LOANS

3 Months Ended

Mar. 31, 2026

LOANS

LOANS

4. LOANS

Net loans at March 31, 2026 and December 31, 2025 were as follows:

(In thousands)	At March 31, 2026		At December 31, 2025
Mortgage loans on real estate:
One-to four-family first lien residential	$	92,301	$	93,006
Residential construction		2,438		3,196
Home equity loans and lines of credit		16,788		15,921
Commercial		94,868		87,954
Total mortgage loans on real estate		206,395		200,077
Commercial and industrial		23,726		22,243
Consumer loans		4,023		4,349
Total loans		234,144		226,669
Allowance for credit losses		(2,001)		(1,915)
Net deferred loan costs		1,191		1,276
Net loans	$	233,334	$	226,030

Residential real estate loans serviced for others, by the Company, not included in net loans totaled $34.1 million and $33.4 million at March 31, 2026 and December 31, 2025, respectively.

Loan Origination/Risk Management

The Company has lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by frequently providing management with reports related to loan production, loan quality, loan delinquencies, non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

Risk Characteristics of Portfolio Segments

The risk characteristics within the loan portfolio vary depending on the loan segment. Consumer loans generally are repaid from personal sources of income. Risks associated with consumer loans primarily include general economic risks such as declines in the local economy creating higher rates of unemployment. Those conditions may also lead to a decline in collateral values should the Company be required to repossess the collateral securing consumer loans. These economic risks also impact the commercial loan segment, however commercial loans are considered to have greater risk than consumer loans as the primary source of repayment is from the cash flow of the business customer. Real estate loans, including residential mortgages, manufactured housing, commercial and home equity loans, comprised approximately 88.1% and 88.3% of the portfolio at March 31, 2026 and December 31, 2025, respectively. Loans secured by real estate provide the best collateral protection and thus significantly reduce the inherent risk in the portfolio.

Management has reviewed its loan portfolio and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of originating these types of loans.

Description of Credit Quality Indicators

Commercial real estate and commercial and industrial loans are assigned a “Pass” rating unless the loan has demonstrated signs of weakness as indicated by the ratings below:

· Special Mention:   The relationship is protected but is potentially weak. These assets may constitute an undue and unwarranted credit risk but not to the point of justifying a substandard rating. The loan is not upgraded until a correction of weakness has occurred and there has been a period of sustained performance under reasonable repayment terms.

· Substandard:   The relationship is inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. Assets so classified have a well-defined weakness or a weakness that jeopardizes the liquidation of the debt. All loans 90 days past-due are classified Substandard. A loan is not upgraded until a correction of weakness has occurred and there has been a period of sustained performance under reasonable repayment terms.

· Doubtful/Loss:   Loans are considered uncollectible and of such little value that continuance as bankable assets are not warranted. It is not practicable or desirable to defer writing off this basically worthless asset even though partial recovery may be possible in the future.

The risk ratings are evaluated at least annually or when credit deficiencies arise, such as delinquent loan payments.

All other loans are assigned a “Pass” rating until the loan becomes 90 days past due at which time it is either downgraded to “Non-Performing” status or charged off.

The following tables present the loans to customers as of March 31, 2026 and December 31, 2025, based on year of origination within each credit quality indicator:

	At March 31, 2026
															Revolving
															Loans
															Converted
													Revolving		to Term
													Loans		Loans
													Amortized		Amortized
	2026		2025		2024		2023		2022		Prior		Cost Basis		Cost Basis		Total
Mortgage loans on real estate:
One-to-four-family first lien residential:
Pass	$	2,146	$	1,310	$	3,446	$	9,103	$	15,802	$	59,552	$	—	$	—	$	91,359
Non-Performing		—		—		—		287		240		415		—		—		942
Total		2,146		1,310		3,446		9,390		16,042		59,967		—		—		92,301
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential construction:
Pass	$	—	$	2,188	$	—	$	—	$	112	$	138	$	—	$	—	$	2,438
Total		—		2,188		—		—		112		138		—		—		2,438
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home equity loans and lines of credit:
Pass	$	260	$	273	$	629	$	—	$	—	$	58	$	15,305	$	231	$	16,756
Non-Performing		—		—		—		—		—		—		—		32		32
Total		260		273		629		—		—		58		15,305		263		16,788
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial:
Pass	$	8,003	$	31,197	$	9,756	$	12,927	$	6,308	$	22,691	$	—	$	—	$	90,882
Special Mention		—		—		—		—		—		576		—		—		576
Substandard		335		—		1,218		735		115		1,007		—		—		3,410
Total		8,338		31,197		10,974		13,662		6,423		24,274		—		—		94,868
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial:
Pass	$	1,008	$	8,303	$	4,788	$	3,391	$	1,873	$	4,363	$	—	$	—	$	23,726
Total		1,008		8,303		4,788		3,391		1,873		4,363		—		—		23,726
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Pass	$	196	$	662	$	1,667	$	519	$	812	$	93	$	73	$	1	$	4,023
Total		196		662		1,667		519		812		93		73		1		4,023
Current period gross write-offs	$	—	$	(32)	$	(6)	$	—	$	—	$	—	$	—	$	—	$	(38)
Current period recoveries		—		1		2		1		—		—		—		—		4
Current period net write-offs	$	—	$	(31)	$	(4)	$	1	$	—	$	—	$	—	$	—	$	(34)

	At December 31, 2025
															Revolving
															Loans
															Converted
													Revolving		to Term
													Loans		Loans
													Amortized		Amortized
	2025		2024		2023		2022		2021		Prior		Cost Basis		Cost Basis		Total
Mortgage loans on real estate:
One-to-four-family first lien residential:
Pass	$	2,384	$	2,712	$	9,936	$	16,704	$	10,643	$	49,857	$	—	$	—	$	92,236
Non-Performing		45		—		287		68		—		370		—		—		770
Total		2,429		2,712		10,223		16,772		10,643		50,227		—		—		93,006
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential construction:
Pass	$	2,190	$	750	$	—	$	113	$	—	$	143	$	—	$	—	$	3,196
Total		2,190		750		—		113		—		143		—		—		3,196
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home equity loans and lines of credit:
Pass	$	278	$	636	$	—	$	—	$	—	$	60	$	14,682	$	233	$	15,889
Non-Performing		—		—		—		—		—		—		—		32		32
Total		278		636		—		—		—		60		14,682		265		15,921
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial:
Pass	$	31,612	$	8,687	$	12,995	$	7,331	$	6,581	$	16,919	$	—	$	—	$	84,125
Special Mention		—		576		—		—		—		—		—		—		576
Substandard		—		1,221		735		—		—		1,297		—		—		3,253
Total		31,612		10,484		13,730		7,331		6,581		18,216		—		—		87,954
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial:
Pass	$	8,179	$	4,619	$	3,260	$	1,827	$	1,554	$	2,298	$	—	$	—	$	21,737
Special Mention		31		288		94		93		—		—		—		—		506
Total		8,210		4,907		3,354		1,920		1,554		2,298		—		—		22,243
Current period gross write-offs	$	—	$	—	$	(652)	$	(7)	$	(4)	$	(16)	$	—	$	—	$	(679)
Current period recoveries		—		—		—		—		—		2		—		—		2
Current period net write-offs	$	—	$	—	$	(652)	$	(7)	$	(4)	$	(14)	$	—	$	—	$	(677)
Consumer:
Pass	$	711	$	1,788	$	731	$	909	$	1	$	116	$	92	$	1	$	4,349
Total		711		1,788		731		909		1		116		92		1		4,349
Current period gross write-offs	$	—	$	(28)	$	(9)	$	—	$	—	$	(2)	$	—	$	—	$	(39)
Current period recoveries		—		—		5		—		—		1		—		—		6
Current period net write-offs	$	—	$	(28)	$	(4)	$	—	$	—	$	(1)	$	—	$	—	$	(33)

At March 31, 2026, a loan relationship consisting of one commercial real estate loan totaling $576,000 and seven commercial and industrial loans totaling $506,000 was upgraded from special mention to pass, offset by two newly classified special mention loans that were downgraded from pass during the three months ended March 31, 2026 as compared to December 31, 2025. One-to-four-family residential mortgage loans classified as non-performing increased $348,000 and $172,000, respectively, at March 31, 2026, as compared to December 31, 2025.  

Loans are considered past-due if the required principal and interest payments have not been received within thirty days of the payment due date. An age analysis of past-due loans, segregated by class of loans, is as follows:

	At March 31, 2026
	30-59 Days		60-89 Days		90 Days		Total Past-				Total Loans
(In thousands)	Past-Due		Past-Due		Past-Due		Due		Current		Receivable
Mortgage loans on real estate:
One-to four-family first lien residential	$	2,935	$	646	$	942	$	4,523	$	87,778	$	92,301
Residential construction		—		—		—		—		2,438		2,438
Home equity loans and lines of credit		394		89		32		515		16,273		16,788
Commercial		323		—		1,579		1,902		92,966		94,868
Total mortgage loans on real estate		3,652		735		2,553		6,940		199,455		206,395
Commercial and industrial		8		—		—		8		23,718		23,726
Consumer loans		114		9		—		123		3,900		4,023
Total loans	$	3,774	$	744	$	2,553	$	7,071	$	227,073	$	234,144

