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Loans

12 Months Ended

Jun. 30, 2025

Loans

Loans

Note 4 - Loans

The Company’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Company has elected to exclude accrued interest receivable, totaling $603,309 and $513,782 at June 30, 2025 and 2024, respectively, from the amortized cost basis of loans.

A summary of loans by major category follows (in thousands):


		June 30, 2025			June 30, 2024
Commercial real estate		$	91,867		$	74,316
Commercial and industrial			3,876			5,158
Construction			733			1,313
One-to-four-family residential			56,330			57,808
Multi-family real estate			47,808			45,088
Consumer			1,957			1,609
Total loans			202,571			185,292
Deferred loan fees			(67)			(47)
Allowance for loan losses			(1,708)			(1,797)
Loans, net		$	200,796		$	183,448

The following tables summarize the activity in the allowance for credit losses - loans by loan class for the years ended June 30, 2025 and 2024:


		Allowance for Credit Losses-Loans
		(Dollars in thousands)

														Provision for
														(Recovery of)
		Beginning												Credit			Ending
		Balance												Losses-			Balance
		July 1, 2024						Charge-offs			Recoveries			Loans			June 30, 2025
Commercial real estate		$	259					$	—		$	—		$	131		$	390
Commercial and industrial			16						—			—			(5)			11
Construction			28						—			—			(24)			4
One-to-four-family residential			1,314						—			—			(191)			1,123
Multi-family real estate			175						—			—			(4)			171
Consumer			5						—			5			(1)			9
Total loans		$	1,797					$	—		$	5		$	(94)		$	1,708

		Allowance for Credit Losses-Loans
		(Dollars in thousands)

		Beginning
		Balance												Provision for
		Prior to												(Recovery of)
		Adoption of			Impact of									Credit			Ending
		ASC 326			Adoption of									Losses-			Balance
		July 1, 2023			ASC 326			Charge-offs			Recoveries			Loans			June 30, 2024
Commercial real estate		$	1,196		$	(818)		$	—		$	—		$	(119)		$	259
Commercial and industrial			18			5			—			—			(7)			16
Construction			6			2			—			—			20			28
One-to-four-family residential			207			1,137			—			—			(30)			1,314
Multi-family real estate			365			(147)			—			—			(43)			175
Consumer			2			11			—			3			(11)			5
Unallocated			365			(365)			—			—			—			—
Total loans		$	2,159		$	(175)		$	—		$	3		$	(190)		$	1,797

The following table presents a breakdown of the provision for (recovery of) credit losses for the years ended June 30, 2025 and 2024:


		2025			2024
Provision for (recovery of) credit losses:
Provision for (recovery of) loans		$	(93,833)		$	(190,000)
Provision for unfunded commitments			—			—
Total provision for (recovery of) credit losses		$	(93,833)		$	(190,000)

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, collateral adequacy, 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 typically includes larger, non-homogeneous loans such as commercial and commercial real estate loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings:

Pass – Loans classified as pass represent loans that are evaluated and are performing under the stated terms. Pass rated assets are analyzed by the paying capacity, the current net worth, and the value of the loan collateral of the obligor.

Special Mention/Watch – Loans classified as special mention/watch possess potential weaknesses that require management attention but do not yet warrant adverse classification. While the status of a loan put on this list may not technically trigger their classification as substandard or doubtful, it is considered a proactive way to identify potential issues and address them before the situation deteriorates further and does result in a loss for the Company.

Substandard – Loans classified as substandard are inadequately protected by the current net worth, paying capacity of the obligor, or by the collateral pledged. Substandard loans must have a well-defined weakness or weaknesses that jeopardize the repayment of the debt as originally contracted. They are characterized by the distinct possibility that the Company will sustain a loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have the weaknesses of those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans in this category are allocated a specific reserve based on the estimated discounted cash flows from the loan (or collateral value less cost to sell for collateral dependent loans) or are charged-off if deemed uncollectible.

Residential real estate and consumer loans are managed on a pool basis due to their homogeneous nature. Loans that are 90 days or more delinquent or are not accruing interest are considered nonperforming.

