Monroe Federal Bancorp (MFBI) shows stable credit quality despite quarterly loss

Q: How did Monroe Federal Bancorp (MFBI) perform financially in the quarter ended June 30, 2026?

Monroe Federal Bancorp recorded a small net loss of $1,508 for the quarter. Net interest income was $982,558 after a $20,778 provision for credit losses, and total noninterest expense was $1,070,840 , resulting in slightly negative earnings.

Q: What were Monroe Federal Bancorp (MFBI)’s key balance sheet totals as of June 30, 2026?

As of June 30, 2026, total assets were $144.1 million . Net loans were $112.0 million , available-for-sale securities were $18.4 million , total deposits were $122.3 million , and Federal Home Loan Bank advances totaled $7.4 million .

Q: What is the asset quality and reserve position of Monroe Federal Bancorp (MFBI)?

The allowance for credit losses on loans was $805,756 , with an additional $86,314 for unfunded commitments. Nonaccrual loans totaled $247,898 , and there were no loan charge-offs during the quarter, indicating stable credit performance.

Q: How did securities impact Monroe Federal Bancorp (MFBI)’s results this quarter?

Available-for-sale securities had a fair value of $18.4 million with gross unrealized losses of $3.93 million . However, net unrealized gains recognized in other comprehensive income were $164,817 before tax, contributing to $130,206 of other comprehensive income.

Q: What equity-based compensation plans does Monroe Federal Bancorp (MFBI) utilize?

MFBI uses an ESOP , restricted stock, and stock options. In the quarter, ESOP expense was $5,346 , restricted stock expense $8,570 , and stock option expense $11,072 . Unrecognized compensation was $156,100 for restricted stock and $201,646 for options.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Monroe Federal Bancorp, Inc. reported a small net loss for the quarter ended June 30, 2026 while modestly growing its balance sheet. Total assets were $144.1 million, with net loans of $112.0 million and available-for-sale securities of $18.4 million.

Total deposits were $122.3 million, down slightly from March 31, 2026, and Federal Home Loan Bank advances increased to $7.4 million. Net interest income was $982,558 after $20,778 of provision for credit losses. Noninterest expense of $1.07 million led to a net loss of $1,508, but higher unrealized gains on securities produced comprehensive income of $128,698.

Asset quality metrics remained stable, with an allowance for credit losses on loans of $805,756 and nonaccrual loans of $247,898, and no charge-offs in the quarter. The bank’s community bank leverage ratio was 9.9%, and it was categorized as well capitalized.

Key Figures

Total Assets: $144,140,169 Net Loans: $112,035,061 Total Deposits: $122,309,131 +5 more

8 metrics

Total Assets $144,140,169 Balance sheet at June 30, 2026

Net Loans $112,035,061 Loans net of allowance at June 30, 2026

Total Deposits $122,309,131 Customer deposits at June 30, 2026

FHLB Advances $7,434,000 Federal Home Loan Bank borrowings at June 30, 2026

Net Interest Income $982,558 Three months ended June 30, 2026

Total Noninterest Expense $1,070,840 Three months ended June 30, 2026

Net Loss $1,508 Three months ended June 30, 2026

Community Bank Leverage Ratio 9.9% Regulatory capital measure at June 30, 2026

Key Terms

allowance for credit losses, community bank leverage ratio, collateral dependent loans, employee stock ownership plan, +1 more

5 terms

allowance for credit losses financial

"The allowance for credit losses (ACL) is a valuation allowance for estimated credit losses."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

community bank leverage ratio regulatory

"The Bank’s CBLR was 9.9% and 9.6% as of June 30, 2026 and March 31, 2026."

Community bank leverage ratio is a regulatory measure that compares a bank’s core capital (its safety cushion) to the size of its balance sheet, showing what share of assets is backed by tangible equity rather than borrowed money. Investors use it like a health check: a higher ratio means the bank has more buffer to absorb losses, support lending and dividends, and face fewer regulatory limits, while a lower ratio signals greater risk.

collateral dependent loans financial

"The following table presents the amortized cost basis and collateral type of collateral dependent loans by class."

employee stock ownership plan financial

"In connection with the Conversion, the Company established an Employee Stock Ownership Plan (ESOP)."

An employee stock ownership plan (ESOP) is a company-run program that gives workers ownership stakes by allocating or letting them buy company shares, often through a retirement-style account. For investors, ESOPs matter because they align employees’ incentives with company performance—like turning staff into shareholders—which can boost productivity and long-term value but may also concentrate employee retirement savings in company stock, affecting financial risk and share demand.

available-for-sale securities financial

"The amortized cost and fair values, together with gross unrealized gains and losses on securities are as follows."

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

FAQ

How did Monroe Federal Bancorp (MFBI) perform financially in the quarter ended June 30, 2026?

Monroe Federal Bancorp recorded a small net loss of $1,508 for the quarter. Net interest income was $982,558 after a $20,778 provision for credit losses, and total noninterest expense was $1,070,840, resulting in slightly negative earnings.

What were Monroe Federal Bancorp (MFBI)’s key balance sheet totals as of June 30, 2026?

As of June 30, 2026, total assets were $144.1 million. Net loans were $112.0 million, available-for-sale securities were $18.4 million, total deposits were $122.3 million, and Federal Home Loan Bank advances totaled $7.4 million.

What is the asset quality and reserve position of Monroe Federal Bancorp (MFBI)?

The allowance for credit losses on loans was $805,756, with an additional $86,314 for unfunded commitments. Nonaccrual loans totaled $247,898, and there were no loan charge-offs during the quarter, indicating stable credit performance.

How well capitalized is Monroe Federal Bancorp (MFBI) under regulatory standards?

The bank uses the community bank leverage ratio framework and reported a CBLR of 9.9% at June 30, 2026. Regulators categorized the bank as well capitalized, with no subsequent conditions disclosed that would change this classification.

How did securities impact Monroe Federal Bancorp (MFBI)’s results this quarter?

Available-for-sale securities had a fair value of $18.4 million with gross unrealized losses of $3.93 million. However, net unrealized gains recognized in other comprehensive income were $164,817 before tax, contributing to $130,206 of other comprehensive income.

What equity-based compensation plans does Monroe Federal Bancorp (MFBI) utilize?

MFBI uses an ESOP, restricted stock, and stock options. In the quarter, ESOP expense was $5,346, restricted stock expense $8,570, and stock option expense $11,072. Unrecognized compensation was $156,100 for restricted stock and $201,646 for options.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

10-Q Quarterly Reports: What Changes Quarter to Quarter →

Available on EDGAR 08/14/2026 - 04:39 PM Accepted by SEC EDGAR 08/14/2026 - 04:35 PM

0002024899--03-312027Q1falseYesYesNon-accelerated Filer101585130715850002024899us-gaap:TreasuryStockCommonMember2026-06-300002024899us-gaap:RetainedEarningsMember2026-06-300002024899us-gaap:DeferredCompensationShareBasedPaymentsMember2026-06-300002024899us-gaap:CommonStockMember2026-06-300002024899us-gaap:AdditionalPaidInCapitalMember2026-06-300002024899us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-06-300002024899mfbi:DeferredCompensationPlanRabbiTrustMember2026-06-300002024899us-gaap:TreasuryStockCommonMember2026-03-310002024899us-gaap:RetainedEarningsMember2026-03-310002024899us-gaap:DeferredCompensationShareBasedPaymentsMember2026-03-310002024899us-gaap:CommonStockMember2026-03-310002024899us-gaap:AdditionalPaidInCapitalMember2026-03-310002024899us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-03-310002024899mfbi:DeferredCompensationPlanRabbiTrustMember2026-03-310002024899us-gaap:TreasuryStockCommonMember2025-06-300002024899us-gaap:RetainedEarningsMember2025-06-300002024899us-gaap:DeferredCompensationShareBasedPaymentsMember2025-06-300002024899us-gaap:CommonStockMember2025-06-300002024899us-gaap:AdditionalPaidInCapitalMember2025-06-300002024899us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300002024899mfbi:DeferredCompensationPlanRabbiTrustMember2025-06-300002024899us-gaap:TreasuryStockCommonMember2025-03-310002024899us-gaap:RetainedEarningsMember2025-03-310002024899us-gaap:DeferredCompensationShareBasedPaymentsMember2025-03-310002024899us-gaap:CommonStockMember2025-03-310002024899us-gaap:AdditionalPaidInCapitalMember2025-03-310002024899us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310002024899mfbi:DeferredCompensationPlanRabbiTrustMember2025-03-3100020248992025-04-012026-03-310002024899us-gaap:RestrictedStockMember2026-03-310002024899us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-04-012026-06-300002024899us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300002024899us-gaap:RetainedEarningsMember2026-04-012026-06-300002024899us-gaap:RetainedEarningsMember2025-04-012025-06-300002024899srt:SubsidiariesMembermfbi:MonroeFederalBancorpMember2024-10-230002024899mfbi:UnitedBankersBankMember2026-06-300002024899mfbi:UnitedBankersBankMember2026-03-310002024899us-gaap:FairValueMeasurementsRecurringMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-04-012026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-04-012026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2026-04-012026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-04-012026-06-300002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMember2026-04-012026-06-300002024899us-gaap:ConsumerPortfolioSegmentMember2026-04-012026-06-300002024899us-gaap:CommercialPortfolioSegmentMember2026-04-012026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2025-04-012025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2025-04-012025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2025-04-012025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2025-04-012025-06-300002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-04-012025-06-300002024899us-gaap:ConsumerPortfolioSegmentMember2025-04-012025-06-300002024899us-gaap:CommercialPortfolioSegmentMember2025-04-012025-06-300002024899us-gaap:RealEstateMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-06-300002024899us-gaap:RealEstateMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-06-300002024899us-gaap:RealEstateMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-06-300002024899us-gaap:PerformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-06-300002024899us-gaap:PerformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-06-300002024899us-gaap:NonperformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-06-300002024899us-gaap:NonperformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-06-300002024899us-gaap:CollateralPledgedMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-06-300002024899us-gaap:CollateralPledgedMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-06-300002024899us-gaap:CollateralPledgedMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancialAssetPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:SubstandardMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:PassMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:PassMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2026-06-300002024899us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2026-06-300002024899us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2026-06-300002024899us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2026-06-300002024899us-gaap:CollateralPledgedMemberus-gaap:CommercialPortfolioSegmentMember2026-06-300002024899mfbi:BusinessAssetsMemberus-gaap:CommercialPortfolioSegmentMember2026-06-300002024899us-gaap:RealEstateMember2026-06-300002024899us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-06-300002024899us-gaap:FinancingReceivables30To59DaysPastDueMember2026-06-300002024899us-gaap:FinancialAssetPastDueMember2026-06-300002024899us-gaap:FinancialAssetNotPastDueMember2026-06-300002024899us-gaap:CollateralPledgedMember2026-06-300002024899mfbi:BusinessAssetsMember2026-06-300002024899us-gaap:RealEstateMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-03-310002024899us-gaap:RealEstateMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-03-310002024899us-gaap:RealEstateMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-03-310002024899us-gaap:PerformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-03-310002024899us-gaap:PerformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-03-310002024899us-gaap:NonperformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-03-310002024899us-gaap:NonperformingFinancingReceivableMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-03-310002024899us-gaap:CollateralPledgedMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-03-310002024899us-gaap:CollateralPledgedMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-03-310002024899us-gaap:CollateralPledgedMembermfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancialAssetPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:SubstandardMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:PassMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:PassMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2026-03-310002024899us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2026-03-310002024899us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2026-03-310002024899us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2026-03-310002024899us-gaap:CollateralPledgedMemberus-gaap:CommercialPortfolioSegmentMember2026-03-310002024899mfbi:BusinessAssetsMemberus-gaap:CommercialPortfolioSegmentMember2026-03-310002024899us-gaap:RealEstateMember2026-03-310002024899us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2026-03-310002024899us-gaap:FinancingReceivables30To59DaysPastDueMember2026-03-310002024899us-gaap:FinancialAssetPastDueMember2026-03-310002024899us-gaap:FinancialAssetNotPastDueMember2026-03-310002024899us-gaap:CollateralPledgedMember2026-03-310002024899mfbi:BusinessAssetsMember2026-03-310002024899us-gaap:ConsumerPortfolioSegmentMember2025-04-012026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMember2026-06-300002024899us-gaap:ConsumerPortfolioSegmentMember2026-06-300002024899us-gaap:CommercialPortfolioSegmentMember2026-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMember2026-03-310002024899us-gaap:ConsumerPortfolioSegmentMember2026-03-310002024899us-gaap:CommercialPortfolioSegmentMember2026-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2025-06-300002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-06-300002024899us-gaap:ConsumerPortfolioSegmentMember2025-06-300002024899us-gaap:CommercialPortfolioSegmentMember2025-06-300002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ResidentialMortgageMember2025-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:HomeEquityMember2025-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2025-03-310002024899mfbi:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2025-03-310002024899mfbi:RealEstatePortfolioSegmentMembersrt:MultifamilyMember2025-03-310002024899us-gaap:ConsumerPortfolioSegmentMember2025-03-310002024899us-gaap:CommercialPortfolioSegmentMember2025-03-310002024899mfbi:FederalHomeLoanBankAdvancesMaturityMarch312027InterestRate3.85PercentMember2026-06-300002024899mfbi:FederalHomeLoanBankAdvancesMaturityMarch312027InterestRate3.82PercentMember2026-03-310002024899us-gaap:RestrictedStockMember2026-06-300002024899us-gaap:EmployeeStockOptionMember2026-06-300002024899us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-06-300002024899us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-06-300002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-06-300002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-06-300002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMember2026-06-300002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-06-300002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-06-300002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-06-300002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMember2026-06-300002024899us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2026-06-300002024899us-gaap:AssetPledgedAsCollateralMember2026-06-300002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-03-310002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-03-310002024899us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMember2026-03-310002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-03-310002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-03-310002024899us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMember2026-03-310002024899us-gaap:AssetPledgedAsCollateralMember2026-03-310002024899mfbi:FederalReserveBankMember2026-06-300002024899mfbi:FederalReserveBankMember2026-03-310002024899us-gaap:StockCompensationPlanMember2026-04-012026-06-300002024899us-gaap:RestrictedStockMember2026-04-012026-06-300002024899us-gaap:EmployeeStockOptionMember2026-04-012026-06-300002024899us-gaap:DeferredCompensationShareBasedPaymentsMember2026-04-012026-06-300002024899us-gaap:DeferredCompensationShareBasedPaymentsMember2025-04-012025-06-300002024899us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300002024899us-gaap:RestrictedStockMember2026-04-012026-06-300002024899us-gaap:EmployeeStockOptionMember2026-04-012026-06-300002024899us-gaap:AdditionalPaidInCapitalMember2026-04-012026-06-300002024899us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-06-300002024899us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-3100020248992024-10-230002024899us-gaap:CustomerConcentrationRiskMember2026-06-300002024899us-gaap:CustomerConcentrationRiskMember2026-03-3100020248992024-10-232024-10-230002024899us-gaap:USStatesAndPoliticalSubdivisionsMember2026-06-300002024899us-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-06-300002024899us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-06-300002024899us-gaap:BankTimeDepositsMember2026-06-300002024899us-gaap:USStatesAndPoliticalSubdivisionsMember2026-03-310002024899us-gaap:USGovernmentAgenciesDebtSecuritiesMember2026-03-310002024899us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2026-03-310002024899us-gaap:BankTimeDepositsMember2026-03-310002024899srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMembermfbi:ValuationEstimatedSalesPriceMember2026-06-300002024899srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMembermfbi:ValuationEstimatedSalesPriceMember2026-06-300002024899srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMembermfbi:ValuationEstimatedSalesPriceMember2026-06-300002024899srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMembermfbi:ValuationEstimatedSalesPriceMember2026-03-310002024899srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMembermfbi:ValuationEstimatedSalesPriceMember2026-03-310002024899srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMembermfbi:ValuationEstimatedSalesPriceMember2026-03-310002024899us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2026-06-300002024899us-gaap:FairValueMeasurementsNonrecurringMember2026-06-300002024899us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2026-03-310002024899us-gaap:FairValueMeasurementsNonrecurringMember2026-03-3100020248992026-06-3000020248992026-03-3100020248992025-06-3000020248992025-03-3100020248992025-04-012025-06-300002024899us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-06-300002024899us-gaap:EstimateOfFairValueFairValueDisclosureMember2026-06-300002024899us-gaap:CarryingReportedAmountFairValueDisclosureMember2026-06-300002024899us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310002024899us-gaap:EstimateOfFairValueFairValueDisclosureMember2026-03-310002024899us-gaap:CarryingReportedAmountFairValueDisclosureMember2026-03-3100020248992026-08-1400020248992026-04-012026-06-30xbrli:sharesiso4217:USDxbrli:puremfbi:securitymfbi:loanmfbi:locationmfbi:customeriso4217:USDxbrli:sharesmfbi:segment

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2026

☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File No. 000-56702

Monroe Federal Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Maryland	99-3587922
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

24 East Main Street, Tipp City, Ohio	45371
(Address of Principal Executive Offices)	(Zip Code)

(937) 667-8461

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of Each Exchange on Which Registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days. YES ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company	☒
	Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES ☐ NO ☒

541,434 shares of the registrant’s common stock, par value $0.01 per share, were issued and outstanding as of August 14, 2026.

Table of Contents

Monroe Federal Bancorp, Inc.

Form 10-Q

Index


		Page

Part I. – Financial Information		1

Item 1.	Consolidated Financial Statements	1

	Consolidated Balance Sheets as of June 30, 2026 (unaudited) and March 31, 2026	1

	Consolidated Statements of Operations for the Three Months Ended June 30, 2026 and 2025 (unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended June 30, 2026 and 2025 (unaudited)	3

	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended June 30, 2026 and 2025 (unaudited)	4

	Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2026 and 2025 (unaudited)	5

	Notes to Consolidated Financial Statements (unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	38

Item 4.	Controls and Procedures	38

Part II. – Other Information		39

Item 1.	Legal Proceedings	39

Item 1A.	Risk Factors	39

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	39

Item 3.	Defaults Upon Senior Securities	39

Item 4.	Mine Safety Disclosures	39

Item 5.	Other Information	39

Item 6.	Exhibits	39

	Signature Page	40

Table of Contents

Part I — Financial Information

Item 1. Financial Statements

MONROE FEDERAL BANCORP, INC.

Consolidated Balance Sheets


		June 30,		March 31,
		2026		2026
			(Unaudited)
Assets
Cash and due from banks		$	1,192,314	$	1,315,276
Interest-bearing deposits in other financial institutions			313,966		99,114
Federal funds sold			459,000		41,000
Cash and cash equivalents			1,965,280		1,455,390

Available-for-sale securities			18,379,042		18,446,427
Loans receivable			112,840,817		111,327,938
Allowance for credit losses			(805,756)		(799,318)
Net loans			112,035,061		110,528,620

Premises and equipment			4,970,346		5,030,817
Restricted stock			657,600		728,200
Bank owned life insurance			3,767,816		3,733,511
Accrued interest receivable			448,591		476,985
Net deferred federal income taxes			1,343,430		1,378,041
Other assets			573,003		650,759
Total assets		$	144,140,169	$	142,428,750

Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand		$	32,604,119	$	31,656,469
Savings and money market			48,675,750		51,549,035
Time			41,029,262		41,344,277
Total deposits			122,309,131		124,549,781
Advances from the Federal Home Loan Bank			7,434,000		3,834,000
Advances by borrowers for taxes and insurance			641,862		402,350
Directors plan liability			626,477		618,445
Accrued interest payable and other liabilities			573,609		622,770
Total liabilities			131,585,079		130,027,346

Stockholders' Equity
Preferred stock - $.01 par value, 1,000,000 shares authorized			—		—
Common stock - $.01 par value, 14,000,000 shares authorized, 541,434 shares issued and outstanding at June 30, 2026 and March 31, 2026⁽²⁾			5,264		5,264
Additional paid in capital			3,903,379		3,882,997
Unallocated common stock of ESOP			(322,446)		(327,052)
Retained earnings			12,074,956		12,076,464
Treasury stock - 21,000 shares⁽¹⁾			(210,000)		(210,000)
Deferred compensation plan - Rabbi Trust - 21,000 shares			210,000		210,000
Accumulated other comprehensive loss			(3,106,063)		(3,236,269)
Total stockholders' equity			12,555,090		12,401,404
Total liabilities and stockholders' equity		$	144,140,169	$	142,428,750

(1)	Shares held in treasury stock relate to the 21,000 shares held in a Rabbi Trust for the deferred compensation plan.

(2)	Common stock shares issued and outstanding includes 14,996 unvested restricted stock awards that are legally considered issued and outstanding as of grant date.

See notes to consolidated financial statements.

Table of Contents

MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Operations

(Unaudited)


		Three Months Ended
		June 30,
		2026			2025
Interest income
Loans		$	1,458,641		$	1,356,245
Investment securities			98,019	`		120,219
Interest-bearing deposits and other			20,192			24,519

Total interest income			1,576,852			1,500,983

Interest expense
Deposits			536,525			474,786
Borrowings			57,769			118,713

Total interest expense			594,294			593,499

Net interest income			982,558			907,484

Provision for credit losses			20,778			80,388

Net interest income after provision for credit losses			961,780			827,096

Noninterest income
Service fees on deposits			40,896			42,781
Late charges and fees on loans			7,870			5,386
Loan servicing fees			3,056			3,315
Increase in cash surrender value of bank owned life insurance			34,305			30,840
Other income			10,182			7,990

Total noninterest income			96,309			90,312

Noninterest expense
Salaries and employee benefits			537,218			542,418
Directors fees			25,400			30,300
Occupancy and equipment			139,515			140,446
Data processing fees			129,018			132,471
Franchise taxes			25,308			24,000
FDIC insurance premiums			20,691			17,569
Professional services			44,207			83,303
Advertising			17,289			15,443
Other			132,194			117,122

Total noninterest expense			1,070,840			1,103,072

Loss before income taxes			(12,751)			(185,664)

Benefit for income taxes			(11,243)			(50,552)

Net loss		$	(1,508)		$	(135,112)

Loss per weighted average share
Basic		$	0.00			(0.27)
Diluted		$	N/A			N/A

See notes to consolidated financial statements.

Table of Contents

MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


		Three Months Ended
		June 30,
		2026		2025
Net loss		$	(1,508)	$	(135,112)

Other comprehensive income
Net unrealized gains on available-for-sale securities			164,817		87,299

Tax benefit			(34,611)		(18,333)

Other comprehensive income			130,206		68,966

Comprehensive income (loss)		$	128,698	$	(66,146)

See notes to consolidated financial statements.

Table of Contents

MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)



For the three months ended									Accumulated
June 30, 2025 and June 30, 2026					Unallocated				Other					Deferred			Total
	Common		Additional		Common Stock		Retained		Comprehensive		Treasury				Compensation Plan		Stockholders'
	Stock		Paid in Capital		of ESOP		Earnings		Income (Loss)		Stock			Rabbi Trust		Equity
Balance at April 1, 2025	$	5,264	$	3,859,854	$	(345,478)	$	12,591,062	$	(4,042,169)	$	(210,000)		$	210,000	$	12,068,533

Net loss		—		—		—		(135,112)		—		—			—		(135,112)

Release of ESOP shares		—		2,972		4,606		—		—		—			—		7,578

Other comprehensive income		—		—		—		—		68,966		—			—		68,966

Balance at June 30, 2025	$	5,264	$	3,862,826	$	(340,872)	$	12,455,950	$	(3,973,203)	$	(210,000)		$	210,000	$	12,009,965

Balance at April 1, 2026	$	5,264	$	3,882,997	$	(327,052)	$	12,076,464	$	(3,236,269)	$	(210,000)			210,000	$	12,401,404

Net loss		—		—		—		(1,508)		—		—			—		(1,508)

Release of ESOP shares		—		740		4,606		—		—		—			—		5,346

Stock-based compensation expense		—		19,642		—		—		—		—			—		19,642

Other comprehensive income		—		—		—		—		130,206		—			—		130,206

Balance at June 30, 2026	$	5,264	$	3,903,379	$	(322,446)	$	12,074,956	$	(3,106,063)	$	(210,000)		$	210,000	$	12,555,090

See notes to consolidated financial statements.

Table of Contents

MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Cash Flows

(Unaudited)


		Three Months Ended
		June 30,
		2026		2025
Operating Activities
Net loss		$	(1,508)	$	(135,112)
Items not requiring (providing) cash:
Depreciation and amortization			60,471		61,987
Amortization of premiums and discounts			19,656		33,235
Accretion (amortization) of deferred loan fees			(13,679)		(24,707)
Benefit for deferred income taxes			—		(52,916)
Provision for credit losses			20,778		80,388
Increase in cash surrender value of bank owned life insurance			(34,305)		(30,840)
Stock awards and options compensation expense			19,642		—
Release of ESOP shares			5,346		7,578
Changes in:
Accrued interest receivable			28,394		12,929
Other assets			77,756		37,536
Accrued interest payable and other liabilities			(55,469)		(35,108)

Net cash provided by (used in) operating activities			127,082		(45,030)

Investing Activities
Proceeds from calls, maturities and paydowns of available-for-sale securities			212,546		349,080
Net change in loans			(1,499,200)		(1,395,191)
Purchase of premises and equipment			—		(6,749)
Redemption (purchase) of restricted stock			70,600		(31,000)

Net cash used in investing activities			(1,216,054)		(1,083,860)

Financing Activities
Net (decrease) increase in deposit accounts			(2,240,650)		4,498,144
Proceeds from Federal Home Loan Bank advances			8,034,000		13,040,000
Repayment of Federal Home Loan Bank advances			(4,434,000)		(16,535,000)
Increase in advances from borrowers for taxes and insurance			239,512		262,172

Net cash provided by financing activities			1,598,862		1,265,316

Increase in Cash and Cash Equivalents			509,890		136,426

Cash and Cash Equivalents, Beginning of Period			1,455,390		2,077,767

Cash and Cash Equivalents, End of Period		$	1,965,280	$	2,214,193

Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest on deposits and borrowings		$	594,691	$	587,347
Income taxes paid			—		—

See notes to consolidated financial statements.

Table of Contents

Note 1:Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations and Basis of Presentation

Monroe Federal Bancorp, Inc. (“Monroe Federal Bancorp” or the “Company”), a Maryland corporation, was incorporated on May 21, 2024 to serve as the savings and loan holding company for Monroe Federal Savings and Loan Association (the “Bank”) in connection with the Bank’s conversion from the mutual form of organization to the stock form of organization (the “Conversion”). The Conversion was completed on October 23, 2024. In connection with the Conversion, Monroe Federal Bancorp acquired 100% ownership of Monroe Federal Savings and Loan Association and the Company sold 526,438 shares of its common stock at $10.00 per share, for gross offering proceeds of $5,264,380. The cost of the conversion and issuance of common stock was approximately $1.4 million, which was deducted from the gross offering proceeds. The Company’s employee stock ownership plan purchased 36,851 shares of the common stock sold by the Company, which was equal to 7% of the shares of common stock sold by the Company. The ESOP purchased the shares using a loan from the Company. The Company contributed $2.0 million of the net proceeds from the offering to the Bank, loaned $368,510 of the net proceeds to the ESOP and retained approximately $1.9 million of the net proceeds.

Monroe Federal Savings and Loan Association is a federally chartered stock savings association engaged primarily in the business of providing a variety of deposit and lending services to individual customers in western Ohio. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential and commercial mortgages, commercial, home equity lines of credit and installment loans. Its operations are conducted through its four office locations in Tipp City, Vandalia and Dayton, Ohio. The Company faces competition from other financial institutions and is subject to the regulation of certain federal agencies and undergoes periodic examinations by those regulatory authorities.

The consolidated financial statements included herein as of June 30, 2026, and for the interim three-month periods ended June 30, 2026 and 2025 are unaudited. The unaudited interim financial statements and the notes thereto have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and in the opinion of management, contain all normal recurring adjustments necessary to present fairly the consolidated balance sheets, statement of operations, changes in stockholders’ equity and cash flows as of and for the periods presented. Such adjustments are the only adjustments contained in the consolidated financial statements. The results of operations for the three months ended June 30, 2026 are not necessarily indicative of the results of operations for the full fiscal year.

The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, as filed by Monroe Federal Bancorp with the Securities and Exchange Commission on June 25, 2026.

Segment Information

The Bank operates under a single reportable segment which relates primarily to banking operations. The segment is also distinguished by the level of information provided by the CFO, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar. The CEO and CFO will evaluate the financial performance of the Bank’s business components such as evaluating revenue streams, significant expenses, and budget to actual results in assessing the Bank’s segment and in the determination of allocating resources. The CEO and CFO use revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CEO and CFO use net income to benchmark the Bank against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposit product service fees provide the revenues in the banking operation. Interest expense and salaries and employee benefits, as reported on the statements of operations, provide the significant expenses in the banking operation. All operations are domestic.

Table of Contents

The Bank operates under a single segment. Segment performance is evaluated using net income. The measure of segment assets is reported on the balance sheets as total assets. Noncash items, such as depreciation and amortization, as well as expenditures for premises and equipment, are reported on the statements of cash flows.

Principles of Consolidation

The consolidated financial statements as of and for the period ended June 30, 2026, include the accounts of the Company and the Bank, its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets and fair values of financial instruments.

Allowance for Credit Losses

The allowance for credit losses (ACL) is a valuation allowance for estimated credit losses. The ACL is established through a provision for credit losses charged to income. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

Available-for-sale securities

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. Accrued interest receivable on securities totaled $86,381 and $101,454 at June 30, 2026 and March 31, 2026, respectively. The Company made the policy election to exclude accrued interest receivable on securities from the estimate of credit losses.

For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.

If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected to use zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses.

Table of Contents

Loans

The ACL is a valuation allowance that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Management’s determination of the adequacy of the ACL is based on the assessment of the expected credit losses on loans over the expected life of the loan. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged off and expected to be charged off. Accrued interest receivable on loans totaled $362,210 and $375,531 at June 30, 2026 and March 31, 2026, respectively. The Company made the policy election to exclude accrued interest receivable on loans from the estimate of credit losses.

Management estimates the ACL balance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience of the Company is paired with economic forecasts to provide the basis for the quantitatively modeled estimates of expected credit losses. The Company adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. These adjustments are commonly known as the qualitative factors.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company uses publicly available data, based on regulatory filings of larger banks, to derive initial proxy expected lifetime loss rates. Reasonable and supportable forecasts are incorporated into the development of these proxy loss rates, which generally revert back to historical and qualitative loss considerations after 12-24 months. The loss rates are adjusted, if necessary, based on management’s assessment of certain criteria, including economic and business conditions, that may affect the Company’s loan portfolio, to arrive at factors that best represent the estimated credit risk in the loan portfolio.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, less estimated selling costs, as appropriate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

A loan for which the terms have been modified, resulting in a concession and for which the borrower is experiencing financial difficulties, is considered within the determination of the ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan.

Unfunded Commitments

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The ACL on unfunded commitments is adjusted through the provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life consistent with the related ACL methodology. The ACL on unfunded commitments totaled $86,314 and $71,974 at June 30, 2026 and March 31, 2026, respectively, and is included in accrued interest payable and other liabilities on the balance sheet.

Table of Contents

Note 2:Investment Securities

The amortized cost and fair values, together with gross unrealized gains and losses on securities are as follows:


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
Available-for-sale Securities:
June 30, 2026
U.S. Government agencies		$	2,700,751		$	—		$	(391,459)		$	2,309,292
Mortgage-backed Government Sponsored Enterprises (GSEs)			8,342,981			—			(1,497,578)			6,845,403
State and political subdivisions			10,769,807			—			(2,016,664)			8,753,143
Time deposits			497,229			—			(26,025)			471,204
		$	22,310,768		$	—		$	(3,931,726)		$	18,379,042


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
Available-for-sale Securities:
March 31, 2026
U.S. Government agencies		$	2,700,793		$	—		$	(384,570)		$	2,316,223
Mortgage-backed Government Sponsored Enterprises (GSEs)			8,558,140			—			(1,491,325)			7,066,815
State and political subdivisions			10,786,860			—			(2,194,009)			8,592,851
Time deposits			497,177			—			(26,639)			470,538

		$	22,542,970		$	—		$	(4,096,543)		$	18,446,427

The amortized cost and fair value of available-for-sale securities at June 30, 2026, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties:


		Amortized			Fair
		Cost			Value
June 30, 2026
Within one year		$	248,000		$	247,829
One to five years			1,459,230			1,294,118
Five to ten years			3,095,201			2,632,917
After ten years			9,165,356			7,358,775
			13,967,787			11,533,639
Mortgage-backed GSEs			8,342,981			6,845,403

Totals		$	22,310,768		$	18,379,042

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was approximately $3,442,000 and $3,476,000 at June 30, 2026 and March 31, 2026, respectively.

Table of Contents

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Based on evaluation of available evidence, including recent changes in market interest rates and information obtained from regulatory filings, management believes the declines in fair value for these securities are not credit related.

Should the fair value decline of any of these securities be attributed to credit-related reasons, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period identified.

The following table shows the number of securities and aggregate fair value depreciation at June 30, 2026 and March 31, 2026.


