Monroe Federal Bancorp, Inc.

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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 December 31, 2025

☐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 February 13, 2026.

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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 December 31, 2025 (unaudited) and March 31, 2025	1

	Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2025 and 2024(unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 31, 2025 and 2024 (unaudited)	3

	Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended December 31, 2025 and 2024 (unaudited)	4

	Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2025 and 2024 (unaudited)	5

	Notes to Consolidated Financial Statements (unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	42

Item 4.	Controls and Procedures	42

Part II. – Other Information		43

Item 1.	Legal Proceedings	43

Item 1A.	Risk Factors	43

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	43

Item 3.	Defaults Upon Senior Securities	43

Item 4.	Mine Safety Disclosures	43

Item 5.	Other Information	43

Item 6.	Exhibits	43

	Signature Page	44

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Part I — Financial Information

Item 1. Financial Statements

MONROE FEDERAL BANCORP, INC.

Consolidated Balance Sheets


		December 31,		March 31,
		2025		2025
			(Unaudited)
Assets
Cash and due from banks		$	1,191,729	$	1,671,620
Interest-bearing deposits in other financial institutions			106,705		406,147
Federal funds sold			263,000		—
Cash and cash equivalents			1,561,434		2,077,767

Available-for-sale securities			23,003,345		23,143,192
Loans receivable			112,241,027		107,849,120
Allowance for credit losses			(890,232)		(853,032)
Net loans			111,350,795		106,996,088

Premises and equipment			5,087,304		5,125,014
Restricted stock			875,000		836,600
Bank owned life insurance			3,700,115		3,605,191
Accrued interest receivable			501,291		469,009
Net deferred federal income taxes			1,229,784		1,359,641
Other assets			634,306		716,169
Total assets		$	147,943,374	$	144,328,671

Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand		$	35,564,356	$	38,026,826
Savings and money market			52,482,639		48,864,461
Time			40,690,417		33,772,903
Total deposits			128,737,412		120,664,190
Advances from the Federal Home Loan Bank			4,665,000		9,972,000
Advances by borrowers for taxes and insurance			642,876		327,842
Directors plan liability			626,061		608,217
Accrued interest payable and other liabilities			618,452		687,889
Total liabilities			135,289,801		132,260,138

Stockholders' Equity
Preferred stock - $.01 par value, 1,000,000 shares authorized			—		—
Common stock - $.01 par value, 14,000,000 shares authorized, 531,172 shares issued at December 31, 2025 and March 31, 2025			5,264		5,264
Additional paid in capital			3,865,853		3,859,854
Unallocated common stock of ESOP			(331,659)		(345,478)
Retained earnings			12,380,292		12,591,062
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			(3,266,177)		(4,042,169)
Total stockholders' equity			12,653,573		12,068,533
Total liabilities and stockholders' equity		$	147,943,374	$	144,328,671

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

See notes to consolidated financial statements.

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MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Operations

(Unaudited)


		Three Months Ended							Nine Months Ended
		December 31,							December 31,
		2025			2024				2025		2024
Interest income
Loans		$	1,438,559		$	1,322,355			$	4,197,605	$	3,912,948
Investment securities			116,939	`		120,897				355,771		371,165
Interest-bearing deposits and other			24,149			28,467				73,989		140,659

Total interest income			1,579,647			1,471,719				4,627,365		4,424,772

Interest expense
Deposits			542,625			463,986				1,519,586		1,398,353
Borrowings			74,531			74,499				311,743		267,329

Total interest expense			617,156			538,485				1,831,329		1,665,682

Net interest income			962,491			933,234				2,796,036		2,759,090

Provision for (recovery of) credit losses			(80,591)			60,932				10,741		78,157

Net interest income after provision for (recovery of) credit losses			1,043,082			872,302				2,785,295		2,680,933

Noninterest income
Service fees on deposits			42,300			44,397				129,707		132,923
Late charges and fees on loans			13,209			2,433				28,356		6,768
Loan servicing fees			3,061			4,086				9,562		12,226
Increase in cash surrender value of bank owned life insurance			32,243			28,956				94,924		84,222
Other income			19,369			9,599				79,332		26,416

Total noninterest income			110,182			89,471				341,881		262,555

Noninterest expense
Salaries and employee benefits			540,359			532,039				1,616,023		1,636,625
Directors fees			29,700			30,700				89,700		91,700
Occupancy and equipment			137,077			135,828				412,007		412,468
Data processing fees			156,292			136,290				450,723		397,625
Franchise taxes			22,232			16,916				70,232		51,832
FDIC insurance premiums			20,574			24,919				56,328		70,056
Professional services			70,960			72,840				274,358		286,716
Advertising			23,936			15,995				60,343		58,979
Other			142,206			123,049				408,324		342,714

Total noninterest expense			1,143,336			1,088,576				3,438,038		3,348,715

Income (loss) before income taxes			9,928			(126,803)				(310,862)		(405,227)

Benefit for income taxes			(7,917)			(6,373)				(100,092)		(83,049)

Net income (loss)		$	17,845		$	(120,430)			$	(210,770)	$	(322,178)

Income (loss) per weighted average share
Basic		$	0.04			(0.25)			$	(0.43)		(0.66)
Diluted		$	0.04			N/A			$	(0.43)		N/A

See notes to consolidated financial statements.

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MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


		Three Months Ended						Nine Months Ended
		December 31,						December 31,
		2025		2024				2025		2024
Net income (loss)		$	17,845	$	(120,430)			$	(210,770)	$	(322,178)

Other comprehensive income (loss)
Net unrealized gains (losses) on available-for-sale securities			341,946		(860,188)				982,268		52,706

Tax (expense) benefit			(71,808)		180,639				(206,276)		(11,069)

Other comprehensive income (loss)			270,138		(679,549)				775,992		41,637

Comprehensive income (loss)		$	287,983	$	(799,979)			$	565,222	$	(280,541)

See notes to consolidated financial statements.

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MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)



For the three months ended									Accumulated
December 31, 2024 and December 31, 2025					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 October 1, 2024	$	—	$	—	$	—	$	12,715,954	$	(3,631,811)	$	—		$	—	$	9,084,143

Net loss		—		—		—		(120,430)		—		—			—		(120,430)

Proceeds from issuance of shares of common stock		5,264		3,858,126		—		—		—		—			—		3,863,390

Purchase of ESOP shares		—		—		(368,510)		—		—		—			—		(368,510)

Release of ESOP shares		—		—		18,426		—		—		—			—		18,426

Purchase of treasury stock (deferred compensation plans)		—		—		—		—		—		(210,000)			—		(210,000)

Treasury stock held (deferred compensation plans)		—		—		—		—		—		—			210,000		210,000

Other comprehensive loss		—		—		—		—		(679,549)		—			—		(679,549)

Balance at December 31, 2024	$	5,264	$	3,858,126	$	(350,084)	$	12,595,524	$	(4,311,360)	$	(210,000)		$	210,000	$	11,797,470

Balance at October 1, 2025	$	5,264	$	3,865,243	$	(336,265)	$	12,362,447	$	(3,536,315)	$	(210,000)			210,000	$	12,360,374

Net income		—		—		—		17,845		—		—			—		17,845

Release of ESOP shares		—		610		4,606		—		—		—			—		5,216

Other comprehensive income		—		—		—		—		270,138		—			—		270,138

Balance at December 31, 2025	$	5,264	$	3,865,853	$	(331,659)	$	12,380,292	$	(3,266,177)	$	(210,000)		$	210,000	$	12,653,573

For the nine months ended December 31, 2024 and December 31, 2025
Balance at April 1, 2024	$	—	$	—	$	—	$	12,917,702	$	(4,352,997)	$	—		$	—	$	8,564,705

Net loss		—		—		—		(322,178)		—		—			—		(322,178)

Proceeds from issuance of shares of common stock		5,264		3,858,126				—		—		—			—		3,863,390

Purchase of ESOP shares		—		—		(368,510)		—		—		—			—		(368,510)

Release of ESOP shares		—		—		18,426		—		—		—			—		18,426

Purchase of treasury stock (deferred compensation plans)		—		—		—		—		—		(210,000)			—		(210,000)

Treasury stock held (deferred compensation plans)		—		—		—		—		—		—			210,000		210,000

Other comprehensive income		—		—		—		—		41,637		—			—		41,637

Balance at December 31, 2024	$	5,264	$	3,858,126	$	(350,084)	$	12,595,524	$	(4,311,360)	$	(210,000)		$	210,000	$	11,797,470

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		—		—		—		(210,770)		—		—			—		(210,770)

Release of ESOP shares		—		5,999		13,819		—		—		—			—		19,818

Other comprehensive income		—		—		—		—		775,992		—			—		775,992

Balance at December 31, 2025	$	5,264	$	3,865,853	$	(331,659)	$	12,380,292	$	(3,266,177)	$	(210,000)		$	210,000	$	12,653,573

See notes to consolidated financial statements.

