Total loans held for investment, gross		1,037,825		1,042,423

Advance payments of escrows		184		293
Deferred loan costs, net		9,547		9,453
ACL on loans		(5,780)		(6,424)
Total loans held for investment, net	$	1,041,776	$	1,045,745

The following table sets forth information at September 30, 2025 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. At both September 30, 2025 and June 30, 2025, fixed rate loans comprised 10 percent of loans held for investment. Adjustable rate loans that reprice when the index they are tied to reprices (e.g. prime rate index) and checking account overdrafts are reported as repricing within one year. The table does not include any estimate of prepayments which may cause the Corporation’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	$	49,724	$	67,637	$	126,886	$	200,335	$	104,953	$	549,535
Multi-family		222,467		122,416		67,216		2,985		91		415,175
Commercial real estate		24,894		34,964		10,782		—		370		71,010
Construction		205		427		—		—		—		632
Other		—		—		—		—		88		88
Commercial business loans		1,226		—		—		—		98		1,324
Consumer loans		61		—		—		—		—		61
Total loans held for investment, gross	$	298,577	$	225,444	$	204,884	$	203,320	$	105,600	$	1,037,825

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


		Owner		Non-Owner			% of Total			Weighted
September 30, 2025		Occupied Loan		Occupied Loan		Total		Commercial		Average
(Dollars in Thousands)	Balance			Balance		Balance	Real Estate			LTV ⁽¹⁾
Office	$	5,481	$	18,208	$	23,689		33	%	40	%
Mixed use⁽²⁾		276		14,261		14,537		20		34	%
Retail		—		8,408		8,408		12		33	%
Warehouse		1,322		7,809		9,131		13		30	%
Medical/dental office		2,499		4,287		6,786		10		42	%
Mobile home park		—		6,720		6,720		9		37	%
Restaurant/fast food		678		492		1,170		2		46	%
Automotive - non gasoline		—		569		569		1		26	%
Total commercial real estate	$	10,256	$	60,754	$	71,010		100	%	36	%

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

(2)	Mixed use includes $6.4 million in Office/Retail, $5.8 million in Multi-family/Retail, $1.6 million in Other Mixed Use and $736,000 in Multi-family/Commercial.


		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	%
Retail		—		8,001		8,001		11		31	%
Warehouse		1,332		7,869		9,201		13		30	%
Mobile home park		—		6,761		6,761		9		37	%
Medical/dental office		2,511		4,377		6,888		9		43	%
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, $739,000 in Multi-family/Commercial and $559,000 in Multi-family/Office..

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


	Inland				Southern				Other
September 30, 2025	Empire⁽¹⁾				California⁽²⁾				California				Total
(Dollars in Thousands)	Balance		%		Balance		%		Balance		%		Balance		%
Owner occupied:
Office	$	474	9	%	$	4,825	88	%	$	182	3	%	$	5,481	100	%
Mixed use		—	—	%		—	—	%		276	100	%		276	100	%
Warehouse		—	—	%		952	72	%		370	28	%		1,322	100	%
Medical/dental office		269	11	%		2,230	89	%		—	—	%		2,499	100	%
Restaurant/fast food		—	—	%		678	100	%		—	—	%		678	100	%
Total owner occupied		743	7	%		8,685	85	%		828	8	%		10,256	100	%

Non-owner occupied:
Office		3,810	21	%		11,857	65	%		2,541	14	%		18,208	100	%
Mixed use		446	3	%		6,259	44	%		7,556	53	%		14,261	100	%
Retail		1,020	12	%		3,764	45	%		3,624	43	%		8,408	100	%
Warehouse		1,055	13	%		3,953	51	%		2,801	36	%		7,809	100	%
Mobile home park		4,724	70	%		350	5	%		1,646	25	%		6,720	100	%
Medical/dental office		1,675	39	%		1,947	45	%		665	16	%		4,287	100	%
Restaurant/fast food		—	—	%		492	100	%		—	—	%		492	100	%
Automotive - non gasoline		—	—	%		569	100	%		—	—	%		569	100	%
Total non-owner occupied		12,730	21	%		29,191	48	%		18,833	31	%		60,754	100	%

