Financial Analysis

12. COMMITMENTS AND CONTINGENCIES In the normal course of business, there are outstanding commitments and contingencies which are not reflected in the accompanying consolidated balance sheets. Loan commitments The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, which involve elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated balance sheets. The contract amount of these instruments reflects the extent of involvement the Bank has in these particular classes of financial instruments. The Banks exposure to credit loss is represented by the contractual amount of the instruments. The Bank uses the same credit policies in making commitments as it does for on-balance sheet instruments. At June 30, 2025 and 2024, off-balance sheet financial instruments whose contract amounts represent credit risk consisted of: June 30, June 30, 2025 2024 (In thousands) Commitments to originate loans $ 28,256 $ 7,608 Unused lines of credit 64,971 94,322 Unadvanced funds on construction loans 51,337 53,200 Letters of credit 167 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Unadvanced funds on lines-of-credit have fixed expiration dates and may expire without being drawn upon. Therefore …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

14. FAIR VALUES OF ASSETS AND LIABILITIES Determination of fair value The Bank uses fair value measurements to record fair value adjustments to certain assets. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in some instances, quoted market prices may not be available. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques, including collateral value. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the assets. Assets measured at fair value on a recurring basis Assets measured at fair value on a recurring basis are summarized below. There are no liabilities measured at fair value on recurring basis at June 30, 2025 or June 30, 2024. June 30, 2025 Total Level 1 Level 2 Level 3 Fair Value (In thousands) Debt securities available for sale $ $ 47,299 $ $ 47,299 June 30, 2024 Total Level 1 Level 2 Level 3 Fair Value (In thousands) Debt securities available for sale $ $ 31,090 $ $ 31,090 Marketable equity securities 2,112 2,112 Total $ 2,112 $ 31,090 $ $ 33,202 The following methods and assumptions were used by the Bank in estimating fair value: Cash and Cash Equiva …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

9. INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended June 30, 2025 2024 (In thousands) Current tax provision: Federal $ 525 $ 94 State 61 33 586 127 Deferred tax benefit: Federal ( 888 ) ( 94 ) State ( 354 ) ( 65 ) ( 1,242 ) ( 159 ) Total benefit for income taxes $ ( 656 ) $ ( 32 ) The reasons for the differences between the statutory corporate federal income tax rate and the Banks effective tax rate are summarized as follows: Years Ended June 30, 2025 2024 Statutory federal income tax at 21 % $ ( 321 ) $ 158 Increase (decrease) resulting from: State taxes, net of federal tax benefit ( 231 ) ( 26 ) Municipal income ( 10 ) ( 16 ) Bank owned life insurance income ( 98 ) ( 66 ) Dividends received deduction ( 5 ) ( 5 ) Other, net 9 ( 77 ) Effective tax rate $ ( 656 ) $ ( 32 ) The tax effects of each item that give rise to deferred taxes are as follows: June 30, 2025 2024 (In thousands) Deferred tax assets: Allowance for credit losses $ 1,500 $ 1,304 Employee benefit plan liabilities recorded in accumulated other comprehensive loss 300 24 Net unrealized loss on securities available for sale 259 495 Impairment loss on marketable equity securities 8 Non-accrual interest 234 234 Depreciation and amortization 105 5 Accrued expenses 277 205 Charitable Contribution 599 Other 13 18 3,287 2,293 Deferred tax liabilities: Other employee benefit plan assets ( 2,075 ) ( 2,123 ) Unrealized gain on marketable equity securi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

13. RELATED PARTY TRANSACTIONS The Bank has granted loans to its directors and executive officers and at June 30, 2025 and 2024, the amount of such loans was $ 10,378,000 and $ 10,621,000 , respectively. Such loans are made in the ordinary course of business at the Banks normal credit terms, including interest rate and collateral requirements, and do not represent more than a normal risk of collection. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

16. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date the consolidated financial statements were issued. There were no subsequent events that require adjustment to or disclosure in the consolidated financial statements.

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