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MONROE FEDERAL BANCORP, INC.

Consolidated Statements of Cash Flows

(Unaudited)


		Nine Months Ended
		December 31,
		2025		2024
Operating Activities
Net loss		$	(210,770)	$	(322,178)
Items not requiring (providing) cash:
Depreciation and amortization			180,183		192,884
Amortization of premiums and discounts			99,714		117,505
Accretion of deferred loan fees			(49,460)		(35,925)
Benefit for deferred income taxes			(76,419)		(77,954)
Provision for credit losses			10,741		78,157
Increase in cash surrender value of bank owned life insurance			(94,924)		(84,222)
Release of ESOP shares			19,818		18,426
Changes in:
Accrued interest receivable			(32,282)		35,614
Other assets			81,863		33,119
Accrued interest payable and other liabilities			(25,134)		256,686

Net cash (used in) provided by operating activities			(96,670)		212,112

Investing Activities
Proceeds from calls, maturities and paydowns of available-for-sale securities			1,022,401		1,912,348
Net change in loans			(4,342,447)		597,729
Purchase of premises and equipment			(142,473)		(35,935)
Purchase of restricted stock			(38,400)		(386,700)

Net cash (used in) provided by investing activities			(3,500,919)		2,087,442

Financing Activities
Net increase (decrease) in deposit accounts			8,073,222		(11,993,621)
Proceeds from Federal Home Loan Bank advances			31,877,000		41,059,000
Repayment of Federal Home Loan Bank advances			(37,184,000)		(43,059,000)
Increase in advances from borrowers for taxes and insurance			315,034		243,593
Gross proceeds from stock offering			—		5,269,644
Stock offering costs, net			—		(1,406,254)
Purchase of ESOP shares			—		(368,510)
Purchase of treasury stock (deferred compensation plans)			—		(210,000)

Net cash provided by (used in) financing activities			3,081,256		(10,465,148)

Decrease in Cash and Cash Equivalents			(516,333)		(8,165,594)

Cash and Cash Equivalents, Beginning of Period			2,077,767		10,617,698

Cash and Cash Equivalents, End of Period		$	1,561,434	$	2,452,104

Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest on deposits and borrowings		$	1,844,335	$	1,711,279
Income taxes paid			—		—

See notes to consolidated financial statements.

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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 December 31, 2025, and for the interim three- and nine-month periods ended December 31, 2025 and 2024 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, contains 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 and nine months ended December 31, 2025 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, 2025, as filed by Monroe Federal Bancorp with the Securities and Exchange Commission on July 3, 2025.

Principles of Consolidation

The consolidated financial statements as of and for the three- and nine-month period ended December 31, 2025, include the accounts of the Company and the Bank, its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation. References herein to the “Company” for periods prior to the completion of the Conversion should be deemed to refer to the “Bank.”

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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 expected credit losses. The allowance for credit losses 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 $101,505 and $127,570 at December 31, 2025 and March 31, 2025, 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.

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 $399,786 and $341,439 at December 31, 2025 and March 31, 2025, 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

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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 $49,986 and $76,445 at December 31, 2025 and March 31, 2025, respectively, and is included in other liabilities on the balance sheet.

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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:
December 31, 2025
U.S. Government agencies		$	3,250,723		$	—		$	(406,394)		$	2,844,329
Mortgage-backed Government Sponsored Enterprises (GSEs)			10,338,845			—			(1,535,010)			8,803,835
State and political subdivisions			12,801,055			—			(2,144,556)			10,656,499
Time deposits			747,124			—			(48,442)			698,682
		$	27,137,747		$	—		$	(4,134,402)		$	23,003,345


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
Available-for-sale Securities:
March 31, 2025
U.S. Government agencies		$	3,250,812		$	—		$	(496,900)		$	2,753,912
Mortgage-backed Government Sponsored Enterprises (GSEs)			11,383,323			—			(1,871,587)			9,511,736
State and political subdivisions			12,878,759			—			(2,679,230)			10,199,529
Time deposits			746,968			—			(68,953)			678,015

		$	28,259,862		$	—		$	(5,116,670)		$	23,143,192

The amortized cost and fair value of available-for-sale securities at December 31, 2025, 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
December 31, 2025
Within one year		$	248,000		$	244,635
One to five years			2,672,126			2,447,605
Five to ten years			3,924,415			3,496,101
After ten years			9,954,361			8,011,169
			16,798,902			14,199,510
Mortgage-backed GSEs			10,338,845			8,803,835

Totals		$	27,137,747		$	23,003,345

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was approximately $7,781,000 and $6,697,000 at December 31, 2025 and March 31, 2025, respectively.

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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 December 31, 2025 and March 31, 2025.


		December 31, 2025					March 31, 2025
		Number of		Aggregate			Number of		Aggregate
Description of Securities		securities		Depreciation			securities		Depreciation
Available for sale
U.S. Government agencies		9		(12.5)	%		9		(15.3)	%
Mortgage-backed Government Sponsored Enterprises (GSEs)		40		(14.8)	%		40		(16.4)	%
State and political subdivisions		34		(16.8)	%		34		(20.8)	%
Time deposits		3		(6.5)	%		3		(9.2)	%

Total portfolio		86		(15.2)	%		86		(18.1)	%

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 December 31, 2025 and March 31, 2025.


		December 31, 2025
		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		$	—		$	—		$	2,844,329		$	(406,394)		$	2,844,329		$	(406,394)
Mortgage-backed Government Sponsored Enterprises (GSEs)			—			—			8,803,835			(1,535,010)			8,803,835			(1,535,010)
State and political subdivisions			—			—			10,656,499			(2,144,556)			10,656,499			(2,144,556)
Time deposits			—			—			698,682			(48,442)			698,682			(48,442)

Total portfolio		$	—		$	—		$	23,003,345		$	(4,134,402)		$	23,003,345		$	(4,134,402)


		March 31, 2025
		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		$	—		$	—		$	2,753,912		$	(496,900)		$	2,753,912		$	(496,900)
Mortgage-backed Government Sponsored Enterprises (GSEs)			—			—			9,511,736			(1,871,587)			9,511,736			(1,871,587)
State and political subdivisions			—			—			10,199,529			(2,679,230)			10,199,529			(2,679,230)
Time deposits			—			—			678,015			(68,953)			678,015			(68,953)

Total portfolio		$	—		$	—		$	23,143,192		$	(5,116,670)		$	23,143,192		$	(5,116,670)

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

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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:


		December 31,			March 31,
		2025			2025
Real estate loans:
Residential		$	69,711,651		$	69,901,872
Multi-family			1,931,769			1,598,921
Commercial			26,585,369			24,188,224
Construction and land			1,625,238			2,510,104
Home equity line of credit (HELOC)			5,111,731			4,405,008
Commercial and industrial			6,341,822			4,255,640
Consumer			1,197,614			1,289,863

Total loans			112,505,194			108,149,632

Less:
Net deferred loan fees			264,167			300,512
Allowance for credit losses			890,232			853,032

Net loans		$	111,350,795		$	106,996,088

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 $4,952,000 and $5,961,000 at December 31, 2025 and March 31, 2025, respectively.

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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.