	At December 31, 2025
	30-59 Days		60-89 Days		90 Days		Total Past-				Total Loans
(In thousands)	Past-Due		Past-Due		Past-Due		Due		Current		Receivable
Mortgage loans on real estate:
One-to four-family first lien residential	$	2,310	$	297	$	770	$	3,377	$	89,629	$	93,006
Residential construction		—		—		—		—		3,196		3,196
Home equity loans and lines of credit		139		53		32		224		15,697		15,921
Commercial		314		735		843		1,892		86,062		87,954
Total mortgage loans on real estate		2,763		1,085		1,645		5,493		194,584		200,077
Commercial and industrial		33		—		—		33		22,210		22,243
Consumer loans		42		3		—		45		4,304		4,349
Total loans	$	2,838	$	1,088	$	1,645	$	5,571	$	221,098	$	226,669

At March 31, 2026 and December 31, 2025 we had approximately $32,000 of home equity loans and lines of credit past-due 90 days and still accruing. Nonaccrual loans, segregated by class of loan as of March 31, 2026 and December 31, 2025 are as follows:

	At March 31, 2026
			Nonaccrual
			loans
			without
			related
			allowance
			for		Recognized
	Nonaccrual		credit		interest
(In thousands)	loans		losses		income
Mortgage loans on real estate:
One-to four-family first lien residential	$	942	$	415	$	—
Residential construction		—		—		—
Home equity loans and lines of credit		—		—		—
Commercial		1,579		1,579		—
Commercial and industrial		—		—		—
Consumer loans		—		—		—
Total nonaccrual loans	$	2,521	$	1,994	$	—

	At December 31, 2025
			Nonaccrual
			loans
			without
			related
			allowance
			for		Recognized
	Nonaccrual		credit		interest
(In thousands)	loans		losses		income
Mortgage loans on real estate:
One-to four-family first lien residential	$	1,455	$	1,054	$	—
Residential construction		—		—		—
Home equity loans and lines of credit		—		—		—
Commercial		1,578		1,578		6
Commercial and industrial		41		41		—
Consumer loans		—		—		—
Total nonaccrual loans	$	3,074	$	2,673	$	6

Collateral-dependent Loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Loans considered collateral-dependent were as follows:

	At March 31, 2026
(In thousands)	Amortized cost		Collateral type
Real estate:
Residential one-to four-family	$	942	Residential real estate property
Home equity line of credit		32	Residential real estate property
Commercial real estate		1,579	Commercial real estate property
Total real estate	$	2,553

	At December 31, 2025
(In thousands)	Amortized cost		Collateral type
Real estate:
Residential one-to four-family	$	725	Residential real estate property
Home equity line of credit		32	Residential real estate property
Commercial real estate		1,590	Commercial real estate property
Total real estate	$	2,347
Commercial and industrial loans	$	41	Commercial business assets
Total commercial and industrial	$	41

There were no loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2026 or during the year ended December 31, 2025.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Loans modified to borrowers experiencing financial difficulty did not have payment default during the three months ended March 31, 2026 or the year ended December 31, 2025.

Changes in the allowance for credit losses for the three months ended March 31, 2026 and 2025 are as follows:

	At March 31, 2026
	Mortgage		Commercial
	Loans		and
	on Real		Industrial		Consumer
(In thousands)	Estate		Loans		Loans		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	1,169	$	455	$	188	$	103	$	1,915
Charge-offs		—		—		(38)		—		(38)
Recoveries		—		—		4		—		4
Provision		(8)		94		95		(61)		120
Ending balance	$	1,161	$	549	$	249	$	42	$	2,001

	At March 31, 2025
	Mortgage		Commercial
	Loans		and
	on Real		Industrial		Consumer
(In thousands)	Estate		Loans		Loans		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	1,071	$	372	$	144	$	217	$	1,804
Charge-offs		(10)		(51)		(14)		—		(75)
Recoveries		—		2		1		—		3
Provision		114		225		(10)		(219)		110
Ending balance	$	1,175	$	548	$	121	$	(2)	$	1,842

In the ordinary course of business, the Company makes loans to its directors and officers, including their families and companies in which certain directors are principal owners. All such loans were made on substantially the same terms including interest rates and collateral, as those prevailing at the same time for comparable transactions with unrelated persons. Loans to directors and officers are listed below and are included in loans on the consolidated statements of financial condition.

	At March 31,		At December 31,
	2026		2025
Balance, beginning of period	$	851	$	780
Proceeds		16		300
Payments		(67)		(229)
Balance, end of period	$	800	$	851