Total commercial real estate	$	13,473	19	%	$	37,876	53	%	$	19,661	28	%	$	71,010	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 continually 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 adopted an internal risk rating policy 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 and/or of the collateral pledged, if any. Such loans exhibit one or more well-defined weaknesses that 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 September 30, 2025:


September 30, 2025	Term Loans by Year of Origination												Revolving
(In Thousands)	2025		2024		2023		2022		2021		Prior		Loans		Total
Mortgage loans:
Single-family:
Pass	$	58,360	$	50,919	$	49,434	$	192,418	$	139,406	$	57,691	$	-	$	548,228
Special Mention		-		-		762		-		-		-		-		762
Substandard		-		-		-		-		-		545		-		545
Total single-family		58,360		50,919		50,196		192,418		139,406		58,236		-		549,535
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Multi-family:
Pass		21,882		21,622		23,332		71,408		82,724		189,470		-		410,438
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		1,832		857		464		1,584		-		4,737
Total multi-family		21,882		21,622		25,164		72,265		83,188		191,054		-		415,175
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial real estate:
Pass		4,144		5,068		12,470		22,609		3,857		21,862		-		70,010
Special Mention		-		-		-		-		-		1,000		-		1,000
Substandard		-		-		-		-		-		-		-		-
Total commercial real estate		4,144		5,068		12,470		22,609		3,857		22,862		-		71,010
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction:
Pass		426		206		-		-		-		-		-		632
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction		426		206		-		-		-		-		-		632
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Other:
Pass		-		-		-		-		-		88		-		88
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total other		-		-		-		-		-		88		-		88
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial business loans:
Pass		-		-		-		-		-		-		1,324		1,324
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total commercial business loans		-		-		-		-		-		-		1,324		1,324
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans:
Not graded		20		-		-		-		-		-		-		20
Pass		-		-		-		-		-		-		41		41
Special Mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total consumer loans		20		-		-		-		-		-		41		61
Current period gross charge-off	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total loans held for investment, gross	$	84,832	$	77,815	$	87,830	$	287,292	$	226,451	$	272,240	$	1,365	$	1,037,825
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 recognized through an adjustment to the provision for (or recovery of) credit losses. Management estimates the quantitative portion of the collectively evaluated allowance for all loan categories using an average charge-off or loss rate methodology, 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 loss experience and, where appropriate, incorporate peer loss history to supplement its data set.

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 ASC 326 and as of September 30, 2025 and June 30, 2025, is based on reasonable and supportable 12-month forecasts of the National Unemployment Rate and the 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 risk of loss in the loan portfolio beyond what is captured in the quantitative portion of the 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 for collectively evaluated loans is determined based on management’s judgment in assessing the risk levels associated with each of the Q-factors presented above. The amount of qualitative allowance reflects management’s evaluation of the relative weighting assigned to each Q-factor and its estimated impact on credit losses.

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.

Accrued interest receivable for loans is included in accrued interest receivable in the Condensed 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 the modifications noted above. During the quarter ended September 30, 2025 and the fiscal year ended June 30, 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-off to their fair market values 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, 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 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 segregated into: (a) individually evaluated allowances for those loans with applicable discounted cash flow calculations still in their modification period, classified lower than pass, and containing 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 derived based on the loan's discounted cash flow fair value (for modified loans) or collateral fair value less estimated selling costs and if the fair value is higher than the loan balance, no allowance is required. 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 (generally six consecutive payments) and future monthly principal and interest payments are expected to be collected on a timely basis.

The following table discloses additional details for the periods indicated on the Corporation’s ACL on loans held for investment:


	For the Quarter Ended
	September 30,
(Dollars in Thousands)	2025			2024

ACL, beginning of period	$	6,424		$	7,065

Recovery of credit losses		(644)			(736)

Total recoveries		—			—

Total charge-offs		—			—

Net recoveries (charge-offs)		—			—
ACL, end of period	$	5,780		$	6,329

ACL on loans as a percentage of gross loans held for investment		0.56	%		0.61	%
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized)		—	%		—	%
ACL on loans as a percentage of gross non-performing loans at the end of the period		305.50	%		297.00	%

The following tables denote the past due status of the Corporation's loans held for investment, including interest applied to principal, at the dates indicated.


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

Mortgage loans:
Single-family	$	548,990	$	—	$	545	$	549,535
Multi-family		413,855		—		1,320		415,175
Commercial real estate		71,010		—		—		71,010
Construction		632		—		—		632
Other		88		—		—		88
Commercial business loans		1,324		—		—		1,324
Consumer loans		61		—		—		61
Total loans held for investment	$	1,035,960	$	—	$	1,865	$	1,037,825

(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

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	$	1,041,026	$	2	$	1,395	$	1,042,423

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

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


	Quarter Ended September 30, 2025
	Single-			Multi-			Commercial									Commercial
(Dollars In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
ACL:
ACL, beginning of period	$	5,734		$	615		$	55		$	12		$	2		$	6		$	—		$	6,424
Recovery of credit losses		(608)			(31)			(2)			—			(1)			(2)			—			(644)
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	5,126		$	584		$	53		$	12		$	1		$	4		$	—		$	5,780

ACL:
Individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for impairment		5,126			584			53			12			1			4			—			5,780
ACL, end of period	$	5,126		$	584		$	53		$	12		$	1		$	4		$	—		$	5,780

Loans held for investment:
Individually evaluated for impairment	$	189		$	1,320		$	—		$	—		$	—		$	—		$	—		$	1,509
Collectively evaluated for impairment		549,346			413,855			71,010			632			88			1,324			61			1,036,316
Total loans held for investment, gross	$	549,535		$	415,175		$	71,010		$	632		$	88		$	1,324		$	61		$	1,037,825
ACL on loans as a percentage of gross loans held for investment		0.93	%		0.14	%		0.07	%		1.90	%		1.14	%		0.30	%		—	%		0.56	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%


	Quarter Ended September 30, 2024
	Single-			Multi-			Commercial									Commercial
(Dollars In Thousands)	family			family			Real Estate			Construction				Other		Business			Consumer			Total
ACL:
ACL, beginning of period	$	6,295		$	595		$	66		$	97		$	1		$	11		$	—		$	7,065
Recovery of credit losses		(616)			(92)			(8)			(19)			—			(1)			—			(736)
Recoveries		—			—			—			—			—			—			—			—
Charge-offs		—			—			—			—			—			—			—			—
ACL, end of period	$	5,679		$	503		$	58		$	78		$	1		$	10		$	—		$	6,329

ACL:
Individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for impairment		5,679			503			58			78			1			10			—			6,329
ACL, end of period	$	5,679		$	503		$	58		$	78		$	1		$	10		$	—		$	6,329

Loans held for investment:
Individually evaluated for impairment	$	732		$	—		$	—		$	—		$	—		$	—		$	—		$	732
Collectively evaluated for impairment		523,503			435,782			81,169			2,816			92			1,510			63			1,044,935
Total loans held for investment, gross	$	524,235		$	435,782		$	81,169		$	2,816		$	92		$	1,510		$	63		$	1,045,667
ACL on loans as a percentage of gross loans held for investment		1.08	%		0.12	%		0.07	%		2.77	%		1.09	%		0.66	%		—	%		0.61	%
Net (recoveries) charge-offs to average loans receivable, net during the period		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%

The following tables identify the Corporation’s total recorded investment in non-performing loans, gross 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 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. 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 (generally six consecutive payments) and future monthly principal and interest payments are expected to be collected on a timely basis. Loans with a related allowance have been (a) collectively evaluated using a pooling method analysis or (b) individually evaluated using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell, to establish realizable value. This analysis may identify a specific allowance amount needed or may conclude that no allowance is needed.


	At September 30, 2025
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		ACL⁽¹⁾		Investment

Mortgage loans:
Single-family:
With a related allowance	$	383	$	—	$	383	$	(4)	$	379
Without a related allowance⁽²⁾		214		(25)		189		—		189
Total single-family loans		597		(25)		572		(4)		568

Multi-family:
Without a related allowance⁽²⁾		1,320		—		1,320		—		1,320
Total multi-family loans		1,320		—		1,320		—		1,320

Total non-performing loans	$	1,917	$	(25)	$	1,892	$	(4)	$	1,888

(1)	ACL, specifically assigned to the individual loan.

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


	At June 30, 2025
	Unpaid		Related						Net
	Principal		Charge-offs		Recorded				Recorded
(In Thousands)	Balance		Related		Investment		ACL⁽¹⁾		Investment

Mortgage loans:
Single-family:
With a related allowance	$	560	$	—	$	560	$	(7)	$	553
Without a related allowance⁽²⁾		420		(25)		395		—		395
Total single-family loans		980		(25)		955		(7)		948

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

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

(1)	ACL specifically assigned to the individual loan.

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

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

For the quarters ended September 30, 2025 and 2024, the Corporation’s average recorded investment in non-performing loans was $1.4 million and $2.4 million, respectively. The Corporation records payments on non-performing loans utilizing the cash basis or cost recovery method of accounting during the periods when the loans are on non-performing status. For the quarters ended September 30, 2025 and 2024, the Bank received $24,000 and $39,000, respectively, in interest payments from non-performing loans, all of which was recognized as interest income for those periods. None of these payments were applied to reduce the loan balances under the cost recovery method.

The following tables present the average recorded investment in non-performing loans and the related interest income recognized for the quarters ended September 30, 2025 and 2024:


		Quarter Ended September 30,
	2025				2024
		Average	Interest		Average		Interest
		Recorded	Income		Recorded		Income
(In Thousands)		Investment	Recognized		Investment		Recognized
Without related ACL:
Mortgage loans:
Single-family	$	195	$	9	$	843	$	5
Multi-family		750		8		—		—
		945		17		843		5

With related ACL:
Mortgage loans:
Single-family		504		7		1,582		34
		504		7		1,582		34

Total	$	1,449	$	24	$	2,425	$	39

During the quarters ended September 30, 2025 and 2024, no properties were acquired in the settlement of loans and no previously foreclosed properties were sold. A new appraisal is obtained for each property at the time of foreclosure, and fair value is derived by using the lower of the appraised value or the listing price of the property, net of estimated selling costs. Any initial loss upon repossession is recorded as a charge to the ACL prior to transferring the asset to real estate owned. Subsequent to transfer to real estate owned, if there is further deterioration in the property’s value, specific real estate owned loss reserves are established and charged to the Condensed Consolidated Statements of Operations. In addition, the Corporation records costs to carry real estate owned as real estate owned operating expenses as incurred. As of both September 30, 2025 and June 30, 2025, the Corporation held no real estate owned property.

The Bank adjusts the reserve for unfunded loan commitments through the provision for (recovery of) credit losses.

The following table provides information regarding the unfunded loan commitment reserve for the quarters ended September 30, 2025 and 2024.


	For the Quarter Ended
	September 30,
(In Thousands)	2025		2024
Balance, beginning of the period	$	32	$	57
Provision for credit losses		18		39
Balance, end of the period	$	50	$	96

The method for calculating the unfunded loan commitment reserve is based on a historical funding rate applied to the undisbursed loan amount to estimate an average outstanding amount during the life of the loan commitment. The Corporation applies the same assumptions and methodologies by loan groupings to these unfunded loan commitments as it does for its funded loans held for investment to determine the reserve rate and the allowance. Assumptions are evaluated by management periodically as part of its procedures. The unfunded loan commitment reserve is recorded in accounts payable, accrued interest and other liabilities on the Condensed Consolidated Statements of Financial Condition.