		June 30, 2026					March 31, 2026
		Number of		Aggregate			Number of		Aggregate
Description of Securities		securities		Depreciation			securities		Depreciation
Available for sale
U.S. Government agencies		7		(14.5)	%		7		(14.2)	%
Mortgage-backed Government Sponsored Enterprises (GSEs)		24		(18.0)	%		24		(17.4)	%
State and political subdivisions		28		(18.7)	%		28		(20.3)	%
Time deposits		2		(5.2)	%		2		(5.4)	%

Total portfolio		61		(17.6)	%		61		(18.2)	%

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and March 31, 2026.


		June 30, 2026
		Less than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Available for sale
U.S. Government agencies		$	301,317		$	(1,777)		$	2,007,975		$	(389,682)		$	2,309,292		$	(391,459)
Mortgage-backed Government Sponsored Enterprises (GSEs)									6,845,403			(1,497,578)			6,845,403			(1,497,578)
State and political subdivisions									8,753,143			(2,016,664)			8,753,143			(2,016,664)
Time deposits									471,204			(26,025)			471,204			(26,025)

Total portfolio		$	301,317		$	(1,777)		$	18,077,725		$	(3,929,949)		$	18,379,042		$	(3,931,726)


		March 31, 2026
		Less than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Available for sale
U.S. Government agencies		$	301,371		$	(1,838)		$	2,014,852		$	(382,732)		$	2,316,223		$	(384,570)
Mortgage-backed Government Sponsored Enterprises (GSEs)			—			—			7,066,815			(1,491,325)			7,066,815			(1,491,325)
State and political subdivisions			—			—			8,592,851			(2,194,009)			8,592,851			(2,194,009)
Time deposits			—			—			470,538			(26,639)			470,538			(26,639)

Total portfolio		$	301,371		$	(1,838)		$	18,145,056		$	(4,094,705)		$	18,446,427		$	(4,096,543)

U.S. Government Agencies and State and Political Subdivisions

Unrealized losses on these securities have not been recognized because the issuers’ bonds are of high credit quality, values have only been impacted by changes in market interest rates since the securities were purchased, and the

Table of Contents

Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date. Because the decline in market value was attributable to changes in market interest rates, and not credit quality, and because the Company typically does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company determined that no credit loss provisions were required.

Mortgage-backed GSEs

The unrealized losses on the Company’s investment in residential mortgage-backed government sponsored enterprises were caused primarily by changes in market interest rates. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in market interest rates, and not credit quality, and because the Company typically does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company determined that no credit loss provisions were required.

Time Deposits

The unrealized losses on the Company’s investment in time deposits were caused primarily by changes in market interest rates. The Company expects to recover the amortized cost basis over the term of the deposits. Because the decline in market value is attributable to changes in market interest rates, and not credit quality, and because the Company typically does not intend to sell the deposits and it is not more likely than not the Company will be required to sell the deposits before recovery of their amortized cost basis, which may be at maturity, the Company determined that no credit loss provisions were required.

Note 3:Loans and Allowance for Credit Losses

Categories of loans were as follows:


		June 30,			March 31,
		2026			2026
Real estate loans:
Residential		$	67,266,327		$	67,988,201
Multi-family			3,270,200			1,830,264
Commercial			28,058,804			27,308,068
Construction and land			1,859,801			2,099,773
Home equity line of credit (HELOC)			5,142,906			4,941,865
Commercial and industrial			6,187,876			6,304,585
Consumer			1,314,625			1,108,319

Total loans			113,100,539			111,581,075

Less:
Net deferred loan fees			259,722			253,137
Allowance for credit losses			805,756			799,318

Net loans		$	112,035,061		$	110,528,620

Loan participations where the Company serves as lead lender and services the participation interests for other participating lenders are not included in the accompanying balance sheets. The unpaid principal balances of these loans were approximately $4,515,000 and $4,900,000 at June 30, 2026 and March 31, 2026, respectively.

Table of Contents

Risk characteristics of each loan portfolio segment are described as follows:

Residential Real Estate

These loans include first liens and junior liens on 1-4 family residential real estate and are generally owner-owner occupied. The Company generally establishes a maximum loan-to-value and requires private mortgage insurance if that ratio is exceeded. The main risks for these loans are changes in the value of the collateral and stability of the local economic environment and its impact on the borrowers’ employment. Management specifically considers unemployment and changes in real estate values in the Company’s market area.

Multi-family Real Estate

These loans include loans on residential real estate secured by property with five or more units. The main risks are changes in the value of the collateral, ability of borrowers to collect rents, vacancy and changes in the tenants’ employment status. Management specifically considers unemployment and changes in real estate values in the Company’s market area.

Commercial Real Estate

These loans are secured by both owner-occupied and non-owner-occupied commercial real estate with diverse characteristics and geographic location almost entirely in the Company’s market area. The main risks are changes in the value of the collateral and ability of borrowers to successfully conduct their business operations. Management generally avoids financing single purpose projects unless other underwriting factors are present to mitigate risks. Management specifically considers unemployment and changes in real estate values in the Company’s market area.

Construction and Land Real Estate

These loans include construction loans for 1-4 family residential and commercial properties (both owner and non-owner occupied) and first liens on land. The main risks for construction loans include uncertainties in estimating costs of construction and in estimating the market value of the completed project. The main risks for land loans are changes in the value of the collateral and stability of the local economic environment. Management specifically considers unemployment and changes in real estate values in the Company’s market area.

HELOC

These loans are generally secured by subordinate liens on owner-occupied 1-4 family residences. The main risks for these loans are changes in the value of the collateral and stability of the local economic environment and its impact on the borrowers’ employment. Management specifically considers unemployment and changes in real estate values in the Company’s market area.

Commercial and Industrial

The commercial and industrial portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of the borrower and the economic conditions that impact the cash flow stability from business operations.

Consumer Loans

These loans include vehicle loans, share loans and unsecured loans. The main risks for these loans are the depreciation of the collateral values (vehicles) and the financial condition of the borrowers. Major employment changes are specifically considered by management.

Table of Contents

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months ended June 30, 2026 and June 30, 2025:


		Three Months Ended June 30, 2026
					Provision
					for
		Balance			(recovery of)									Balance
		March 31, 2026			credit losses			Charge-offs			Recoveries			June 30, 2026
Loans:
Real estate loans:
Residential		$	331,970		$	(4,479)		$	—		$	—		$	327,491
Multi-family			8,547			6,714			—			—			15,261
Commercial			325,335			3,650			—			—			328,985
Construction and land			31,272			(4,407)			—			—			26,865
Home equity line of credit (HELOC)			24,764			966			—			—			25,730
Commercial and industrial			53,101			(930)			—			—			52,171
Consumer			24,329			4,924			—			—			29,253

Total loans			799,318			6,438			—			—			805,756

Off-balance sheet commitments			71,974			14,340			—			—			86,314

Total allowance for credit losses		$	871,292		$	20,778		$	—		$	—		$	892,070


		Three Months Ended June 30, 2025
					Provision
					for
					(recovery
		Balance			of)									Balance
		March 31, 2025			credit losses			Charge-offs			Recoveries			June 30, 2025
Real estate loans:
Residential		$	377,680			20,815		$	—		$	—		$	398,495
Multi-family			7,254			(342)			—			—			6,912
Commercial			337,338			59,836			—			—			397,174
Construction and land			38,483			(5,920)			—			—			32,563
Home equity line of credit (HELOC)			23,949			900			—			—			24,849
Commercial and industrial			39,307			(3,552)			—			—			35,755
Consumer			29,021			9,796			—			—			38,817

Total loans		$	853,032		$	81,533		$	—		$	—		$	934,565

Off-balance sheet commitments			76,445			(1,145)			—			—			75,300

Total allowance for credit losses		$	929,477		$	80,388		$	—		$	—		$	1,009,865

Table of Contents

The Company has adopted a standard loan grading system for all loans, as follows:

Pass. Loans of sufficient quality, which generally are protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral.

Special Mention. Loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard. Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Usually, this classification includes all 90 days or more, non-accrual, and past due loans.

Doubtful. Loans which have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss. Loans considered uncollectible and of such little value that continuance as an asset without the establishment of a specific reserve is not warranted.

Table of Contents

Information regarding the credit quality indicators most closely monitored for other than residential real estate loans and consumer loans, by class at June 30, 2026 and March 31, 2026, follows. The years reported represent the Company’s fiscal year rather than the calendar year.


		Term Loans Amortized Cost Basis by Origination Year
		At June 30, 2026
			2027			2026			2025			2024			2023			Prior			Total
Multi-family
Risk rating:
Pass		$	1,843,999		$	600,000		$	480,617		$	—		$	—		$	345,584		$	3,270,200
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	1,843,999		$	600,000		$	480,617		$	—		$	—		$	345,584		$	3,270,200

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial real estate
Risk rating:
Pass		$	578,692		$	6,124,366		$	2,930,506		$	3,345,455		$	2,801,985		$	10,481,089		$	26,262,093
Special Mention			—			—			—			451,369			—						451,369
Substandard			—			—			—			—			—			1,345,342			1,345,342
Doubtful			—			—			—			—			—			—			—
Total		$	578,692		$	6,124,366		$	2,930,506		$	3,796,824		$	2,801,985		$	11,826,431		$	28,058,804

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Construction and land
Risk rating:
Pass		$	229,839			1,520,426		$	—		$	58,716		$	50,820		$	—		$	1,859,801
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	229,839		$	1,520,426		$	—		$	58,716		$	50,820		$	—		$	1,859,801

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial and industrial
Risk rating:
Pass		$	891,135		$	2,206,497		$	1,436,969		$	291,077		$	310,283		$	1,044,912		$	6,180,873
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			7,003			—			7,003
Doubtful			—			—			—			—			—			—			—
Total		$	891,135		$	2,206,497		$	1,436,969		$	291,077		$	317,286		$	1,044,912		$	6,187,876

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Table of Contents


		Term Loans Amortized Cost Basis by Origination Year
		At March 31, 2026
			2026			2025			2024			2023			2022			Prior			Total
Multi-family
Risk rating:
Pass		$	600,000		$	483,814		$	—		$	—		$	—		$	746,450		$	1,830,264
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	600,000		$	483,814		$	—		$	—		$	—		$	746,450		$	1,830,264

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial real estate
Risk rating:
Pass		$	5,895,965		$	2,956,234		$	3,823,854		$	2,582,546		$	5,693,228		$	5,004,409		$	25,956,236
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			1,351,832			1,351,832
Doubtful			—			—			—			—			—			—			—
Total		$	5,895,965		$	2,956,234		$	3,823,854		$	2,582,546		$	5,693,228		$	6,356,241		$	27,308,068

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Construction and land
Risk rating:
Pass		$	1,917,957			—			128,716		$	53,100		$	—		$	—		$	2,099,773
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	1,917,957		$	—		$	128,716		$	53,100		$	—		$	—		$	2,099,773

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial and industrial
Risk rating:
Pass		$	2,456,388		$	1,481,377		$	392,102		$	321,364		$	7,130		$	1,638,390		$	6,296,751
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			7,834			—			—			7,834
Doubtful			—			—			—			—			—			—			—
Total		$	2,456,388		$	1,481,377		$	392,102		$	329,198		$	7,130		$	1,638,390		$	6,304,585

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Table of Contents

The Company monitors the credit risk profile by payment activity for residential, home equity and consumer loan classes. Loans past due 90 days or more and loans on nonaccrual status are considered nonperforming. Nonperforming loans are reviewed monthly. The following table presents the amortized cost in residential, home equity and consumer loans based on payment activity. The years reported represent the Company’s fiscal year rather than the calendar year.


