LOANS

6 Months Ended

Jun. 30, 2026

LOANS

LOANS

4. LOANS

Net loans at June 30, 2026 and December 31, 2025 were as follows:

(In thousands)	At June 30, 2026		At December 31, 2025
Mortgage loans on real estate:
One-to four-family first lien residential	$	88,596	$	93,006
Residential construction		3,909		3,196
Home equity loans and lines of credit		18,866		15,921
Commercial		97,296		87,954
Total mortgage loans on real estate		208,667		200,077
Commercial and industrial		24,968		22,243
Consumer loans		3,733		4,349
Total loans		237,368		226,669
Allowance for credit losses		(1,847)		(1,915)
Net deferred loan costs		1,189		1,276
Net loans	$	236,710	$	226,030

Residential real estate loans serviced for others, by the Company, not included in net loans totaled $35.5 million and $33.4 million at June 30, 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 87.9% and 88.3% of the portfolio at June 30, 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 June 30, 2026 and December 31, 2025, based on year of origination within each credit quality indicator:

	At June 30, 2026
															Revolving
															Loans
															Converted
													Revolving		to Term
													Loans		Loans
													Amortized		Amortized
(In thousands)	2026		2025		2024		2023		2022		Prior		Cost Basis		Cost Basis		Total
Mortgage loans on real estate:
One-to-four-family first lien residential:
Pass	$	1,942	$	1,304	$	3,429	$	8,461	$	15,546	$	56,991	$	—	$	—	$	87,673
Non-Performing		—		—		—		398		172		353		—		—		923
Total		1,942		1,304		3,429		8,859		15,718		57,344		—		—		88,596
Current period gross write-offs	$	—	$	—	$	—	$	(90)	$	(19)	$	—	$	—	$	—	$	(109)
Current period recoveries		—		—		—		1		—		—		—		—		1
Current period net write-offs	$	—	$	—	$	—	$	(89)	$	(19)	$	—	$	—	$	—	$	(108)
Residential construction:
Pass	$	1,487	$	2,180	$	—	$	—	$	110	$	132	$	—	$	—	$	3,909
Total		1,487		2,180		—		—		110		132		—		—		3,909
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Home equity loans and lines of credit:
Pass	$	256	$	254	$	522	$	—	$	—	$	56	$	17,389	$	267	$	18,744
Non-Performing		—		—		—		—		—		—		—		122		122
Total		256		254		522		—		—		56		17,389		389		18,866
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial:
Pass	$	10,823	$	31,194	$	10,210	$	12,707	$	6,262	$	22,144	$	—	$	—	$	93,340
Special Mention		—		—		—		—		—		573		—		—		573
Substandard		333		—		1,215		735		115		985		—		—		3,383
Total		11,156		31,194		11,425		13,442		6,377		23,702		—		—		97,296
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		—		—		—		—
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial:
Pass	$	3,494	$	8,312	$	4,343	$	3,222	$	1,318	$	4,132	$	—	$	—	$	24,821
Substandard		—		—		147		—		—		—		—		—		147
Total		3,494		8,312		4,490		3,222		1,318		4,132		—		—		24,968
Current period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries		—		—		—		—		—		1		—		—		1
Current period net write-offs	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
Consumer:
Pass	$	291	$	559	$	1,534	$	467	$	745	$	70	$	57	$	10	$	3,733
Total		291		559		1,534		467		745		70		57		10		3,733
Current period gross write-offs	$	(9)	$	(33)	$	(8)	$	—	$	—	$	(9)	$	—	$	—	$	(59)
Current period recoveries		—		3		2		1		—		—		—		—		6
Current period net write-offs	$	(9)	$	(30)	$	(6)	$	1	$	—	$	(9)	$	—	$	—	$	(53)