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of June 30, 2025 and June 30, 2024 based on year of origination:


																											Revolving
																											Loans
																								Revolving			Converted to
						2025			2024			2023			2022			2021			Prior			Loans			Term Loans			Total

					(Dollars in thousands)

Commercial real estate
	Pass				$	27,952		$	4,203		$	4,041		$	25,549		$	18,297		$	11,029		$	139		$	—		$	91,210
	Special Mention/Watch					—			—			657			—			—			—			—			—			657
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total commercial real estate					$	27,952		$	4,203		$	4,698		$	25,549		$	18,297		$	11,029		$	139		$	—		$	91,867

Commercial and industrial
	Pass				$	415		$	64		$	513		$	1,125		$	1,483		$	264		$	12		$	—		$	3,876
	Special Mention/Watch					—			—			—			—			—			—			—			—			—
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total commercial and industrial					$	415		$	64		$	513		$	1,125		$	1,483		$	264		$	12		$	—		$	3,876

Construction
	Pass				$	733		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	733
	Special Mention/Watch					—			—			—			—			—			—			—			—			—
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total construction					$	733		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	733

Multi-family real estate
	Pass				$	5,444		$	1,617		$	7,696		$	16,275		$	13,043		$	3,193		$	46		$	—		$	47,314
	Special Mention/Watch					—			—			494			—			—			—			—			—			494
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total multi-family real estate					$	5,444		$	1,617		$	8,190		$	16,275		$	13,043		$	3,193		$	46		$	—		$	47,808

One-to-four-family residential
	Performing				$	9,565		$	3,196		$	6,667		$	10,699		$	9,886		$	16,250		$	—		$	—		$	56,263
	Non-performing					—			—			—			—			—			67			—			—			67
Total one-to-four-family					$	9,565		$	3,196		$	6,667		$	10,699		$	9,886		$	16,317		$	—		$	—		$	56,330

Consumer
	Performing				$	179		$	38		$	31		$	85		$	—		$	—		$	1,624		$	—		$	1,957
	Non-performing					—			—			—			—			—			—			—			—			—
Total consumer					$	179		$	38		$	31		$	85		$	—		$	—		$	1,624		$	—		$	1,957


Total loans					$	44,288		$	9,118		$	20,099		$	53,733		$	42,709		$	30,803		$	1,821		$	—		$	202,571


																											Revolving
																											Loans
																								Revolving			Converted to
						2024			2023			2022			2021			2020			Prior			Loans			Term Loans			Total

					(Dollars in thousands)

Commercial real estate
	Pass				$	4,785		$	5,096		$	25,584		$	23,385		$	8,326		$	6,823		$	317		$	—		$	74,316
	Special Mention/Watch					—			—			—			—			—			—			—			—			—
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total commercial real estate					$	4,785		$	5,096		$	25,584		$	23,385		$	8,326		$	6,823		$	317		$	—		$	74,316

Commercial and industrial
	Pass				$	96		$	807		$	1,598		$	2,162		$	75		$	393		$	27		$	—		$	5,158
	Special Mention/Watch					—			—			—			—			—			—			—			—			—
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total commercial and industrial					$	96		$	807		$	1,598		$	2,162		$	75		$	393		$	27		$	—		$	5,158

Construction
	Pass				$	—		$	1,313		$	—		$	—		$	—		$	—		$	—		$	—		$	1,313
	Special Mention/Watch					—			—			—			—			—			—			—			—			—
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total construction					$	—		$	1,313		$	—		$	—		$	—		$	—		$	—		$	—		$	1,313

Multi-family real estate
	Pass				$	1,829		$	8,735		$	16,666		$	13,344		$	1,857		$	2,604		$	53		$	—		$	45,088
	Special Mention/Watch					—			—			—			—			—			—			—			—			—
	Substandard					—			—			—			—			—			—			—			—			—
	Nonaccrual					—			—			—			—			—			—			—			—			—
Total multi-family real estate					$	1,829		$	8,735		$	16,666		$	13,344		$	1,857		$	2,604		$	53		$	—		$	45,088

One-to-four-family residential
	Performing				$	3,345		$	11,209		$	11,459		$	13,756		$	6,035		$	12,004		$	—		$	—		$	57,808
	Non-performing					—			—			—			—			—			—			—			—			—
Total one-to-four-family					$	3,345		$	11,209		$	11,459		$	13,756		$	6,035		$	12,004		$	—		$	—		$	57,808

Consumer
	Performing				$	162		$	87		$	138		$	5		$	53		$	—		$	1,164		$	—		$	1,609
	Non-performing					—			—			—			—			—			—			—			—			—
Total consumer					$	162		$	87		$	138		$	5		$	53		$	—		$	1,164		$	—		$	1,609


Total loans					$	10,217		$	27,247		$	55,445		$	52,652		$	16,346		$	21,824		$	1,561		$	—		$	185,292

The following table summarizes the aging of the past due loans by loan class within the portfolio segments as of June 30, 2025 and 2024:


		Still Accruing
		30-59 Days			60-89 Days			Over 90 Days			Nonaccrual
		Past Due			Past Due			Past Due			Balance
June 30, 2025
Commercial real estate		$	—		$	—		$	—		$	—
Commercial and industrial			—			—			—			—
Construction			—			—			—			—
One-to-four-family residential			252,723			—			—			66,645
Multi-family real estate			—			—			—			—
Consumer			—			—			—			—
Total		$	252,723		$	—		$	—		$	66,645


		Still Accruing
		30-59 Days			60-89 Days			Over 90 Days			Nonaccrual
		Past Due			Past Due			Past Due			Balance
June 30, 2024
Commercial real estate		$	—		$	—		$	—		$	—
Commercial and industrial			—			—			—			—
Construction			—			—			—			—
One-to-four-family residential			68,031			—			—			—
Multi-family real estate			—			—			—			—
Consumer			—			—			—			—
Total		$	68,031		$	—		$	—		$	—

Individually Evaluated Loans

Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis in accordance with ASC 326. Information for loans evaluated individually is set forth below.

The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses as of June 30, 2025. There were no loans on nonaccrual as of June 30, 2024.


			Nonaccrual loans		Loans Past Due
		Without an Allowance			Over 90 Days			Interest Income
		For Credit Loss			Still Accruing			Year Ended June 30, 2025
Commercial real estate		$	—		$	—		$	—
Commercial and industrial			—			—			—
Construction			—			—			—
One-to-four-family residential			66,645			—			2,492
Multi-family real estate			—			—			—
Consumer			—			—			—
Total loans		$	66,645		$	—		$	2,492

The following table presents the amortized cost basis of collateral-dependent loans by loan class as of June 30, 2025. There were no collateral-dependent loans as of June 30, 2024.


		June 30, 2025
		Real Estate			Non-Real Estate			Total Collateral			Allowance for
		Secured			Secured			Dependent			Credit Losses-
		Loans			Loans			Loans			Loans
Commercial real estate		$	—		$	—		$	—		$	—
Commercial and industrial			—			—			—			—
Construction			—			—			—			—
One-to-four-family residential			66,645			—			66,645			—
Multi-family real estate			—			—			—			—
Consumer			—			—			—			—
Total		$	66,645		$	—		$	66,645		$	—

There were no loans modified to borrowers experiencing financial difficulty during the years ended June 30, 2025 and 2024.

The Company maintains a collateral pledge agreement with the FHLB covering secured advances whereby the Company has agreed to retain, free of all other pledges, liens, and encumbrances, commercial and industrial, commercial real estate, and one-to-four family residential and multi-family real estate loans. The pledged loans are discounted at a factor of 24% to 38% when aggregating the amount of loans required by the pledge agreement. The amount of eligible collateral was $70,573,734 and $92,177,419 as of June 30, 2025 and June 30, 2024, respectively. There was also FHLB stock of $1,329,413 pledged as of June 30, 2025 and 2024.