		Term Loans Amortized Cost Basis by Origination Year
		At June 30, 2026
		2027			2026			2025			2024			2023			Prior			Total
Residential real estate
Payment performance
Performing		$	2,409,631		$	5,117,678		$	5,205,259		$	5,093,244		$	11,976,237		$	37,334,379		$	67,136,428
Nonperforming			—			—			—			—			—			129,899			129,899
Total		$	2,409,631		$	5,117,678		$	5,205,259		$	5,093,244		$	11,976,237		$	37,464,278		$	67,266,327

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Home Equity
Payment performance
Performing		$	446,045		$	1,525,862		$	756,616		$	391,086		$	1,229,914		$	682,387		$	5,031,910
Nonperforming			—			—			—			87,150			23,846			—			110,996
Total		$	446,045		$	1,525,862		$	756,616		$	478,236		$	1,253,760		$	682,387		$	5,142,906

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Consumer
Payment performance
Performing		$	356,307		$	351,407		$	123,139		$	288,078		$	135,172		$	60,522		$	1,314,625
Nonperforming			—			—			—			—			—			—			—
Total		$	356,307		$	351,407		$	123,139		$	288,078		$	135,172		$	60,522		$	1,314,625

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—


		Term Loans Amortized Cost Basis by Origination Year
		At March 31, 2026
		2026			2025			2024			2023			2022			Prior			Total
Residential real estate
Payment performance
Performing		$	5,799,061		$	5,222,062		$	5,223,155		$	12,130,828		$	21,443,140		$	18,040,056		$	67,858,302
Nonperforming			—			—			—			—			—			129,899			129,899
Total		$	5,799,061		$	5,222,062		$	5,223,155		$	12,130,828		$	21,443,140		$	18,169,955		$	67,988,201

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Home Equity
Payment performance
Performing		$	1,303,500		$	913,692		$	394,124		$	1,475,181		$	212,485		$	531,105		$	4,830,087
Nonperforming			—			—			87,932			23,846			—			—			111,778
Total		$	1,303,500		$	913,692		$	482,056		$	1,499,027		$	212,485		$	531,105		$	4,941,865

Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Consumer
Payment performance
Performing		$	367,168		$	131,504		$	336,504		$	194,011		$	44,521		$	34,611		$	1,108,319
Nonperforming			—			—			—			—			—			—			—
Total		$	367,168		$	131,504		$	336,504		$	194,011		$	44,521		$	34,611		$	1,108,319

Current period gross charge-offs		$	—		$	—		$	—		$	1,366		$	—		$	—		$	1,366

The Company evaluates the loan risk grading system definitions on an ongoing basis. No significant changes were made during the three months ended June 30, 2026 and the year ended March 31, 2026.

Table of Contents

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2026 and March 31, 2026:


	June 30, 2026
													Total Loans >
					90 Days								90 Days or
	30-59 Days		60-89 Days		or Greater		Total				Total Loans		Greater Past Due &
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		Accruing
Real estate loans:
Residential	$	187,466	$	—	$	129,899	$	317,365	$	66,948,962	$	67,266,327	$	—
Multi-family		—		—		—		—		3,270,200		3,270,200		—
Commercial		—		—		—		—		28,058,804		28,058,804		—
Construction and land		—		—		—		—		1,859,801		1,859,801		—
Home equity line of credit (HELOC)		87,150		—		23,846		110,996		5,031,910		5,142,906		—
Commercial and industrial		—		—		—		—		6,187,876		6,187,876		—
Consumer		—		—		—		—		1,314,625		1,314,625		—

Total	$	274,616	$	—	$	153,745	$	428,361	$	112,672,178	$	113,100,539	$	—


	March 31, 2026
													Total Loans >
					90 Days								90 Days or
	30-59 Days		60-89 Days		or Greater		Total				Total Loans		Greater Past Due &
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		Accruing
Real estate loans:
Residential	$	188,678	$	—	$	129,899	$	318,577	$	67,669,624	$	67,988,201	$	—
Multi-family		—		—		—		—		1,830,264		1,830,264		—
Commercial		258,744		—		—		258,744		27,049,324		27,308,068		—
Construction and land		—		—		—		—		2,099,773		2,099,773		—
Home equity line of credit (HELOC)		—		—		23,846		23,846		4,918,019		4,941,865		—
Commercial and industrial		—		—		—		—		6,304,585		6,304,585		—
Consumer		—		—		—		—		1,108,319		1,108,319		—

Total	$	447,422	$	—	$	153,745	$	601,167	$	110,979,908	$	111,581,075	$	—

Table of Contents

The following table presents the amortized cost basis and collateral type of collateral dependent loans by class as of June 30, 2026 and March 31, 2026:


	Real			Business
June 30, 2026	estate			assets			Total
Real estate loans:
Residential	$	445,284		$	—		$	445,284
Multi-family		—			—			—
Commercial		1,345,342			—			1,345,342
Construction and land		—			—			—
Home equity line of credit (HELOC)		110,996			—			110,996
Commercial and industrial		—			293,661			293,661
Consumer		—			—			—

	$	1,901,622		$	293,661		$	2,195,283

	Real			Business
March 31, 2026	estate			assets			Total
Real estate loans:
Residential	$	445,832		$	—		$	445,832
Multi-family		—			—			—
Commercial		1,351,832			—			1,351,832
Construction and land		—			—			—
Home equity line of credit (HELOC)		111,778			—			111,778
Commercial and industrial		—			296,926			296,926
Consumer		—			—			—

	$	1,909,442		$	296,926		$	2,206,368

Nonaccrual loans were as follow at June 30, 2026 and March 31, 2026:


			Nonaccrual Loans			Nonaccrual Loans
		Without an				With an			Total
June 30, 2026		Allowance				Allowance			Nonaccrual Loans
Real estate loans
Residential		$	129,899		$	—		$	129,899
Home equity line of credit (HELOC)			110,996			—			110,996
Commercial and industrial			7,003			—			7,003
Consumer			—			—			—
Total nonaccrual loans		$	247,898		$	—		$	247,898

			Nonaccrual Loans			Nonaccrual Loans
		Without an				With an			Total
March 31, 2026		Allowance				Allowance			Nonaccrual Loans
Real estate loans
Residential		$	129,899		$	—		$	129,899
Home equity line of credit (HELOC)			23,846			87,932			111,778
Commercial and industrial			7,834			—			7,834
Consumer			—			—			—
Total nonaccrual loans		$	161,579		$	87,932		$	249,511

No loans were modified during the three month period ended June 30, 2026 and June 30, 2025.

Table of Contents

Note 4:Time Deposits

Time deposits in denominations of $250,000 or more were approximately $10,780,000 and $7,643,000 at June 30, 2026 and March 31, 2026, respectively.

At June 30, 2026, the scheduled maturities of time deposits were as follows:


		June 30,
		2026
Within one year		$	30,344,475
One year to two years			5,428,173
Two years to three years			881,588
Three years to four years			3,887,662
Four years to five years			305,121
Thereafter			182,243
		$	41,029,262

At June 30, 2026 and March 31, 2026, the Company had one significant customer deposit account with a total deposit balance of approximately $5,451,000 and $5,617,000, respectively.

Note 5:Borrowings

Federal Home Loan Bank (FHLB) advances consisted of the following as of June 30, 2026 and March 31, 2026:


		June 30, 2026					March 31, 2026
		Interest					Interest
		Rate		Amount			Rate		Amount
Scheduled to mature year ending March 31, 2027		3.85	%	$	7,434,000		3.82	%	$	3,834,000

The Company has made a collateral pledge to the FHLB consisting of all shares of FHLB stock owned by the Company and a blanket pledge of approximately $67,387,000 and $69,030,000 of its qualifying mortgage assets as of June 30, 2026 and March 31, 2026, respectively. Based on this collateral, the Company was eligible to borrow up to a total of approximately $34,370,000 and $39,099,000 as of June 30, 2026 and March 31, 2026, respectively.

Maturities of FHLB advances were as follows at June 30, 2026:



		June 30, 2026
Within one year		$	7,434,000

The Company had an available line of credit with the Federal Reserve Bank totaling $5,343,000 and $5,692,000, at June 30, 2026 and March 31, 2026, respectively. The line of credit was collateralized by a pledge of certain commercial loans totaling $10,591,000 and $11,244,000 as of June 30, 2026 and March 31, 2026, respectively. The Company had no outstanding borrowings on this line at June 30, 2026 and March 31, 2026.

The Company also has an available line of credit with United Bankers Bank totaling $5,000,000 at both June 30, 2026 and March 31, 2026. The Company had no outstanding borrowings on this line at June 30, 2026 and March 31, 2026.

Note 6:Employee Stock Option Plan (ESOP)

In connection with the Conversion, the Company established an Employee Stock Ownership Plan (“ESOP”) for the exclusive benefit of eligible employees. The Bank expects to make annual contributions to the ESOP in amounts as

Table of Contents

defined by the ESOP loan documents. The contributions will be used to repay the ESOP loan. Certain ESOP shares are pledged as collateral for the ESOP loan. As the ESOP loan is repaid, shares are released from collateral and allocated to eligible participants, based on the proportion of loan repayments paid in the year. Shares allocated to eligible participants will become 100% vested upon completion of three years of service with the Bank, including years of service prior to the formation of the ESOP.

In connection with the Company’s Conversion, the ESOP borrowed $368,510 from the Company for the purpose of purchasing shares of the Company’s stock. A total of 36,851 shares were purchased with the loan proceeds. Company stock purchased by the ESOP is shown as a reduction of stockholders’ equity. The ESOP loan is expected to be repaid over a period of 20 years.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $5,346 for the three month period ended June 30, 2026. At June 30, 2026, there were 3,685 shares allocated to participants and 33,166 unallocated shares. The fair value of unallocated ESOP shares totaled $388,706 at June 30, 2026.

Note 7:Stock-Based Compensation

Under its equity incentive plan, the Company may grant stock options and restricted stock awards to certain officers, employees, and directors. This plan is administered by a committee of the Board of Directors. At June 30, 2026, approximately 68,436 shares were available for grant under the plan. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The fair value of options granted was determined using the following weighted-average assumptions as of the grant date:



	2026
Dividend Yield			0.00	%
Expected Volatility			29.60	%
Risk-free interest rate			3.92	%
Expected average life			6.5 years
Weighted average per share fair value of options		$	4.44

The Company’s restricted stock activity as of June 30, 2026 is summarized below:


		Weighted Average Grant	Restricted Shares
Restricted Stock		Date Fair Value	Outstanding

Outstanding - March 31, 2026	$	11.46	14,996
Granted		—	—
Forfeited		—	—
Outstanding - June 30, 2026	$	11.46	14,996

The Company amortizes the expense related to restricted stock awards as compensation expense over the vesting period. The Company recognized $8,570 in restricted stock expense during the three month period ended June 30, 2026. At June 30, 2026, the Company had $156,100 of unrecognized compensation expense related to restricted stock shares that is expected to be recognized over a weighted average period of 5 years.

Table of Contents

The following table summarizes information about the Company’s stock option activity for the three months ended June 30, 2026:


	Option			Weighted Average
	Shares		Weighted Average	Remaining		Aggregate
Stock Options	Outstanding		Exercise Price	Life (Years)		Intrinsic Value
Outstanding - March 31, 2026	50,008	$	11.46	9.8	$	12,634
Granted	—		—	—		—
Exercised	—		—	—		—
Forfeited	—		—	—		—
Outstanding- June 30, 2026	50,008	$	11.46	9.6	$	15,318
Exercisable - June 30, 2026	—		—	—		—

The Company amortizes the expense related to stock options as compensation expense over the vesting period. The Company recognized $11,072 in stock option expense for the three months ended June 30, 2026. At June 30, 2026, the Company had $201,646 in estimated unrecognized compensation costs related to outstanding stock options that is expected to be recognized over a weighted average period of 5 years.

Note 8:Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Unallocated common shares held by the ESOP are shown as a reduction in stockholders’ equity and are excluded from weighted-average common shares outstanding for both basic and diluted earnings (loss) per share calculations until they are committed to be released. Unvested restricted stock awards of 14,996 shares are excluded from weighted-average shares issued until they vest. Dilutive earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), using the treasury stock method. There were 1,307 stock option shares and 1,585 stock award shares that were excluded from diluted EPS for the three month period ended June 30, 2026 because inclusion would have been anti-dilutive. Presented below are the calculations for basic and diluted earnings per common share.


		Three months ended			Three months ended
		June 30,			June 30,
		2026			2025

Net loss		$	(1,508)		$	(135,112)

Weighted-average shares issued			526,438			526,438
Less weighted-average unearned ESOP shares			32,470			34,312
Weighted-average shares outstanding (basic)			493,968			492,126
Diluted restricted award shares			—			—
Diluted restricted options			—			—
Weighted-average shares outstanding (diluted)			493,968			492,126

Loss per share
Basic		$	0.00		$	(0.27)
Diluted		$	N/A		$	N/A

Table of Contents

Note 9:Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under U.S. GAAP reporting requirements and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements.

Quantitative measures established by regulatory reporting standards to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined) to risk-weighted assets (as defined), common equity Tier I capital (as defined) to total risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined).

Federal regulators finalized and adopted a regulatory capital rule in 2019 establishing a new community bank leverage ratio (CBLR), which became effective on January 1, 2020. The intent of the CBLR is to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions and depository institution holding companies, as directed under the Economic Growth, Regulatory Relief, and Consumer Protection Act.

If a qualifying depository institution, or depository institution holding company, elects to use such measure, such institution or holding company will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds 8.0%, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios.

The Bank elected to begin using the CBLR during the quarter ended December 31, 2024. The Bank’s CBLR was 9.9% and 9.6% as of June 30, 2026 and March 31, 2026, respectively.

As of June 30, 2026, the most recent notification from the regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed this category.

Table of Contents

Note 10: Disclosures about Fair Value of Assets and Liabilities

Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

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 an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2026 and March 31, 2026:


				Fair Value Measurements Using
				Quoted Prices in				Significant
				Active Markets for		Significant Other		Unobservable
		Fair		Identical Assets		Observable Inputs		Inputs
		Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2026
U.S. Government agencies		$	2,309,292	$	—	$	2,309,292	$	—
Mortgage-backed Government Sponsored Enterprises (GSEs)			6,845,403		—		6,845,403		—
State and political subdivisions			8,753,143		—		8,753,143		—
Time deposits			471,204		—		471,204		—

March 31, 2026
U.S. Government agencies		$	2,316,223	$	—	$	2,316,223	$	—
Mortgage-backed Government Sponsored Enterprises (GSEs)			7,066,815		—		7,066,815		—
State and political subdivisions			8,592,851		—		8,592,851		—
Time deposits			470,538		—		470,538		—

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There are no liabilities measured at fair value on a recurring basis. There have been no significant changes in the valuation techniques during the three months ended June 30, 2026 and the year ended March 31, 2026.

Table of Contents

Available-for-sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 are not available, securities are classified within Level 3 of the hierarchy. The Company had no Level 3 securities.

Nonrecurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying balance sheet measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2026.


					Fair Value Measurements Using
		Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2026
Collateral dependent loans		$	268,720		$	—	$	—	$	268,720


		Fair Value			Valuation Technique		Unobservable Inputs	Range (Weighted-average)
June 30, 2026
Collateral dependent loans		$	268,720		Estimated sales price		Adjustments for discounts to reflect current market conditions	20% - 25% (23%)

The collateral dependent loan had a carrying value of $286,884. An allowance balance of $18,164 was recorded to write down the loans to fair value.


					Fair Value Measurements Using
		Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2026
Collateral dependent loans		$	2,188,154		$	—	$	—	$	2,188,154


	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-average)
March 31, 2026
Collateral dependent loans	$	2,188,154	Estimated sales price	Adjustments for discounts to reflect current market conditions	20% - 25% (23%)

The collateral dependent loans had a carrying value of $2,206,368. An allowance balance of $18,214 was recorded to write down the loans to fair value.

Table of Contents

The estimated fair values of the Company’s financial instruments not carried at fair value on the balance sheets as of June 30, 2026 and March 31, 2026 are as follows:


		Carrying			Fair			Fair Value Measurements Using
		Value			Value			Level 1		Level 2		Level 3
June 30, 2026
Financial assets:
Cash and cash equivalents		$	1,965,280		$	1,965,280		$	1,965,280	$	—	$	—
Loans, net			112,035,061			107,200,320			—		—		107,200,320
Restricted stock			657,600			657,600			—		657,600		—
Bank owned life insurance			3,767,816			3,767,816			3,767,816		—		—
Accrued interest receivable			448,591			448,591			448,591		—		—

Financial liabilities:
Deposits			122,309,131			121,948,073			81,279,869		—		40,668,204
FHLB advances			7,434,000			7,435,000			—		—		7,435,000
Accrued interest payable			25,243			25,243			25,243		—		—


		Carrying			Fair			Fair Value Measurements Using
		Value			Value			Level 1		Level 2		Level 3
March 31, 2026
Financial assets:
Cash and cash equivalents		$	1,455,390		$	1,455,390		$	1,455,390	$	—	$	—
Loans, net			110,528,620			106,053,425			—		—		106,053,425
Restricted stock			728,200			728,200			—		728,200		—
Bank owned life insurance			3,733,511			3,733,511			3,733,511		—		—
Accrued interest receivable			476,985			476,985			476,985		—		—

Financial liabilities:
Deposits			124,549,781			124,268,640			83,205,504		—		41,063,136
FHLB advances			3,834,000			3,840,000			—		—		3,840,000
Accrued interest payable			25,640			25,640			25,640		—		—

Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Fair value estimates may not be realizable in an immediate settlement of the instrument. In some instances, there are no quoted market prices for the Company’s various financial instruments, in which case fair values may be based on estimates using present value or other valuation techniques, or based on judgments regarding future expected loss experience, current economic conditions, risk characteristic of the financial instruments, or other factors.

Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Subsequent changes in assumptions could significantly affect the estimates.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis is intended to enhance your understanding of our financial condition and results of operations. The financial information in this section is derived from the accompanying unaudited financial statements. You should read the financial information in this section in conjunction with the business and financial information contained in this report and in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, filed with the Securities and Exchange Commission.

Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “believe,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

●

statements of our goals, intentions and expectations;

●

statements regarding our business plans, prospects, growth and operating strategies;

●

statements regarding the asset quality of our loan and investment portfolios; and

●

estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions benefits that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

●

general economic conditions, either nationally or in our market area, which are worse than expected;

●

changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

●

our ability to access cost-effective funding;

●

our ability to maintain adequate liquidity, primarily through deposits;

●

fluctuations in real estate values and in the conditions of the residential real estate and commercial real estate markets;

●

demand for loans and deposits in our market area;

●

our ability to implement and change our business strategies;

●

competition among depository and other financial institutions;

●

inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of our financial instruments, or our level of loan originations, or increase the level of defaults, losses and prepayments within our loan portfolio;

Table of Contents

●

adverse changes in the securities markets;

●

changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums;

●

changes in the quality or composition of our loan or investment portfolios;

●

technological changes that may be more difficult or expensive than expected;

●

the inability of third-party providers to perform as expected;

●

a failure or breach of our operational or information security systems or infrastructure, including cyberattacks;

●

our ability to manage market risk, credit risk and operational risk;

●

our ability to enter new markets successfully and capitalize on growth opportunities;

●

changes in consumer spending, borrowing and savings habits;

●

changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board;

●

our ability to retain key employees; and

●

changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we assume no obligation and disclaim any obligation to update any forward-looking statements.

Critical Accounting Policies and Use of Critical Accounting Estimates

The discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements, which are prepared in conformity with generally accepted accounting principles used in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical accounting policies. The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards.

Table of Contents

The following represent our critical accounting policies:

Allowance for Credit Losses. The allowance for credit losses is the estimated amount considered necessary to cover estimated credit losses over the life of the loans. Management performs a quarterly evaluation of the allowance for credit losses on loans and unfunded commitments. The allowance for credit losses is based upon management’s evaluation of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The allowance is established through the provision for credit losses which is charged against income. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change. This policy has been identified as one of our most critical accounting policies.

The allowance for credit losses is evaluated following the accounting guidance in Accounting Standards Update (ASU) No. 2016-13 Financial Instruments – Credit Losses (Topic 326). ASC 326 requires an estimate of all expected credit losses for loans based on historical experience, current conditions, and reasonable and supportable forecasts.

Actual loan losses may be significantly more than the allowances we have established which could result in a material negative effect on our financial results.

Deferred Tax Assets. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax asset will not be realized. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and business factors change. Determining the proper valuation allowance for deferred taxes is critical in properly valuing the deferred tax asset and the related recognition of income tax expense or benefit. Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets.

Fair Value Measurements. The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. We estimate the fair value of a financial instrument and any related asset impairment using a variety of valuation methods. Where financial instruments are actively traded and have quoted market prices, quoted market prices are used for fair value. When the financial instruments are not actively traded, other observable market inputs, such as quoted prices of securities with similar characteristics, may be used, if available, to determine fair value. When observable market prices do not exist, we estimate fair value. These estimates are subjective in nature and imprecision in estimating these factors can impact the amount of gain or loss recorded.

Comparison of Financial Condition at June 30, 2026 and March 31, 2026

Total Assets. Total assets were $144.1 million at June 30, 2026, an increase of $1.7 million, or 1.2%, from $142.4 million at March 31, 2026. The increase was due primarily to increases in loans of $1.5 million and cash and cash equivalents of $510,000 during the three month period ended June 30, 2026.

Cash and Cash Equivalents. Cash and cash equivalents increased $510,000, or 35.0%, to $2.0 million at June 30, 2026 from $1.5 million at March 31, 2026. The increase in cash and cash equivalents came primarily from FHLB advance funding. The FHLB advance funding was used to fund loan growth and will continue to be used to fund loan growth over the next quarter.

Investment Securities. Investment securities available for sale decreased $67,000, or 0.4%, and were $18.4 million at both June 30, 2026 and March 31, 2026. The decrease was primarily attributable to repayments of securities

Table of Contents

totaling $213,000 during the three months ended June 30, 2026, which was offset by a decrease of $165,000, or 4.0%, in the unrealized loss on available for sale securities during the three months ended June 30, 2026.

Net Loans. Net loans increased $1.5 million, or 1.4%, to $112.0 million at June 30, 2026 from $110.5 million at March 31, 2026. During the three months ended June 30, 2026, loan originations totaled $8.1 million, comprised of $2.4 million of loans secured by one- to four-family residential real estate, $1.8 million of multi-family loans, $1.5 million of construction and loan loans, $880,000 in home equity lines of credit, $846,000 of commercial and industrial loans and $580,000 of commercial real estate loans. Consumer loan originations totaled $76,000, of which $48,000 were auto loans.

During the three months ended June 30, 2026, multi-family loans increased $1.4 million, or 78.7%, to a total of $3.3 million at June 30, 2026, commercial real estate loans increased $751,000, or 2.7%, to a total of $28.1 million at June 30, 2026, consumer loans increased $206,000, or 18.6%, to $1.3 million at June 30, 2026 and home equity lines of credit increased $201,000, or 4.1%, to $5.1 million at June 30, 2026. These increases were partially offset by a decrease in residential real estate loans of $722,000, or 1.1%, to $67.3 million at June 30, 2026, a decrease in construction and land loans of $240,000, or 11.4%, to $1.9 million at June 30, 2026 and a decrease in commercial and industrial loans of $117,000, or 1.9%, to $6.2 million at June 30, 2026.

The increase in the Company’s loan portfolio has been due to increased demand for commercial real estate lending in our market area, as well as increased marketing efforts towards home equity lines of credit. The Company’s strategy includes continuing to grow the loan portfolio, focusing on home equity lines of credit and commercial real estate loans.

Deposits. Deposits decreased $2.2 million, or 1.8%, to $122.3 million at June 30, 2026 from $124.5 million at March 31, 2026. Core deposits (defined as all deposits other than certificates of deposit) decreased $1.9 million, or 2.3%, to $81.3 million at June 30, 2026 from $83.2 million at March 31, 2026. Certificates of deposit decreased $315,000, or 0.8%, to $41.0 million at June 30, 2026 from $41.3 million at March 31, 2026. The decrease in core deposits was due primarily to a $2.1 million decrease in money market deposit accounts. The decrease in money market deposit accounts was primarily due to large withdrawals from two customer’s accounts.

During the three months ended June 30, 2026, management continued its strategy of pursuing growth in demand accounts and other lower cost core deposits, in part by enhancing products and services offered and increased marketing. Management intends to continue its efforts to increase core deposits, with an emphasis on growth in consumer and business demand deposits.

Advances from the Federal Home Loan Bank. Advances from the Federal Home Loan Bank totaled $7.4 million at June 30, 2026, an increase of $3.6 million, or 93.9%, from the $3.8 million balance at March 31, 2026. The increase in advances was used to fund loan growth given the decrease in deposits during the three months ended June 30, 2026.

Stockholders’ Equity. Stockholders’ equity increased $154,000 or 1.2%, to $12.6 million at June 30, 2026, from $12.4 million at March 31, 2026. The increase was due primarily to a decrease of $130,000 in the tax-effected unrealized loss on available for sale securities at June 30, 2026 and a $20,000 increase in additional paid-in capital.

Average Balances and Yields. The following table sets forth average balance sheets, average yields and rates, and other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects are immaterial. Average balances are calculated using daily average balances. Non-accrual loans are included in average balances only. The average balance of available-for-sale securities does not include unrealized losses during the periods. Average yields include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Net deferred loan fees/costs are immaterial.

Table of Contents



			For the Three Months Ended June 30,
			2026							2025
			Average							Average
			Outstanding					Average		Outstanding					Average
			Balance			Interest		Yield/Rate		Balance			Interest		Yield/Rate


Interest-earning assets:
Interest-bearing deposits and other			$	1,438		$	20	5.56	%	$	1,670		$	25	5.99	%
Available-for-sale securities				22,448			98	1.75			28,093			120	1.71
Loans				111,631			1,459	5.23			108,027			1,356	5.02
Total interest-earning assets				135,517			1,577	4.65			137,790			1,501	4.36
Noninterest earning assets				8,529							7,824
Allowance for credit losses				(799)							(854)
Total assets			$	143,247						$	144,760

Interest-bearing liabilities:
Interest-bearing demand accounts			$	24,954			3	0.05	%	$	28,187			2	0.03	%
Savings accounts				21,769			37	0.68			21,297			21	0.39
Money market accounts				27,045			139	2.06			28,378			125	1.76
Certificates of deposit				40,674			357	3.51			34,313			327	3.81
Total interest-bearing deposits				114,442			536	1.87			112,175			475	1.69
Federal Home Loan Bank advances				5,893			57	3.87			10,105			117	4.63
Federal funds purchased				107			1	3.74			156			2	5.13
Total interest-bearing liabilities				120,442			594	1.97			122,436			594	1.94
Noninterest-bearing demand deposits				8,007							7,896
Other noninterest-bearing liabilities				2,312							2,347
Total liabilities				130,761							132,679
Total stockholders' equity				12,486							12,081
Total liabilities and stockholders' equity				143,247							144,760
Net interest income						$	983						$	907
Net interest rate spread ⁽¹⁾								2.68	%						2.42	%
Net interest-earning assets⁽²⁾			$	15,075						$	15,354
Net interest margin⁽³⁾								2.90	%						2.63	%
Average interest-earning assets to interest-bearing liabilities				112.52	%						112.54	%

(1)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(2)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3)Net interest margin represents net interest income annualized divided by average total interest-earning assets.

Table of Contents

Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. Changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.


		Three Months Ended June 30,
		2026 vs. 2025
		Increase (Decrease)				Total
		Due to:				Increase
		Volume		Rate		(Decrease)

		(In thousands)
Interest-earning assets:
Other interest-earning assets		$	(3)	$	(2)	$	(5)
Available-for-sale securities			(25)		3		(22)
Loans			45		58		103
Total interest-earning assets			17		59		76

Interest-bearing liabilities:
Interest-bearing demand accounts			—		1		1
Savings accounts			—		16		16
Money market accounts			(6)		20		14
Certificates of deposit			53		(23)		30
Total deposits			47		14		61
Federal Home Loan Bank advances			(43)		(17)		(60)
Fed funds purchased			—		(1)		(1)
Total interest-bearing liabilities			4		(4)		—

Change in net interest income		$	13	$	63	$	76

Comparison of Operating Results for the Three Months Ended June 30, 2026 and 2025

General. The Company reported a net loss of $1,500 for the three months ended June 30, 2026, a $134,000 decrease from the net loss of $135,000 for the three months ended June 30, 2025. The decrease in the net loss was primarily due to a $76,000, or 8.4%, increase in net interest income, a decrease of $60,000, or 75.0%, in the provision for credit losses and a decrease of $32,000, or 2.9%, in noninterest expenses.

Interest Income. Interest income increased $76,000, or 5.1%, for the three months ended June 30, 2026 and totaled $1.6 million for the three month period ended June 30, 2026, compared to $1.5 million for the three month period ended June 30, 2025. This increase was primarily attributable to a $103,000, or 7.6%, increase in loan interest income, which was partially offset by a $22,000, or 18.5%, decrease in interest on investment securities and a $5,000, or 20.0%, decrease in interest on interest-bearing deposits.

The average yield on loans increased by 21 basis points to 5.23% for the three months ended June 30, 2026 from 5.02% for the three months ended June 30, 2025, while the average balance of loans increased by $3.6 million, or 3.3%, during the three months ended June 30, 2026 compared to the average balance for the three months ended June 30, 2025. The increase in the average yield on loans reflects the increase in commercial real estate loans and multi-family loans and the decrease in 1-4 residential loans for the three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025, as commercial loans typically carry a higher interest rate than 1-4 residential loans. The Company also has several adjustable-rate commercial real estate loans which have adjusted upward following a five-year fixed interest rate period.

Table of Contents

The average balance of investment securities decreased $5.6 million, or 20.1%, to $22.4 million for the three months ended June 30, 2026 from $28.1 million for the three months ended June 30, 2025, while the average yield on investment securities increased by four basis points to 1.75% for the three months ended June 30, 2026 from 1.71% for the three months ended June 30, 2025.

Interest income on interest-bearing deposits and other, comprised primarily of overnight deposits and stock in the Federal Home Loan Bank, decreased $5,000, or 20.0%, for the three months ended June 30, 2026 due to a decrease in the average balance of $232,000, or 13.9%, for the three month period ended June 30, 2026 and a decrease in the yield of 43 basis points, to 5.56%, for the three month period ended June 30, 2026 from 5.99% for the three months ended June 30, 2025.

Interest Expense. Total interest expense amounted to $594,000 for both three month periods ended June 30, 2026 and 2025. Interest expense on deposits increased $61,000, or 12.8%, due primarily to an increase of 18 basis points in the average cost of deposits to 1.87% for the three months ended June 30, 2026 from 1.69% for the three months ended June 30, 2025 and an increase of $2.2 million, or 2.0%, in the average balance of interest-bearing deposits to $114.4 million for the three months ended June 30, 2026 from $112.2 million for the three months ended June 30, 2025.

Interest expense on borrowings decreased $61,000, or 51.3%, to $58,000 for the three month period ended June 30, 2026 compared to $119,000 for the three month period ended June 30, 2025. The decrease was primarily due to a decrease of $4.3 million, or 41.5%, in the average balance outstanding for the three month period ended June 30, 2026, to $6.0 million from $10.3 million for the three months ended June 30, 2025 and a 77 basis point decrease in the weighted-average rate, to 3.87%, for the three months ended June 30, 2026 compared to 4.63% for the three months ended June 30, 2025.

Net Interest Income. Net interest income increased $76,000 or 8.4%, to $983,000 for the three months ended June 30, 2026 compared to $907,000 for the three months ended June 30, 2025. The increase reflected an increase in the net interest margin to 2.90% for the three months ended June 30, 2026 from 2.63% for the three months ended June 30, 2025. There was an increase in the interest rate spread to 2.68% for the three months ended June 30, 2026 from 2.42% for the three months ended June 30, 2025, while the average interest-earning assets to interest-bearing liabilities was the same for both three month periods ended June 30, 2026 and 2025 at 112.5%.

Provision for (Recovery of) Credit Losses. The Company recorded a provision for credit losses of $21,000, for the three months ended June 30, 2026, compared to a provision for credit losses of $80,000 for the three months ended June 30, 2025. The allowance for credit losses on loans was $806,000 at June 30, 2026, an increase of $7,000, or 0.9%, compared to $799,000 at March 31, 2026. The allowance for credit losses on off-balance sheet commitments was $86,000 at June 30, 2026, an increase of $14,000, or 19.4%, compared to $72,000 at March 31, 2026. The allowance for credit losses on loans represented 0.71% of total loans at June 30, 2026 compared to 0.72% of total loans at March 31, 2026.

The determination of the adequacy of the allowance for credit losses included consideration of the balances of nonperforming loans, delinquent loans and net charge-offs in both periods. Nonaccrual loans totaled $248,000 at June 30, 2026, compared to $250,000 in nonaccrual loans at March 31, 2026. Classified loans totaled $2.0 million at June 30, 2026, compared to $1.6 million at March 31, 2026. Total loans past due greater than 30 days totaled $428,000 at June 30, 2026, compared to $601,000 at March 31, 2026.

The allowance for credit losses reflects the estimate management believes to be adequate to cover estimated losses based upon management’s evaluation of the collectability of its loan portfolio. In determining this estimate, consideration is given to historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions, and the increase in future provisions that may be required may adversely impact the Company’s financial condition and results of operations. In addition, bank regulatory agencies

Table of Contents

periodically review the allowance for credit losses and may require an increase in the provision for credit losses or the recognition of loan charge-offs, based on judgments different than those of management.

Noninterest Income. Noninterest income totaled $96,000 for the three months ended June 30, 2026, an increase of $6,000, or 6.7%, from $90,000 for the three months ended June 30, 2025. The increase was attributable primarily to a $4,000, or 12.9%, increase in the cash surrender value of life insurance, a $3,000, or 60.0%, increase in income from late charges and fees on loans and a $2,000, or 25.0%, increase in other income, which was partially offset by a $2,000, or 4.4%, decrease in service fees on deposits.

Noninterest Expense. Noninterest expense decreased $32,000 and totaled $1.1 million for both three month periods ended June 30, 2026 and 2025. The decrease was due primarily to a $39,000, or 47.0%, decrease in professional services and a $5,000, or 0.9%, decrease in salaries and employee benefits. The decrease was partially offset by an increase in other expenses of $15,000, or 12.9% and a $3,000, or 16.7%, increase in FDIC insurance premiums.

Income Taxes. The Company’s income tax benefit decreased by $39,000, or 77.8%, with a benefit provision of $11,000 for the three months ended June 30, 2026, compared to a benefit provision of $51,000 for the three months ended June 30, 2025. The tax benefit provision and effective tax rates reflect the Company’s nontaxable interest income in each period. The effective tax rate was -88.2% and -27.2% for the three months ended June 30, 2026 and 2025, respectively.

Management of Market Risk

General. Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of our financial condition and results of operations to changes in market interest rates. The board of directors establishes policies and guidelines for managing interest rate risk. All directors participate in discussions during the regular board meetings evaluating the interest rate risk inherent in our assets and liabilities, and the level of risk that is appropriate. These discussions take into consideration our business strategy, operating environment, capital, liquidity and performance objectives consistent with the policy and guidelines approved by them.

The board of directors delegates the responsibility for interest rate risk management to the asset/liability management committee consisting of the Company’s executive officers. The asset/liability management committee provides quarterly reports to the board of directors. If an exception to the interest rate risk policy tolerance limits arise, the asset/liability management committee documents and communicates it to the board of directors at its next scheduled meeting along with a recommended course of action to address the exception consistent with established policy and guidelines.

Our asset/liability management strategy attempts to manage the impact of changes in interest rates on net interest income, our primary source of earnings. Among the techniques we are using to manage interest rate risk are:

●

maintaining capital levels that exceed the thresholds for well-capitalized status under federal regulations;

●

maintaining a high level of liquidity;

●

growing our core deposit accounts;

●

managing our investment securities portfolio so as to reduce the average maturity and effective life of the portfolio; and

●

continuing to diversify our loan portfolio by adding more commercial real estate loans and commercial and industrial loans, which typically have shorter maturities and/or balloon payments.

●

By following these strategies, we believe that we are better positioned to react to increases and decreases in market interest rates.

Table of Contents

We maintain a significant deposit account with a commercial customer. The asset/liability management committee monitors the status of the account at its monthly meeting and the account is segregated as a separate line item on the deposit reports reviewed by the committee. Furthermore, there is regular verbal communication between senior management and the depositor regarding any expected changes in the depositor’s business that could result in material inflows and outflow from the account in the short-term so that we may proactively manage any risks due to expected fluctuations in the account balance.

We maintain uninsured deposits that exceed the Federal Deposit Insurance Corporation insurance limit. Senior management reviews uninsured deposit balances monthly to manage any risks due to fluctuations in the balances of uninsured deposits. We do not maintain any internal policy limits on concentrations in uninsured deposits in total or by type of depositor. We may accept brokered deposits up to an internal policy limit of 15% of total assets from brokers approved by the board of directors. Before a broker is approved by the board of directors, we conduct financial analysis and due diligence on the broker. We had brokered deposits of $3.1 million at June 30, 2026.

Historically, we have not sold loans we have originated. We recently developed the infrastructure necessary to sell one-to-four family residential mortgage loans, particularly longer term one-to-four-family residential mortgage loans, to further help mitigate our interest rate risk exposure.

We have not engaged in hedging activities, such as engaging in futures or options. We do not anticipate entering into similar transactions in the future.

Economic Value of Equity. We compute amounts by which the net present value of our assets and liabilities (economic value of equity or “EVE”) would change in the event of a range of assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value. The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions that the United States Treasury yield curve increases instantaneously by 100, 200 and 300 basis point increments or decreases instantaneously by 100, 200 and 300 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.

Table of Contents

The following table sets forth, as of June 30, 2026, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve. The estimated changes presented in the table are within the policy limits established by our board of directors except that the decrease in EVE at the positive 200 and 300 basis point levels exceeded policy limits of 15% and 25%, respectively.


At June 30, 2026
							EVE as a Percentage of
							Present
							Value of Assets ⁽³⁾
			Estimated Increase
			(Decrease) in						Increase
			EVE						(Decrease)
Change in Interest	Estimated								(basis
Rates (basis points) ⁽¹⁾	EVE ⁽²⁾		Amount		Percent		EVE Ratio ⁽⁴⁾		points)

			(Dollars in thousands)
300	$	14,383	$	(5,667)	(28.26)	%	11.28	%	(297)
200	$	16,371	$	(3,679)	(18.35)	%	12.42	%	(183)
100	$	18,769	$	(1,281)	(6.39)	%	13.78	%	(47)
Level	$	20,050		—	—	%	14.25	%	—
(100)	$	20,750	$	700	3.49	%	14.31	%	6
(200)	$	20,943	$	893	4.45	%	14.07	%	(18)
(300)	$	20,382	$	332	1.66	%	13.39	%	(86)

(1)	Assumes an immediate uniform change in interest rates at all maturities. One basis point equals 0.01%.

(2)	EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3)	Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4)	EVE Ratio represents EVE divided by the present value of assets.

The table above indicates that at June 30, 2026, we would have experienced a 18.35% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.45% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates.

Change in Net Interest Income. The table sets forth, as of June 30, 2026, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve. All estimated changes presented in the table are within the policy limits established by the Company’s board of directors.


At June 30, 2026
Change in Interest Rates	Net Interest Income Year 1
(basis points) ⁽¹⁾	Forecast		Year 1 Change from Level
		(Dollars in thousands)
300	$	3,560	(11.16)	%
200	$	3,748	(6.46)	%
100	$	3,964	(1.07)	%
Level	$	4,007	—
(100)	$	3,962	(1.12)	%
(200)	$	3,812	(4.87)	%
(300)	$	3,630	(9.41)	%

(1)	Assumes an immediate uniform change in interest rates at all maturities. One basis point equals 0.01%.

The table above indicates that as of June 30, 2026, we would have experienced a 6.46% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.87% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rate.

Table of Contents

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurement. Modeling changes in EVE and NII require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. For instance, the EVE and NII tables presented above assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. However, the shape of the yield curve changes constantly and the value and pricing of our assets and liabilities, including our deposits, may not closely correlate with changes in market interest rates. Accordingly, although the EVE and NII tables may provide an indication of our interest rate risk exposure at a particular point in time and in the context of a particular yield curve, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on EVE and NII and will differ from actual results.

EVE and net interest NII calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans, deposits and borrowings.

Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures.

Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Cincinnati, the Federal Reserve Bank of Cleveland and a correspondent bank. At June 30, 2026, we had the ability to borrow up to $46.3 million from the Federal Home Loan Bank of Cincinnati under a collateral pledge facility. At June 30, 2026, we had $7.4 million of outstanding advances and a $4.5 million standby letter of credit under this facility. At June 30, 2026, we had no outstanding borrowings from the Federal Reserve Bank of Cleveland, but had the capacity to borrow up to $5.3 million. At June 30, 2026, we had no outstanding borrowings from the correspondent bank, but had the capacity to borrow up to $5.0 million.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets depend on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For the three month period ended June 30, 2026, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of approximately $510,000. Net cash provided by operating activities amounted to $127,000, net cash used in investing activities amounted to $1.2 million, and net cash provided by financing activities amounted to $1.6 million.

We believe we maintain a strong liquidity position, and are committed to maintaining it. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

Monroe Federal Bancorp is a separate legal entity from Monroe Federal Savings and Loan Association and must provide for its own liquidity to fund its operating expenses and other financial obligations. Its primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to Monroe Federal Bancorp is governed by applicable regulations. At June 30, 2026, Monroe Federal Bancorp (on an unconsolidated basis) had liquid assets of $1.5 million.

Table of Contents

At June 30, 2026, the Bank was categorized as well-capitalized under regulatory capital guidelines. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see note 9 to the notes to the consolidated financial statements.

Off-Balance Sheet Arrangements. At June 30, 2026, we had $21.7 million of outstanding commitments, consisting of $4.7 million in commitments to originate loans and $17.0 million of undisbursed funds on previously originated loans. At June 30, 2026, certificates of deposit that are scheduled to mature on or before June 30, 2027, totaled $30.3 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize Federal Home Loan Bank of Cincinnati advances, brokered deposits, or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The information in Item 2 under “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Management of Market Risk” is incorporated in this Item 3 by reference.

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of June 30, 2026. Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

During the quarter ended June 30, 2026, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Table of Contents

Part II — Other Information

Item 1. Legal Proceedings

The Company is subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations.

Item 1A. Risk Factors

Not applicable, as the Company is a smaller reporting company.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended June 30, 2026, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of SEC Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement“ (as such term is defined in Item 408 of SEC Regulation S-K).

Item 6. Exhibits

3.1	Articles of Incorporation of Monroe Federal Bancorp, Inc. ⁽¹⁾

3.2	Bylaws of Monroe Federal Bancorp, Inc. ⁽²⁾

10.1	Monroe Federal Bancorp, Inc. 2025 Equity Incentive Plan⁽³⁾

31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101	The following materials for the quarter ended June 30, 2026, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive (Loss) Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements

104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

(1)	Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, as amended (Commission File No. 333-280165), initially filed on June 13, 2024.

(2)	Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, as amended (Commission File No. 333-280165), initially filed on June 13, 2024.

(3) Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement (Commission File No. 000-56702), filed on November 13, 2025.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	MONROE FEDERAL BANCORP, INC.

		/s/ Lewis R. Renollet
Date: August 14, 2026		Lewis R. Renollet
		President and Chief Executive Officer (Duly Authorized Representative and Principal Executive Officer)

Date: August 14, 2026		/s/ Lisa M. Bird
		Lisa M. Bird
		Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer

Source: View Original Filing on SEC EDGAR

Monroe Federal Bancorp (MFBI) shows stable credit quality despite quarterly loss

Rhea-AI Filing Summary

Positive

Negative

Key Figures

Key Terms

FAQ

How did Monroe Federal Bancorp (MFBI) perform financially in the quarter ended June 30, 2026?

What were Monroe Federal Bancorp (MFBI)’s key balance sheet totals as of June 30, 2026?

What is the asset quality and reserve position of Monroe Federal Bancorp (MFBI)?

How well capitalized is Monroe Federal Bancorp (MFBI) under regulatory standards?

How did securities impact Monroe Federal Bancorp (MFBI)’s results this quarter?

What equity-based compensation plans does Monroe Federal Bancorp (MFBI) utilize?