	At December 31, 2025
															Revolving
															Loans
															Converted
													Revolving		to Term
													Loans		Loans
													Amortized		Amortized
(In thousands)	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 June 30, 2026, a loan relationship consisting of one commercial real estate loan totaling $576,000 and seven commercial and industrial loans totaling $506,000 were upgraded from special mention to pass, offset by two newly classified special mention loans that were downgraded from pass during the six months ended June 30, 2026, as compared to December 31, 2025. One commercial and industrial loan totaling $147,000 and one commercial real estate loan totaling $115,000 were downgraded to substandard from pass during the six months ended June 30, 2026 as compared to December 31, 2025.  One-to-four-family residential mortgage loans classified as non-performing increased $153,000 at June 30, 2026 as compared to December 31, 2025. One home equity loan totaling $90,000 was downgraded from pass to non-performing in the six months ended June 30, 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 June 30, 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	$	2,598	$	817	$	923	$	4,338	$	84,258	$	88,596
Residential construction		—		—		—		—		3,909		3,909
Home equity loans and lines of credit		—		—		122		122		18,744		18,866
Commercial		—		573		1,578		2,151		95,145		97,296
Total mortgage loans on real estate		2,598		1,390		2,623		6,611		202,056		208,667
Commercial and industrial		26		147		—		173		24,795		24,968
Consumer loans		10		42		—		52		3,681		3,733
Total loans	$	2,634	$	1,579	$	2,623	$	6,836	$	230,532	$	237,368

	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 June 30, 2026 and December 31, 2025 we had $122,000 and $32,000 of home equity loans and lines of credit past-due 90 days and still accruing, respectively. Nonaccrual loans, segregated by class of loan as of June 30, 2026 and December 31, 2025 are as follows:

	At June 30, 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	$	978	$	55	$	—
Residential construction		—		—		—
Home equity loans and lines of credit		—		—		—
Commercial		1,578		1,578		—
Commercial and industrial		—		—		—
Consumer loans		—		—		—
Total nonaccrual loans	$	2,556	$	1,633	$	—

	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 June 30, 2026
(In thousands)	Amortized cost		Collateral type
Real estate:
Residential one-to four-family	$	923	Residential real estate property
Home equity line of credit		122	Residential real estate property
Commercial real estate		3,956	Commercial real estate property
Total real estate	$	5,001
Commercial and industrial loans	$	147	Commercial business assets
Total commercial and industrial	$	147

	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

During the three months ended June 30, 2026, individually evaluated loans were expanded to include commercial loans that were risk rated special mention along with loans risk rated substandard. As a result of this change in approach, six additional commercial

real estate loans totaling $2.3 million and one commercial and industrial loan totaling $147,000 were individually evaluated for credit losses.

There were no loans modified to borrowers experiencing financial difficulty during the three or six months ended June 30, 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 six months ended June 30, 2026 or the year ended December 31, 2025.

Changes in the allowance for credit losses for the three months ended June 30, 2026 and 2025 are as follows:

	June 30, 2026
	Mortgage		Commercial
	Loans		and
	on Real		Industrial		Consumer
(In thousands)	Estate		Loans		Loans		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	1,161	$	549	$	249	$	42	$	2,001
Charge-offs		(109)		—		(21)		—		(130)
Recoveries		1		1		2		—		4
(Benefit) Provision		(88)		69		(17)		8		(28)
Ending balance	$	965	$	619		213	$	50	$	1,847

	June 30, 2025
	Mortgage		Commercial
	Loans		and
	on Real		Industrial		Consumer
(In thousands)	Estate		Loans		Loans		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	1,175	$	548	$	121	$	(2)	$	1,842
Charge-offs		—		(601)		(1)		—		(602)
Recoveries		—		—		—		—		—
Provision (Benefit)		38		490		—		(17)		511
Ending balance	$	1,213	$	437		120	$	(19)	$	1,751

Changes in the allowance for credit losses for the six months ended June 30, 2026 and 2025 are as follows:

	June 30, 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		(109)		—		(59)		—		(168)
Recoveries		1		1		6		—		8
(Benefit) Provision		(96)		163		78		(53)		92
Ending balance	$	965	$	619	$	213	$	50	$	1,847

	June 30, 2025
	Mortgage		Commercial
	Loans		and
	on Real		Industrial		Consumer
(In thousands)	Estate		Loans		Loans		Unallocated		Total
Allowance for credit losses:
Beginning balance	$	1,088	$	355	$	144	$	217	$	1,804
Charge-offs		—		(655)		(23)		—		(678)
Recoveries		—		2		2		—		4
Provision (Benefit)		125		735		(3)		(236)		621
Ending balance	$	1,213	$	437	$	120	$	(19)	$	1,751

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 June 30,		At December 31,
(In thousands)	2026		2025
Balance, beginning of period	$	851	$	780
Proceeds		30		300
Payments		(120)		(229)
Balance, end of period	$	761	$	851