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The following tables present the activity in the allowance for credit losses based on portfolio segment for the three months and nine months ended December 31, 2025 and December 31, 2024:


		Three Months Ended December 31, 2025
					Provision
					for
		Balance			(recovery of)									Balance
		September 30, 2025			credit losses			Charge-offs			Recoveries			December 31, 2025
Loans:
Real estate loans:
Residential		$	415,289		$	(74,318)		$	—		$	—		$	340,971
Multi-family			6,394			2,740			—			—			9,134
Commercial			387,056			19,706			—			—			406,762
Construction and land			31,072			(6,764)			—			—			24,308
Home equity line of credit (HELOC)			28,251			(1,618)			—			—			26,633
Commercial and industrial			51,271			4,772			—			—			56,043
Consumer			32,606			(6,225)			—			—			26,381

Total loans			951,939			(61,707)			—			—			890,232

Off-balance sheet commitments			68,870			(18,884)			—			—			49,986

Total allowance for credit losses		$	1,020,809		$	(80,591)		$	—		$	—		$	940,218


		Three Months Ended December 31, 2024
					Provision
					for
					(recovery
		Balance			of)									Balance
		September 30, 2024			credit losses			Charge-offs			Recoveries			December 31, 2024
Real estate loans:
Residential		$	375,614			53,794		$	—		$	—		$	429,408
Multi-family			7,073			1,669			—			—			8,742
Commercial			330,798			20,613			—			—			351,411
Construction and land			61,141			(36,653)			—			—			24,488
Home equity line of credit (HELOC)			19,325			4,993			—			—			24,318
Commercial and industrial			46,987			(1,777)			—			—			45,210
Consumer			34,380			(3,127)			—			299			31,552

Total loans		$	875,318		$	39,512		$	—		$	299		$	915,129

Off-balance sheet commitments			55,797			21,420			—			—			77,217

Total allowance for credit losses		$	931,115		$	60,932		$	—		$	299		$	992,346

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		Nine Months Ended December 31, 2025
					Provision
					for
		Balance			(recovery of)									Balance
		March 31, 2025			credit losses			Charge-offs			Recoveries			December 31, 2025
Loans:
Real estate loans:
Residential		$	377,680		$	(36,709)		$	—		$	—		$	340,971
Multi-family			7,254			1,880			—			—			9,134
Commercial			337,338			69,424			—			—			406,762
Construction and land			38,483			(14,175)			—			—			24,308
Home equity line of credit (HELOC)			23,949			2,684			—			—			26,633
Commercial and industrial			39,307			16,736			—			—			56,043
Consumer			29,021			(2,640)			—			—			26,381

Total loans			853,032			37,200			—			—			890,232

Off-balance sheet commitments			76,445			(26,459)			—			—			49,986

Total allowance for credit losses		$	929,477		$	10,741		$	—		$	—		$	940,218


		Nine Months Ended December 31, 2024
				Provision
				for
				(recovery
		Balance		of)									Balance
		March 31, 2024		credit losses			Charge-offs			Recoveries			December 31, 2024
Real estate loans:
Residential		$	394,445	$	34,963		$	—		$	—		$	429,408
Multi-family			—		8,742			—			—			8,742
Commercial			333,596		17,815			—			—			351,411
Construction and land			46,672		(22,184)			—			—			24,488
Home equity line of credit (HELOC)			—		24,318			—			—			24,318
Commercial and industrial			41,764		1,803			—			1,643			45,210
Consumer			38,978		(8,426)			—			1,000			31,552

Total loans			855,455		57,031			—			2,643			915,129

Off-balance sheet commitments			56,091		21,126			—			—			77,217

Total allowance for credit losses		$	911,546	$	78,157		$	—		$	2,643		$	992,346

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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.

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Information regarding the credit quality indicators most closely monitored for other than residential real estate loans and consumer loans, by class at December 31, 2025 and March 31, 2025, follows:


		Term Loans Amortized Cost Basis by Origination Year
		At December 31, 2025
			2026			2025			2024			2023			2022			Prior			Total
Multi-family
Risk rating:
Pass		$	600,000		$	487,147		$	—		$	—		$	—		$	844,622		$	1,931,769
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	600,000		$	487,147		$	—		$	—		$	—		$	844,622		$	1,931,769

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

Commercial real estate
Risk rating:
Pass		$	3,168,540		$	2,992,395		$	4,371,349		$	2,620,164		$	6,278,300		$	5,791,283		$	25,222,031
Special Mention			—			—			—			—			—						—
Substandard			—			—			—			—			—			1,363,338			1,363,338
Doubtful			—			—			—			—			—			—			—
Total		$	3,168,540		$	2,992,395		$	4,371,349		$	2,620,164		$	6,278,300		$	7,154,621		$	26,585,369

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

Construction and land
Risk rating:
Pass		$	1,217,089			119,284		$	233,716		$	55,149		$	—		$	—		$	1,625,238
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	1,217,089		$	119,284		$	233,716		$	55,149		$	—		$	—		$	1,625,238

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

Commercial and industrial
Risk rating:
Pass		$	2,357,079		$	1,525,434		$	426,747		$	332,050		$	9,071		$	1,681,452		$	6,331,833
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			9,989			—			—			9,989
Doubtful			—			—			—			—			—			—			—
Total		$	2,357,079		$	1,525,434		$	426,747		$	342,039		$	9,071		$	1,681,452		$	6,341,822

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

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		Term Loans Amortized Cost Basis by Origination Year
		At March 31, 2025
			2025			2024			2023			2022			2021			Prior			Total
Multi-family
Risk rating:
Pass		$	496,289		$	—		$	—		$	—		$	245,382		$	857,250		$	1,598,921
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	496,289		$	—		$	—		$	—		$	245,382		$	857,250		$	1,598,921

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

Commercial real estate
Risk rating:
Pass		$	1,828,141		$	4,459,310		$	2,713,003		$	6,474,191		$	1,208,474		$	7,175,915		$	23,859,034
Special Mention			—			—			—			—			—			329,190			329,190
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	1,828,141		$	4,459,310		$	2,713,003		$	6,474,191		$	1,208,474		$	7,505,105		$	24,188,224

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

Construction and land
Risk rating:
Pass		$	2,216,911		$	230,925		$	62,268		$	—		$	—		$	—		$	2,510,104
Special Mention			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	2,216,911		$	230,925		$	62,268		$	—		$	—		$	—		$	2,510,104

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

Commercial and industrial
Risk rating:
Pass		$	737,986		$	554,813		$	232,337		$	22,721		$	192,147		$	2,139,297		$	3,879,301
Special Mention			48,573			—			263,397			—			—			64,369			376,339
Substandard			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—
Total		$	786,559		$	554,813		$	495,734		$	22,721		$	192,147		$	2,203,666		$	4,255,640

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

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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:


		Term Loans Amortized Cost Basis by Origination Year
		At December 31, 2025
		2026			2025			2024			2023			2022			Prior			Total
Residential real estate
Payment performance
Performing		$	5,350,291		$	5,577,046		$	5,340,719		$	12,286,186		$	21,781,922		$	18,820,401		$	69,156,565
Nonperforming			—			—			—			284,461			140,726			129,899			555,086
Total		$	5,350,291		$	5,577,046		$	5,340,719		$	12,570,647		$	21,922,648		$	18,950,300		$	69,711,651

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

Home Equity
Payment performance
Performing		$	1,166,369		$	1,073,188		$	682,419		$	1,338,487		$	215,579		$	523,195		$	4,999,237
Nonperforming			—			—			88,648			23,846			—			—			112,494
Total		$	1,166,369		$	1,073,188		$	771,067		$	1,362,333		$	215,579		$	523,195		$	5,111,731

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

Consumer
Payment performance
Performing		$	321,567		$	187,056		$	368,983		$	227,877		$	56,768		$	33,500		$	1,195,751
Nonperforming			—			—			—			1,863			—			—			1,863
Total		$	321,567		$	187,056		$	368,983		$	229,740		$	56,768		$	33,500		$	1,197,614

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


		Term Loans Amortized Cost Basis by Origination Year
		At March 31, 2025
		2025			2024			2023			2022			2021			Prior			Total
Residential real estate
Payment performance
Performing		$	5,843,462			5,880,218		$	13,932,210		$	22,841,159		$	9,558,563		$	11,426,475		$	69,482,087
Nonperforming			—			—			289,886			—			129,899			—			419,785
Total		$	5,843,462		$	5,880,218		$	14,222,096		$	22,841,159		$	9,688,462		$	11,426,475		$	69,901,872

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

Home Equity
Payment performance
Performing		$	817,049		$	763,590		$	1,738,174		$	222,077		$	236,949		$	513,280		$	4,291,119
Nonperforming			—			91,783			—			—			22,106			—			113,889
Total		$	817,049		$	855,373		$	1,738,174		$	222,077		$	259,055		$	513,280		$	4,405,008

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

Consumer
Payment performance
Performing		$	268,821		$	394,604		$	376,961		$	115,317		$	1,338		$	50,897		$	1,207,938
Nonperforming			—			81,925			—			—			—			—			81,925
Total		$	268,821		$	476,529		$	376,961		$	115,317		$	1,338		$	50,897		$	1,289,863

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

The Company evaluates the loan risk grading system definitions on an ongoing basis. No significant changes were made during the three and nine months ended December 31, 2025 and the year ended March 31, 2025.

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The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2025 and March 31, 2025:


	December 31, 2025
					90 Days								Total Loans >
	30-59 Days		60-89 Days		or Greater		Total				Total Loans		90 Days Past Due &
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		Accruing
Real estate loans:
Residential	$	73,575	$	—	$	129,899	$	203,474	$	69,508,177	$	69,711,651	$	—
Multi-family		—		—		—		—		1,931,769		1,931,769		—
Commercial		9,989		—		—		9,989		26,575,380		26,585,369		—
Construction and land		—		—		—		—		1,625,238		1,625,238		—
Home equity line of credit (HELOC)		10,053		—		23,846		33,899		5,077,832		5,111,731		—
Commercial and industrial		—		—		—		—		6,341,822		6,341,822		—
Consumer		—		—		1,863		1,863		1,195,751		1,197,614		—

Total	$	93,617	$	—	$	155,608	$	249,225	$	112,255,969	$	112,505,194	$	—


	March 31, 2025
					90 Days								Total Loans >
	30-59 Days		60-89 Days		or Greater		Total				Total Loans		90 Days Past Due &
	Past Due		Past Due		Past Due		Past Due		Current		Receivable		Accruing
Real estate loans:
Residential	$	—	$	—	$	—	$	—	$	69,901,872	$	69,901,872	$	—
Multi-family		—		—		—		—		1,598,921		1,598,921		—
Commercial		—		—		—		—		24,188,224		24,188,224		—
Construction and land		—		—		—		—		2,510,104		2,510,104		—
Home equity line of credit (HELOC)		—		—		—		—		4,405,008		4,405,008		—
Commercial and industrial		—		—		—		—		4,255,640		4,255,640		—
Consumer		—		—		—		—		1,289,863		1,289,863		—

Total	$	—	$	—	$	—	$	—	$	108,149,632	$	108,149,632	$	—

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The following table presents the amortized cost basis and collateral type of collateral dependent loans by class as of December 31, 2025 and March 31, 2025:


		Personal		Real			Business
December 31, 2025		assets		estate			assets			Total
Real estate loans:
Residential		$	—	$	584,677		$	—		$	584,677
Multi-family			—		—			—			—
Commercial			—		1,363,338			301,216			1,664,554
Construction and land			—		—			—			—
Home equity line of credit (HELOC)			—		112,494			—			112,494
Commercial and industrial			—		—			—			—
Consumer			1,863		—			—			1,863

		$	1,863	$	2,060,509		$	301,216		$	2,363,588

				Real			Business
March 31, 2025				estate			assets			Total
Real estate loans:
Residential				$	—		$	—		$	—
Multi-family					—			—			—
Commercial					329,190			—			329,190
Construction and land					—			—			—
Home equity line of credit (HELOC)					—			—			—
Commercial and industrial					—			362,943			362,943
Consumer					—			—			—

				$	329,190		$	362,943		$	692,133

Nonaccrual loans were as follow at December 31, 2025 and March 31, 2025:


			Nonaccrual Loans			Nonaccrual Loans
		Without an				With an			Total
December 31, 2025		Allowance				Allowance			Nonaccrual Loans
Real estate loans
Residential		$	129,899		$	284,461		$	414,360
Home equity line of credit (HELOC)			23,846			88,648			112,494
Commercial and industrial			9,989			—			9,989
Consumer			—			1,863			1,863
Total nonaccrual loans		$	163,734		$	374,972		$	538,706

			Nonaccrual Loans			Nonaccrual Loans
		Without an				With an			Total
March 31, 2025		Allowance				Allowance			Nonaccrual Loans
Real estate loans
Residential		$	419,785		$	—		$	419,785
Home equity line of credit (HELOC)			113,889			—			113,889
Commercial and industrial			13,397			—			13,397
Consumer			81,925			—			81,925
Total nonaccrual loans		$	628,996		$	—		$	628,996

No loans were modified during the three- or nine-month period ended December 31, 2025.

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Note 4:Time Deposits

Time deposits in denominations of $250,000 or more were approximately $10,619,000 and $6,745,000 at December 31, 2025 and March 31, 2025, respectively.

At December 31, 2025, the scheduled maturities of time deposits were as follows:


		December 31,
		2025
Within one year		$	30,634,757
One year to two years			4,806,415
Two years to three years			823,638
Three years to four years			4,064,769
Four years to five years			92,948
Thereafter			267,890
		$	40,690,417

At December 31, 2025 and March 31, 2025, the Company had one significant customer deposit account with a total deposit balance of approximately $8,320,000 and $11,139,000, respectively.

Note 5:Borrowings

Federal Home Loan Bank (FHLB) advances consisted of the following as of December 31, 2025 and March 31, 2025:


		December 31, 2025					March 31, 2025
		Interest					Interest
		Rate		Amount			Rate		Amount
Scheduled to mature year ending March 31,
2026		3.89	%	$	4,665,000		4.90	%	$	1,000,000
2026							4.51			8,972,000
				$	4,665,000				$	9,972,000

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 $71,105,000 and $68,884,000 of its qualifying mortgage assets as of December 31, 2025 and March 31, 2025, respectively. Based on this collateral, the Company was eligible to borrow up to a total of approximately $44,194,000 and $35,379,000 as of December 31, 2025 and March 31, 2025, respectively.

Maturities of FHLB advances were as follows at December 31, 2025:


		December 31,
		2025
Within one year		$	4,665,000

The Company had an available line of credit with the Federal Reserve Bank totaling $5,809,000 and $6,706,000 at December 31, 2025 and March 31, 2025, respectively. The line of credit was collateralized by a pledge of certain commercial loans totaling $11,517,000 and $13,290,000 as of December 31, 2025 and March 31, 2025, respectively. The Company had no outstanding borrowings on this line at December 31, 2025 and March 31, 2025.

The Company also has an available line of credit with United Bankers Bank totaling $5,000,000 and $4,976,000 at December 31, 2025 and March 31, 2025, respectively. The Company had no outstanding borrowings on this line at December 31, 2025 and March 31, 2025.

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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 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 $5,216 and $19,818 for the three and nine month periods ended December 31, 2025. At December 31, 2025, there were 3,685 shares allocated to participants and 33,166 unallocated shares. The fair value of unallocated ESOP shares totaled $358,856 at December 31, 2025.

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 December 31, 2025, 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 weighted average assumptions used in the Black-Scholes model for valuing stock option grants for the nine months ended December 31, 2025 were as follows:



	Nine Months Ended December 31, 2025
Dividend Yield			0.00	%
Expected Volatility			30.13	%
Risk-free interest rate			3.82	%
Expected average life			6.5 years
Weighted average per share fair value of options		$	4.18

The Company’s restricted stock activity as of December 31, 2025 is summarized below:


		Weighted Average Grant	Restricted Shares
Restricted Stock		Date Fair Value	Outstanding

Outstanding - March 31 , 2025	$	—	—
Granted - December 18, 2025		10.75	4,734
Forfeited		—	—
Outstanding - December 31, 2025	$	10.75	4,734

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The Company amortizes the expense related to restricted stock awards as compensation expense over the vesting period. The Company recognized $0 in restricted stock expense during the three and nine month periods ended December 31, 2025. At December 31, 2025, the Company had $50,891 of unrecognized compensation expense related to restricted stock shares that is expected to be recognized over a weighted average period of 5 years.

The Company’s stock option activity as of December 31, 2025 is summarized below:


	Option			Weighted Average
	Shares		Weighted Average	Remaining		Aggregate
Stock Options	Outstanding		Exercise Price	Life (Years)		Intrinsic Value
Outstanding - March 31, 2025	—		—	—		—
Granted - December 18, 2025	15,792	$	10.75	9.9	$	1,105
Exercised	—		—	—		—
Forfeited	—		—	—		—
Vested	—		—	—		—
Outstanding- December 31, 2025	15,792	$	10.75	9.9	$	1,105
Exercisable - December 31, 2025	—		—	—		—

The following table summarizes information about the Company’s nonvested stock option activity for the nine months ended December 31, 2025:


Stock Options	Shares		Weighted Average Grant Date Fair Value

Nonvested at March 31, 2025	—		—
Granted - December 18, 2025	15,792	$	4.18
Vested	—		—
Forfeited	—		0
Nonvested at December 31, 2025	15,792	$	4.18

The Company amortizes the expense related to stock options as compensation expense over the vesting period. The Company recognized $0 in stock option expense during the three and nine month periods ended December 31, 2025. At December 31, 2025, the Company had $66,011 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. 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. Stock options and stock awards were evaluated and were excluded from diluted EPS calculations for the three month period ended December 31, 2025 as they were anti-dilutive. Presented below are the calculations for basic and diluted earnings per common share.

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		Three months ended			Nine months ended
		December 31,			December 31,
		2025			2025

Net income		$	17,845		$	(210,770)

Weighted-average shares issued			526,438			526,438
Less weighted-average unearned ESOP shares			33,373			34,077
Weighted-average shares outstanding (basic)			493,065			492,361
Diluted restricted award shares			1,148			—
Diluted restricted options			—			—
Weighted-average shares outstanding (diluted)			494,213			492,361

Income (loss) per share
Basic		$	0.04		$	(0.43)
Diluted		$	0.04		$	(0.43)

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 9.0%, 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 9.7% and 10.0% as of December 31, 2025 and March 31, 2025, respectively.

As of December 31, 2025, 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.

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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 December 31, 2025 and March 31, 2025:


				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)
December 31, 2025
U.S. Government agencies		$	2,844,329	$	—	$	2,844,329	$	—
Mortgage-backed Government Sponsored Enterprises (GSEs)			8,803,835		—		8,803,835		—
State and political subdivisions			10,656,499		—		10,656,499		—
Time deposits			698,682		—		698,682		—

March 31, 2025
U.S. Government agencies		$	2,753,912	$	—	$	2,753,912	$	—
Mortgage-backed Government Sponsored Enterprises (GSEs)			9,511,736		—		9,511,736		—
State and political subdivisions			10,199,529		—		10,199,529		—
Time deposits			678,015		—		678,015		—

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 nine months ended December 31, 2025 and the year ended March 31, 2025.

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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 December 31, 2025.


					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)
December 31, 2025
Collateral dependent loans		$	1,686,226		$	—	$	—	$	1,686,226


		Fair Value			Valuation Technique		Unobservable Inputs	Range (Weighted-average)
December 31, 2025
Collateral dependent loans		$	1,686,226		Estimated sales price		Adjustments for discounts to reflect current market conditions	20% - 25% (23%)

The collateral dependent loans had a carrying value of $1,686,226. An allowance balance of $93,746 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, 2025
Collateral dependent loans		$	44,144		$	—	$	—	$	44,144


	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-average)
March 31, 2025
Collateral dependent loans	$	44,144	Estimated sales price	Adjustments for discounts to reflect current market conditions	20% - 50% (46%)

The collateral dependent loan had a carrying value of $48,573. An allowance balance of $4,429 was recorded to write down the loan to fair value.

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The estimated fair values of the Company’s financial instruments not carried at fair value on the balance sheets as of December 31, 2025 and March 31, 2025 are as follows:


		Carrying			Fair			Fair Value Measurements Using
		Value			Value			Level 1		Level 2		Level 3
December 31, 2025
Financial assets:
Cash and cash equivalents		$	1,561,434		$	1,561,434		$	1,561,434	$	—	$	—
Loans, net			111,350,795			106,115,028			—		—		106,115,028
Restricted stock			875,000			875,000			—		875,000		—
Bank owned life insurance			3,700,115			3,700,115			3,700,115		—		—
Accrued interest receivable			501,291			501,291			501,291		—		—

Financial liabilities:
Deposits			128,737,412			128,550,236			88,046,995		—		40,503,241
FHLB advances			4,665,000			4,674,000			—		—		4,674,000
Accrued interest payable			22,621			22,621			22,621		—		—


		Carrying			Fair			Fair Value Measurements Using
		Value			Value			Level 1		Level 2		Level 3
March 31, 2025
Financial assets:
Cash and cash equivalents		$	2,077,767		$	2,077,767		$	2,077,767	$	—	$	—
Loans, net			106,996,088			100,574,741			—		—		100,574,741
Restricted stock			836,600			836,600			—		836,600		—
Bank owned life insurance			3,605,191			3,605,191			3,605,191		—		—
Accrued interest receivable			469,009			469,009			469,009		—		—

Financial liabilities:
Deposits			120,664,190			108,815,000			75,356,185		—		33,458,815
FHLB advances			9,972,000			9,987,000			—		—		9,987,000
Accrued interest payable			35,627			35,627			35,627		—		—

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.

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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, 2025, 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 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;

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●

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 disclaims 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.

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The following represent our critical accounting policies:

Allowance for Credit Losses. The allowance for credit losses is the estimated amount considered necessary to cover inherent, but unconfirmed, credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for credit losses which is charged against income. In determining the allowance for credit losses, management makes significant estimates and has identified this policy as one of our most critical accounting policies.

Management performs a quarterly evaluation of the allowance for credit losses on loans and unfunded commitments. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.

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) for the fiscal year ended March 31, 2025. 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 December 31, 2025 and March 31, 2025

Total Assets. Total assets were $147.9 million at December 31, 2025, an increase of $3.6 million, or 2.5%, from $144.3 at March 31, 2025. The increase was due primarily to an increase in net loans of $4.4 million during the nine month period ended December 31, 2025, which was partially offset by a decrease in cash and cash equivalents of $516,000.

Cash and Cash Equivalents. Cash and cash equivalents decreased $516,000, or 24.6%, to $1.6 million at December 31, 2025 from $2.1 million at March 31, 2025. The decrease was due primarily to the use of cash to fund loan growth and pay down FHLB advance borrowings over the nine month period ended December 31, 2025.

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Investment Securities. Investment securities available for sale decreased $140,000, or 0.6%, to $23.0 million at December 31, 2025, from $23.1 million at March 31, 2025. The decrease was primarily attributable to repayments of securities totaling $1.0 million during the nine months ended December 31, 2025, which was offset by a decrease of $982,000, or 19.2%, in the unrealized loss on available for sale securities during the nine months ended December 31, 2025.

Net Loans. Net loans increased $4.4 million, or 4.1%, to $111.4 million at December 31, 2025 from $107.0 million at March 31, 2025. During the nine months ended December 31, 2025, loan originations totaled $16.5 million, comprised primarily of $6.1 million of loans secured by one- to four-family residential real estate, $3.2 million of commercial real estate loans, $1.8 million of commercial and industrial loans, $2.4 million in home equity lines of credit, $1.9 million of construction and loan loans and $600,000 in multifamily loans. Consumer loan originations totaled $338,000, of which $203,000 were auto loans.

During the nine months ended December 31, 2025, commercial real estate loans increased $2.4 million, or 9.9%, to a total of $26.6 million at December 31, 2025, commercial and industrial loans increased $2.1 million, or 48.8%, to a total of $6.3 million, home equity lines of credit increased $707,000, or 16.1%, to $5.1 million at December 31, 2025 and multi-family loans increased $333,000, or 20.8%, to $1.9 million. These increases were partially offset by a decrease in construction and land loans of $885,000, or 35.4%, to $1.6 million at December 31, 2025, a decrease in residential mortgage loans of $190,000, or 0.3%, to $69.7 million, and a decrease in consumer loans of $92,000, or 7.1%, to $1.2 million at December 31, 2025.

The increase in the Company’s loan portfolio has been due to commercial real estate and commercial and industrial loans in our market area, as well as increased marketing efforts towards home equity lines of credit.

The Company’s strategy includes gradually growing the loan portfolio, focusing on home equity lines of credit and commercial real estate loans.

Deposits. Deposits increased by $8.0 million, or 6.6%, to $128.7 million at December 31, 2025 from $120.7 million at March 31, 2025. Core deposits (defined as all deposits other than certificates of deposit) increased $1.1 million, or 1.3%, to $88.0 million at December 31, 2025 from $86.9 million at March 31, 2025. Certificates of deposit increased $6.9 million, or 20.4%, to $40.7 million at December 31, 2025 from $33.8 million at March 31, 2025. The increase in core deposits was due primarily to a $3.3 million increase in money market deposit accounts and savings accounts. This increase was mostly offset by a $2.2 million decrease in demand accounts. The increase in certificates of deposit was due primarily to our offering of CD specials to maintain our current deposit base and attract new deposits.

During the nine months ended December 31, 2025, 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 $4.7 million at December 31, 2025, a decrease of $5.3 million, or 53.0%, from the $10.0 million balance at March 31, 2025. The decrease in advances was a result of paydowns using the cash received from the increase in deposits during the nine months ending December 31, 2025.

Stockholders’ Equity. Stockholders’ equity increased $585,000 or 4.8%, to $12.7 million at December 31, 2025, from $12.1 million at March 31, 2025. The increase was due primarily to a decrease of $776,000 in the tax-effected unrealized loss on available for sale securities at December 31, 2025, which was partially offset by a net loss of $211,000 during the nine month period ending December 31, 2025.

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.

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			For the Three Months Ended December 31,
			2025							2024
			Average							Average
			Outstanding					Average		Outstanding					Average
			Balance			Interest		Yield/Rate		Balance			Interest		Yield/Rate


Interest-earning assets:
Interest-bearing deposits and other			$	1,762		$	24	5.45	%	$	2,207		$	29	5.26	%
Available-for-sale securities				27,337			117	1.71			29,054			121	1.67
Loans				110,679			1,439	5.20			108,522			1,322	4.87
Total interest-earning assets				139,778			1,580	4.52			139,783			1,472	4.21
Noninterest earning assets				8,240							8,068
Allowance for credit losses				(951)							(876)
Total assets			$	147,067						$	146,975

Interest-bearing liabilities:
Interest-bearing demand accounts			$	27,534			2	0.03	%	$	35,243			2	0.02	%
Savings accounts				21,580			31	0.57			19,773			10	0.20
Money market accounts				31,042			166	2.14			29,373			131	1.78
Certificates of deposit				37,208			344	3.70			33,328			321	3.85
Total interest-bearing deposits				117,364			543	1.85			117,717			464	1.58
Federal Home Loan Bank advances				6,935			74	4.27			5,767			73	5.06
Federal funds purchased				76			1	5.26			107			2	7.48
Total interest-bearing liabilities				124,375			618	1.99			123,591			539	1.74
Noninterest-bearing demand deposits				8,386							6,854
Other noninterest-bearing liabilities				1,918							4,722
Total liabilities				134,679							135,167
Total stockholders' equity				12,388							11,808
Total liabilities and stockholders' equity				147,067							146,975
Net interest income						$	962						$	933
Net interest rate spread ⁽¹⁾								2.53	%						2.47	%
Net interest-earning assets⁽²⁾			$	15,403						$	16,192
Net interest margin⁽³⁾								2.75	%						2.67	%
Average interest-earning assets to interest-bearing liabilities				112.38	%						113.10	%

(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.

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			For the Nine Months Ended December 31,
			2025							2024
			Average							Average
			Outstanding					Average		Outstanding					Average
			Balance			Interest		Yield/Rate		Balance			Interest		Yield/Rate


Interest-earning assets:
Interest-bearing deposits and other			$	1,764		$	74	5.59	%	$	3,200		$	141	5.88	%
Available-for-sale securities				27,712			355	1.71			29,790			371	1.66
Loans				109,648			4,198	5.10			109,148			3,913	4.78
Total interest-earning assets				139,124			4,627	4.43			142,138			4,425	4.15
Noninterest earning assets				7,988							7,741
Allowance for credit losses				(914)							(868)
Total assets			$	146,198						$	149,011

Interest-bearing liabilities:
Interest-bearing demand accounts			$	27,456			5	0.02	%	$	36,155			5	0.02	%
Savings accounts				21,466			83	0.52			19,250			20	0.14
Money market accounts				30,317			429	1.89			29,259			303	1.38
Certificates of deposit				35,560			1,002	3.76			36,486			1,071	3.91
Total interest-bearing deposits				114,799			1,519	1.76			121,150			1,399	1.54
Federal Home Loan Bank advances				9,092			308	4.52			6,836			264	5.15
Federal funds purchased				120			4	4.44			72			3	5.56
Total interest-bearing liabilities				124,011			1,831	1.97			128,058			1,666	1.73
Noninterest-bearing demand deposits				8,207							7,595
Other noninterest-bearing liabilities				1,800							3,763
Total liabilities				134,018							139,416
Total stockholders' equity				12,180							9,595
Total liabilities and stockholders' equity				146,198							149,011
Net interest income						$	2,796						$	2,759
Net interest rate spread ⁽¹⁾								2.46	%						2.42	%
Net interest-earning assets ⁽²⁾			$	15,113						$	14,080
Net interest margin ⁽³⁾								2.68	%						2.59	%
Average interest-earning assets to interest-bearing liabilities				112.19	%						111.00	%

(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.

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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 December 31,
		2025 vs. 2024
		Increase (Decrease)				Total
		Due to:				Increase
		Volume		Rate		(Decrease)

		(In thousands)
Interest-earning assets:
Other interest-earning assets		$	(6)	$	1	$	(5)
Available-for-sale securities			(7)		3		(4)
Loans			26		91		117
Total interest-earning assets			13		95		108

Interest-bearing liabilities:
Interest-bearing demand accounts			—		—		—
Savings accounts			1		20		21
Money market accounts			8		27		35
Certificates of deposit			37		(14)		23
Total deposits			46		33		79
Federal Home Loan Bank advances			15		(14)		1
Fed funds purchased			(1)		—		(1)
Total interest-bearing liabilities			60		19		79

Change in net interest income		$	(47)	$	76	$	29


		Nine Months Ended December 31,
		2025 vs. 2024
						Total
		Increase (decrease) due to				Increase
		Volume		Rate		(Decrease)

		(In thousands)
Interest-earning assets:
Other interest-earning assets	$	(63)	$	(4)	$	(67)
Investment securities		(26)		10		(16)
Loans		18		267		285
Total interest-earning assets		(71)		273		202

Interest-bearing liabilities:
Interest-bearing demand		(1)		1		-
Savings accounts		3		60		63
Money market		11		115		126
Certificates of deposit		(28)		(41)		(69)
Total deposits		(15)		135		120
Federal Home Loan Bank advances		87		(43)		44
Federal funds purchased		2		(1)		1
Total interest-bearing liabilities		74		91		165

Change in net interest income	$	(145)	$	182	$	37

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Comparison of Operating Results for the Three Months Ended December 31, 2025 and 2024

General. The Company reported net income of $18,000 for the three months ended December 31, 2025, a $138,000 increase from the net loss of $120,000 for the three months ended December 31, 2024. The increase in net income was primarily due to a $142,000, or 232.0%, difference in the expense for credit losses period-to-period and a $108,000, or 7.3%, increase in interest income. There was a recovery of credit losses of $81,000 for the three months ended December 31, 2025, compared to a provision for credit losses of $61,000 for the three months ended December 31, 2024. The increase in net income was partially offset by a $55,000, or 5.0%, increase in noninterest expenses and a $79,000, or 14.7%, increase in interest expense.

Interest Income. Interest income increased $108,000, or 7.3%, for the three months ended December 31, 2025 and totaled $1.6 million for the three month period ended December 31, 2025, compared to $1.5 million for the three month period ended December 31, 2024. This increase was primarily attributable to a $117,000, or 8.9%, increase in loan interest income, which was partially offset by a $4,000, or 3.3%, decrease in interest on investment securities and a $5,000, or 17.2%, decrease in interest on interest-bearing deposits.

The average yield on loans increased by 33 basis points to 5.20% for the three months ended December 31, 2025 from 4.87% for the three months ended December 31, 2024, while the average balance of loans increased by $2.2 million, or 2.0%, during the three months ended December 31, 2025 compared to the average balance for the three months ended December 31, 2024. The increase in average yield on loans reflects the increase in commercial real estate loans and commercial and industrial loans and the decrease in 1-4 residential loans for the three-month period ended December 31, 2025 compared to the three-month period ended December 31, 2024, as commercial loans typically carry a higher interest rate than 1-4 residential loans. The Company also has several commercial adjustable-rate loans which have adjusted upward following a five-year fixed interest rate period.

The average balance of investment securities decreased $1.8 million, or 6.2%, to $27.3 million for the three months ended December 31, 2025 from $29.1 million for the three months ended December 31, 2024, while the average yield on investment securities increased by four basis points to 1.71% for the three months ended December 31, 2025 from 1.67% for the three months ended December 31, 2024.

Interest income on other interest-bearing deposits, comprised primarily of overnight deposits and stock in the Federal Home Loan Bank, decreased $5,000, or 17.2%, for the three months ended December 31, 2025 due to a decrease in the average balance of $445,000, or 20.2%, for the three month period ended December 31, 2025, which was partially offset by an increase in the yield of 19 basis points, to 5.45%, for the three month period ended December 31, 2025 from 5.26% for the three months ended December 31, 2024.

Interest Expense. Total interest expense increased $79,000, or 14.7%, to $618,000 for the three months ended December 31, 2025 from $539,000 for the three months ended December 31, 2024. Interest expense on deposits increased $79,000, or 17.0%, due primarily to an increase of 27 basis points in the average cost of deposits to 1.85% for the three months ended December 31, 2025 from 1.58% for the three months ended December 31, 2024, which was offset by a decrease of $353,000, or 0.3%, in the average balance of interest-bearing deposits to $117.3 million for the three months ended December 31, 2025 from $117.7 million for the three months ended December 31, 2024.

Interest expense on borrowings was $75,000 for both three month periods ended December 31, 2025 and 2024. There was an increase of $1.1 million in the average balance outstanding, to $7.0 million, for the three months ended December 31, 2025 from $5.9 million for the three months ended December 31, 2024, and an 83 basis point decrease in the weighted-average rate, to 4.28%, for the three months ended December 31, 2025 compared to 5.11% for the three months ended December 31, 2024.

Net Interest Income. Net interest income increased $29,000, or 3.1%, to $962,000 for the three months ended December 31, 2025 compared to $933,000 for the three months ended December 31, 2024. The increase reflected an increase in the net interest margin to 2.75% for the three months ended December 31, 2025 from 2.67% for the three months ended December 31, 2024. There was an increase in the interest rate spread to 2.53% for the three months ended

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December 31, 2025 from 2.47% for the three months ended December 31, 2024, while the average net interest earning assets decreased $789,000 period-to-period.

Provision for (Recovery of) Credit Losses. The Company recorded a recovery of credit losses of $81,000, for the three months ended December 31, 2025, compared to a provision for credit losses of $61,000 for the three months ended December 31, 2024. The recovery of credit losses stemmed from a decrease in delinquencies over the 12 months ended December 31, 2025 that allowed the Company to reduce the factor it uses to calculate reserves on pooled loans. The allowance for credit losses on loans was $890,000 at December 31, 2025, an increase of $37,000, or 4.3%, over the $853,000 total at March 31, 2025. The allowance for credit losses on off-balance sheet commitments was $50,000 at December 31, 2025, a decrease of $26,000, or 34.2%, over the $76,000 total at March 31, 2025. The allowance for credit losses on loans represented 0.79% of total loans at both December 31, 2025 and March 31, 2025.

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. The Company’s nonaccrual loans totaled $539,000 at December 31, 2025, compared to $629,000 in nonaccrual loans at March 31, 2025. Classified loans totaled $2.1 million at December 31, 2025, compared to $128,000 at March 31, 2025. Total loans past due greater than 30 days were $249,000 at December 31, 2025 compared to no loans past due greater than 30 days at March 31, 2025.

The allowance for credit losses reflects the estimate management believes to be adequate to cover incurred probable losses which were inherent in the loan portfolio at December 31, 2025 and March 31, 2025. 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 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 $110,000 for the three months ended December 31, 2025, an increase of $21,000, or 23.6%, from $89,000 for the three months ended December 31, 2024. The increase was attributable primarily to a $11,000, or 550.0%, increase in income from late charges and fees on loans, an increase of $10,000, or 100.0%, in other income and a $3,000 or 10.3%, increase in the cash surrender value of life insurance, which was partially offset by a $2,000, or 4.5%, decrease in service fees on deposits and a $1,000, or 25.0%, decrease in loan servicing fees.

Noninterest Expense. Noninterest expense increased $54,000, or 5.0%, and totaled $1.1 million for both three month periods ended December 31, 2025 and 2024. The increase was due primarily to a $20,000, or 14.7%, increase in data processing fees, a $19,000, or 15.4%, increase in other expenses, an $8,000, or 50.0%, increase in advertising, an $8,000, or 1.50%, increase in salaries and employee benefits and a $5,000, or 29.4%, increase in franchise taxes. This was partially offset by a $4,000, or 16.0%, decrease in FDIC insurance premiums.

Income Taxes. The Company’s income tax benefit increased by $2,000, or 33.3%, with a benefit provision of $8,000 for the three months ended December 31, 2025, compared to a benefit provision of $6,000 the three months ended December 31, 2024. The tax benefit provision and effective tax rates reflect the Company’s nontaxable interest income in each period.

Comparison of Operating Results for the Nine Months Ended December 31, 2025 and 2024

General. The Company reported a net loss of $211,000 for the nine months ended December 31, 2025, a $111,000, or 34.5%, decrease from the net loss of $322,000 for the nine months ended December 31, 2024. The decrease in the net loss was primarily due to a $79,000, or 30.0%, increase in noninterest income, a $37,000, or 1.3%, increase in net interest income, and a $17,000, or 20.5%, increase in the benefit for federal income taxes, which was partially offset by an $89,000, or 2.7%, increase in noninterest expense.

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Interest Income. Interest income increased $202,000, or 4.6%, for the nine months ended December 31, 2025 and totaled $4.6 million for the nine month period ended December 31, 2025, compared to $4.4 million for the nine month period ended December 31, 2024. This increase was primarily attributable to a $285,000, or 7.3%, increase in loan interest income. This was partially offset by a $67,000, or 47.5%, decrease in interest on interest-bearing deposits and other assets and a $16,000, or 4.3%, decrease in interest on investment securities.

The average yield on loans increased by 32 basis points to 5.10% for the nine months ended December 31, 2025 from 4.78% for the nine months ended December 31, 2024, while the average balance of loans increased by $500,000, or 0.5%, during the nine months ended December 31, 2025 compared to the average balance for the nine months ended December 31, 2024. The increase in average yield on loans reflects the increase in commercial real estate loans and commercial and industrial loans and the decrease in 1-4 residential loans for the nine-month period ended December 31, 2025 compared to the nine-month period ended December 31, 2024, as commercial loans typically carry a higher interest rate than 1-4 residential loans. The Company also has several commercial adjustable-rate loans which have adjusted upward following a five-year fixed interest rate period.

The average balance of investment securities decreased $2.1 million, or 7.0%, to $27.7 million for the nine months ended December 31, 2025 from $29.8 million for the nine months ended December 31, 2024, while the average yield on investment securities increased by 5 basis points to 1.71% for the nine months ended December 31, 2025 from 1.66% for the nine months ended December 31, 2024.

Interest income on other interest-bearing deposits, comprised primarily of overnight deposits and stock in the Federal Home Loan Bank, decreased $67,000, or 47.5%, for the nine months ended December 31, 2025 due to a decrease in the average yield of 29 basis points, to 5.59% for the nine month ended December 31, 2025 from 5.88% for the nine months ended December 31, 2024, and a decrease in the average balance of $1.4 million, or 43.8%, to $1.8 million for the nine months ended December 31, 2025 from $3.2 million for the nine months ended December 31, 2024.

Interest Expense. Total interest expense increased $165,000, or 9.7%, to $1.8 million for the nine months ended December 31, 2025 from $1.7 million for the nine months ended December 31, 2024. Interest expense on deposits increased $120,000, or 8.6%, due primarily to an increase of 22 basis points in the average cost of deposits to 1.76% for the nine months ended December 31, 2025 from 1.54% for the nine months ended December 31, 2024, which was offset by a decrease of $6.4 million, or 5.3%, in the average balance of interest-bearing deposits to $114.8 million for the nine months ended December 31, 2025 from $121.2 million for the nine months ended December 31, 2024.

Interest expense on borrowings increased $45,000, or 16.9%, to $312,000 for the nine months ended December 31, 2025 compared to $267,000 for the nine months ended December 31, 2024. The increase was due to a $2.3 million, or 33.3%, increase in the average balance outstanding, to $9.2 million for the nine months ended December 31, 2025 from $6.9 million for the nine months ended December 31, 2024, which was offset by a 63 basis point decrease in the weighted-average rate, to 4.52% for the nine months ended December 31, 2025 compared to 5.15% for the nine months ended December 31, 2024.

Net Interest Income. Net interest income increased $37,000, or 1.3%, and was $2.8 million for both nine month periods ended December 31, 2025 and 2024. The increase reflected an increase in the interest rate spread to 2.46% for the nine months ended December 31, 2025 from 2.42% for the nine months ended December 31, 2024, while the average net interest earning assets increased $1.0 million period-to-period. The net interest margin increased to 2.68% for the nine months ended December 31, 2025 from 2.59% for the nine months ended December 31, 2024.

Provision for (Recovery of) Credit Losses. The Company recorded a decrease in the provision for credit losses of $67,000, or 85.9%, for the nine months ended December 31, 2025, to a provision for credit losses of $11,000 compared to a provision for credit losses of $78,000 recorded for the nine months ended December 31, 2024. The allowance for credit losses on loans was $890,000 at December 31, 2025, an increase of $37,000, or 4.3%, over the $853,000 total at March 31, 2025. The allowance for credit losses on off-balance sheet commitments was $50,000 at December 31, 2025, a decrease of $26,000, or 34.2%, over the $76,000 total at March 31, 2025. The allowance for credit losses on loans represented 0.79% of total loans at both December 31, 2025 and March 31, 2025.

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Noninterest Income. Noninterest income totaled $342,000 for the nine months ended December 31, 2025, an increase of $79,000, or 30.0%, from $263,000 for the nine months ended December 31, 2024. The increase was attributable primarily to a $53,000, or 203.8%, increase in other income, primarily from the recoupment of legal fees and fees received from the borrower of a previously charged-off loan, an increase of $21,000, or 300.0%, in late charges and fees on loans and an $11,000, or 13.1%, increase in the cash surrender value of life insurance, which was partially offset by a $3,000, or 25.0%, decrease in loan servicing fees and a $3,000, or 2.3%, decrease in service fees on deposits.

Noninterest Expense. Noninterest expense increased $89,000, or 2.7%, and was $3.4 million for the nine month period ended December 31, 2025 compared to $3.3 million for the nine month period ended December 31, 2024. The increase was due primarily to a $65,000, or 19.0%, increase in other expenses, a $53,000, or 13.3%, increase in data processing fees and an $18,000, or 34.6%, increase in franchise taxes. This was partially offset by a $21,000, or 1.3%, decrease in salaries and employee benefits expense, a $14,000, or 20.0%, decrease in FDIC insurance premiums and a $13,000, or 4.5%, decrease in professional services.

The increase in other expenses was primarily due to additional recurring expenses from the stock conversion, mainly SEC reporting costs, and expenses incurred for the Bank’s 125^th anniversary celebration in downtown Tipp City.

Income Taxes. The Company’s income tax benefit increased by $17,000, or 20.5%, with a benefit provision of $100,000 for the nine months ended December 31, 2025, compared to a benefit provision of $83,000, for the nine months ended December 31, 2024. The tax benefit provision and effective tax rates reflect the Company’s nontaxable interest income in each period.

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.

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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;

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

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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.

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 December 31, 2025.

Historically, we have not sold loans we have originated. We plan to develop 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.

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The following table sets forth, as of December 31, 2025, 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 December 31, 2025
							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	$	12,738	$	(6,308)	(33.12)	%	9.87	%	(335)
200	$	14,901	$	(4,145)	(21.76)	%	11.13	%	(209)
100	$	17,618	$	(1,428)	(7.50)	%	12.68	%	(54)
Level	$	19,046		—	—	%	13.22	%	—
(100)	$	19,902	$	856	4.49	%	13.36	%	14
(200)	$	20,347	$	1,301	6.83	%	13.25	%	3
(300)	$	19,940	$	894	4.70	%	12.65	%	(57)

(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 December 31, 2025, we would have experienced a 21.76% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 6.83% 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 December 31, 2025, 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 December 31, 2025
Change in Interest Rates	Net Interest Income Year 1
(basis points) ⁽¹⁾	Forecast		Year 1 Change from Level
		(Dollars in thousands)
300	$	3,772	(5.74)	%
200	$	3,884	(2.95)	%
100	$	4,022	0.51	%
Level	$	4,002	—
(100)	$	3,953	(1.23)	%
(200)	$	3,872	(3.25)	%
(300)	$	3,760	(6.03)	%

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

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The table above indicates that as of December 31, 2025, we would have experienced a 2.95% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 3.25% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rate.

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 December 31, 2025, we had the ability to borrow up to $49.0 million from the Federal Home Loan Bank of Cincinnati under a collateral pledge facility. At December 31, 2025, we had $4.7 million of outstanding advances under this facility. At December 31, 2025, we had no outstanding borrowings from the Federal Reserve Bank of Cleveland, but had the capacity to borrow up to $5.8 million. At December 31, 2025, 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 nine month period ended December 31, 2025, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of approximately $500,000. Net cash used in operating activities amounted to $100,000, net cash used in investing activities amounted to $3.5 million, and net cash provided by financing activities amounted to $3.1 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 Bank 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

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Federal Bancorp is governed by applicable regulations. At December 31, 2025, Monroe Federal Bancorp (on an unconsolidated basis) had liquid assets of $1.5 million.

At December 31, 2025, 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 6 to the notes to the consolidated financial statements.

Off-Balance Sheet Arrangements. At December 31, 2025, we had $14.8 million of outstanding commitments, consisting of $2.1 million in commitments to originate loans and $12.7 million of undisbursed funds on previously originated loans. At December 31, 2025, certificates of deposit that are scheduled to mature on or before December 31, 2026, totaled $30.6 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 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 December 31, 2025. 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 December 31, 2025, 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.

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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 December 31, 2025, 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 December 31, 2025, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (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 (Commision File No. 000-56702), filed on November 13, 2025.

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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: February 13, 2026		Lewis R. Renollet
		President and Chief Executive Officer (Duly Authorized Representative and Principal Executive Officer)

Date: February 13, 2026		/s/ Lisa M. Bird
		Lisa M. Bird
		Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer