
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		ACL
September 30, 2025
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	69,646	$	15	$	(2,760)	$	66,901	$	—
Mortgage-backed securities ("MBS"):
U.S. government agencies	48,735		199		(1,357)		47,577		—
Private label residential	17,376		196		(822)		16,750		35

Municipal securities	605		6		—		611		—
Bank issued trust preferred securities	499		—		(4)		495		1
Total	$	136,861	$	416	$	(4,943)	$	132,334	$	36

Available for Sale
U.S. government securities	$	4,968	$	—	$	—	$	4,968
MBS: U.S. government agencies	73,649		382		(759)		73,272
Total	$	78,617	$	382	$	(759)	$	78,240

September 30, 2024
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	92,312	$	70	$	(4,197)	$	88,185	$	—
MBS:
U.S. government agencies	49,481		174		(1,378)		48,277		—
Private label residential	28,479		231		(980)		27,730		55
Municipal securities	1,330		8		—		1,338		—
Bank issued trust preferred securities	495		—		(18)		477		5
Total	$	172,097	$	483	$	(6,573)	$	166,007	$	60

Available for Sale
U.S. government securities	$	3,934	$	6	$	(1)	$	3,939
MBS: U.S. government agencies	68,297		545		(524)		68,318


Total	$	72,231	$	551	$	(525)	$	72,257


	Less Than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Losses		Qty	Estimated Fair Value		Gross Unrealized Losses		Qty	Estimated Fair Value		Gross Unrealized Losses
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	—	$	—	—	$	56,960	$	(2,760)	14	$	56,960	$	(2,760)
MBS:
U.S. government agencies	7		—		1	27,776		(1,357)		42	27,783		(1,357)
Private label residential	341		(2)		3	14,646		(820)		14	14,987		(822)

Bank issued trust preferred securities	495		(4)		1	—		—		—	495		(4)
Total	$	843	$	(6)	5	$	99,382	$	(4,937)	70	$	100,225	$	(4,943)

Available for Sale
U.S. government securities	$	3,977	$	—	1	$	—	$	—	—	$	3,977	$	—
MBS: U.S. government agencies	11,922		(67)		3	28,947		(692)		24	40,869		(759)
Total	$	15,899	$	(67)	4	$	28,947	$	(692)	24	$	44,846	$	(759)


	Less Than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Losses		Qty	Estimated Fair Value		Gross Unrealized Losses		Qty	Estimated Fair Value		Gross Unrealized Losses
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	—	$	—	—	$	78,363	$	(4,197)	17	$	78,363	$	(4,197)
MBS:
U.S. government agencies	1		—		1	28,618		(1,378)		44	28,619		(1,378)
Private label residential	804		(6)		1	20,447		(974)		19	21,251		(980)


Bank issued trust preferred securities	—		—		—	477		(18)		1	477		(18)
Total	$	805	$	(6)	2	$	127,905	$	(6,567)	81	$	128,710	$	(6,573)

Available for Sale

U.S. government securities	$	1,962	$	(1)	1	$	—	$	—	—	$	1,962	$	(1)
MBS:
U.S. government agencies	11,368		(117)		4	25,751		(407)		23	37,119		(524)


Total	$	13,330	$	(118)	5	$	25,751	$	(407)	23	$	39,081	$	(525)

During the year ended September 30, 2025, the Company recorded a $4,000 net realized loss on 17 held to maturity investment securities, all of which had been recognized previously as a credit loss. During the year ended September 30, 2024, the Company recorded a $2,000 net realized loss on 14 held to maturity investment securities, all of which had been recognized previously as a credit loss. During the year ended September 30, 2023, the Company recorded an $11,000 net realized loss on 14 held to maturity investment securities, all of which had been recognized previously as a credit loss.

During the year ended September 30, 2025, the Company recorded a $24,000 realized gain on sale of six available for sale investment securities. There were no realized gains or losses on available for sale securities for the year ended September 30, 2024. During the year ended September 30, 2023, the Company recorded a $95,000 realized gain on sale of two available for sale investment securities.


	Held to Maturity				Available for Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	24,152	$	23,898	$	7,091	$	7,092
Due after one year to five years	56,882		54,352		3,780		3,772
Due after five years to ten years	134		233		194		193
Due after ten years	55,693		53,851		67,552		67,183
Total	$	136,861	$	132,334	$	78,617	$	78,240

The Company assesses each available for sale investment security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale investment securities at September 30, 2025 and 2024 or upon adoption of ASU 2016-13 on October 1, 2023. As of both dates, the Company considered the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. The Company expects the fair value of these securities to recover as the securities approach their maturity dates or sooner if market yields for such securities decline. The Company does not believe that these securities are impaired because of their credit quality or related to any issuer or industry specific event. The Company has the ability and intent to hold the investments until the fair value recovers.

The Company measures expected credit losses on held to maturity investment securities, which are comprised of U.S. government agency and U.S. government mortgage-backed securities, private label mortgage-backed securities, municipal and other bonds. The Company's agency and mortgage-backed securities that are issued by U.S. government entities and agencies are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. As such, no ACL has been established for these securities. The ACL on the private label mortgage-backed securities, municipal, and other bonds within the held to maturity securities schedule is calculated using the probability of default/loss given default ("PD/LGD") method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source. At September 30, 2025 and 2024, the ACL on the held to maturity securities portfolio totaled $36,000 and $60,000, respectively.


	Year Ended September 30, 2025
Held to Maturity	Beginning Allowance		Provision for (Recapture of ) Credit Losses		Ending Allowance
MBS:
Private label residential	$	55	$	(20)	$	35
Bank issued trust preferred securities	5		(4)		1
Total	$	60	$	(24)	$	36


	Year Ended September 30, 2024
Held to Maturity	Beginning Allowance		Impact of Adopting CECL (ASU 2016-13)		Provision for (Recapture of ) Credit Losses		Ending Allowance
MBS:
Private label residential	$	—	$	82	$	(27)	$	55
Bank issued trust preferred securities	—		10		(5)		$	5
Total	$	—	$	92	$	(32)	$	60

The ACL on held to maturity securities is included within investment securities held to maturity on the consolidated balance sheets. Changes in the ACL are recorded through the provision for (recapture of) credit losses on the consolidated income statements.

Accrued interest receivable on held to maturity investment securities totaled $316,000 and $455,000 at September 30, 2025 and 2024, respectively, and is included in accrued interest receivable on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Held to maturity investment securities are typically classified as non-accrual when the contractual payment of principal and interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held to maturity debt securities are placed on non-accrual status, unpaid interest credited to income is reversed. The Company had $35,000 and $51,000 of private label mortgage-backed held to maturity investment securities in non-accrual status at September 30, 2025 and 2024, respectively.


	Credit Ratings
As of September 30, 2025	AAA/AA/A		BBB/BB/B		Unrated		Total
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	69,646	$	—	$	—	$	69,646
MBS:
U.S. government agencies	48,735		—		—		48,735
Private label securities	12,455		—		4,921		17,376
Municipal securities	605		—		—		605
Bank issued trust preferred securities	—		—		499		499
Total held to maturity	$	131,441	$	—	$	5,420	$	136,861


	Credit Ratings
As of September 30, 2024	AAA/AA/A		BBB/BB/B		Unrated		Total
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	92,312	$	—	$	—	$	92,312
MBS:
U.S. government agencies	49,481		—		—		49,481
Private label securities	16,277		—		12,202		28,479
Municipal securities	1,230		—		100		1,330
Bank issued trust preferred securities	—		—		495		495
Total held to maturity	$	159,300	$	—	$	12,797	$	172,097

Prior to adopting ASU 2016-13, the Company bifurcated OTTI into (1) amounts related to credit losses which are recognized through earnings and (2) amounts related to all other factors which are recognized as a component of other comprehensive income (loss). To determine the component of the gross OTTI related to credit losses, the Company compared the amortized cost basis of the OTTI security to the present value of its revised expected cash flows, discounted using its pre-impairment yield. The revised expected cash flow estimates for individual securities are based primarily on an analysis of the default rates, prepayment speeds and third-party analytic reports. Significant judgment by management was required in this analysis that included, but not limited to, assumptions regarding the collectability of principal and interest, net of related expenses, on the underlying loan. The amounts written off due to credit loss remain and continue to be recovered on a cash basis.

The following table represents a roll forward of the credit loss component of held to maturity investment securities that have been written down for OTTI with the credit loss component recognized in earning for the years ended September 30, 2025, 2024 and 2023 (dollars in thousands):