Financial Analysis

NOTE 9 EMPLOYEE BENEFIT PLANS The Bank maintains a 401(k) savings and retirement plan that permits eligible employees to make before- or after-tax contributions to the plan, subject to the dollar limits from Internal Revenue Service regulations. The Bank matches 100% of the employees voluntary contributions to the plan based on the amount of each participants contributions up to a maximum of 4% of eligible compensation. All regular full-time and part-time employees who complete 90 days of service and are at least 18 years of age are eligible to participate. Amounts charged to operations were $432 and $417 for the years ended June 30, 2025 and 2024, respectively. The Bank maintains a nonqualified Salary Continuation Plan (SCP) to reward and encourage certain Bank executives to remain employees of the Bank. The SCP is considered an unfunded plan for tax and Employee Retirement Income Security Act (ERISA) purposes and all obligations arising under the SCP are payable from the general assets of the Company. The estimated present value of future benefits to be paid to certain current and former executives totaled $4,336 as of June 30, 2025 and $3,997 as of June 30, 2024 and is included in other liabilities. For purposes of calculating the present value of future benefits, a discount rate of 5.50% was used to project the liability through June 30, 2025 and 6.0% was used at June 30, 2024. For the years ended June 30, 2025 and 2024, $479 and $452, respectively, have been charged to e …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

NOTE 7 SHORT-TERM BORROWINGS As of June 30, 2025 and 2024, short-term borrowings consisted of federal funds purchased, repurchase agreements, and a loan from the Federal Reserve Banks Bank Term Funding Program. Information concerning all short-term borrowings maturing in less than one year is summarized as follows: 2025 2024 Balance at June 30 $ 15,511 $ 30,007 Average balance during the year 20,296 27,041 Maximum month-end balance 27,907 36,902 Average interest rate during the year 2.28 % 2.60 % Weighted average rate, June 30 1.63 % 2.97 % In fiscal year 2024, the Company obtained a loan from the Federal Reserve Banks Bank Term Funding Program for $10,000 that was fully repaid in November 2024. The Company has an unsecured $5,000 line of credit to provide capital support to the holding company. Repurchase agreements are financing arrangements that mature daily and are used to facilitate the needs of our customers. Physical control of all the securities is maintained for all securities pledged to secure repurchase agreements. Available-for-sale securities pledged for repurchase agreements as of June 30, 2025 and 2024 are presented in the following table: Overnight and Continuous 2025 2024 U.S. government-sponsored entities and agencies pledged $ 4,035 $ 3,835 Residential mortgage-backed securities pledged 13,455 17,911 Commercial mortgage-backed securities 6,721 3,401 Total pledged $ 24,211 $ 25,147 Repurchase agreements $ 15,511 $ 18,307 Total interest expense on short-term …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

For the year Ended June 30, 2025 2024 Noninterest income In scope of Topic 606: Service charges on deposit accounts $ 1,745 $ 1,684 Debit card interchange income 2,475 2,312 Other income 428 387 Noninterest income (in scope of Topic 606) 4,648 4,383 Noninterest income (out-of-scope of Topic 606) 802 513 Total noninterest income $ 5,450 $ 4,896

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NOTE 14 FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a companys own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities available-for-sale and equity securities: When available, the fair values of available-for-sale and equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). For securities where quoted market prices are not available, fair values are calculated based on market prices of similar securities (Level 2 inputs). For securities where quoted prices or market prices …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 5 GOODWILL AND ACQUIRED INTANGIBLE ASSETS The balance of goodwill was $2,452 as of June 30, 2025 and 2024. The following table summarizes the Companys acquired intangible assets as of June 30, 2025 and 2024. June 30, 2025 June 30, 2024 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangible $ 565 $ 264 $ 565 $ 208 Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset might be impaired. Impairment exists when a reporting units carrying amount exceeds its fair value. For the goodwill impairment analysis, the Company is the only reporting unit. Management performed a quantitative impairment assessment as of April 30, 2025. The assessment estimated fair value on an income approach that incorporated a discounted cash flow model that involved management assumptions based upon future growth and earnings projections. The results of the assessment indicated no impairment as of the measurement date. Goodwill is the only intangible asset on the Companys balance sheet with an indefinite life. Management will continue to monitor its goodwill for possible impairment. The core deposit intangible asset is amortized on a straight-line basis over ten years. The Company recorded intangible amortization expense of $56 in 2025 and $57 in 2024. The intangible amortization expense is expected to be $57 per year for each of the next four fiscal y …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 INCOME TAXES The provision for income taxes consisted of the following for the years ended June 30, calculated utilizing a statutory federal income tax rate of 21.0%: 2025 2024 Current income taxes $ 2,115 $ 2,087 Deferred income tax benefit (458 ) (242 ) Total income tax expense $ 1,657 $ 1,845 The net deferred income tax asset (liability) consisted of the following components at June 30: 2025 2024 Deferred tax assets: Allowance for credit losses $ 1,859 $ 1,743 Deferred compensation 1,160 1,026 Limited partnership interests 503 154 Deferred income 116 132 Non-accrual loan interest income 19 22 Net unrealized securities loss 5,995 7,532 Other 25 3 Gross deferred tax asset 9,677 10,612 Deferred tax liabilities: Depreciation (771 ) (776 ) Loan fees (711 ) (663 ) FHLB stock dividends (102 ) (102 ) Prepaid expenses (205 ) (176 ) Intangible assets (330 ) (258 ) Gross deferred tax liabilities (2,119 ) (1,975 ) Net deferred tax asset $ 7,558 $ 8,637 The difference between the provision for income taxes and amounts computed by applying the statutory income tax rate of 21.0% to income before taxes consisted of the following for the years ended June 30: 2025 2024 Income taxes computed at the statutory rate on pretax income $ 2,168 $ 2,189 Tax exempt income (308 ) (221 ) Cash surrender value income (82 ) (58 ) Affordable housing tax credit (118 ) (66 ) Tax credit (16 ) (16 ) Other non-deductible expenses 13 17 Total income tax expense $ 1,657 $ 1,845 Effective tax rate 16.0 % 1 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements Not Yet Effective : In October 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-06 Disclosure Improvements - Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative (ASU 2023-06). The amendments in this ASU are the result of FASBs decision to incorporate into the Accounting Standards Codification certain disclosure requirements, referred by the SEC, for incremental information to US GAAP. Topics in the ASU that have applicability to the Company are (1) Statement of Cash Flows which requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows, (2) Debt which requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings, and (3) Derivatives and Hedging which adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows. The effective date for each amendment will be the date on which the SECs removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or R …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 11 RELATED PARTY TRANSACTIONS In the ordinary course of business, the Bank has granted loans to certain executive officers, directors, and their affiliates. A summary of activity during the year ended June 30, 2025 of related party loans were as follows: Principal balance, July 1 $ 2,113 New loans, net of refinancing 2,815 Other 1,002 Repayments (111 ) Principal balance, June 30 $ 5,819 Deposits from executive officers, directors and their affiliates totaled $2,897 at June 30, 2025 and $5,569 at June 30, 2024. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 19 REVENUE RECOGNITION The Company accounts for revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers. Interest income, net securities gains (losses), gains from the sale of mortgage loans and bank-owned life insurance are not included within the scope of ASC 606. For the revenue streams in the scope of ASC 606, service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All the Company's revenue from contracts with customers is recognized within noninterest income. Service charges on deposit accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering and other fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange income: The Company earns interchange income from cardholder transactions conducted through the various payment networks. Interchange i …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing