UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K


☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, ~~2024~~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 Number: 001-41844

Central Plains Bancshares, Inc.

(Exact Name of Registrant as Specified in its Charter)

Maryland	93-2239246
(State or other jurisdiction ofincorporation or organization)	(I.R.S. EmployerIdentification No.)
221 South Locust StreetGrand Island, NE	68801
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (308) 382-4000

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

Title of each class		TradingSymbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 share		CPBI		NASDAQ Capital Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ☐ NO ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. YES ☐ NO ☒

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 filing 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 (§232.405 of this chapter) 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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

~~State~~The ~~the~~ aggregate market value of the ~~voting~~Registrant's ~~and non-~~voting common ~~equity~~stock held by non-affiliates ~~computed~~based byon ~~reference to~~ the ~~price~~closing ~~at which the common equity was last sold, or the average bid and asked~~ price of ~~such~~the common ~~equity~~stock ason ~~of the last business day of the registrant’s most recently completed second fiscal quarter: At~~ September 30, ~~2023,~~2024 ~~there were no publicly issued shares of common stock, as such, there~~ was no$44.0 ~~market value~~million.

As of June 2126, ~~2024~~2025, there were 4,~~130~~224,~~815~~078 shares outstanding of the registrant’s common stock.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the ~~2024~~2025 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K.

Auditor Name: Plante & Moran, PLLC Auditor Location: Chicago, Illinois Auditor Firm ID: 166

Table of Contents

		Page
PART I
Item 1.	Business	1
Item 1A.	Risk Factors	23
Item 1B.	Unresolved Staff Comments	3634
Item 1C.	Cybersecurity	3634
Item 2.	Properties	3735
Item 3.	Legal Proceedings	3836
Item 4.	Mine Safety Disclosures	3836
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	3937
Item 6.	[Reserved]	3937
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4038
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	5048
Item 8.	Financial Statements and Supplementary Data	5148
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	5148
Item 9A.	Controls and Procedures	5148
Item 9B.	Other Information	5148
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	5148
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	5249
Item 11.	Executive Compensation	5249
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	5249
Item 13.	Certain Relationships and Related Transactions, and Director Independence	5249
Item 14.	Principal Accounting Fees and Services	5249
PART IV
Item 15.	Exhibits, Financial Statement Schedules	5350
Item 16.	Form 10-K Summary	5350
	Index to Consolidated Financial Statements	5451
Item 17.	Consolidated Financial Statements	5653
	Signatures	8887

Table of Contents

~~Explanatory~~FORWARD-LOOKING ~~Note~~STATEMENTS

~~Central~~This ~~Plains~~Annual ~~Bancshares,~~Report ~~Inc.~~on ~~(the~~Form ~~“Company”)~~10-K ~~was~~contains ~~formed~~forward-looking tostatements, ~~serve~~which ascan ~~the~~be ~~holding~~identified ~~company~~by ~~for~~the ~~Home~~use ~~Federal Savings and Loan Association~~ of ~~Grand~~words ~~Island~~such ~~(the~~as “~~Association~~estimate,”) “project,” ~~upon~~“believe,” ~~the Association's conversion into the stock form of organization~~“intend,” ~~which was completed on October 19~~“anticipate,” ~~2023. Accordingly~~“plan,” ~~the audited financial statements~~“seek,” ~~as well as other financial information at or prior to October 19~~“expect,” ~~2023~~“will,” ~~contained~~“may” inand ~~this~~words ~~Annual~~of ~~Report~~similar onmeaning. These ~~Form 10~~forward-Klooking ~~relate~~statements ~~solely~~include, tobut ~~the~~are ~~consolidated~~not ~~financial~~limited ~~results of Home Federal Savings and Loan Association of Grand Island and Subsidiary.~~to:

•

iistatements of our goals, intentions and expectations;

•

~~Table~~statements ofregarding ~~Contents~~our business plans, prospects, growth and operating strategies;

•

~~FORWARD-LOOKING~~statements ~~STATEMENTS~~regarding the asset quality of our loan and investment portfolios; and

•

~~This~~estimates ~~Annual Report on Form 10-K contains forward-looking statements, which can be identified by the use~~ of ~~words~~our ~~such~~risks asand ~~“estimate,”~~future ~~“project,”~~costs ~~“believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may”~~ and ~~words of similar meaning~~benefits. ~~These forward-looking statements include, but are not limited to:~~

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 ~~goals~~control. In addition, ~~intentions~~these forward-looking statements are subject to assumptions with respect to future business strategies and ~~expectations;~~decisions that are subject to change. Except as may be required by law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

~~statements~~The ~~regarding~~following ~~our~~factors, ~~business~~among ~~plans~~others, ~~prospects,~~could ~~growth~~cause ~~and~~actual ~~operating~~results ~~strategies;~~to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

•

~~statements~~general ~~regarding~~economic ~~the~~conditions, ~~asset~~including ~~quality~~any ofrecessionary conditions and/or increases in unemployment, either nationally or in our ~~loan~~market ~~and~~areas, ~~investment~~that ~~portfolios;~~are ~~and~~worse than expected;

•

~~estimates~~changes ofin ~~our~~the ~~risks~~level and ~~future~~direction ~~costs~~of loan delinquencies and ~~benefits.~~write-offs and changes in estimates of the adequacy of the allowance for loan losses;

•

~~These forward-looking statements are based on~~ our ~~current~~ability ~~beliefs and expectations and are inherently subject~~ to ~~significant~~access ~~business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward~~cost-~~looking~~effective ~~statements~~funding ~~are subject to assumptions with respect to future business strategies~~ and ~~decisions that are subject~~ to ~~change.~~maintain ~~Except~~adequate ~~as may be required by law~~liquidity, weprimarily ~~disclaim~~through ~~any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.~~deposits;

•

~~The~~fluctuations ~~following~~in ~~factors,~~real ~~among~~estate ~~others,~~values ~~could~~and ~~cause~~in ~~actual~~the ~~results~~conditions toof ~~differ materially from~~ the ~~anticipated~~residential ~~results~~real orestate, ~~other~~commercial ~~expectations~~real ~~expressed~~estate, inand ~~the~~agricultural ~~forward-looking~~real ~~statements:~~estate markets;

•

~~general~~demand ~~economic~~for ~~conditions~~loans, ~~including~~deposits ~~any recessionary conditions~~ and~~/or~~ ~~increases~~non-banking inservices ~~unemployment, either nationally or~~ in our market ~~areas, that are worse than expected~~area;

•

~~changes~~our inability ~~the~~to ~~level~~implement and ~~direction~~change ofour ~~loan~~business ~~delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses~~strategies;

•

~~our~~competition ~~ability~~among todepository ~~access~~and ~~cost-effective~~other ~~funding~~financial ~~and~~institutions, including with respect to ~~maintain~~our ~~adequate~~ability ~~liquidity,~~to ~~primarily~~charge ~~through~~overdraft ~~deposits~~fees;

•

~~fluctuations~~inflation and changes in ~~real~~the ~~estate~~interest ~~values~~rate environment that reduce our margins and inyields, the ~~conditions~~fair value of ~~the~~financial ~~residential~~instruments ~~real~~or ~~estate~~our level of loan originations, ~~commercial~~or ~~real~~increase ~~estate~~the level of defaults, losses and ~~agricultural~~prepayments ~~real~~on ~~estate~~loans ~~markets~~we have made and will make;

•

~~demand~~adverse ~~for~~changes ~~loans, deposits and non-banking services~~ in ~~our~~the ~~market~~securities ~~area~~markets;

•

~~our~~changes ~~ability~~in tolaws ~~implement~~or government regulations or policies affecting financial institutions and/or ~~change~~their ~~our~~holding ~~business~~companies, ~~strategies~~including changes in regulatory fees, capital requirements and insurance premiums;

•

~~competition~~monetary ~~among~~and ~~depository~~fiscal ~~and~~policies ~~other~~of ~~financial~~the ~~institutions~~U.S. Government, including ~~with~~policies ~~respect~~of tothe ~~our~~U.S. ~~ability~~Treasury toand ~~charge~~the ~~overdraft~~Federal ~~fees~~Reserve Board;

•

~~inflation and~~ changes in the ~~interest~~quality ~~rate~~or ~~environment~~composition ~~that reduce our margins and yields, the fair value~~ of ~~financial instruments or~~ our ~~level of~~ loan ~~originations,~~ or ~~increase~~investment ~~the level of defaults, losses and prepayments on loans we have made and will make~~portfolios;

•

~~adverse~~technological changes inthat ~~the~~may ~~securities~~be ~~markets~~more difficult or expensive than expected;

•

~~changes~~the ininability ~~laws~~of orthird-party ~~government~~providers ~~regulations~~to orperform ~~policies~~as ~~affecting financial institutions and/or their holding companies, including changes in regulatory fees, capital requirements and insurance premiums~~expected;

•

~~monetary~~a ~~and~~failure ~~fiscal~~or ~~policies~~breach of ~~the~~our ~~U.S.~~operational ~~Government,~~or ~~including~~information ~~policies~~security ofsystems ~~the~~or ~~U.S.~~infrastructure, ~~Treasury~~including ~~and the Federal Reserve Board~~cyberattacks;

•

~~changes~~our inability ~~the~~to ~~quality~~manage ormarket ~~composition~~risk, ofcredit ~~our~~risk ~~loan~~and oroperational ~~investment portfolios~~risk;

•

~~technological~~our ~~changes~~ability ~~that~~to ~~may~~enter benew ~~more~~markets ~~difficult~~successfully orand ~~expensive~~capitalize ~~than~~on ~~expected~~growth opportunities;

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

aTable ~~failure or breach~~ of ~~our operational or information security systems or infrastructure, including cyberattacks;~~Contents

•

our ability to ~~manage~~successfully ~~market~~integrate ~~risk~~into our operations any assets, ~~credit~~liabilities, ~~risk~~customers, systems and ~~operational~~management ~~risk~~personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto;

•

~~our~~changes ~~ability~~in toconsumer ~~enter~~spending, ~~new~~borrowing ~~markets successfully~~ and ~~capitalize~~savings ~~on growth opportunities~~habits;

•

~~iii~~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;

•

~~Table~~changes ofin ~~Contents~~accounting and/or tax estimates;

•

~~our~~the ~~ability~~effects toof ~~successfully integrate into our operations~~ any ~~assets,~~national ~~liabilities,~~or ~~customers,~~global ~~systems and management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames~~conflict, ~~and~~war ~~any~~or ~~goodwill~~act ~~charges~~of ~~related thereto~~terrorism;

•

~~changes~~the inability ~~consumer~~of ~~spending~~the U.S. Government to remain open, ~~borrowing~~function properly and ~~savings~~manage ~~habits~~federal debt limits;

•

~~changes~~our incompensation ~~accounting~~expense ~~policies~~associated ~~and~~with ~~practices,~~equity asallocated ~~may~~or beawarded ~~adopted~~to byour ~~the~~directors ~~bank regulatory agencies, the Financial Accounting Standards Board, the Securities~~ and ~~Exchange Commission~~ /or ~~the Public Company Accounting Oversight Board~~employees;

•

~~changes~~our inability ~~accounting~~to attract and~~/or~~ ~~tax~~retain ~~estimates~~key employees; and

•

changes in the ~~effects~~financial ofcondition, ~~any~~results ~~national~~of operations or ~~global~~future ~~conflict,~~prospects ~~war~~of orissuers ~~act~~ of ~~terrorism;~~securities that we own.

~~the~~Because ~~ability~~of these and a wide variety of other uncertainties, our actual future results may be materially different from the ~~U.S.~~results ~~Government~~indicated toby ~~remain~~these ~~open,~~forward-looking ~~function~~statements. Please ~~properly~~also ~~and~~see ~~manage~~“Item ~~federal~~1A. ~~debt~~Risk ~~limits;~~Factors.”

~~our compensation expense associated with equity allocated or awarded to our directors and/or employees;~~iii

~~our~~Table ~~ability~~of ~~to attract and retain key employees; and~~Contents

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

~~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. Please also see “~~Item 1A1. ~~Risk Factors~~Business.”

ivCentral Plains Bancshares, Inc.

~~Table~~Central Plains Bancshares, Inc. (the “Company” or “Central Plains Bancshares”) is a Maryland corporation and owns 100% of ~~Contents~~the outstanding common stock of Home Federal Savings and Loan Association of Grand Island (“Home Federal Savings”). On October 19, 2023, we completed our initial public offering of common stock in connection with the mutual-to-stock conversion of Home Federal Savings. The Company sold 4,130,815 shares of common stock at $10.00 per share in its subscription offering for gross proceeds of approximately $41.3 million. Since the completion of our initial public offering, we have not engaged in any significant business activity other than owning the common stock of and having savings deposits in Home Federal Savings. At March 31, 2025, we had consolidated assets of $508.7 million, consolidated deposits of $416.2 million and consolidated stockholders’ equity of $83.3 million.

~~PART~~Our Iexecutive offices are located at principal office is located at 221 South Locust Street, Grand Island, Nebraska 68801, and our telephone number at that address is (308) 382-4000.

~~Item~~Home 1.Federal ~~Business.~~Savings

~~Central~~Originally ~~Plains~~chartered ~~Bancshares~~in 1935, ~~Inc~~Home Federal Savings, which operates under the name “Home Federal Bank,” is a federally-chartered stock savings association headquartered in Grand Island, Nebraska. Our main office is located at 221 South Locust Street, Grand Island, Nebraska 68801, and our telephone number at that address is (308) 382-4000. Our website address is www.homefederalne.bank. Information on our website is not incorporated into this annual report and should not be considered part of this annual report.

~~Central~~Available Plains Bancshares, Inc. (the “Company” or “Central Plains Bancshares”) is a Maryland corporation and owns 100% of the outstanding common stock of Home Federal Savings and Loan Association of Grand Island (“Home Federal Savings”). On October 19, 2023, we completed our initial public offering of common stock in connection with the mutual-to-stock conversion of Home Federal Savings. The Company sold 4,130,815 shares of common stock at $10.00 per share in its subscription offering for gross proceeds of approximately $41.3 million. Since the completion of our initial public offering, we have not engaged in any significant business activity other than owning the common stock of and having savings deposits in Home Federal Savings. At March 31, 2024, we had consolidated assets of $463.2 million, consolidated deposits of $375.1 million and consolidated stockholders’ equity of $78.2 million.Information

~~Our~~Central ~~executive~~Plains ~~offices~~Bancshares, ~~are~~Inc. ~~located~~is ata ~~principal~~public ~~office~~company, isand ~~located~~files atcurrent, ~~221~~quarterly ~~South~~and ~~Locust~~annual ~~Street~~reports with the Securities and Exchange Commission. These reports and any amendments to these reports are available for free on our website, ~~Grand~~www.homefederalne.bank ~~Island~~as soon as reasonably practicable after we electronically file such material with, ~~Nebraska~~or ~~68801~~furnish it to, the Securities and Exchange Commission. Information on our ~~telephone~~website ~~number~~should atnot be considered a part of this Annual Report on Form 10-K. The Securities and Exchange Commission maintains an Internet site that ~~address~~contains isreports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (~~308~~http://www.sec.gov) ~~382-4000~~.

~~Home Federal Savings~~General

~~Originally~~We ~~chartered~~conduct inour ~~1935,~~operations ~~Home~~from ~~Federal~~our ~~Savings,~~main ~~which~~office ~~operates under the name “Home Federal Bank,” is a federally-chartered stock savings association headquartered~~ in Grand Island, Nebraska., ~~Our~~eight ~~main~~branch ~~office~~offices is located atin ~~221 South Locust Street,~~ Grand Island, ~~Nebraska~~Hastings, ~~68801~~Holdrege, ~~and~~Lexington, ~~our~~Lincoln ~~telephone~~and ~~number~~Superior, atNebraska, ~~that~~and ~~address~~a ~~is (308) 382~~drive-~~4000. Our~~up ~~website~~facility ~~address~~in isGrand ~~www~~Island, Nebraska.~~homefederalne.bank.~~ ~~Information~~We onconsider our ~~website~~primary ismarket ~~not~~area ~~incorporated~~for ~~into~~deposit ~~this~~gathering ~~annual~~to ~~report~~be ~~and~~the ~~should~~Nebraska ~~not~~counties beof ~~considered~~Adams, ~~part~~Dawson, ofHall, ~~this~~Lancaster, ~~annual~~Nuckolls ~~report~~and Phelps.

~~Available~~Our ~~Information~~business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential mortgage loans secured by properties located in our primary market area, as well as commercial real estate loans. To a lesser extent, we also originate commercial non-real estate loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans and consumer loans. We offer a variety of deposit accounts including checking accounts, savings accounts and certificate of deposit accounts. In addition, we offer electronic banking services including mobile banking, on-line banking and bill pay, and electronic funds transfer via Zelle®. We have not needed to use significant levels of borrowings to fund our operations in recent years.

~~Central~~Home ~~Plains~~Federal ~~Bancshares,~~Savings ~~Inc.~~ is asubject ~~public~~to ~~company,~~comprehensive ~~and~~regulation ~~files current, quarterly~~ and ~~annual~~examination ~~reports~~by ~~with~~ the ~~Securities~~Office ~~and~~of Exchange Commission. These reports and any amendments to these reports are available for free on our website, www.territorialsavings.netas soon as reasonably practicable after we electronically file such material with, or furnish it to, the ~~Securities~~Comptroller ~~and Exchange Commission. Information on our website should not be considered a part~~ of this Annual Report on Form 10-K. The Securities and Exchange Commission maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the ~~SEC~~Currency (~~http://www.sec.gov~~the “OCC”).

~~General~~Market Area

We ~~conduct~~serve ~~our~~southcentral ~~operations~~Nebraska ~~from~~through our ~~main~~network ~~office~~of innine ~~Grand~~office ~~Island~~locations, ~~Nebraska,~~which ~~six~~cover ~~branch offices located in Grand Island, Hastings, Holdrege, Lexington and Superior, Nebraska,~~ a ~~drive-up~~relatively ~~facility~~broad inarea ~~Grand~~of ~~Island,~~southcentral Nebraska ~~and a loan production office in Lincoln, Nebraska~~. We consider our primary market area for deposit gathering to be the Nebraska counties of Adams, Dawson, Hall, Nuckolls, ~~and~~ Phelps, ~~with~~and Lancaster County. Our ~~included~~market inarea ~~our~~economy has a focus on manufacturing and agriculture with a cross-section of other economic sectors, including education, healthcare and services. The primary market area ~~for~~has ~~lending~~developed ~~activities~~a modern, diversified economy, including the historical agriculture sector. Attractions of the market area include a quality lifestyle, with sufficient personal and business services for residents.

Our business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential mortgage loans secured by properties located in our primary market area, as well as commercial real estate loans. To a lesser extent, we also originate commercial non-real estate loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans and consumer loans. We offer a variety of deposit accounts including checking accounts, savings accounts and certificate of deposit accounts. In addition, we offer electronic banking services including mobile banking, on-line banking and bill pay, and electronic funds transfer via Zelle®. We have not needed to use significant levels of borrowings to fund our operations in recent years.1

~~Home~~Table ~~Federal Savings is subject to comprehensive regulation and examination by the Office~~ of ~~the Comptroller of the Currency (the “OCC”).~~Contents

~~Market~~We ~~Area~~believe that we have developed products and services that will meet the financial needs of our current and future customer base, and we continually plan to enhance our products and services to meet the changing needs of customers. Marketing strategies focus on the strength of our knowledge of local consumer and small business markets, as well as expanding relationships with current customers and reaching out to develop new, profitable business relationships.

We serve southcentral Nebraska through our network of nine office locations, which cover a relatively broad area of southcentral Nebraska. We consider our primary market area for deposit gathering to be the Nebraska counties of Adams, Dawson, Hall, Nuckolls and Phelps, with Lancaster County included in our primary market area for lending activities. Our market area economy has a focus on manufacturing and agriculture with a cross-section of other economic sectors, including education, healthcare and services. The primary market area has developed a modern, diversified economy, including the historical agriculture sector. Attractions of the market area include a quality lifestyle, with sufficient personal and business services for residents.Competition

1We face strong competition within our primary market area, both in making loans and attracting retail deposits. Our market area includes large money centers and regional banks, community banks and savings institutions, and credit unions. We also face competition for loans from mortgage banking firms, consumer finance companies, credit unions, and fintech companies and, with respect to deposits, from money market funds, brokerage firms, mutual funds and insurance companies. At June 30, 2024 (the most recent date for which FDIC data is publicly available), we were ranked third among the 17 FDIC-insured financial institutions with offices in Hall County, Nebraska, with a deposit market share of 11.12%.

~~Table~~Lending ~~of Contents~~Activities

WeOur ~~believe~~primary ~~that~~lending weactivity ~~have~~is ~~developed~~the ~~products~~origination ~~and~~of ~~services~~one- ~~that~~to ~~will~~four-family ~~meet~~residential ~~the~~mortgage ~~financial~~loans ~~needs~~secured ofby ~~our~~properties ~~current~~located ~~and~~in ~~future~~our ~~customer~~primary ~~base~~market area, ~~and~~as well as commercial real estate loans. To a lesser extent, we ~~continually~~also ~~plan~~originate tocommercial ~~enhance~~non-real ~~our~~estate loans, ~~products~~multi-family residential real estate loans, construction and ~~services~~land todevelopment ~~meet~~loans, ~~the~~agricultural ~~changing~~real ~~needs~~estate ofand ~~customers~~non-real estate loans and consumer loans. In ~~Marketing~~recent ~~strategies~~years, we have increased our focus on ~~the~~originating ~~strength~~higher ofyielding ~~our~~commercial ~~knowledge~~real ofestate ~~local~~loans. ~~consumer~~We offer both adjustable-rate and ~~small~~fixed-rate ~~business~~residential ~~markets~~mortgage loans. However, ashistorically ~~well~~a assignificant ~~expanding~~majority ~~relationships~~of ~~with~~the ~~current~~residential ~~customers~~real ~~and~~estate ~~reaching~~loans ~~out~~that towe ~~develop~~have ~~new~~originated are long-term, ~~profitable~~fixed-rate ~~business~~loans ~~relationships~~that generally conform to secondary market guidelines.

~~Competition~~Loan Portfolio Composition. The following table shows the composition of our loan portfolio by type of loan at the dates.

We face strong competition within our primary market area, both in making loans and attracting retail deposits. Our market area includes large money centers and regional banks, community banks and savings institutions, and credit unions. We also face competition for loans from mortgage banking firms, consumer finance companies, credit unions, and fintech companies and, with respect to deposits, from money market funds, brokerage firms, mutual funds and insurance companies. At June 30, 2023 (the most recent date for which FDIC data is publicly available), we were ranked third among the 17 FDIC-insured financial institutions with offices in Hall County, Nebraska, with a deposit market share of 11.97%.


	At March 31,
	2025						2024
	Amount			Percent			Amount			Percent
	(Dollars in thousands)
Real Estate - Construction	$	15,069			3.75	%	$	16,011			4.21	%
Real Estate - Commercial		120,184			29.88			123,313			32.43
Real Estate - Residential		161,144			40.06			149,854			39.41
Commercial Non-Real Estate		32,007			7.96			35,047			9.22
Agricultural		42,835			10.65			19,694			5.18
Other Consumer		14,649			3.64			19,985			5.26
Land Development and Sanitary & Improvement Districts (SIDs)		16,327			4.06			16,341			4.29
Total loans		402,215			100.00	%		380,245			100.00	%
Net deferred loan costs		(18	)					4
Allowance for credit losses		(5,441	)					(5,860	)
Total loans, net	$	396,756					$	374,389

~~Lending~~Contractual ~~Activities~~Terms to Final Maturities. The following table sets forth the contractual maturities of our total loan portfolio at March 31, 2025. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. Because the table presents contractual maturities and does not reflect repricing or the effect of prepayments, actual maturities may differ.

Our primary lending activity is the origination of one- to four-family residential mortgage loans secured by properties located in our primary market area, as well as commercial real estate loans. To a lesser extent, we also originate commercial non-real estate loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans and consumer loans. In recent years, we have increased our focus on originating higher yielding commercial real estate loans. We offer both adjustable-rate and fixed-rate residential mortgage loans. However, historically a significant majority of the residential real estate loans that we have originated are long-term, fixed-rate loans that generally conform to secondary market guidelines.


	At March 31, 2025
	Real Estate-Construction		Real Estate-Commercial		Real Estate-Residential		Commercial Non-Real Estate		Agricultural		Other Consumer		Land Development and SIDS		Total
	(Dollars in thousands)
Amounts due in:
One year or less	$	6,507	$	8,272	$	5,671	$	6,646	$	17,021	$	5,878	$	3,277	$	53,272
More than one year through five years		4,769		30,277		23,988		12,135		3,853		4,331		10,394		89,747
More than five years through fifteen years		98		45,309		32,024		13,226		7,792		4,440		1,785		104,674
More than fifteen years		3,695		36,326		99,461		—		14,169				871		154,522
Total	$	15,069	$	120,184	$	161,144	$	32,007	$	42,835	$	14,649	$	16,327	$	402,215

~~Loan Portfolio Composition. The following table shows the composition of our loan portfolio by type of loan at the dates.~~2

	At March 31,
	2024						2023
	Amount			Percent			Amount			Percent
	(Dollars in thousands)
Real Estate - Construction	$	16,011			4.21	%	$	19,301			5.46	%
Real Estate - Commercial		123,313			32.43			102,446			28.97
Real Estate - Residential		149,854			39.41			148,486			41.98
Commercial Non-Real Estate		35,047			9.22			30,101			8.51
Agricultural		19,694			5.18			18,166			5.14
Other Consumer		19,985			5.26			19,956			5.64
Land Development and Sanitary & Improvement Districts (SIDs)		16,341			4.30			15,231			4.30
Total loans		380,245			100.00	%		353,687			100.00	%
Net deferred loan costs		4						62
Allowance for credit losses		(5,860	)					(5,412	)
Total loans, net	$	374,389					$	348,337

Table of Contents

~~Contractual Maturities.~~ The following table sets forth ~~the contractual maturities of~~ our ~~total~~fixed-rate ~~loan~~and ~~portfolio~~adjustable-rate loans at March 31, ~~2024. Demand~~2025 ~~loans,~~that ~~loans having no stated repayment schedule or maturity, and overdraft loans~~ are ~~reported~~contractually ~~as being~~ due inafter ~~one~~March ~~year or less. Because the table presents contractual maturities and does not reflect repricing or the effect of prepayments~~31, ~~actual maturities may differ~~2026.

	At March 31, 2024
			Floating or		Total at
	Real Estate-Construction		Real Estate-Commercial		Real Estate-Residential		CommercialNon-RealEstate		Agricultural		OtherConsumer		LandDevelopmentand SIDS		Total
	Fixed		Adjustable		March 31,
	(Dollars in thousands)
	Rate		Rate		2025
Amounts due in:
	(Dollars in thousands)
One year or less	$	6,811	$	13,206	$	5,660	$	6,157	$	7,152	$	594	$	1,360	$	40,940
Real Estate - Construction	$	4,769	$	3,793	$	8,562
More than one year through five years		8,628		28,896		16,787		14,402		3,233		13,459		12,402		97,807
Real Estate - Commercial		42,880		69,032		111,912
More than five years through fifteen years		—		40,317		33,321		13,034		3,639		5,932		2,028		98,271
Real Estate - Residential		89,417		66,056		155,473
More than fifteen years		572		40,894		94,086		1,454		5,670		—		551		143,227
Commercial Non-Real Estate		14,945		10,416		25,361
Total	$	16,011	$	123,313	$	149,854	$	35,047	$	19,694	$	19,985	$	16,341	$	380,245
Agricultural		6,335		19,479		25,814
Other Consumer		8,771		—		8,771
Land Development and SIDs		10,437		2,613		13,050
Total	$	177,554	$	171,389	$	348,943

2Real Estate - Residential. At March 31, 2025, we had $161.1 million of loans secured by one- to four-family residential real estate and multi-family real estate loans, representing 40.06% of total loans as of that date. The significant majority of our one- to four-family residential real estate loans and multi-family dwellings are secured by properties located in our primary market area.

~~Table~~Our one- to four-family residential real estate loans are generally underwritten to secondary market guidelines for Freddie Mac. We offer both fixed-rate and adjustable-rate residential mortgage loans for terms up to 30 years. Adjustable-rate loans are tied to the one-year Treasury Rate published by the Federal Reserve Board. For adjustable-rate loans, the interest rate is generally fixed for the initial term of ~~Contents~~up to five years, and then adjusts yearly thereafter with an annual rate cap of 2% and a lifetime rate cap of 5%. We generally limit the loan-to-value ratios of our residential mortgage loans to 80%, and up to 90% with private mortgage insurance, of the purchase price or appraised value, whichever is lower.

~~The~~We ~~following~~also ~~table~~do ~~sets~~not ~~forth~~offer ~~our~~loans ~~fixed-rate~~that ~~and~~provide ~~adjustable-rate~~for negative amortization of principal, such as "Option ARM" loans, atwhere ~~March~~the 31borrower can pay less than the interest owed on the loan, ~~2024~~resulting ~~that~~in ~~are~~an ~~contractually~~increased ~~due~~principal ~~after~~balance ~~March~~during 31the life of the loans. We do not currently offer "subprime loans" on one- to four-family residential real estate loans (i.e., ~~2025~~generally loans to borrowers with credit scores less than 620).

			Floating or		Total at
	Fixed		Adjustable		March 31,
	Rate		Rate		2024
	(Dollars in thousands)
Real Estate - Construction	$	8,628	$	572	$	9,200
Real Estate - Commercial		44,275		65,832		110,107
Real Estate - Residential		93,303		50,890		144,193
Commercial Non-Real Estate		17,336		11,554		28,890
Agricultural		5,554		6,988		12,542
Other Consumer		19,392		—		19,392
Land Development and Sanitary & Improvement Districts (SIDs)		12,521		2,460		14,981
Total	$	201,009	$	138,296	$	339,305

We also originate multi-family real estate loans to experienced, growing small- and mid-size owners and investors in our market areas. At March 31, 2025, we had $41.4 million in multi-family residential real estate loans, representing 10.29% of our total loan portfolio. Our multi-family residential real estate loans are generally adjustable-rate loans or have a call period after three or five years. Our multi-family residential real estate loans are secured by apartment buildings located within our primary market area, or we participate with a Nebraska-based bank for loans outside of our primary market area. These loans are generally made in amounts of up to 75% of the lesser of the appraised value or the purchase price of the property with an appropriate projected debt service coverage ratio.

~~Real~~Our ~~Estate~~underwriting -procedures ~~Residential. At~~include ~~March~~considering ~~31,~~the ~~2024,~~borrower’s weexpertise ~~had~~and ~~$149.9~~require ~~million~~verification of ~~loans~~the ~~secured~~borrower’s bycredit ~~one-~~history, toincome ~~four-family residential real estate~~ and ~~multi-family~~financial ~~real~~statements, ~~estate~~banking ~~loans~~relationships, ~~representing~~references ~~39.41%~~and ofincome ~~total~~projections ~~loans~~for asthe ~~of that date~~property. ~~The~~ ~~significant~~We ~~majority~~generally ofobtain ~~our~~personal ~~one-~~guarantees toon ~~four-family~~these ~~residential real estate~~ loans ~~and multi-family dwellings are secured by properties located in our primary market area~~.

~~Our~~At ~~one-~~March to31, ~~four-family~~2025, ~~residential~~our ~~real~~largest ~~estate~~multi-family ~~loans~~loan ~~are~~had ~~generally~~a ~~underwritten~~balance toof ~~secondary market guidelines for Freddie Mac~~$5. We6 ~~offer~~million ~~both fixed-rate~~ and ~~adjustable-rate~~was ~~residential~~secured ~~mortgage loans for terms up to 30 years. Adjustable-rate loans are tied to the one-year Treasury Rate published~~ by ~~the Federal Reserve Board. For adjustable-rate loans, the interest rate is generally fixed for the initial term of up to five years, and then adjusts yearly thereafter with~~ an ~~annual~~apartment ~~rate~~complex ~~cap~~located ofin 2%our ~~and~~primary amarket ~~lifetime rate cap of 5%~~area. We ~~generally~~At ~~limit~~March ~~the loan-to-value ratios of our residential mortgage loans to 80%~~31, ~~and up to 90% with private mortgage insurance~~2025, ofthis ~~the~~loan ~~purchase~~was ~~price~~performing orin ~~appraised~~accordance ~~value,~~with ~~whichever~~its iscontractual ~~lower~~terms.

WeReal ~~also~~Estate do- ~~not~~Commercial ~~offer~~Loans. At ~~loans~~March ~~that~~31, ~~provide~~2025, ~~for~~we ~~negative~~had ~~amortization~~$120.2 ofmillion ~~principal,~~in ~~such~~commercial asreal ~~"Option~~estate ~~ARM"~~ loans, ~~where~~or ~~the~~29.88% ~~borrower~~of ~~can~~total ~~pay~~loans. Our ~~less~~commercial ~~than~~real ~~the~~estate ~~interest~~loans ~~owed~~are onsecured ~~the~~by ~~loan~~owner-occupied and non-owner occupied properties, ~~resulting~~including inmedical anpractices, ~~increased~~insurance ~~principal~~offices, ~~balance~~warehouses, ~~during~~single- ~~the~~and ~~life~~multi-tenant ofretail ~~the~~and ~~loans~~hotels. WeOur docommercial ~~not~~residential ~~currently~~real ~~offer~~estate ~~"subprime~~ loans" onare ~~one-~~secured toby ~~four-family~~properties ~~residential~~located ~~real~~within ~~estate~~our primary market area, or we generally participate with a Nebraska-based bank for loans (ioutside of our primary market area.e. Generally, ~~generally~~our commercial real estate loans have terms and amortization periods up to ~~borrowers~~20 years with ~~credit~~options ~~scores~~for ~~less~~balloon ~~than~~payments ~~620~~and interest rate adjustments to occur every five years. The interest rate is fixed for the initial term (five years or less) and then adjusts again at the end of the next period matching the initial term or as negotiated at the end of the first term. Commercial

We also originate multi-family real estate loans to experienced, growing small- and mid-size owners and investors in our market areas. At March 31, 2024, we had $35.2 million in multi-family residential real estate loans, representing 9.26% of our total loan portfolio. Our multi-family residential real estate loans are generally adjustable-rate loans or have a call period after three or five years. Our multi-family residential real estate loans are secured by apartment buildings located within our primary market area, or we participate with a Nebraska-based bank for loans outside of our primary market area. These loans are generally made in amounts of up to 75% of the lesser of the appraised value or the purchase price of the property with an appropriate projected debt service coverage ratio.3

~~Our~~Table ~~underwriting procedures include considering the borrower’s expertise and require verification~~ of ~~the borrower’s credit history, income and financial statements, banking relationships, references and income projections for the property. We generally obtain personal guarantees on these loans.~~Contents

Atreal ~~March~~estate ~~31,~~loans ~~2024,~~generally ~~our~~have ~~largest~~terms ~~multi-family~~and ~~loan~~amortization ~~had~~periods aup ~~balance~~to of20 $4years.0 ~~million~~We ~~and~~generally ~~was~~limit ~~secured~~the byloan-to-value anratios ~~apartment~~of ~~complex located in~~ our ~~primary~~commercial ~~market~~real ~~area.~~estate Atloans ~~March~~to ~~31,~~75% ~~2024,~~of ~~this~~the ~~loan~~purchase ~~was~~price ~~performing~~or inappraised ~~accordance~~value, ~~with~~whichever ~~its~~is ~~contractual terms~~lower.

~~Real Estate - Commercial Loans.~~ At March 31, ~~2024~~2025, weour ~~had~~largest ~~$123.3 million in~~ commercial real estate ~~loans,~~loan orhad ~~32.43%~~an ofoutstanding ~~total~~balance ~~loans~~of $7. ~~Our~~7 ~~commercial~~million ~~real~~and ~~estate~~was ~~loans are~~ secured by ~~owner-occupied~~a ~~and non-owner occupied properties, including medical practices, insurance offices, warehouses,~~ single- ~~and multi-tenant~~ retail ~~and~~grocery ~~hotels. Our~~chain ~~commercial~~property ~~residential real estate loans are secured by properties~~ located ~~within~~in our primary market area,. At orMarch we31, ~~generally participate with a Nebraska-based bank for loans outside of our primary market area. Generally~~2025, ~~our~~this ~~commercial~~loan ~~real~~was ~~estate~~performing ~~loans~~according ~~have terms and amortization periods up~~ to 20its ~~years~~original ~~with options for balloon payments and interest rate adjustments to occur every five years~~terms. The interest rate is fixed for the initial term (five years or less) and then adjusts again at the end of the next period matching the initial term or as negotiated at the end of the first term. Commercial

3We consider a number of factors in originating commercial real estate loans. We evaluate the qualifications and financial condition of the borrower, including credit history, profitability and expertise, as well as the value and condition of the property securing the loan. When evaluating the qualifications of the borrower, we consider the financial resources of the borrower, the borrower’s experience in owning or managing similar property and the borrower’s payment history with us and other financial institutions. In evaluating the property securing the loan, the factors we consider include the net operating income of the mortgaged property before debt service and depreciation, the ratio of the loan amount to the appraised value of the mortgaged property, and the debt service coverage ratio (the ratio of net operating income to debt service). Generally, the debt service coverage ratio on these loans is at least 1.20x. The significant majority of our commercial real estate loans are appraised by outside independent appraisers approved by the board of directors. Personal guarantees are generally obtained from the principals of commercial real estate borrowers.

~~Table~~Commercial Non-Real Estate Loans. At March 31, 2025, commercial non-real estate loans were $32.0 million, or 7.96% of ~~Contents~~total loans. Commercial non-real estate loans include both term loans and lines of credit. Loan terms vary depending on the type of collateral (such as five years for a loan secured by machinery and equipment, with a maximum loan-to-value ratio of 75% for new equipment and 70% for used equipment), or the type of loan (such as one year for a loan to support business inventory and receivables). Generally, the maximum loan-to-value ratio for commercial non-real estate loans is up to 90%, which applies to loans secured by U.S. Government securities with specified terms and maturities.

When making commercial non-real estate loans, ~~generally~~we ~~have~~consider ~~terms~~the ~~and~~financial ~~amortization~~statements ~~periods~~of upthe toborrower, 20our ~~years.~~lending Wehistory ~~generally~~with ~~limit~~the borrower, the ~~loan-to-value~~debt ~~ratios~~service capabilities and global cash flows of ~~our~~the ~~commercial~~borrower ~~real~~and ~~estate~~other ~~loans~~guarantors, tothe ~~75%~~projected cash flows of the ~~purchase~~business ~~price~~and orthe ~~appraised~~ value of the collateral, ~~whichever~~accounts isreceivable, ~~lower~~inventory and equipment.

At March 31, ~~2024~~2025, our largest commercial non-real estate loan ~~had~~totaled ~~an outstanding balance of~~ $51.46 million and was secured by amedia ~~hospitality~~company ~~property~~licenses ~~located~~and related assets in our primary market area ~~that we have financed for multiple years with a previous owner~~. At March 31, ~~2024~~2025, this loan was performing according to its original terms.

WeReal ~~consider~~Estate a- ~~number~~Construction ~~of factors in originating commercial real estate loans~~Loans. WeAt ~~evaluate~~March ~~the qualifications and financial condition of the borrower~~31, ~~including credit history~~2025, ~~profitability~~we ~~and~~had ~~expertise, as well as the value and condition of the property securing the loan~~$15. ~~When~~1 ~~evaluating~~million ~~the~~in ~~qualifications~~real ofestate ~~the~~construction ~~borrower~~loans, weincluding ~~consider~~properties ~~the~~for ~~financial~~one- ~~resources~~to offour-family ~~the~~residences ~~borrower,~~of ~~the~~$6.3 ~~borrower’s~~million ~~experience in owning or managing similar property~~ and ~~the~~commercial ~~borrower’s~~construction ~~payment~~properties ~~history~~of ~~with us and other financial institutions~~$8. In8 ~~evaluating the property securing the loan~~million, ~~the~~representing ~~factors~~3.75% ~~we consider include the net operating income~~ of ~~the~~our ~~mortgaged~~total ~~property~~loan ~~before~~portfolio. ~~debt~~Our ~~service~~real ~~and~~estate ~~depreciation,~~construction ~~the~~loans ~~ratio~~are ofstructured ~~the~~as ~~loan~~straight ~~amount~~construction toor ~~the~~construction/permanent ~~appraised~~loans ~~value~~where ofafter the ~~mortgaged~~initial ~~property,~~construction ~~and~~period the ~~debt~~loan ~~service~~converts ~~coverage ratio (the ratio of net operating income~~ to ~~debt~~a ~~service). Generally,~~permanent ~~the~~commercial ~~debt~~mortgage ~~service coverage ratio on these loans is at least 1~~loan.~~20x.~~ ~~The~~Our ~~significant majority of our commercial~~ real estate construction loans are ~~appraised~~underwritten byto ~~outside independent appraisers approved by~~ the ~~board~~same ofguidelines ~~directors. Personal~~for ~~guarantees are generally obtained from the principals of~~ commercial ~~real estate borrowers~~loans.

~~Commercial Non-~~Real ~~Estate Loans. At March 31, 2024, commercial non-real~~ estate ~~loans~~construction ~~were $35.0 million, or 9.22% of total~~ loans~~. Commercial~~ ~~non-real~~generally ~~estate~~can ~~loans~~be ~~include~~made ~~both term loans and lines of credit. Loan terms vary depending on the type of collateral (such as five years for a loan secured by machinery and equipment,~~ with a maximum loan-to-value ratio of 75% ~~for~~of ~~new~~the ~~equipment~~estimated ~~and~~appraised ~~70%~~market ~~for~~value ~~used~~upon ~~equipment),~~completion orof the ~~type~~project. Before ofmaking ~~loan~~a ~~(such~~commitment asto ~~one~~fund ~~year for~~ a construction loan, towe ~~support~~require ~~business~~an ~~inventory~~appraisal ~~and~~of ~~receivables). Generally,~~ the ~~maximum~~property ~~loan-to-value~~by ~~ratio~~an ~~for~~independent ~~commercial~~licensed ~~non-real~~appraiser. We ~~estate~~also ~~loans~~generally isrequire upinspections toof ~~90%,~~the ~~which~~property ~~applies~~before todisbursements ~~loans~~of ~~secured~~funds byduring ~~U.S.~~the ~~Government~~term ~~securities~~of ~~with~~the ~~specified~~real ~~terms~~estate ~~and~~construction ~~maturities~~loan.

~~When~~At ~~making~~March ~~commercial non-real estate loans~~31, ~~we consider the financial statements of the borrower~~2025, our ~~lending~~largest ~~history~~real ~~with~~estate ~~the~~construction ~~borrower,~~loan ~~the~~totaled ~~debt~~$2.8 ~~service~~million ~~capabilities~~ and ~~global~~was ~~cash~~secured ~~flows~~by ofproperty ~~the~~located ~~borrower~~in ~~and~~our ~~other~~primary ~~guarantors,~~market ~~the~~area. ~~projected~~At ~~cash~~March ~~flows~~31, of2025, ~~the~~this ~~business~~loan ~~and~~was ~~the~~performing ~~value~~according ofto ~~the~~its ~~collateral,~~original ~~accounts receivable, inventory and equipment~~terms.

Agricultural Loans. At March 31, ~~2024~~2025, ~~our~~we ~~largest~~had ~~commercial~~$42.8 ~~non-real~~million ~~estate~~in ~~loan~~agricultural ~~totaled~~loans, $1or 10.865% ~~million~~of total loans. Our agriculture loans are for the acquisition, development and/or ~~was~~refinancing ~~secured~~of byagricultural ~~media~~property, ~~company~~and ~~licenses~~for financing (i) crop and ~~related~~livestock ~~assets~~production inexpenses, ~~our~~(ii) ~~primary~~crop ~~market~~and ~~area~~livestock inventory carrying, (iii) the acquisition of breeding livestock and (iv) the acquisition of equipment, machinery, vehicles and other capital assets. At ~~March~~Our 31agriculture loans include term loans and lines of credit, ~~2024~~with terms of one year for financing of crop and livestock expenses or carrying crop and livestock inventory, ~~this~~to up to seven years for capital asset acquisition. Our agriculture real estate loans generally amortize over a 25-year term with interest rates generally adjusting every five years. We generally limit the loan-to-value ~~was~~ratio ~~performing~~of ~~according~~our agriculture loans to ~~its~~70% ~~original~~of ~~terms~~the collateral value.

~~Real Estate - Construction Loans.~~ At March 31, ~~2024~~2025, weour ~~had~~largest ~~$16.0~~agricultural ~~million~~loan intotaled ~~real estate construction loans, including properties for one- to four-family residences of~~ $45.09 million and ~~commercial~~was ~~construction~~secured ~~properties~~by ofproperty ~~$12.0~~located ~~million,~~in ~~representing 4.21% of~~ our ~~total~~primary ~~loan~~market ~~portfolio~~area. At ~~Our~~March ~~real~~31, ~~estate~~2025, ~~construction~~this ~~loans are structured as straight construction or construction/permanent loans where after the initial construction period the~~ loan ~~converts~~was toperforming aaccording ~~permanent commercial mortgage loan. Our real estate construction loans are underwritten~~ to ~~the~~its ~~same~~original ~~guidelines for commercial loans~~terms.

~~Real~~We ~~estate~~consider ~~construction~~a ~~loans~~number ~~generally~~of ~~can~~factors bein ~~made~~originating ~~with~~agricultural aloans. We ~~maximum~~evaluate ~~loan-to-value~~the ~~ratio~~qualifications ofand ~~75%~~financial condition of the ~~estimated~~borrower, ~~appraised~~including ~~market~~credit history, profitability and expertise, as well as the value ~~upon~~and ~~completion~~condition of the ~~project. Before~~property ~~making~~securing athe ~~commitment~~loan. When toevaluating ~~fund~~the aqualifications ~~construction~~of ~~loan~~the borrower, we ~~require~~consider anthe ~~appraisal~~financial resources of the ~~property~~borrower, bythe anborrower’s ~~independent~~experience ~~licensed~~in ~~appraiser~~agriculture and the borrower’s payment history with us and other financial institutions. WeIn ~~also~~evaluating ~~generally~~the ~~require~~property ~~inspections~~securing the loan, the factors we consider include the net operating income of the mortgaged property before ~~disbursements~~debt service and depreciation, the ratio of ~~funds~~the ~~during~~loan amount to the ~~term~~appraised value of the ~~real~~mortgaged ~~estate~~property, ~~construction~~and ~~loan.~~the debt service coverage ratio (the ratio of net operating income to

At March 31, 2024, our largest real estate construction loan totaled $5.2 million and was secured by property located in our primary market area. At March 31, 2024, this loan was performing according to its original terms.4

~~Agricultural~~Table ~~Loans. At March 31, 2024, we had $19.7 million in agricultural loans, or 5.18%~~ of total loans. Our agriculture loans are for the acquisition, development and/or refinancing of agricultural property, and for financing (i) crop and livestock production expenses, (ii) crop and livestock inventory carrying, (iii) the acquisition of breeding livestock and (iv) the acquisition of equipment, machinery, vehicles and other capital assets. Our agriculture loans include term loans and lines of credit, with terms of one year for financing of crop and livestock expenses or carrying crop and livestock inventory, to up to seven years for capital asset acquisition. Our agriculture real estate loans generally amortize over a 25-year term with interest rates generally adjusting every five years. We generally limit the loan-to-value ratio of our agriculture loans to 70% of the collateral value.Contents

Atdebt ~~March~~service). 31Generally, ~~2024,~~we ~~our~~require ~~largest~~that ~~agricultural~~the ~~loan~~debt ~~totaled~~service $coverage ratio be at least 1.020x. The ~~million~~significant ~~and~~majority ~~was~~of ~~secured~~our agricultural loans are appraised by ~~property~~outside ~~located~~independent inappraisers ~~our~~approved ~~primary~~by ~~market~~the ~~area~~board of directors. AtPersonal ~~March~~guarantees ~~31,~~are ~~2024,~~generally ~~this~~obtained ~~loan~~from ~~was~~the ~~performing~~principals ~~according~~of toagricultural ~~its~~real ~~original~~estate ~~terms~~borrowers.

WeOther ~~consider~~Consumer aLoans. ~~number~~We ofoffer ~~factors~~a inlimited ~~originating~~range ~~agricultural~~of consumer loans~~. We~~, ~~evaluate the qualifications~~ and, ~~financial~~except ~~condition~~as ofdescribed ~~the borrower~~below, ~~including~~principally ~~credit~~to ~~history,~~customers ~~profitability~~residing ~~and~~in ~~expertise,~~our asprimary ~~well~~market asarea ~~the~~with ~~value~~other ~~and~~relationships ~~condition~~with ofus ~~the~~and ~~property~~with ~~securing~~acceptable ~~the~~credit ~~loan~~ratings. ~~When~~ ~~evaluating~~At ~~the~~March ~~qualifications~~31, ~~of the borrower~~2025, weother ~~consider~~consumer ~~the~~loans ~~financial~~were ~~resources~~$14.6 ~~of the borrower~~million, ~~the~~or ~~borrower’s~~3.64% ~~experience~~of intotal ~~agriculture~~loans. Our ~~and~~consumer ~~the~~loans ~~borrower’s~~generally ~~payment~~consist ~~history~~of ~~with~~dental usimplant ~~and~~loans ~~other~~(described ~~financial~~below), ~~institutions. In~~automobile ~~evaluating~~loans, ~~the~~energy ~~property~~loans, ~~securing~~student ~~the loan~~loans, ~~the~~recreation ~~factors~~vehicles, weboat ~~consider~~loans ~~include~~and ~~the~~unsecured ~~net~~preferred ~~operating~~lines ~~income~~ of ~~the~~credit ~~mortgaged~~for ~~property~~customers ~~before~~with ~~debt~~qualified ~~service~~relationships. ~~and~~An ~~depreciation,~~energy ~~the~~loan ~~ratio~~is ofa ~~the~~home equity loan ~~amount~~originated tothrough ~~the~~a ~~appraised~~partnership ~~value~~with of the ~~mortgaged~~Nebraska ~~property~~Energy Office, ~~and~~which ~~the~~provides ~~debt~~a ~~service~~preferred ~~coverage~~interest ~~ratio~~rate ~~(the~~for ~~ratio~~eligible ofhome ~~net~~improvement ~~operating~~projects ~~income~~designed to reduce energy costs.

4Included in the consumer loan portfolio are unsecured loans to individuals for dental implants. Home Federal Savings participates with a Nebraska-based financial institution to provide a funding line to a specialty finance company that has a nationwide network of dentists whose patients can apply directly for and obtain individual loans. Our portion of the loans to individuals totaled $9.1 million at March 31, 2025, and the average underlying loan size was $17,000. A reserve of between 7.5% and 11% of the outstanding balance of the funding line is maintained by the specialty finance company at the lead financial institution, who also services the loans. Any loan that may become over 120 days past due is automatically paid off from the reserve, which is replenished monthly back to covenant levels.

~~Table~~Land Development and SIDs Loans. At March 31, 2025, land development and SIDs loans were $16.3 million, or 4.06% of ~~Contents~~total loans. Our land development loans complement our construction lending activities, as such loans are generally secured by lots that will be used for residential or commercial development. At March 31, 2025, our land development loans totaled $8.7 million, or 2.17% of total loans. Our largest land development loan totaled $1.5 million and was secured by property located in our primary market area. At March 31, 2025, this loan was performing according to its original terms.

~~debt~~Our ~~service)~~SID loans complement land development activities and provide funding for certain infrastructure improvements. Our ~~Generally,~~SID weloans ~~require~~are ~~that~~secured ~~the~~by ~~debt~~bonds ~~service~~and ~~coverage~~warrants ~~ratio~~issued bewithin atthe ~~least~~project 1district.~~20x.~~ The ~~significant~~warrants ~~majority~~are also the primary source of repayment. At March 31, 2025, our ~~agricultural~~SIDs loans ~~are~~totaled ~~appraised~~$7.9 bymillion, ~~outside~~or ~~independent~~1.89% ~~appraisers~~of ~~approved~~total byloans. Our ~~the~~largest ~~board~~SID ofloan ~~directors~~totaled $3.0 million and was secured by bonds and warrants. ~~Personal~~At ~~guarantees~~March ~~are~~31, ~~generally~~2025, ~~obtained~~this ~~from~~loan ~~the~~was ~~principals~~performing ofaccording ~~agricultural~~to ~~real~~its ~~estate~~original ~~borrowers~~terms.

~~Other~~Loan ~~Consumer~~Underwriting Loans. We offer a limited range of consumer loans, and, except as described below, principally to customers residing in our primary market area with other relationships with us and with acceptable credit ratings. At March 31, 2024, other consumer loans were $20.0 million, or 5.26% of total loans. Our consumer loans generally consist of dental implant loans (described below), automobile loans, energy loans, student loans, recreation vehicles, boat loans and unsecured preferred lines of credit for customers with qualified relationships. An energy loan is a home equity loan originated through a partnership with the Nebraska Energy Office, which provides a preferred interest rate for eligible home improvement projects designed to reduce energy costs.Risks

~~Included~~Commercial inReal ~~the~~Estate ~~consumer~~Loans ~~loan~~and ~~portfolio~~Agricultural ~~are~~Real ~~unsecured~~Estate ~~loans~~Loans. Loans tosecured ~~individuals~~by ~~for~~commercial ~~dental~~real ~~implants~~estate or agricultural real estate generally have larger balances and involve a greater degree of risk than residential real estate loans. ~~Home~~The ~~Federal~~primary ~~Savings~~concern ~~participates~~in ~~with~~commercial areal ~~Nebraska-based~~estate ~~financial~~lending ~~institution~~and toagricultural ~~provide~~real aestate ~~funding~~lending ~~line~~is tothe aborrower’s ~~specialty~~creditworthiness ~~finance~~and ~~company~~the ~~that~~feasibility ~~has~~and acash ~~nationwide~~flow ~~network~~potential of ~~dentists~~the ~~whose~~underlying ~~patients~~business. Payments ~~can~~on ~~apply~~loans ~~directly~~secured ~~for~~by income producing properties often depend on successful operation and ~~obtain~~management ~~individual~~of ~~loans~~the properties. ~~Our~~As ~~portion~~a result, repayment of ~~the~~such loans may be subject, to ~~individuals~~a ~~totaled~~greater ~~$14.0~~extent ~~million~~than atresidential ~~March~~real ~~31,~~estate ~~2024~~loans, ~~and~~to adverse conditions in the ~~average~~real ~~underlying~~estate market or the economy. To monitor cash flows on income properties, we require borrowers and loan guarantors to provide quarterly, semi-annual or annual financial statements, depending on the size ~~was~~of ~~$17~~the loan,~~000~~ on commercial real estate loans. AIn ~~reserve~~reaching ofa ~~between~~decision ~~7.5%~~on whether to make a commercial real estate loan, we consider and ~~11%~~review ofa ~~the~~global ~~outstanding~~cash ~~balance~~flow analysis of the ~~funding~~borrower ~~line~~and isconsider ~~maintained by~~ the ~~specialty~~net ~~finance~~operating ~~company~~income atof the ~~lead~~property, ~~financial~~the ~~institution~~borrower’s expertise, ~~who~~credit ~~also~~history ~~services~~and profitability and the ~~loans~~value of the underlying property. ~~Any~~An ~~loan~~environmental ~~that~~phase ~~may~~one ~~become~~report ~~over~~is ~~120~~obtained ~~days~~when ~~past~~the ~~due~~possibility isexists ~~automatically~~that ~~paid~~hazardous ~~off~~materials ~~from~~may have existed on the ~~reserve~~site, ~~which~~or isthe ~~replenished~~site ~~monthly~~may ~~back~~have tobeen ~~covenant~~impacted ~~levels~~by adjoining properties that handled hazardous materials.

~~Land~~If ~~Development~~we ~~and~~foreclose ~~SIDs~~on ~~Loans.~~a Atcommercial ~~March~~real ~~31,~~estate ~~2024~~loan or an agricultural real estate loan, ~~land~~the ~~development~~marketing and ~~SIDs~~liquidation ~~loans~~period ~~were~~to ~~$16.3~~convert ~~million,~~the orreal ~~4.30%~~estate ofasset ~~total~~to ~~loans. Our~~cash ~~land~~can ~~development~~be ~~loans~~lengthy ~~complement~~with ~~our~~substantial ~~construction~~holding ~~lending~~costs. In ~~activities~~addition, asvacancies, ~~such~~deferred ~~loans~~maintenance, ~~are~~repairs ~~generally~~and ~~secured~~market bystigma ~~lots~~can ~~that~~result ~~will~~in beprospective ~~used~~buyers ~~for~~expecting ~~residential~~sale orprice ~~commercial~~concessions ~~development. At~~to ~~March~~offset ~~31,~~their ~~2024,~~real ~~our~~or ~~land~~perceived ~~development~~economic ~~loans~~losses ~~totaled~~for ~~$8.8~~the ~~million,~~time orit ~~2.32%~~takes ofthem ~~total~~to ~~loans~~return the property to profitability. ~~Our~~Depending ~~largest~~on ~~land~~the ~~development~~individual ~~loan~~circumstances, ~~totaled~~initial ~~$1.5~~charge-offs ~~million~~ and ~~was~~subsequent ~~secured~~losses byon ~~property~~commercial ~~located~~real inestate ~~our~~loans ~~primary~~can ~~market~~be ~~area~~unpredictable and substantial.

~~Our~~Commercial ~~SID~~and Industrial Loans. Unlike residential real estate loans, ~~complement~~which ~~land~~generally ~~development~~are ~~activities~~made ~~and~~on ~~provide~~the ~~funding~~basis ~~for~~of ~~certain~~the ~~infrastructure~~borrower’s ~~improvements. Our~~ability ~~SID~~to ~~loans~~make repayment from his or her employment or other income, and which are secured by ~~bonds~~real property whose value tends to be more easily ascertainable, commercial and ~~warrants~~industrial ~~issued~~loans ~~within~~are of higher risk and typically are made on the ~~project~~basis ~~district~~of the borrower’s ability to make repayment from the cash flows of the borrower’s business, and the collateral securing these loans may fluctuate in value. ~~The~~Our ~~warrants~~commercial and industrial loans are ~~also~~originated primarily based on the ~~primary~~identified ~~source~~cash flows of ~~repayment~~the borrower and secondarily on the underlying collateral provided by the borrower. At ~~March~~Collateral ~~31,~~for ~~2024,~~commercial ~~our~~and ~~SIDs~~industrial loans ~~totaled~~typically ~~$7.5~~consists ~~million~~of equipment, accounts receivable, or 1inventory.~~98%~~ Credit support provided by the borrower for most of ~~total~~these loans is based on the liquidation of the pledged collateral and enforcement of a personal guarantee, if any. ~~Our~~Further, ~~largest~~any ~~SID~~collateral ~~loan~~securing ~~totaled~~such ~~$3.0~~loans ~~million~~may depreciate over time, may be difficult to appraise and ~~was~~may ~~secured~~fluctuate byin ~~bonds~~value. As a result, the availability of funds for the repayment of commercial and ~~warrants~~industrial loans may depend substantially on the success of the business itself.

~~Loan Underwriting Risks~~5

~~Commercial~~Table ~~Real Estate Loans and Agricultural Real Estate Loans. Loans secured by commercial real estate or agricultural real estate generally have larger balances and involve a greater degree~~ of risk than residential real estate loans. The primary concern in commercial real estate lending and agricultural real estate lending is the borrower’s creditworthiness and the feasibility and cash flow potential of the underlying business. Payments on loans secured by income producing properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject, to a greater extent than residential real estate loans, to adverse conditions in the real estate market or the economy. To monitor cash flows on income properties, we require borrowers and loan guarantors to provide quarterly, semi-annual or annual financial statements, depending on the size of the loan, on commercial real estate loans. In reaching a decision on whether to make a commercial real estate loan, we consider and review a global cash flow analysis of the borrower and consider the net operating income of the property, the borrower’s expertise, credit history and profitability and the value of the underlying property. An environmental phase one report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials.Contents

IfConstruction weand ~~foreclose~~Land onLoans. Our aconstruction ~~commercial~~loans ~~real~~are ~~estate~~based ~~loan~~upon orestimates anof ~~agricultural~~costs ~~real estate loan, the marketing~~ and ~~liquidation~~values ~~period~~associated towith ~~convert~~ the ~~real~~completed ~~estate asset to cash can be lengthy with substantial holding costs~~project. InUnderwriting ~~addition,~~is ~~vacancies,~~focused ~~deferred~~on ~~maintenance, repairs and market stigma can result in prospective buyers expecting sale price concessions to offset their real or perceived economic losses for~~ the ~~time~~borrowers’ itfinancial ~~takes~~strength, ~~them~~credit tohistory ~~return~~and ~~the~~demonstrated ~~property~~ability to ~~profitability. Depending~~produce ona ~~the~~quality ~~individual~~product ~~circumstances,~~and ~~initial~~effectively ~~charge-offs~~market and ~~subsequent~~manage ~~losses~~their ~~on commercial real estate loans can be unpredictable and substantial~~operations.

~~Commercial~~Construction ~~and~~lending ~~Industrial~~involves ~~Loans.~~additional ~~Unlike~~risks ~~residential~~when ~~real~~compared ~~estate~~with ~~loans,~~permanent ~~which~~lending ~~generally~~because funds are ~~made~~advanced onupon the ~~basis~~security of the ~~borrower’s~~project, ~~ability~~which tois ~~make~~of ~~repayment~~uncertain ~~from~~value ~~his~~before orits ~~her~~completion. Because ~~employment~~of orthe ~~other~~uncertainties ~~income,~~inherent ~~and~~in ~~which~~estimating ~~are~~construction ~~secured~~costs, byas ~~real~~well ~~property~~as ~~whose~~the market value ~~tends~~of tothe becompleted ~~more~~project ~~easily~~and ~~ascertainable,~~the ~~commercial~~effects ~~and~~of ~~industrial~~governmental ~~loans~~regulation ~~are~~ of ~~higher~~real ~~risk~~property, ~~and~~it ~~typically~~is ~~are~~relatively ~~made~~difficult onto ~~the~~evaluate ~~basis~~accurately of the ~~borrower’s~~total ~~ability~~funds required to ~~make~~complete ~~repayment~~a ~~from~~project and the ~~cash~~related ~~flows~~loan-to-value ofratio. In ~~the borrower’s business~~addition, ~~and~~generally during the ~~collateral~~term ~~securing~~of ~~these~~a ~~loans~~construction ~~may~~loan, ~~fluctuate~~interest inmay ~~value. Our~~be ~~commercial~~funded ~~and~~by ~~industrial~~the ~~loans~~borrower ~~are~~or ~~originated~~disbursed ~~primarily~~from ~~based~~an oninterest ~~the~~reserve ~~identified~~set ~~cash~~aside ~~flows~~from of the ~~borrower~~construction ~~and~~loan ~~secondarily~~budget. These onloans often involve the ~~underlying~~disbursement ~~collateral~~of ~~provided~~substantial byfunds ~~the~~with ~~borrower.~~repayment ~~Collateral~~substantially ~~for~~dependent ~~commercial~~on ~~and~~the ~~industrial~~success ~~loans~~of ~~typically~~the ~~consists~~ultimate ofproject ~~equipment,~~and ~~accounts~~the ~~receivable,~~ability orof ~~inventory.~~the ~~Credit~~borrower ~~support~~to ~~provided~~sell byor lease the ~~borrower~~property ~~for~~or ~~most~~obtain ofpermanent ~~these~~take-out ~~loans~~financing, israther ~~based~~than on the ~~liquidation~~ability of the ~~pledged~~borrower ~~collateral~~or ~~and~~guarantor ~~enforcement~~to ofrepay aprincipal ~~personal~~and ~~guarantee, if any~~interest. ~~Further,~~ ~~any~~If ~~collateral~~the ~~securing~~appraised ~~such~~value ~~loans~~of ~~may~~a ~~depreciate~~completed ~~over~~project ~~time,~~proves ~~may~~to be ~~difficult~~overstated, towe ~~appraise and~~ may ~~fluctuate~~have ininadequate ~~value. As~~security afor ~~result,~~ the ~~availability~~repayment of ~~funds~~the ~~for~~loan ~~the~~upon ~~repayment~~completion of ~~commercial~~construction ~~and~~of ~~industrial~~the ~~loans~~project and may ~~depend~~incur ~~substantially~~a onloss. Land ~~the~~loans ~~success~~have ofsubstantially ~~the~~similar ~~business itself~~risks.

~~Construction~~Consumer ~~and Land~~ Loans. ~~Our~~ ~~construction~~Consumer loans may entail greater risk than residential real estate loans, particularly in the case of consumer loans that are ~~based~~unsecured ~~upon~~or ~~estimates~~secured by assets that depreciate rapidly. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of ~~costs~~repayment for the outstanding loan and ~~values~~a ~~associated~~small ~~with~~remaining ~~the~~deficiency ~~completed~~often ~~project~~does not warrant further substantial collection efforts against the borrower. ~~Underwriting~~Consumer isloan ~~focused~~collections depend on the ~~borrowers~~borrower’s continuing financial ~~strength~~stability, ~~credit history~~ and ~~demonstrated~~therefore ~~ability~~are likely to ~~produce~~be aadversely ~~quality~~affected ~~product~~by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and ~~effectively~~state ~~market~~laws, including federal and ~~manage~~state ~~their~~bankruptcy ~~operations~~and insolvency laws, may limit the amount that can be recovered on such loans.

5Adjustable-Rate One- to Four-Family Residential Real Estate Loans. Although adjustable-rate mortgage loans may reduce to an extent our vulnerability to changes in market interest rates because they periodically re-price, as interest rates increase the required payments due from the borrower also increase (subject to rate caps), increasing the potential for default by the borrower. At the same time, the ability of the borrower to repay the loan and the marketability of the underlying collateral may be adversely affected by higher interest rates. Upward adjustments of the contractual interest rate are also limited by our maximum periodic and lifetime rate adjustments. As a result, the effectiveness of adjustable-rate mortgage loans in compensating for changes in market interest rates may be limited.

~~Table~~Loan ofOriginations, ~~Contents~~Purchases and Sales

~~Construction~~We ~~lending~~originate ~~involves~~loans ~~additional~~through ~~risks~~employee ~~when~~marketing ~~compared~~and ~~with~~advertising ~~permanent~~efforts, ~~lending~~our ~~because~~existing ~~funds~~customer ~~are advanced upon the security of the project~~base, ~~which~~walk-in iscustomers ofand ~~uncertain~~referrals ~~value~~from ~~before its completion~~customers. ~~Because~~All ofloans ~~the~~we ~~uncertainties~~originate ~~inherent~~are inunderwritten ~~estimating~~pursuant ~~construction~~to ~~costs,~~our aspolicies ~~well~~and asprocedures. ~~the~~While ~~market~~we ~~value~~originate ofboth ~~the~~fixed-rate ~~completed~~and ~~project~~adjustable-rate ~~and~~loans, ~~the~~our ~~effects~~ability ofto ~~governmental~~generate ~~regulation~~each type of ~~real~~loan ~~property,~~depends itupon isrelative ~~relatively~~borrower ~~difficult~~demand toand ~~evaluate~~pricing ~~accurately~~levels ~~the~~established ~~total~~by ~~funds~~competing ~~required~~banks, tothrifts, ~~complete~~credit aunions, ~~project~~ and ~~the related loan~~mortgage-~~to-value~~banking ~~ratio~~companies. In ~~addition,~~Our ~~generally~~volume ~~during the term~~ of ~~a construction~~ loan, ~~interest~~originations ~~may~~is beinfluenced ~~funded~~significantly by ~~the~~market ~~borrower or disbursed from an~~ interest ~~reserve~~rates ~~set~~and ~~aside~~economic ~~from~~conditions, ~~the~~and, ~~construction~~accordingly, ~~loan budget. These loans often involve~~ the ~~disbursement~~volume of ~~substantial~~our ~~funds~~loan ~~with~~originations ~~repayment~~can ~~substantially~~vary ~~dependent~~from onperiod ~~the~~to ~~success~~period. We ofgenerally ~~the~~do ~~ultimate~~not ~~project and the ability of the borrower to~~ sell orany ~~lease the property or obtain permanent take-out financing, rather than the ability~~ of the ~~borrower~~commercial ~~or guarantor to repay principal~~ and ~~interest.~~industrial Ifor ~~the~~commercial ~~appraised~~real ~~value~~estate ofloans awe ~~completed project proves to be overstated~~originate, but we ~~may~~sell ~~have~~participation ~~inadequate~~interests ~~security~~in ~~for the repayment of the loan upon completion of construction of the project and may incur a loss. Land~~ loans, ~~have~~as ~~substantially~~described ~~similar risks~~below.

~~Consumer~~We ~~Loans.~~may ~~Consumer~~purchase ~~loans~~loan ~~may~~participations ~~entail~~secured ~~greater~~by ~~risk~~properties ~~than~~primarily ~~residential~~within ~~real~~the ~~estate~~State ~~loans,~~of ~~particularly~~Nebraska in which we are not the ~~case~~lead oflender. ~~consumer~~In ~~loans~~these ~~that~~circumstances, ~~are~~we ~~unsecured~~follow orour ~~secured~~customary byloan ~~assets~~underwriting ~~that~~and ~~depreciate~~approval ~~rapidly~~policies. ~~Repossessed~~At ~~collateral~~March ~~for~~31, a2025, ~~defaulted~~the ~~consumer~~outstanding balances of our loan ~~may~~participations ~~not~~where ~~provide~~we anwere ~~adequate~~not ~~source~~the oflead ~~repayment~~lender ~~for~~totaled ~~the~~$73.5 ~~outstanding~~million, ~~loan~~or ~~and~~18.27% aof ~~small~~our ~~remaining~~loan ~~deficiency~~portfolio, ~~often~~of ~~does~~which ~~not~~$35.8 ~~warrant~~million, ~~further~~or ~~substantial~~48.66%, ~~collection~~were ~~efforts~~commercial ~~against~~real ~~the~~estate ~~borrower~~loans. ~~Consumer~~ ~~loan~~All ~~collections~~such ~~depend~~loans onwere ~~the~~performing ~~borrower’s~~in ~~continuing~~accordance ~~financial~~with ~~stability,~~their ~~and~~original ~~therefore~~repayment ~~are~~terms. ~~likely~~We toalso behave ~~adversely~~sold ~~affected~~participation byinterests ~~various~~in ~~factors,~~loans ~~including~~that ~~job~~exceeded ~~loss,~~our ~~divorce,~~loans-to-one ~~illness~~borrower orlegal ~~personal~~lending ~~bankruptcy.~~limit ~~Furthermore,~~and ~~the~~for ~~application~~risk ofdiversification. ~~various~~At ~~federal~~March ~~and~~31, ~~state laws~~2025, ~~including~~we ~~federal~~had ~~and~~participated ~~state~~out ~~bankruptcy~~portions ~~and~~of ~~insolvency~~loans ~~laws,~~with ~~may~~an ~~limit~~aggregate ~~the~~principal ~~amount~~balance ~~that~~of ~~can~~$58.8 bemillion. ~~recovered~~Historically, onwe ~~such~~have not purchased whole loans.

~~Adjustable-Rate~~Our ~~One-~~traditional ~~to Four-Family Residential Real Estate Loans. Although adjustable-rate~~ mortgage ~~loans~~banking ~~may~~model ~~reduce~~follows toselling anloan ~~extent~~production ~~our vulnerability~~ to ~~changes~~Freddie inMac. We ~~market~~had ~~interest~~total ~~rates~~loan ~~because~~sales ~~they periodically re-price, as interest rates increase the required payments due from the borrower also increase (subject to rate caps), increasing the potential~~ for ~~default by~~ the ~~borrower.~~fiscal Atyears ~~the~~ended ~~same~~March ~~time~~31, ~~the~~2025 ~~ability of the borrower to repay the loan~~ and ~~the~~2024 ~~marketability~~ of ~~the underlying collateral may be adversely affected by higher interest rates~~$14.9 ~~Upward~~million ~~adjustments of the contractual interest rate are also limited by our maximum periodic~~ and ~~lifetime rate adjustments~~$11.8 ~~As a result~~million, ~~the effectiveness of adjustable-rate mortgage loans in compensating for changes in market interest rates may be limited~~respectively.

Loan ~~Originations,~~Approval ~~Purchases~~Procedures and ~~Sales~~Authority

WeOur ~~originate~~lending ~~loans~~is ~~through~~subject ~~employee~~to ~~marketing and advertising efforts~~written, ~~our existing customer base, walk~~non-indiscriminatory ~~customers~~underwriting standards and ~~referrals~~origination ~~from customers~~procedures. ~~All~~Decisions ~~loans~~on weloan ~~originate~~applications are ~~underwritten~~made ~~pursuant~~on tothe ~~our~~basis ~~policies~~of ~~and~~detailed ~~procedures.~~applications ~~While~~submitted weby ~~originate~~the ~~both~~prospective ~~fixed-rate~~borrower and ~~adjustable-rate~~property ~~loans,~~valuations. Our ~~our~~policies ~~ability~~require tothat ~~generate~~for ~~each~~all ~~type~~one- ofto ~~loan~~four-family ~~depends~~residential ~~upon~~real ~~relative~~estate ~~borrower~~loans ~~demand~~that ~~and~~we ~~pricing~~originate ~~levels~~in ~~established~~amounts byin ~~competing~~excess ~~banks,~~of ~~thrifts~~$400, ~~credit unions~~000, ~~and~~property ~~mortgage-banking~~valuations ~~companies.~~must ~~Our~~be ~~volume~~performed ofby ~~loan~~outside ~~originations~~independent isstate-licensed ~~influenced~~appraisers ~~significantly~~approved by ~~market~~our ~~interest~~board ~~rates~~of ~~and~~directors ~~economic~~or ~~conditions,~~as ~~and,~~required ~~accordingly,~~by ~~the~~Freddie ~~volume~~Mac ofguidelines. The ~~our~~ loan ~~originations~~applications ~~can~~are ~~vary~~designed ~~from~~primarily ~~period~~ to ~~period. We~~determine ~~generally~~the doborrower’s ~~not~~ability ~~sell~~to ~~any~~repay of the ~~commercial~~requested loan, and ~~industrial~~the ormore ~~commercial~~significant ~~real~~items ~~estate~~on ~~loans~~the weapplication ~~originate,~~are ~~but~~verified wethrough ~~sell~~use ~~participation~~of ~~interests~~credit ~~in loans~~reports, asfinancial ~~described~~statements ~~below~~and tax returns.

We may purchase loan participations secured by properties primarily within the State of Nebraska in which we are not the lead lender. In these circumstances, we follow our customary loan underwriting and approval policies. At March 31, 2024, the outstanding balances of our loan participations where we were not the lead lender totaled $84.8 million, or 22.3% of our loan portfolio, of which $49.3 million, or 40.0%, were commercial real estate loans. All such loans were performing in accordance with their original repayment terms. We also have sold participation interests in loans that exceeded our loans-to-one borrower legal lending limit and for risk diversification. At March 31, 2024, we had participated out portions of loans with an aggregate principal balance of $51.9 million. Historically, we have not purchased whole loans.6

WeTable ~~reduced our sold loan numbers in fiscal 2022 and 2023 as we made the decision to retain more~~ of our one- to four-family residential real estate loan originations on our balance sheet. For fiscal 2024, we returned to our traditional mortgage banking model of selling this loan production to Freddie Mac. We had total loan sales for the fiscal years ended March 31, 2024 and 2023 of $12.0 million and $5.9 million, respectively.Contents

~~Loan~~By ~~Approval~~law, ~~Procedures~~the aggregate amount of loans that we are permitted to make to any one borrower or a group of related borrowers is generally limited to 15% of Home Federal Savings’ unimpaired capital and ~~Authority~~surplus (25% if the amount in excess of 15% is secured by “readily marketable collateral” or 30% for certain residential development loans with regulatory approval). The total aggregate exposure to one group of borrowers is 50% of unimpaired capital and surplus where each separate borrower (individual or entity) is financially independent. At March 31, 2025, our loan to one borrower limitation was $10.9 million based on 15% of our unimpaired capital and surplus, $21.8 million for residential development loans with regulatory approval and $36.5 million for a group of related borrowers where each separate borrower is financially independent. At March 31, 2025, our largest single loan to one borrower had an outstanding balance of $7.7 million and was secured by a grocery store property located in our primary market area. At March 31, 2025, this loan was performing according to its original terms. At March 31, 2025, our largest credit relationship was a group of loans to related borrowers with total exposure of $18.0 million with all loans performing according to original terms. The borrowers consist of ten entities and two individual owners, with the significant majority of the loans secured by multi-family residential real estate. The relationship qualifies for the 50% of unimpaired capital and surplus limitation due to the financial strength of each borrower on an individual basis, without dependence on any other borrower in the group.

~~Our~~Individual ~~lending~~officers, isand ~~subject~~officers toacting ~~written~~with others, ~~non-discriminatory~~may ~~underwriting~~approve ~~standards~~loans ~~and~~up ~~origination~~to ~~procedures~~specified limits. ~~Decisions~~ onWe ~~loan~~have ~~applications~~a ~~are~~Residential ~~made~~Loan onCommittee, ~~the~~consisting ~~basis~~ of ~~detailed~~our ~~applications~~Chairman ~~submitted~~of by the ~~prospective~~Board, ~~borrower~~President and ~~property~~Chief ~~valuations. Our~~Executive ~~policies~~Officer, ~~require~~Executive ~~that~~Vice ~~for~~President ~~all~~and ~~one-~~Chief toLending ~~four-family~~Officer ~~residential~~and ~~real~~or ~~estate~~Mortgage ~~loans~~Manager, ~~that~~and weSenior ~~originate~~Loan inCommittee, ~~amounts~~consisting ~~in excess~~ of ~~$400,000,~~our ~~property~~Chairman ~~valuations~~of ~~must~~the beBoard, ~~performed~~President byand ~~outside~~Chief ~~independent~~Executive ~~state-licensed~~Officer, ~~appraisers~~Executive ~~approved~~Vice byPresident ~~our~~and ~~board~~Chief ofLending ~~directors~~Officer, orExecutive asVice ~~required~~President byand ~~Freddie~~Chief ~~Mac~~Sales ~~guidelines. The~~Officer ~~loan~~and ~~applications~~other ~~are~~members ~~designed~~of ~~primarily~~management toand ~~determine~~various ~~the~~lending ~~borrower’s~~staff. The ~~ability~~Residential toLoan ~~repay~~Committee ~~the~~may ~~requested~~approve ~~loan,~~one- ~~and~~to ~~the~~four-family ~~more~~residential ~~significant~~real ~~items~~estate onloans ~~the~~up ~~application~~to ~~are~~$1.0 ~~verified~~million, ~~through~~and ~~use~~Senior ofLoan ~~credit~~Committee ~~reports,~~may ~~financial~~approve ~~statements~~all ~~and~~other ~~tax returns~~loans.

6Generally, we require property and extended coverage casualty insurance in amounts at least equal to the principal amount of the loan or the value of improvements on the property, depending on the type of loan. In addition, we require an escrow for flood insurance (where appropriate) and generally require an escrow for required property taxes and insurance. On occasion, we allow borrowers to pay their own taxes and property and casualty insurance as long as proof of payment is provided.

~~Table~~Delinquencies, ofClassified ~~Contents~~Assets and Non-performing Assets

ByDelinquency ~~law,~~Procedures. When ~~the~~a ~~aggregate~~borrower ~~amount~~fails ~~of loans that we are permitted~~ to make toa ~~any~~required ~~one~~monthly ~~borrower~~payment oron a ~~group~~loan, ofwe ~~related~~mail ~~borrowers~~a isnotice ~~generally limited~~ to ~~15%~~the ofborrower ~~Home Federal Savings’ unimpaired capital~~ and ~~surplus~~attempt ~~(25%~~to ifcontact the ~~amount~~borrower ~~in excess of 15% is secured~~ by ~~“readily~~phone. ~~marketable~~Our ~~collateral”~~personnel orbegin ~~30%~~collection ~~for~~activity ~~certain~~when ~~residential~~a ~~development~~loan ~~loans~~is ~~with~~15 ~~regulatory~~days ~~approval)~~past due. ~~The~~We ~~total~~attempt ~~aggregate~~in-person ~~exposure~~discussions towhen ~~one~~a ~~group~~loan ofbecomes ~~borrowers~~60 isdays ~~50%~~delinquent, ~~of unimpaired capital and surplus where each separate borrower (individual~~ or ~~entity)~~sooner isif ~~financially~~deemed ~~independent~~necessary. AtOur ~~March~~policies ~~31,~~provide ~~2024,~~that ~~our~~a ~~loan~~late tonotice ~~one~~be ~~borrower~~sent ~~limitation~~each ~~was~~month ~~$10.2~~that ~~million~~the ~~based~~loan onis ~~15%~~past ~~of our unimpaired capital and surplus, $20~~due.4 ~~million~~Once ~~for~~the ~~residential~~loan ~~development~~is ~~loans~~considered ~~with~~in ~~regulatory~~default, ~~approval~~generally ~~and~~at ~~$34.0~~90 ~~million~~days ~~for~~past due, a ~~group~~letter ofis ~~related~~generally ~~borrowers~~sent ~~where~~to ~~each~~the ~~separate~~ borrower isexplaining ~~financially independent. At March 31~~that, ~~2024,~~unless ~~our~~the ~~largest single~~ loan tois ~~one~~brought ~~borrower~~current, ~~had~~we anmay ~~outstanding~~initiate ~~balance~~legal ~~of $5~~proceedings.4 In ~~million~~addition, ~~and~~the ~~was~~loan ~~secured~~is byplaced ~~hospitality~~on ~~property~~non-accrual ~~located~~status in(if ~~our primary market area. At March 31~~appropriate), ~~2024,~~and ~~this~~additional ~~loan~~efforts ~~was~~are ~~performing~~made ~~according~~ to ~~its~~contact ~~original~~the ~~terms~~borrower. AtIf ~~March~~the ~~31,~~borrower ~~2024,~~does ~~our~~not ~~largest~~respond, ~~loan~~we ~~relationship~~generally ~~was~~initiate aforeclosure ~~group~~proceedings ofwhen ~~loans~~the toloan ~~related~~is ~~borrowers~~120 ~~with~~days ~~total~~past ~~exposure of $15~~due.1 If ~~million.~~the ~~The~~loan ~~borrowers~~is ~~consist~~reinstated, offoreclosure ~~seven~~proceedings ~~entities~~will ~~and~~be ~~two individual owners~~discontinued, ~~with~~and the ~~significant~~borrower ~~majority~~will ofbe ~~the~~permitted ~~loans~~to ~~secured~~continue byto ~~residential~~make ~~real estate~~payments. ~~The~~In ~~relationship~~certain ~~qualifies~~instances, ~~for~~we ~~the~~may ~~50%~~modify ofthe ~~unimpaired~~loan ~~capital~~or ~~and~~grant ~~surplus~~a ~~limitation~~limited ~~due~~exemption tofrom ~~the~~loan ~~financial~~payments ~~strength~~to ofallow ~~each~~the borrower onto anreorganize ~~individual~~his ~~basis,~~or ~~without~~her ~~dependence~~financial ~~on any other borrower in the group~~affairs.

~~Individual~~When ~~officers,~~we ~~and~~acquire ~~officers~~real ~~acting~~estate ~~with~~as ~~others,~~a ~~may~~result ~~approve~~of ~~loans~~foreclosure upor toby ~~specified~~deed ~~limits.~~in Welieu ~~have~~of aforeclosure, ~~Residential~~the ~~Loan~~real ~~Committee,~~estate ~~consisting~~is ofclassified ~~our~~as ~~Chairman~~other ofreal ~~the~~estate ~~Board,~~owned ~~President~~until ~~and~~it ~~Chief~~is ~~Executive~~sold. The ~~Officer,~~real ~~Executive~~estate ~~Vice~~is ~~President~~recorded ~~and~~at ~~Chief~~estimated ~~Lending~~fair ~~Officer~~value ~~and~~at orthe ~~Mortgage~~date ~~Manager~~of acquisition, ~~and~~less aestimated ~~Commercial~~costs ~~Loan~~to ~~Committee~~sell, ~~consisting~~and ofany ~~our~~write-down ~~Chairman~~resulting offrom the ~~Board,~~acquisition ~~President~~is ~~and~~charged ~~Chief~~to ~~Executive~~the ~~Officer,~~allowance ~~Executive~~for ~~Vice~~loan ~~President~~losses. Subsequent ~~and~~decreases ~~Chief~~in ~~Lending~~the ~~Officer,~~value ~~other members~~ of ~~management~~the ~~and~~property ~~various~~are ~~lending~~charged ~~staff~~to operations. ~~The~~ ~~Residential~~After ~~Loan~~acquisition, ~~Committee~~all ~~may~~costs ~~approve~~in ~~one-~~maintaining tothe ~~four-family~~property ~~residential~~are ~~real~~expensed ~~estate~~as ~~loans~~incurred. Costs uprelating to ~~$1.0~~the ~~million,~~development and improvement of the ~~Commercial~~property, ~~Loan~~however, ~~Committee~~are ~~may~~capitalized ~~approve~~to ~~unsecured~~the ~~credits~~extent upof toestimated ~~$500,000~~fair ~~and~~value ~~secured~~less ~~credits~~estimated upcosts to $1sell.0 ~~million. Loans~~At inMarch ~~excess~~31, of2025, ~~these~~we ~~limits~~had ~~must~~no bereal ~~approved~~estate acquired as a result of foreclosure or by ~~the~~deed ~~Board~~in lieu of ~~Directors~~foreclosure.

Generally, we require property and extended coverage casualty insurance in amounts at least equal to the principal amount of the loan or the value of improvements on the property, depending on the type of loan. In addition, we require an escrow for flood insurance (where appropriate) and generally require an escrow for required property taxes and insurance. On occasion, we allow borrowers to pay their own taxes and property and casualty insurance as long as proof of payment is provided.7

~~Delinquencies,~~Table ~~Classified~~of ~~Assets and Non-performing Assets~~Contents

~~Delinquency~~Delinquent ~~Procedures~~Loans. ~~When~~ aThe ~~borrower~~following ~~fails~~table tosets ~~make~~forth aour ~~required monthly payment on a~~ loan, wedelinquencies ~~mail~~(including a notice to the borrower and attempt to contact the borrower by phone. Our personnel begin collection activity when a loan is 15 days past due. We attempt in-person discussions when a loan becomes 60 days delinquent, or sooner if deemed necessary. Our policies provide that a late notice be sent each month that the loan is past due. Once the loan is considered in default, generally at 90 days past due, a letter is generally sent to the borrower explaining that, unless the loan is brought current, we may initiate legal proceedings. In addition, the loan is placed on non-accrual ~~status (if appropriate~~loans), ~~and~~by ~~additional~~type ~~efforts~~and ~~are~~amount ~~made~~at toMarch ~~contact the borrower. If the borrower does not respond~~31, we2025 ~~generally initiate foreclosure proceedings when the loan is 120 days past due. If the loan is reinstated, foreclosure proceedings will be discontinued,~~ and ~~the borrower will be permitted to continue to make payments~~2024. ~~In certain instances, we may modify the loan or grant a limited exemption from loan payments to allow the borrower to reorganize his or her financial affairs.~~

When we acquire real estate as a result of foreclosure or by deed in lieu of foreclosure, the real estate is classified as other real estate owned until it is sold. The real estate is recorded at estimated fair value at the date of acquisition, less estimated costs to sell, and any write-down resulting from the acquisition is charged to the allowance for loan losses. Subsequent decreases in the value of the property are charged to operations. After acquisition, all costs in maintaining the property are expensed as incurred. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. At March 31, 2024, we had no real estate acquired as a result of foreclosure or by deed in lieu of foreclosure.


	At March 31,
	2025						2024
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due
	(Dollars in thousands)
Real Estate - Construction	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate - Commercial		—		—		—		—		—		—
Real Estate - Residential		486		—		87		154		51		—
Commercial Non-Real Estate		—		9		—		—		—		16
Agricultural		79		—		—		—		—		—
Other Consumer		112		345		112		37		375		125
Land Development and SIDs		—		—		—		—		—		—
Total	$	677	$	354	$	199	$	191	$	426	$	141

7Non-Performing Assets. The following table sets forth information regarding our non-performing assets at the dates presented.


	At March 31,
	2025			2024
	(Dollars in thousands)
Non-accrual loans:
Real Estate - Construction	$	—		$	—
Real Estate - Commercial		359			419
Real Estate - Residential		150			98
Commercial Non-Real Estate		—			16
Agricultural		—			—
Other Consumer		13			4
Land Development and SIDs		807			—
Total non-accruing loans		1,329			537
Accruing loans past due 90 days or more:
Real Estate-Construction		—			—
Real Estate-Commercial		—			—
Real Estate-Residential		3			—
Commercial Non-Real Estate		—			—
Agricultural		—			—
Other Consumer		99			125
Land Development and SIDs		—			—
Total accruing loans past due 90 days or more:		102			125
Total non-performing loans		1,431			662
Other real estate owned		—			—
Total non-performing assets	$	1,431		$	662
Total loans outstanding		402,215			380,245
Total assets outstanding		508,702			463,278
Total non-accruing loans as a percentage of total loans outstanding		0.33	%		0.14	%
Total non-performing loans as a percentage of total loans outstanding		0.36	%		0.17	%
Total non-performing loans as a percentage of total assets		0.28	%		0.14	%
Total non-performing assets as a percentage of total assets		0.28	%		0.14	%

~~Delinquent Loans. The following table sets forth our loan delinquencies (including non-accrual loans), by type and amount at March 31, 2024 and 2023.~~8

	At March 31,
	2024						2023
	30-59 DaysPast Due		60-89 DaysPast Due		90 Daysor MorePast Due		30-59 DaysPast Due		60-89 DaysPast Due		90 Daysor MorePast Due
	(Dollars in thousands)
Real Estate - Construction	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate - Commercial		—		—		—		—		—		—
Real Estate - Residential		154		51		—		585		—		—
Commercial Non-Real Estate		—		—		16		—		—		28
Agricultural		—		—		—		—		—		—
Other Consumer		37		375		125		387		24		178
Land Development and Sanitary & Improvement Districts (SIDs)		—		—				—		—		—
Total	$	191	$	426	$	141	$	972	$	24	$	206

Table of Contents

~~Non-Performing~~Classified Assets. ~~The~~Federal ~~following~~regulations ~~table~~provide ~~sets~~that ~~forth~~loans ~~information~~and ~~regarding~~other ~~our~~assets ~~non-performing~~of lesser quality should be classified as “substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it is inadequately protected by the current paying capacity or net worth of the obligor or of the collateral pledged. “Substandard” assets atare generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or other defined weaknesses that may preclude repayment from original sources. Repayment may depend upon collateral or other credit risk mitigants. Assets classified as “doubtful” have all of the ~~dates~~weaknesses ~~presented~~inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific allowance for credit losses is not warranted. Assets that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention.”

	At March 31,
	2024			2023
	(Dollars in thousands)
Non-accrual loans:
Real Estate - Construction	$	—		$	—
Real Estate - Commercial		419			483
Real Estate - Residential		98			338
Commercial Non-Real Estate		16			29
Agricultural		—			—
Other Consumer		4			—
Land Development and Sanitary & Improvement Districts (SIDs)		—			—
Total non-accruing loans		537			850
Accruing loans past due 90 days or more:
Real Estate-Construction		—			—
Real Estate-Commercial		—			—
Real Estate-Residential		—			—
Commercial Non-Real Estate		—			—
Agricultural		—			—
Other Consumer		125			178
Land Development and Sanitary & Improvement Districts (SIDs)		—			—
Total accruing loans past due 90 days or more:		125			178
Total non-performing loans		662			1,028
Other real estate owned		—			235
Total non-performing assets	$	662		$	1,263
Total loans outstanding		380,245			353,687
Total assets outstanding		463,278			437,792
Total non-accruing loans as a percentage of total loans outstanding		0.14	%		0.24	%
Total non-performing loans as a percentage of total loans outstanding		0.17	%		0.29	%
Total non-performing loans as a percentage of total assets		0.14	%		0.23	%
Total non-performing assets as a percentage of total assets		0.14	%		0.29	%

When we classify assets as either substandard or doubtful, we undertake an impairment analysis which may result in allocating a portion of our general loss allowances to a specific allowance for such assets as we deem prudent. The allowance for credit losses is the amount estimated by management as necessary to absorb credit losses incurred in the loan portfolio that are both probable and reasonably estimable at the balance sheet date. When an insured institution classifies problem assets as “loss,” it is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. An institution’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by the regulatory authorities, which may require the establishment of additional general or specific allowances.

8In connection with the filing of our periodic regulatory reports and according to our classification of assets policy, we regularly review the problem loans in our portfolio to determine whether any loans require classification according to applicable regulations. If a problem loan deteriorates in asset quality, the classification is changed to “substandard,” “doubtful” or “loss” depending on the circumstances and the evaluation. Generally, loans 90 days or more past due are placed on nonaccrual status and classified “substandard.”

~~Table~~Our classified and special mention assets at the dates presented were as follows. Substandard loans exceed our non-performing and delinquent loans due to the inclusion of ~~Contents~~$3.5 million and $2.8 million of performing loans as of March 31, 2025 and 2024, respectively, where there remains underlying uncertainties with respect to borrower performance.

Classified Assets. Federal regulations provide that loans and other assets of lesser quality should be classified as “substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it is inadequately protected by the current paying capacity or net worth of the obligor or of the collateral pledged. “Substandard” assets are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or other defined weaknesses that may preclude repayment from original sources. Repayment may depend upon collateral or other credit risk mitigants. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific allowance for credit losses is not warranted. Assets that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention.”


	At March 31,
	2025		2024
	(Dollars in thousands)
Substandard loans	$	4,623	$	3,048
Doubtful loans		5		97
Loss loans		—		—
Total classified loans	$	4,628	$	3,145
Special mention loans	$	—	$	—

~~When~~Other anLoans ~~insured~~of ~~institution~~Concern. At ~~classifies~~March ~~problem~~31, ~~assets as either substandard or doubtful~~2025, itexcept ~~may~~for ~~establish~~loans ~~general~~included ~~allowances~~ in anthe ~~amount~~above ~~deemed~~table, ~~prudent~~there ~~by management to cover losses that~~ were ~~both~~no ~~probable~~other ~~and~~loans ~~reasonable~~of toconcern ~~estimate. General~~for ~~allowances represent allowances~~ which ~~have~~we ~~been~~had ~~established~~information toabout ~~cover~~possible ~~accrued~~credit ~~losses~~problems ~~associated~~of ~~with~~borrowers ~~lending activities~~ that ~~were~~caused ~~both~~us ~~probable and reasonable~~ to ~~estimate, but which, unlike specific allowances,~~ have ~~not~~serious ~~been~~doubts ~~allocated~~about tothe ~~particular~~ability ~~problem assets. When an insured institution classifies problem assets as “loss,” it is required either to establish a specific allowance for losses equal to 100%~~ of ~~that portion of~~ the ~~asset~~borrowers ~~so classified or~~ to ~~charge-off~~comply ~~such~~with ~~amount.~~present Anloan ~~institution’s~~repayment ~~determination~~terms ~~as to the classification of its assets~~ and ~~the~~that ~~amount of its valuation allowances is subject to review by the regulatory authorities, which~~ may ~~require~~result ~~the~~in ~~establishment~~disclosure of ~~additional~~such ~~general~~loans orin ~~specific~~the ~~allowances~~future.

InAllowance ~~connection~~for ~~with~~Credit the filing of our periodic regulatory reports and according to our classification of assets policy, we regularly review the problem loans in our portfolio to determine whether any loans require classification according to applicable regulations. If a problem loan deteriorates in asset quality, the classification is changed to “substandard,” “doubtful” or “loss” depending on the circumstances and the evaluation. Generally, loans 90 days or more past due are placed on nonaccrual status and classified “substandard.”Losses

~~Our~~The ~~classified~~allowance ~~and~~for ~~special~~credit ~~mention~~losses ~~assets~~(“ACL”) atis ~~the~~an ~~dates~~estimate ~~presented~~of ~~were~~the asexpected ~~follows. Substandard~~credit ~~loans~~losses ~~exceed~~on ~~our non-performing and delinquent loans due to~~ the ~~inclusion of $2.8 million and $3.6 million of performing~~ loans asheld offor ~~March 31~~investment, ~~2024~~unfunded ~~and~~loan ~~2023~~commitments, ~~respectively,~~held ~~where~~to ~~there~~maturity ~~remains~~securities, ~~underlying~~and ~~uncertainties~~available-for-sale ~~with~~debt ~~respect~~securities ~~to borrower performance~~portfolios.

	At March 31,
	2024		2023
	(Dollars in thousands)
Substandard loans	$	3,048	$	4,592
Doubtful loans		97		—
Loss loans		—		—
Total classified loans	$	3,145	$	4,592
Special mention loans	$	—	$	—

Allowance for Credit Losses on Loans—The ACL is maintained by management at a level believed adequate to absorb estimated credit losses that are expected to occur within the existing loan portfolio through their contractual terms adjusted for expected prepayments. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Determination of the ACL is inherently subjective in nature since it requires significant estimates and management judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond the Company's direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, portfolio growth and

Other Loans of Concern. At March 31, 2024, except for loans included in the above table, there were no other loans of concern for which we had information about possible credit problems of borrowers that caused us to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that may result in disclosure of such loans in the future. 9

~~Allowance~~Table ~~for~~of ~~Credit Losses (Subsequent to March 31, 2023)~~Contents

~~The~~concentration ~~allowance~~risk, ~~for~~management ~~credit~~and ~~losses~~staffing ~~(“ACL”)~~changes, isthe aninterpretation ~~estimate~~ of ~~the expected credit losses on the loans held for investment, unfunded~~ loan ~~commitments,~~risk ~~held~~classifications toby ~~maturity~~regulatory ~~securities,~~authorities and ~~available-for-sale~~other ~~debt~~credit ~~securities~~market ~~portfolios~~factors.

~~Allowance for Credit Losses on Loans—~~The ACL ismethodology ~~maintained~~consists byof ~~management~~measuring atloans on a ~~level~~collective ~~believed~~(pool) ~~adequate~~basis towhen ~~absorb~~similar ~~estimated~~risk ~~credit~~characteristics ~~losses that are expected to occur within the existing loan portfolio through their contractual terms adjusted for expected prepayments~~exist. The ~~ACL~~Company ishas aidentified ~~valuation~~seven ~~account~~portfolio ~~that~~segments isand ~~deducted~~measures ~~from~~ the ~~loans’~~ACL ~~amortized~~using ~~cost basis to present~~ the ~~net~~Scaled ~~amount~~CECL ~~expected~~Allowance tofor beLosses ~~collected~~Estimator on(“SCALE”) ~~loans~~method. ~~Determination~~The ofloan ~~the~~portfolios ~~ACL~~are isreal ~~inherently~~estate ~~subjective~~– inconstruction, ~~nature~~real ~~since~~estate it– ~~requires~~commercial, ~~significant~~real ~~estimates~~estate ~~and~~– ~~management~~residential, ~~judgment~~commercial ~~and~~non-real ~~includes~~estate, aagriculture, ~~level~~other ofconsumer ~~imprecision given the difficulty of identifying~~ and ~~assessing~~land ~~the~~development/sanitary ~~factors~~improvement ~~impacting~~districts ~~loan repayment and estimating the timing and amount of losses~~(SIDS). ~~While~~ ~~management~~The ~~utilizes~~SCALE ~~its~~method ~~best~~uses ~~judgment~~publicly ~~and information~~ available, ~~the~~data ~~ultimate~~from ~~adequacy~~Schedule ofRI-C ~~the ACL is dependent upon a variety~~ of ~~factors beyond~~ the ~~Company's~~Call ~~direct~~Report ~~control, including, but not limited~~ to, ~~the~~derive ~~performance of~~ the ~~loan~~initial ~~portfolio,~~proxy ~~consideration~~expected oflifetime ~~current~~loss ~~economic trends, changes in interest~~ rates. ~~and~~These ~~property~~proxy ~~values,~~expected ~~estimated~~lifetime ~~losses~~loss onrates ~~pools~~are ofthen ~~homogeneous~~adjusted ~~loans~~for ~~based~~Company-specific onfacts anand ~~analysis~~circumstances ~~that~~to ~~uses~~arrive ~~historical~~at ~~loss~~the ~~experience~~final ~~for~~ACL ~~prior~~estimate ~~periods~~ that ~~are~~adequately ~~determined~~reflects ~~to have like characteristics with~~ the ~~current~~Company's ~~period~~loss ~~such~~history asand ~~pre-recessionary,~~credit ~~recessionary,~~risk orwithin ~~recovery~~our ~~periods,~~ portfolio ~~growth and~~ .

9In addition to the pooled analysis performed for the majority of our loan and commitment balances, we also review those loans that have collateral dependency or nonperforming status which requires a specific review of that loan, per our individually analyzed CECL calculations.

~~Table~~Loans are charged off against the ACL when management believes the uncollectability of ~~Contents~~a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL. Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL. Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense.

~~concentration~~The Company’s ACL methodology is intended to reflect all loan portfolio risk, but management ~~and~~recognizes ~~staffing~~the ~~changes~~inability to accurately depict all future credit losses in a current ACL estimate, as the ~~interpretation~~impact of ~~loan~~various ~~risk~~factors ~~classifications~~cannot bybe ~~regulatory~~fully ~~authorities~~known. Accrued ~~and~~interest ~~other~~receivable ~~credit~~on ~~market~~loans ~~factors~~is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses.

~~The~~Allowance ~~ACL~~for ~~methodology~~Credit ~~consists~~Losses ofon ~~measuring~~Unfunded ~~loans~~Loan onCommitments—The aCompany ~~collective~~estimates ~~(pool)~~expected ~~basis~~credit ~~when~~losses ~~similar~~over ~~risk~~the ~~characteristics~~contractual ~~exist. The~~period in which the Company ~~has~~is ~~identified~~exposed ~~seven~~to ~~portfolio~~credit ~~segments~~risk ~~and~~by ~~measures~~a ~~the~~contractual ~~ACL~~obligation ~~using~~to ~~the~~extend ~~Scaled~~credit, ~~CECL~~unless ~~Allowance~~that ~~for~~obligation ~~Losses~~is ~~Estimator~~unconditionally ~~(“SCALE”)~~cancelable ~~method~~by the Company. The ~~loan~~ACL ~~portfolios~~related ~~are~~to ~~real~~off-balance ~~estate~~sheet –credit ~~construction~~exposures, ~~real~~which ~~estate~~is –recorded ~~commercial,~~within ~~real~~accounts ~~estate~~payable, –accrued ~~residential,~~expenses ~~commercial~~and ~~non-real~~other ~~estate,~~liabilities ~~agriculture,~~on ~~other~~the ~~consumer~~consolidated ~~and~~statement ~~land~~of ~~development/sanitary~~financial ~~improvement~~condition, ~~districts~~is ~~(SIDS).~~estimated ~~The~~at ~~SCALE~~each ~~method~~balance ~~uses~~sheet ~~publicly~~date ~~available~~under ~~data~~the ~~from~~CECL ~~Schedule~~model, ~~RI-C~~and ofis ~~the~~adjusted ~~Call~~as ~~Report~~determined tonecessary ~~derive~~through the ~~initial~~provision ~~proxy~~for ~~expected~~credit ~~lifetime~~losses ~~loss~~on ~~rates.~~the ~~These~~consolidated ~~proxy~~statement ~~expected~~of ~~lifetime~~income. The ~~loss~~estimate ~~rates~~for ~~are~~ACL ~~then~~on ~~adjusted~~unfunded ~~for~~loan ~~Company-specific~~commitments ~~facts~~includes ~~and~~consideration ~~circumstances~~of tothe ~~arrive~~likelihood atthat ~~the~~funding ~~final~~will ~~ACL~~occur and an estimate ~~that~~of ~~adequately~~expected ~~reflects~~credit ~~the~~losses ~~Company's~~on ~~loss~~commitments ~~history~~expected ~~and~~to ~~credit~~be ~~risk~~funded ~~within~~over ~~our~~its ~~portfolio~~estimated life.

InAllowance ~~addition~~for toCredit ~~the~~Losses ~~pooled~~on ~~analysis~~Securities ~~performed~~Available-for-Sale—For available-for-sale debt securities in an unrealized loss position, the ~~majority~~Company offirst ~~our~~assesses ~~loan~~whether ~~and~~it ~~commitment~~intends ~~balances~~to sell, weor ~~also~~it ~~review~~is ~~those~~more ~~loans~~likely than not that ~~have~~it ~~collateral~~will ~~dependency~~sell, orthe ~~nonperforming~~security ~~status~~before ~~which~~recovery ~~requires~~of aits ~~specific~~amortized ~~review~~cost basis. If either of ~~that~~the ~~loan~~aforementioned criteria exists, ~~per~~the ~~our~~Company will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the income statement. If either of these criteria does not exist, the Company will evaluate the securities individually ~~analyzed~~to ~~CECL~~determine ~~calculations~~whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations.

~~Loans~~In ~~are~~evaluating ~~charged~~securities ~~off~~available-for ~~against~~sale for potential impairment, the ~~ACL~~Company ~~when~~considers ~~management~~many ~~believes~~factors, including the ~~uncollectability~~financial ofcondition aand ~~loan~~near-term ~~balance~~prospects isof ~~confirmed~~the issuer, ~~while~~which ~~recoveries~~for ofdebt ~~amounts~~securities ~~previously~~considers ~~charged-off~~external ~~are~~credit ~~credited~~ratings and recent downgrades; and its ability and intent to hold the ~~ACL.~~security ~~Approved~~for ~~releases~~a ~~from~~period ~~previously~~of ~~established~~time ~~ACL~~sufficient ~~reserves~~for ~~authorized~~a ~~under~~recovery ~~our~~in ~~ACL~~value. The ~~methodology~~Company also ~~reduce~~considers the ~~ACL.~~extent ~~Additions~~ to which the ~~ACL~~securities are ~~established~~issued ~~through~~by the ~~provision~~federal ~~for~~government ~~credit~~or ~~losses~~its ~~on loans~~agencies, ~~which~~and isany ~~charged~~guarantee of issued amounts by those agencies. The amount of the impairment related to ~~expense~~other factors is recognized in other comprehensive income (loss).

Allowance for Credit Losses on Held-to Maturity Securities—The ~~Company’s~~allowance ~~ACL~~for credit losses on held-to-maturity debt securities is estimated using a CECL methodology. Any expected credit loss is ~~intended~~provided through the allowance for credit loss on held-to-maturity ~~reflect~~securities ~~all~~and ~~loan~~is ~~portfolio~~deducted ~~risk,~~from ~~but~~the ~~management~~amortized ~~recognizes~~cost basis of the ~~inability~~security toso ~~accurately~~that ~~depict~~the ~~all~~balance ~~future~~sheet ~~credit~~reflects ~~losses~~the innet aamount ~~current~~the ~~ACL~~Company ~~estimate,~~expects asto collect. Nearly all the ~~impact~~Company's ofHTM ~~various~~debt ~~factors~~securities ~~cannot~~are beissued ~~fully~~by ~~known~~U.S. government entities and agencies. ~~Accrued~~These ~~interest~~securities ~~receivable~~are oneither ~~loans~~explicitly isor ~~excluded~~implicitly ~~from~~guaranteed by the ~~amortized~~U.S. ~~cost~~government, ~~basis~~are ofhighly ~~financing~~rated ~~receivables~~by ~~for~~major ~~the~~rating ~~purpose~~agencies, ofand ~~determining~~have ~~the~~a ~~allowance~~long ~~for~~history of no credit losses. Accordingly, there is a zero-credit loss expectation on these securities.

Allowance for Credit Losses on Unfunded Loan Commitments—The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The ACL related to off-balance sheet credit exposures, which is recorded within accounts payable, accrued expenses and other liabilities on the consolidated statement of financial condition, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the consolidated statement of income. The estimate for ACL on unfunded loan commitments 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.10

~~Allowance~~Table for Credit Losses on Securities Available-for-Sale—For available-for-sale debt 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 sell, the security before recovery of its amortized cost basis. If either of the aforementioned criteria exists, the Company will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the income statement. If either of these criteria does not exist, the Company will evaluate the securities individually to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations.Contents

InThe ~~evaluating~~following ~~securities~~table ~~available-for~~sets ~~sale~~forth ~~for~~activity ~~potential~~in ~~impairment,~~our ~~the~~allowance ~~Company considers many factors, including the financial condition and near-term prospects of the issuer, which~~ for ~~debt securities considers external~~ credit ~~ratings~~losses ~~and~~during ~~recent downgrades; and its ability and intent to hold~~ the ~~security~~periods ~~for a period of time sufficient for a recovery in value~~presented. The Company also considers the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. The amount of the impairment related to other factors is recognized in other comprehensive income (loss).

Allowance for Credit Losses on Held-to Maturity Securities—The allowance for credit losses on held-to-maturity debt securities is estimated using a CECL methodology. Any expected credit loss is provided through the allowance for credit loss on held-to-maturity securities and is deducted from the amortized cost basis of the security so that the balance sheet reflects the net amount the Company expects to collect. Nearly all the Company's HTM debt securities are 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 rating agencies, and have a long history of no credit losses. Accordingly, there is a zero-credit loss expectation on these securities.


	For the Year Ended March 31,
	2025			2024
	(Dollars in thousands)
Total loans outstanding at end of period	$	402,215		$	380,245
Total non-accrual loans at end of period		1,329			537
Total non-performing loans at end of period		1,431			662
Total average loans outstanding		391,330			361,978
Allowance for credit losses, beginning of period		5,860			5,412
Cumulative effect of ASU 2016-13 adoption (CECL)	N/A			$	299
Provision for credit losses		200			88
Charge-offs:
Real Estate - Construction		—			—
Real Estate - Commercial		—			—
Real Estate - Residential		—			—
Commercial Non-Real Estate		13			—
Agricultural		—			—
Other Consumer		4			6
Land Development and SIDs		605			—
Total charge-offs	$	622		$	6
Recoveries on loans previously charged-off:
Real Estate - Construction		—			—
Real Estate - Commercial		—			—
Real Estate - Residential		—			—
Commercial Non-Real Estate		—			(69	)
Agricultural		—			—
Other Consumer		(3	)		(3	)
Land Development and SIDs		—			—
Total recoveries	$	(3	)	$	(72	)
Net (recoveries) charge-offs	$	619		$	(66	)
Allowance for credit losses, end of period	$	5,441		$	5,860
Allowance for credit losses as a percent of non-performing loans		380.22	%		885.20	%
Allowance for credit losses as a percent of total loans outstanding		1.35	%		1.54	%
Allowance for credit losses as a percent of total non-accrual loans		409.41	%		1091.25	%
Net (recoveries) charge-offs during the period to average loans outstanding during the period		0.16	%		(0.02	%)

~~Allowance~~The ~~for~~following ~~Loan~~table ~~Losses~~sets ~~(Prior~~forth additional information with respect to ~~April~~charge-offs 1,by ~~2023)~~category for the years presented.

The allowance for loan losses represents management’s estimate of probable losses inherent in the loan portfolio. Additions to the allowance are recorded in the provision for loan losses charged to expense. Charge-offs, net of recoveries, are deducted from the allowance. The allowance estimate is based on prior experience, the nature and volume of the loan portfolio, review of specific problem loans, and an evaluation of the overall portfolio quality under current economic conditions. Specific reserves for impaired loans are measured and recognized to the extent that the recorded investment of an impaired loan exceeds its value based on either the fair value


	For the Year Ended March 31,
	2025			2024
Net (recoveries) charge-offs to average loans outstanding during the year:
Real Estate - Construction		—			—
Real Estate - Commercial		—			—
Real Estate - Residential		—			—
Commercial Non-Real Estate		0.04	%		(0.20	%)
Agricultural		—			—
Other Consumer		0.01	%		0.02	%
Land Development and SIDs		3.71	%		—

10The increase in charge-offs is related to land that is pending for sale by the borrower, for which we charged off $605,000. We are expecting to recover much, if not all, of this amount in the future by either sale of the land or regular receipt of payments from the borrower.

~~Table of Contents~~11

ofTable ~~the loan’s underlying collateral less estimated costs to sell, the calculated present value~~ of ~~projected cash flows discounted at the contractual interest rate, or the loan’s observable fair value.~~Contents

~~The~~Allocation ~~Association’s~~of ~~allowance~~Allowance for ~~loan~~Credit/Loan ~~losses~~Losses. The ~~consists~~following oftable ~~various~~sets ~~methodologies~~forth tothe ~~determine~~allowance ~~impairment: (a) loans individually evaluated~~ for ~~impairment~~credit/loan ~~are~~losses ~~evaluated~~allocated ~~based~~by ~~upon~~loan acategory ~~specific~~and ~~identified~~the ~~probable~~percent ~~loss,~~of ~~and~~the ~~(b)~~allowance ~~loans~~in ~~collectively~~each ~~evaluated~~category ~~for~~to ~~impairment~~the ~~are~~total ~~evaluated~~allocated ~~based~~allowance onat ~~historical~~the ~~loan~~dates ~~loss~~presented. The ~~experience~~allowance for ~~similar~~credit ~~loans~~losses ~~with~~allocated ~~similar~~to ~~characteristics,~~each ~~adjusted~~category tois ~~reflect~~not ~~the~~necessarily ~~impact~~indicative of ~~current~~future ~~conditions. Factors~~losses ~~considered~~ in ~~determining~~any ~~the~~particular ~~adjustment~~category ~~for~~and ~~current~~does ~~conditions~~not ~~include~~restrict the ~~following:~~use ~~(a) changes in asset quality, (b) composition and concentrations~~ of ~~credit risk, and (c)~~ the ~~impact~~allowance ofto ~~economic~~absorb ~~risks~~losses onin ~~the~~other ~~portfolio~~categories.

In determining the allowance for loan losses, management considers factors such as economic and business conditions affecting key lending areas, credit concentrations and credit quality trends. Since the evaluation of the inherent loss with respect to these factors is subject to a higher degree of uncertainty, the measurement of the overall allowance is subject to estimation risk and the amount of actual losses can vary significantly from the estimated amounts. The Association’s measurement methods incorporate comparisons between recent experience and historical rates.


	At March 31,
	2025								2024
	Amount of Allowance		Percent of Allowance to Total Allowance			Percent of Loans in Category to Total Loans			Amount of Allowance		Percent of Allowance to Total Allowance			Percent of Loans in Category to Total Loans
	(Dollars in thousands)
Real Estate - Construction	$	246		4.52	%		3.75	%	$	246		4.20	%		4.21	%
Real Estate - Commercial		1,572		28.88			29.88			2,245		38.31			32.43
Real Estate - Residential		1,926		35.40			40.06			1,829		31.21			39.41
Commercial Non-Real Estate		667		12.26			7.96			759		12.95			9.22
Agricultural		476		8.75			10.65			228		3.89			5.18
Other Consumer		262		4.82			3.64			327		5.58			5.26
Land Development and SIDs		292		5.37			4.06			226		3.86			4.29
Total	$	5,441		100.00	%		100.00	%	$	5,860		100.00	%		100.00	%

~~Loans~~Although ~~are~~we ~~generally~~believe ~~secured~~that bywe ~~underlying~~use ~~real~~the ~~estate~~best information available to establish the allowance for credit losses, ~~business~~future ~~assets~~adjustments to the allowance for credit losses may be necessary and results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations. Because future events affecting borrowers and collateral cannot be predicted with certainty, ~~personal~~the ~~property~~existing allowance for credit losses may not be adequate and ~~personal~~management ~~guarantees~~may determine that increases in the allowance are necessary if the quality of any portion of our loan portfolio deteriorates as a result. Furthermore, ~~The~~as ~~amount~~an integral part of ~~collateral~~its ~~obtained~~examination isprocess, ~~based~~the ~~upon~~OCC will periodically review our allowance for credit losses. The OCC may have judgments different than those of management’s, ~~evaluation~~and we may determine to increase our allowance as a result of these regulatory reviews. Any material increase in the ~~borrower~~allowance for credit losses may adversely affect our financial condition and results of operations.

~~The~~Investment Association periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR.Activities

AGeneral. The ~~loan~~goal isof ~~considered~~our ~~impaired~~investment ~~when~~policy it is ~~probable~~to ~~that~~provide ~~all principal~~ and ~~interest~~maintain ~~amounts~~liquidity ~~due~~within ~~will~~regulatory ~~not~~guidelines, bemaintain ~~collected~~high inquality ~~accordance~~and ~~with~~diversified ~~the~~investments, ~~loan’s~~provide ~~contractual~~collateral ~~terms. Except~~ for ~~TDRs,~~pledging ~~consumer~~requirements ~~loans~~and ~~within~~short-term ~~any~~borrowing ~~class~~needs, ~~are~~balance ~~generally~~earnings ~~not~~depending ~~individually evaluated~~ on alevels ~~regular~~of ~~basis~~loan ~~for impairment. All TDRs~~demand, ~~regardless~~maximize ofreturns ~~the~~through ~~outstanding~~value ~~balance amount~~investing, ~~are~~and ~~considered~~manage tointerest berate ~~impaired~~risk.

~~The~~Our ~~allowance~~investment ~~established~~policy ~~for~~was ~~probable~~adopted ~~losses~~by onthe ~~specific~~board ~~loans~~of isdirectors ~~based~~and onis areviewed ~~periodic~~annually ~~analysis~~by ~~and~~the ~~evaluation~~board of ~~classified loans~~directors. All ~~Specific~~investment ~~reserves~~decisions ~~for~~are ~~impaired~~made ~~loans~~by ~~are~~our ~~measured~~Asset/Liability ~~and~~Committee ~~recognized~~according to ~~the~~board-approved ~~extent~~policies. An ~~that the recorded~~ investment ofschedule andetailing ~~impaired loan exceeds its value based on either~~ the ~~fair~~investment ~~value~~portfolio ofis ~~the~~reviewed ~~loan’s~~at ~~underlying~~least ~~collateral~~monthly ~~less~~by ~~costs to sell,~~ the ~~calculated~~board ~~present value~~ of ~~projected cash flows discounted at the contractual effective interest rate or the loan’s observable fair value~~directors.

11Our current investment policy permits, with certain limitations, investments in: U.S. Treasury securities; securities issued by the U.S. government and its agencies or government sponsored enterprises including mortgage-backed securities and collateralized mortgage obligations issued by Fannie Mae, Ginnie Mae, and Freddie Mac; corporate and municipal bonds; collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs); certificates of deposit in other financial institutions; and federal funds, among other investments.

~~Table~~At March 31, 2025, our investment portfolio consisted of ~~Contents~~securities and obligations issued by U.S. government-sponsored enterprises as well as state and municipal securities. At March 31, 2025, we also owned $612,000 of Federal Home Loan Bank of Topeka stock. As a member of Federal Home Loan Bank of Topeka, we are required to purchase stock in the Federal Home Loan Bank of Topeka, which is carried at cost and classified as a restricted investment.

~~The following table sets forth activity in our allowance for credit/loan losses during the periods presented.~~12

	For the Year Ended March 31,
	2024			2023
	(Dollars in thousands)
Total loans outstanding at end of period	$	380,245		$	353,687
Total non-accrual loans at end of period		537			850
Total non-performing loans at end of period		662			1,028
Total average loans outstanding		361,978			340,832
Allowance for credit losses, beginning of period		5,412			4,928
Cumulative effect of ASU 2016-13 adoption (CECL)		299		N/A
Provision for credit losses		88			2,877
Charge-offs:
Real Estate - Construction		—			—
Real Estate - Commercial		—			—
Real Estate - Residential		—			8
Commercial Non-Real Estate		—			2,448
Agricultural		—			—
Other Consumer		6			4
Land Development and Sanitary & Improvement Districts (SIDs)		—			—
Total charge-offs	$	6		$	2,460
Recoveries on loans previously charged-off:
Real Estate - Construction		—			—
Real Estate - Commercial		—			(65	)
Real Estate - Residential		—			—
Commercial Non-Real Estate		(69	)		—
Agricultural		—			—
Other Consumer		(3	)		(2	)
Land Development and Sanitary & Improvement Districts (SIDs)		—			—
Total recoveries	$	(72	)	$	(67	)
Net (recoveries) charge-offs	$	(66	)	$	2,393
Allowance for credit/loan losses, end of period	$	5,860		$	5,412
Allowance for credit/loan losses as a percent of non-performing loans		885.20	%		526.46	%
Allowance for credit/loan losses as a percent of total loans outstanding		1.54	%		1.53	%
Allowance for credit/loan losses as a percent of total non-accrual loans		1091.25	%		636.71	%
Net (recoveries) charge-offs during the period to average loans outstanding during the period		(0.02	%)		0.70	%

Table of Contents

The following table sets forth additional information with respect to charge-offs by category for the years presented.


	At March 31,
	2025				2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities available-for-sale	(Dollars in thousands)
FHLMC bonds	$	23,085	$	21,466	$	24,859	$	22,709
GNMA bonds		5,035		5,067		4,456		4,406
FNMA bonds		27,237		25,590		28,241		26,061
Municipal bonds		8,622		7,246		8,628		7,180
Total securities available-for-sale	$	63,979	$	59,369	$	66,184	$	60,356

Securities held-to-maturity
FHLMC bonds	$	64	$	66	$	85	$	85
GNMA bonds		46		46		57		56
FNMA bonds		112		114		165		164
Total securities held-to-maturity	$	222	$	226	$	307	$	305

	For the Year Ended March 31,
	2024			2023
Net (recoveries) charge-offs to average loans outstanding during the year:
Real Estate - Construction		—			0.04	%
Real Estate - Commercial		—			—
Real Estate - Residential		—			—
Commercial Non-Real Estate		(0.20	%)		7.60	%
Agricultural		—			—
Other Consumer		0.02	%		0.01	%
Land Development and Sanitary & Improvement Districts (SIDs)		—			—

Portfolio Maturities and Yields. The composition and maturities of the securities portfolio at March 31, 2025, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. The weighted average yield is calculated based on the yield to maturity weighted for the size of each security over the entire portfolio of securities. No tax-equivalent yield adjustments have been made, as the effects would be immaterial.

The increase in charge-offs and related increase in the provision for loan losses for 2023 was primarily related to a $2.4 million commercial and industrial loan. We had one commercial customer who submitted false financial information to multiple financial institutions and has since passed away. The collateral that was presented had no value and, accordingly, we charged off the entire amount of our loan to this borrower.


	One Year or Less					After One through Five Years					After Five through Ten Years					Over Ten Years					Total
	Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Fair Value		Weighted Average Yield
Investment securities:
Municipal bonds	$	—		—	%	$	3,012		1.76	%	$	1,950		1.80	%	$	3,660		2.06	%	$	8,622	$	7,246		1.90	%
Mortgage-backed securities:
U.S. Government agency and government-sponsored enterprise		4		3.50			635		2.98			3,572		4.10			51,368		3.76			55,579		52,349		3.77
Total	$	4		3.50	%	$	3,647		1.97	%	$	5,522		3.29	%	$	55,028		3.65	%	$	64,201	$	59,595		3.52	%

12For additional information regarding our investment securities portfolio, see Note 2 to the notes to consolidated financial statements.

~~Table~~Sources of ~~Contents~~Funds

~~Allocation~~General. Deposits have traditionally been our primary source of ~~Allowance~~funds for ~~Credit/Loan~~use ~~Losses~~in lending and investment activities. ~~The~~We ~~following~~may ~~table~~also ~~sets~~use ~~forth~~borrowings to supplement cash flow needs, lengthen the ~~allowance~~maturities ~~for~~of ~~credit/loan~~liabilities ~~losses~~for ~~allocated~~interest byrate ~~loan~~risk ~~category~~purposes and to manage the ~~percent~~cost of ~~the~~funds. In ~~allowance~~addition, inwe ~~each~~receive ~~category~~funds tofrom ~~the~~scheduled ~~total~~loan ~~allocated~~payments, ~~allowance~~investment atmaturities, ~~the~~loan ~~dates~~prepayments ~~presented~~and income on earning assets. ~~The~~While ~~allowance~~scheduled ~~for~~loan ~~credit~~payments ~~losses~~and ~~allocated~~income toon ~~each~~earning ~~category~~assets isare ~~not~~relatively ~~necessarily~~stable ~~indicative~~sources of ~~future~~funds, ~~losses~~deposit ininflows ~~any~~and ~~particular~~outflows ~~category~~can ~~and~~vary ~~does~~widely ~~not~~and ~~restrict~~are ~~the~~influenced ~~use~~by ofprevailing ~~the~~interest ~~allowance~~rates, tomarket ~~absorb~~conditions ~~losses~~and inlevels ~~other~~of ~~categories~~competition.

	At March 31,
	2024								2023
	Amount of Allowance		Percent ofAllowance toTotal Allowance			Percent of Loans in Category to Total Loans			Amount of Allowance		Percent ofAllowance toTotal Allowance			Percent of Loans in Category to Total Loans
	(Dollars in thousands)
Real Estate - Construction	$	246		4.20	%		4.21	%	$	334		6.17	%		5.46	%
Real Estate - Commercial		2,245		38.31			32.43			2,048		37.84			28.97
Real Estate - Residential		1,829		31.21			39.41			1,286		23.76			41.98
Commercial Non-Real Estate		759		12.95			9.22			915		16.92			8.51
Agricultural		228		3.89			5.18			484		8.94			5.14
Other Consumer		327		5.58			5.26			157		2.90			5.64
Land Development and Sanitary & Improvement Districts (SIDs)		226		3.86			4.30			188		3.47			4.30
Total	$	5,860		100.00	%		100.00	%	$	5,412		100.00	%		100.00	%

Deposits. Our deposits are generated primarily from our primary market area. We offer a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit and individual retirement accounts. Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on deposit and the interest rate.

~~Although~~Interest werates ~~believe~~paid, ~~that~~maturity ~~we use the best information available to establish the allowance for loan losses~~terms, ~~future~~service ~~adjustments~~fees ~~to the allowance for credit losses may be necessary~~ and ~~results~~withdrawal ofpenalties ~~operations~~are ~~could~~established beon ~~adversely~~a ~~affected~~periodic ~~if circumstances differ substantially from the assumptions used in making the determinations~~basis. ~~Because~~Deposit ~~future~~rates ~~events affecting borrowers~~ and ~~collateral~~terms ~~cannot~~are bebased ~~predicted~~primarily ~~with~~on ~~certainty,~~current ~~the~~operating ~~existing~~strategies ~~allowance for credit losses may not be adequate~~ and ~~management~~market ~~may determine that increases in the allowance are necessary if the quality of any portion of our loan portfolio deteriorates as a result. Furthermore~~rates, asliquidity ~~an integral part of its examination process~~requirements, ~~the~~rates ~~OCC~~paid ~~will~~by ~~periodically~~competitors ~~review~~and ~~our~~growth ~~allowance for credit losses~~goals. ~~The~~We ~~OCC~~rely ~~may~~upon ~~have~~personalized ~~judgments~~customer ~~different~~service, ~~than~~long-standing ~~those~~relationships ofwith ~~management~~customers, and weour ~~may~~favorable ~~determine~~reputation toin ~~increase~~the ~~our~~community ~~allowance~~to asattract aand ~~result~~retain oflocal ~~these regulatory reviews~~deposits. ~~Any~~We ~~material~~also ~~increase~~seek into ~~the~~obtain ~~allowance~~deposits ~~for~~from ~~credit losses may adversely affect~~ our ~~financial~~commercial ~~condition~~loan ~~and results of operations~~customers.

~~Investment Activities~~13

~~General. The~~Table ~~goal~~ of our investment policy is to provide and maintain liquidity within regulatory guidelines, maintain high quality and diversified investments, provide collateral for pledging requirements and short-term borrowing needs, balance earnings depending on levels of loan demand, maximize returns through value investing, and manage interest rate risk. Contents

~~Our~~The ~~investment~~flow ~~policy~~of ~~was~~deposits ~~adopted~~is influenced significantly by ~~the~~general ~~board~~economic ofconditions, ~~directors~~changes in money market and isother ~~reviewed~~prevailing ~~annually~~interest byrates ~~the~~and ~~board~~competition. The variety of ~~directors~~deposit accounts offered allows us to be competitive in obtaining funds and responding to changes in consumer demand. ~~All~~Based ~~investment~~on ~~decisions~~experience, ~~are~~we ~~made~~believe bythat our ~~Asset/Liability~~deposits ~~Committee~~are ~~according~~relatively stable. However, the ability to ~~board-approved~~attract ~~policies. An~~and ~~investment~~maintain ~~schedule~~deposits ~~detailing~~and the ~~investment~~rates ~~portfolio~~paid ison ~~reviewed~~these atdeposits, ~~least~~has ~~monthly~~been byand ~~the~~will ~~board~~continue ofto ~~directors~~be significantly affected by market conditions.

~~Our~~The ~~current~~following ~~investment~~table ~~policy~~sets ~~permits,~~forth ~~with certain limitations, investments in: U.S. Treasury securities; securities issued by~~ the ~~U.S.~~distribution ~~government~~of ~~and~~total ~~its~~deposits, ~~agencies or government sponsored enterprises including mortgage-backed securities and collateralized mortgage obligations issued~~ by ~~Fannie~~account ~~Mae~~type, ~~Ginnie~~at ~~Mae,~~the ~~and~~dates Freddie Mac; corporate and municipal bonds; collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs); certificates of deposit in other financial institutions; and federal funds, among other investmentspresented.

At March 31, 2024, our investment portfolio consisted of securities and obligations issued by U.S. government-sponsored enterprises as well as state and municipal securities. At March 31, 2024, we also owned $584,000 of Federal Home Loan Bank of Topeka stock. As a member of Federal Home Loan Bank of Topeka, we are required to purchase stock in the Federal Home Loan Bank of Topeka, which is carried at cost and classified as a restricted investment.


	At March 31, 2025								At March 31, 2024
	Amount		Percent			Average Rate			Amount		Percent			Average Rate
	(Dollars in thousands)
Non-interest bearing demand	$	64,497		15.50	%		—	%	$	66,891		17.83	%		—	%
Savings accounts		45,476		10.93			0.45			43,461		11.59			0.37
Money market accounts		30,718		7.38			2.29			24,287		6.47			2.07
NOW accounts		152,782		36.71			1.67			127,077		33.88			1.58
Certificates of deposit		104,129		25.02			4.47			95,266		25.39			3.93
Individual retirement accounts		18,599		4.47			3.56			18,163		4.84			2.97
Total	$	416,201		100.00	%		2.56	%	$	375,145		100.00	%		2.24	%

13As of March 31, 2025 and 2024, the aggregate amount of uninsured deposits (deposits in amounts greater than or equal to $250,000, which is generally the maximum amount for federal deposit insurance), was $54.8 million and $34.3 million, respectively. In addition, as of March 31, 2025, the aggregate amount of all our uninsured certificates of deposit was $7.0 million. We have no deposits that are uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance.

~~Table~~At March 31, 2025, we had approximately 155 depositors with uninsured deposits, resulting in an average balance of ~~Contents~~uninsured deposits of $354,000 per uninsured depositor. Of total uninsured deposits as of March 31, 2025, $35.7 million, or 65.06%, consisted of NOW accounts, $3.2 million, or 5.86%, consisted of savings accounts, $7.0 million, or 12.85%, consisted of certificates of deposit, including IRAs, $3.6 million, or 6.55% consisted of money market accounts and $5.3 million, or 9.68%, consisted of non-interest bearing demand accounts.

	At March 31,
	2024				2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities available-for-sale	(Dollars in thousands)
FHLMC bonds	$	24,859	$	22,709	$	25,446	$	23,256
GNMA bonds		4,456		4,406		2,648		2,590
FNMA bonds		28,241		26,061		26,726		24,290
Municipal bonds		8,628		7,180		8,994		7,706
Total securities available-for-sale	$	66,184	$	60,356	$	63,814	$	57,842
Securities held-to-maturity
FHLMC bonds	$	85	$	85	$	116	$	114
GNMA bonds		57		56		74		73
FNMA bonds		165		164		232		229
Total securities held-to-maturity	$	307	$	305	$	422	$	416

The following table sets forth the maturity of our uninsured certificates of deposit as of March 31, 2025.

Portfolio Maturities and Yields. The composition and maturities of the securities portfolio at March 31, 2024, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. The weighted average yield is calculated based on the yield to maturity weighted for the size of each security over the entire portfolio of securities. No tax-equivalent yield adjustments have been made, as the effects would be immaterial.


	At March 31, 2025
	(Dollars in thousands)
Maturity Period:
Three months or less	$	3,145
Over three through six months		2,579
Over six through twelve months		1,312
Over twelve months		13
Total	$	7,049

	One Year or Less					After One throughFive Years					After Five throughTen Years					Over Ten Years					Total
	AmortizedCost		WeightedAverageYield			AmortizedCost		WeightedAverageYield			AmortizedCost		WeightedAverageYield			AmortizedCost		WeightedAverageYield			AmortizedCost		FairValue		WeightedAverageYield
Investment securities:
Municipal bonds	$	—		—	%	$	2,284		1.51	%	$	2,357		2.01	%	$	3,987		2.00	%	$	8,628	$	7,180		1.87	%
Mortgage-backed securities:
U.S. Government agency and government-sponsored enterprise		4		3.00			949		2.89			3,191		3.21			53,719		3.33			57,863		53,481		3.32
Total	$	4		3.00	%	$	3,233		1.92	%	$	5,548		2.70	%	$	57,706		3.24	%	$	66,491	$	60,661		3.13	%

Borrowings. We may obtain advances from the Federal Home Loan Bank of Topeka upon the security of our capital stock in it and our one- to four-family residential real estate portfolio. We may utilize these advances for asset/liability management purposes and for additional funding for our operations. Such advances may be made under several different credit programs, each of which has its own interest rate and range of maturities. At March 31, 2025, we had no outstanding advances from the Federal Home Loan Bank of Topeka. At March 31, 2025, based on pledged collateral and our ownership of Federal Home Loan Bank of Topeka common stock, we had access to up to $40.5 million of advances from the Federal Home Loan Bank of Topeka. We could significantly increase our borrowing capacity from the Federal Home Loan Bank of Topeka if we pledged additional assets as security. As of March 31, 2025, we had a $5.0 million borrowing line from a private bankers’ bank, and we also have the ability to participate in the Federal Reserve Board’s Bank Term Funding Program if needed.

~~For~~Subsidiary ~~additional information regarding our investment securities portfolio, see Note 2 to the notes to consolidated financial statements.~~Activities

~~Sources~~Home ofFederal ~~Funds~~Savings’ only subsidiary is First Service Corporation, a Nebraska corporation that provides insurance services directly and sells securities through a third-party arrangement.

General. Deposits have traditionally been our primary source of funds for use in lending and investment activities. We may also use borrowings to supplement cash flow needs, lengthen the maturities of liabilities for interest rate risk purposes and to manage the cost of funds. In addition, we receive funds from scheduled loan payments, investment maturities, loan prepayments and income on earning assets. While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition.Employees

~~Interest~~Table ~~rates~~of paid, maturity terms, service fees and withdrawal penalties are established on a periodic basis. Deposit rates and terms are based primarily on current operating strategies and market rates, liquidity requirements, rates paid by competitors and growth goals. We rely upon personalized customer service, long-standing relationships with customers, and our favorable reputation in the community to attract and retain local deposits. We also seek to obtain deposits from our commercial loan customers.Contents

14At March 31, 2025, we had 68 full-time employees and five part-time employees. Our employees are not represented by a collective bargaining group, and we believe that our relationship with our employees is excellent. The success of our business is highly dependent on our employees, who provide value to our customers and communities. Our workplace culture provides a set of core values: a concern for others, trust, respect, hard work and a dedication to our customers. We seek to hire well-qualified employees who are also a good fit for our value system.

~~Table~~We ofbelieve ~~Contents~~that our ability to attract and retain top quality employees is a key to our future success. We continue to elevate individuals from within the organization into new roles and we expect to continue to assess our management and staffing needs and are likely to add personnel in the future in order to fully implement our business strategy.

~~The~~In ~~flow~~an ofeffort ~~deposits~~to iscontinue ~~influenced~~our ~~significantly~~investment ~~by general economic conditions, changes~~ in ~~money~~our ~~market~~employees and ~~other~~as ~~prevailing~~part ~~interest rates and competition. The variety~~ of ~~deposit~~the ~~accounts~~conversion, ~~offered~~Home ~~allows~~Federal usSavings ~~to be competitive in obtaining funds~~ and ~~responding~~Loan toAssociation ~~changes~~of inGrand ~~consumer~~Island ~~demand. Based~~established onthe ~~experience,~~Employee weStock ~~believe~~Ownership ~~that~~Plan ~~our~~("ESOP") ~~deposits~~for ~~are~~its ~~relatively stable~~employees. ~~However,~~ ~~the~~Shares ~~ability~~held toin ~~attract~~the ~~and~~ESOP ~~maintain~~will ~~deposits~~be released and ~~the~~allocated ~~rates~~to ~~paid~~employees on ~~these~~an ~~deposits,~~annual ~~has~~basis ~~been~~based ~~and~~on ~~will~~the ~~continue~~ratio toof beeach ~~significantly~~such ~~affected~~participant's byannual ~~market conditions~~compensation.

~~The~~FEDERAL ~~following~~AND ~~table~~STATE ~~sets forth the distribution of total deposits, by account type, at the dates presented.~~TAXATION

	At March 31, 2024								At March 31, 2023
	Amount		Percent			AverageRate			Amount		Percent			AverageRate
	(Dollars in thousands)
Non-interest bearing demand	$	66,891		17.83	%		—	%	$	73,248		18.74	%		—	%
Savings accounts		43,461		11.59			0.37	%		49,844		12.75			0.14	%
Money market accounts		24,287		6.47			2.07	%		24,887		6.37			0.74	%
NOW accounts		127,077		33.88			1.58	%		157,337		40.24			0.76	%
Certificates of deposit		95,266		25.39			3.93	%		70,187		17.95			1.65	%
Individual retirement accounts		18,163		4.84			2.97	%		15,449		3.95			1.44	%
Total	$	375,145		100.00	%		2.24	%	$	390,952		100.00	%		0.81	%

Federal Taxation

AsGeneral. Central ofPlains ~~March~~Bancshares ~~31, 2024~~ and ~~2023,~~Home ~~the~~Federal ~~aggregate~~Savings ~~amount~~are ofsubject ~~uninsured deposits (deposits in amounts greater than or equal~~ to ~~$250,000,~~federal ~~which~~income istaxation ~~generally~~in the ~~maximum~~same ~~amount~~general ~~for~~manner ~~federal~~as ~~deposit~~other ~~insurance)~~corporations, ~~was~~with ~~$34.3~~some ~~million~~exceptions ~~and~~discussed ~~$59~~below.~~2 million, respectively.~~ InThe ~~addition,~~following asdiscussion of ~~March~~federal ~~31,~~taxation ~~2024,~~is ~~the~~intended ~~aggregate~~only ~~amount~~to ofsummarize ~~all~~material ~~our~~federal ~~uninsured~~income ~~certificates~~tax ofmatters ~~deposit~~and ~~was~~is ~~$5.6~~not ~~million. We~~a ~~have~~comprehensive nodescription ~~deposits~~of ~~that~~the ~~are~~tax ~~uninsured~~rules ~~for~~applicable ~~any~~to ~~reason~~Central ~~other~~Plains ~~than~~Bancshares ~~being~~and inHome ~~excess~~Federal ~~of the maximum amount for federal deposit insurance~~Savings.

AtMethod ~~March~~of ~~31,~~Accounting. For ~~2024,~~federal weincome ~~had~~tax ~~approximately~~purposes, ~~151~~we ~~depositors~~currently ~~with~~report ~~uninsured~~our ~~deposits,~~income ~~resulting~~and inexpenses anon ~~average~~the ~~balance~~accrual method of ~~uninsured~~accounting ~~deposits~~and ofuse ~~$227,000~~a ~~per~~tax ~~uninsured~~year ~~depositor. Of~~ending ~~total~~March ~~uninsured~~31 ~~deposits~~for asfiling ofour ~~March~~federal ~~31,~~income ~~2024,~~tax ~~$18~~returns.4 The ~~million,~~Small orBusiness ~~53.77%,~~Protection ~~consisted~~Act of ~~NOW~~1996 ~~accounts,~~eliminated ~~$2.1~~the ~~million,~~use orof ~~6.02%,~~the ~~consisted~~reserve method of ~~savings~~accounting ~~accounts,~~for ~~$5.6~~bad ~~million,~~debt orreserves ~~16.23%,~~by ~~consisted~~savings ofinstitutions ~~certificates~~considered of“large ~~deposit~~banks,” ~~including~~effective ~~IRAs,~~for ~~$3.0~~taxable ~~million,~~years orbeginning 8after 1995.~~85%~~ Home ~~consisted~~Federal ofSavings ~~money~~is ~~market~~considered ~~accounts~~a “small bank” and ~~$5.2~~therefore ~~million,~~continues orto ~~15.13%,~~use ~~consisted~~the reserve method of ~~non-interest~~accounting ~~bearing~~for ~~demand~~bad ~~accounts~~debt reserves.

Minimum Tax. The ~~following~~alternative ~~table~~minimum ~~sets~~tax ~~forth~~(“AMT”) ~~the~~for ~~maturity~~corporations ofhas ~~our~~been ~~uninsured~~repealed ~~certificates~~for oftax ~~deposit~~years asbeginning after December 31, 2017. Any unused minimum tax credit of a corporation may be used to offset regular tax liability for any tax year. At March 31, ~~2024~~2025 we had no minimum tax credit carryforward.

	At March 31, 2024
	(Dollars in thousands)
Maturity Period:
Three months or less	$	1,110
Over three through six months		2,488
Over six through twelve months		1,976
Over twelve months		—
Total	$	5,574

Net Operating Loss Carryovers. Generally, a corporation may carry forward net operating losses generated in tax years beginning after December 31, 2017 indefinitely and can offset up to 80% of taxable income. Generally, net operating losses that existed prior to December 31, 2017 were required to be carried back to the two preceding years, with any excess carried over to the succeeding 20 tax years. Such losses can offset up to 100% of taxable income subject to Internal Revenue Code Section 382 limitation. At March 31, 2025, we had $1.6 million of pre-2018 net operating loss carry forward limited to utilization of $167,000 per tax year under Internal Revenue Code Section 382.

~~Borrowings~~Capital Loss Carryovers. WeGenerally, ~~may~~a ~~obtain~~corporation ~~advances~~may ~~from~~carry ~~the~~back ~~Federal~~capital ~~Home~~losses ~~Loan~~to ~~Bank of Topeka upon~~ the ~~security~~preceding ofthree ~~our~~taxable ~~capital~~years ~~stock in it~~ and ~~our~~forward ~~one-~~ to ~~four-family~~the ~~residential~~succeeding ~~real~~five ~~estate~~taxable ~~portfolio~~years. WeAny ~~may~~capital ~~utilize~~loss ~~these~~carryback ~~advances~~or ~~for~~carryover ~~asset/liability~~is ~~management~~treated ~~purposes~~as ~~and~~a ~~for~~short-term ~~additional~~capital ~~funding~~loss for ~~our~~the ~~operations. Such~~year ~~advances~~to ~~may be made under several different credit programs, each of~~ which ~~has~~it ~~its~~is ~~own interest rate and range of maturities~~carried. AtAs ~~March 31~~such, ~~2024,~~it weis ~~had~~grouped nowith ~~outstanding~~any ~~advances~~other ~~from~~capital ~~the~~losses ~~Federal~~for ~~Home~~the ~~Loan~~year ~~Bank~~to ofwhich ~~Topeka. At~~carried ~~March 31, 2024, based on pledged collateral~~ and ~~our~~is ~~ownership~~used ~~of Federal Home Loan Bank of Topeka common stock, we had access~~ to upoffset toany ~~$40.1~~capital ~~million of advances from the Federal Home Loan Bank of Topeka~~gains. WeAny ~~could~~undeducted ~~significantly~~loss ~~increase~~remaining ~~our~~after ~~borrowing capacity from~~ the ~~Federal~~five-year ~~Home~~carryover ~~Loan~~period ~~Bank~~is ofnot ~~Topeka if we pledged additional assets as security~~deductible. AsAt of March 31, ~~2024~~2025, we had ano ~~$5.0~~capital ~~million~~loss ~~borrowing line from a private bankers’ bank, and we also have the ability to participate in the Federal Reserve Board’s Bank Term Funding Program if needed~~carryovers.

~~Subsidiary~~Corporate ~~Activities~~Dividends. Central Plains Bancshares may generally exclude from income 100% of dividends received from Home Federal Savings as a member of the same affiliated group of corporations.

~~Home~~Audit ~~Federal~~of ~~Savings’~~Tax ~~only~~Returns. Our ~~subsidiary~~federal isincome ~~First~~tax ~~Service~~returns ~~Corporation,~~have anot ~~Nebraska~~been ~~corporation~~audited ~~that~~in ~~provides~~the ~~insurance~~most ~~services~~recent ~~directly and sells securities through a third~~five-~~party~~year ~~arrangement~~period.

~~Employees~~State Taxation

AtWe ~~March~~are ~~31,~~subject ~~2024~~to Nebraska state taxation. Under Nebraska law, Home Federal Savings pays a financial institution tax that we ~~had~~classify 71as ~~full-time~~a ~~employees~~franchise tax in lieu of a corporate income tax. The franchise tax is the lesser of two amounts computed based on our quarterly average deposits and ~~four~~net ~~part-time~~financial ~~employees~~income, respectively. ~~Our~~ ~~employees~~Presently, ~~are~~the tax is $0.35 per $1,000 of quarterly average deposits not ~~represented~~to exceed an amount determined by applying 2.85% to our net financial income. Net financial income is our income after ordinary and necessary expenses but before income taxes as reported to the OCC. In addition, Central Plains Bancshares is required to file a ~~collective~~Nebraska ~~bargaining~~income ~~group~~tax return. ~~Management~~ ~~believes~~For ~~that~~Nebraska wetax ~~have~~purposes, corporations are presently taxed at a ~~good~~rate ~~working~~equal ~~relationship~~to ~~with~~5.58% ~~our~~of ~~employees~~the first $100,000 of taxable income and 5.84% of taxable income in excess of $100,000. For this purpose, “taxable income” generally means Federal

Table of Contents

~~FEDERAL~~taxable ~~AND~~income, ~~STATE~~subject ~~TAXATION~~to certain adjustments (including addition of interest income on non-Nebraska municipal obligations and excluding interest income from qualified U.S. governmental obligations). For Nebraska tax return purposes, taxable income on the return filed for Central Plains Bancshares is determined without regard to the taxable income of Home Federal Savings as Home Federal Savings files separate Nebraska financial institution tax returns.

~~Federal~~Other ~~Taxation~~applicable state taxes include sales and use taxes and real and personal property taxes.

~~General. Central~~Our ~~Plains~~state ~~Bancshares and Home Federal Savings are subject to federal~~ income ~~taxation in the same general manner as other corporations, with some exceptions discussed below. The following discussion of federal taxation is intended only to summarize material federal income~~ tax ~~matters~~returns ~~and~~have is not abeen ~~comprehensive~~audited ~~description~~in of the ~~tax~~most ~~rules~~recent ~~applicable~~five-year ~~to Central Plains Bancshares and Home Federal Savings~~period.

~~Method~~As ofa ~~Accounting. For~~Maryland ~~federal~~business ~~income tax purposes~~corporation, weCentral ~~currently~~Plains ~~report~~Bancshares ~~our~~is ~~income~~required ~~and~~to ~~expenses~~file onan ~~the~~annual ~~accrual~~report ~~method~~with ~~of accounting~~ and ~~use~~pay apersonal ~~tax~~property ~~year~~taxes ending March 31 for filing our federal income tax returns. The Small Business Protection Act of 1996 eliminated the use of the reserve method of accounting for bad debt reserves by savings institutions considered “large banks,” effective for taxable years beginning after 1995. Home Federal Savings is considered a “small bank” and therefore continues to ~~use~~ the ~~reserve~~State ~~method~~ of ~~accounting for bad debt reserves~~Maryland.

~~Minimum~~SUPERVISION ~~Tax. The~~AND alternative minimum tax (“AMT”) for corporations has been repealed for tax years beginning after December 31, 2017. Any unused minimum tax credit of a corporation may be used to offset regular tax liability for any tax year. At March 31, 2024 we had no minimum tax credit carryforward.REGULATION

Net Operating Loss Carryovers. Generally, a corporation may carry forward net operating losses generated in tax years beginning after December 31, 2017 indefinitely and can offset up to 80% of taxable income. Generally, net operating losses that existed prior to December 31, 2017 were required to be carried back to the two preceding years, with any excess carried over to the succeeding 20 tax years. Such losses can offset up to 100% of taxable income subject to Internal Revenue Code Section 382 limitation. At March 31, 2024, we had $1.8 million of pre-2018 net operating loss carry forward limited to utilization of $167,000 per tax year under Internal Revenue Code Section 382.General

~~Capital~~As ~~Loss~~a ~~Carryovers. Generally,~~federal asavings ~~corporation~~association, ~~may~~Home ~~carry~~Federal ~~back~~Savings ~~capital~~is ~~losses~~subject to ~~the~~examination ~~preceding~~and ~~three~~regulation ~~taxable~~by ~~years~~the OCC and ~~forward~~is also subject to examination by the ~~succeeding~~FDIC ~~five~~as ~~taxable~~the ~~years. Any~~insurer ~~capital~~of ~~loss~~its ~~carryback~~deposit oraccounts. ~~carryover~~This isregulation ~~treated~~and assupervision establishes a ~~short-term~~comprehensive ~~capital~~framework ~~loss~~of ~~for~~activities ~~the~~in ~~year~~which toan ~~which~~institution itmay engage and is ~~carried. As~~intended ~~such,~~primarily itfor isthe ~~grouped~~protection ~~with~~of ~~any~~the ~~other~~FDIC’s ~~capital~~deposit ~~losses~~insurance fund and depositors, and not for the ~~year~~protection toof ~~which~~security ~~carried~~holders. Home ~~and~~Federal Savings also is ~~used~~a tomember ~~offset~~of ~~any~~and ~~capital~~owns ~~gains.~~stock ~~Any~~in ~~undeducted~~the ~~loss~~Federal ~~remaining~~Home ~~after~~Loan ~~the~~Bank ~~five-year~~of ~~carryover~~Topeka, ~~period~~which is ~~not~~one ~~deductible. At~~of ~~March~~the ~~31,~~11 ~~2024,~~regional webanks ~~had~~in nothe ~~capital~~Federal ~~loss~~Home ~~carryovers~~Loan Bank System.

~~Corporate~~Under ~~Dividends~~this system of regulation, the regulatory authorities have extensive discretion in connection with their supervisory, enforcement, rulemaking and examination activities and policies, including rules or policies that: establish minimum capital levels; restrict the timing and amount of dividend payments; govern the classification of assets; determine the adequacy of loan loss reserves for regulatory purposes; and establish the timing and amounts of assessments and fees. ~~Central~~Moreover, ~~Plains~~as ~~Bancshares~~part ~~may~~of ~~generally~~their ~~exclude~~examination ~~from~~authority, ~~income~~the ~~100%~~banking regulators assign numerical ratings to banks and savings institutions relating to capital, asset quality, management, liquidity, earnings and other factors. The receipt of ~~dividends~~a ~~received~~less ~~from~~than satisfactory rating in one or more categories may result in enforcement action by the banking regulators against a financial institution. A less than satisfactory rating may also prevent a financial institution, such as Home Federal Savings asor aits ~~member~~holding ofcompany, from obtaining necessary regulatory approvals to access the ~~same~~capital ~~affiliated~~markets, ~~group~~pay ofdividends, ~~corporations~~acquire other financial institutions or establish new branches.

~~Audit~~In ofaddition, ~~Tax~~we ~~Returns~~must comply with significant anti-money laundering and anti-terrorism laws and regulations, Community Reinvestment Act laws and regulations, and fair lending laws and regulations. ~~Our~~Government ~~federal~~agencies ~~income~~have ~~tax~~the ~~returns~~authority ~~have~~to ~~not~~impose ~~been~~monetary ~~audited~~penalties inand ~~the~~other ~~most~~sanctions ~~recent~~on ~~five-year~~institutions ~~period~~that fail to comply with these laws and regulations, which could significantly affect our business activities, including our ability to acquire other financial institutions or expand our branch network.

~~State~~Central ~~Taxation~~Plains Bancshares is a savings and loan holding company and is required to comply with the rules and regulations of the Federal Reserve Board. It is required to file certain reports with the Federal Reserve Board and is subject to examination by the enforcement authority of the Federal Reserve Board. Central Plains Bancshares is also subject to the rules and regulations of the Securities and Exchange Commission under the federal securities laws.

WeAny ~~are~~change ~~subject~~in toapplicable ~~Nebraska~~laws ~~state~~or ~~taxation. Under Nebraska law~~regulations, ~~Home~~whether ~~Federal~~by ~~Savings pays a financial institution tax that we classify as a franchise tax in lieu of a corporate income tax. The franchise tax is~~ the ~~lesser of two amounts computed based on our quarterly average deposits and net financial income~~OCC, ~~respectively.~~the ~~Presently~~FDIC, the ~~tax~~Federal isReserve ~~$0.44 per $1~~Board,~~000~~ ofthe ~~quarterly~~Securities ~~average deposits not to exceed an amount determined by applying 3.54% to our net financial income. Net financial income is our income after ordinary~~ and ~~necessary~~Exchange ~~expenses~~Commission ~~but~~or ~~before income taxes as reported to the OCC. In addition~~Congress, ~~Central~~could ~~Plains~~have ~~Bancshares is required to file~~ a ~~Nebraska~~material ~~income~~adverse ~~tax~~impact ~~return.~~on ~~For Nebraska tax purposes, corporations are presently taxed at a rate equal to 5.58% of~~ the ~~first~~operations ~~$100,000 of taxable income~~ and ~~7.25%~~financial ofperformance ~~taxable income in excess~~ of $100,000. For this purpose, “taxable income” generally means Federal taxable income, subject to certain adjustments (including addition of interest income on non-Nebraska municipal obligations and excluding interest income from qualified U.S. governmental obligations). For Nebraska tax return purposes, taxable income on the return filed for Central Plains Bancshares isand ~~determined without regard to the taxable income of~~ Home Federal Savings ~~as Home Federal Savings files separate Nebraska financial institution tax returns~~.

~~Other~~Set forth below is a brief description of material regulatory requirements that are or will be applicable ~~state~~to ~~taxes~~Home ~~include~~Federal ~~sales~~Savings and ~~use~~Central ~~taxes~~Plains Bancshares. The description is limited to certain material aspects of the statutes and ~~real~~regulations addressed and ~~personal~~is ~~property~~not ~~taxes~~intended to be a complete description of such statutes and regulations and their effects on Home Federal Savings and Central Plains Bancshares.

~~Our~~Federal ~~state~~Banking ~~income~~Regulation ~~tax returns have not been audited in the most recent five-year period.~~

AsBusiness aActivities. A ~~Maryland~~federal ~~business~~savings ~~corporation~~association derives its lending and investment powers from the Home Owners’ Loan Act, ~~Central~~as ~~Plains~~amended, ~~Bancshares~~and isapplicable ~~required~~federal toregulations. Under ~~file~~these anlaws ~~annual~~and ~~report~~regulations, ~~with~~Home Federal Savings may invest in mortgage loans secured by residential and ~~pay~~commercial ~~personal~~real ~~property~~estate, ~~taxes~~commercial toand ~~the~~industrial ~~State~~and consumer loans, certain types of ~~Maryland~~debt securities and certain other assets, subject to applicable limits. Home Federal Savings may also establish subsidiaries that may engage in certain

Table of Contents

~~SUPERVISION~~activities ~~AND~~not ~~REGULATION~~otherwise permissible for Home Federal Savings to engage in directly, including real estate investment and securities and insurance brokerage.

~~General~~Capital Requirements. Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-weighted assets ratio of 4.5%, a Tier 1 capital to risk-weighted assets ratio of 6.0%, a total capital to risk-weighted assets of 8.0%, and a 4.0% Tier 1 capital to adjusted average total assets leverage ratio.

AsCommon aequity ~~federal~~Tier ~~savings~~1 ~~association,~~capital ~~Home~~is ~~Federal~~generally ~~Savings~~defined isas ~~subject~~common tostockholders’ ~~examination~~equity and ~~regulation~~retained byearnings. Tier ~~the~~1 ~~OCC~~capital is generally defined as common equity Tier 1 and isadditional ~~also~~Tier ~~subject~~1 tocapital. Additional ~~examination~~Tier by1 ~~the~~capital ~~FDIC~~includes ascertain ~~the~~noncumulative ~~insurer~~perpetual ofpreferred ~~its~~stock ~~deposit~~and related surplus and minority interests in equity accounts of consolidated subsidiaries. Total ~~This~~capital ~~regulation~~includes Tier 1 capital (common equity Tier 1 capital plus additional Tier 1 capital) and ~~supervision~~Tier ~~establishes~~2 acapital. Tier ~~comprehensive~~2 ~~framework~~capital is comprised of ~~activities~~capital ininstruments ~~which~~and anrelated ~~institution~~surplus, meeting specified requirements, and may ~~engage~~include cumulative preferred stock and long-term perpetual preferred stock, mandatory convertible securities, intermediate preferred stock and subordinated debt. Also included in Tier 2 capital is ~~intended~~the ~~primarily~~allowance for ~~the~~credit ~~protection~~losses limited to a maximum of 1.25% of risk-weighted assets and, for institutions that have exercised an opt-out election regarding the ~~FDIC’s~~treatment ~~deposit~~of ~~insurance~~Accumulated ~~fund~~Other ~~and~~Comprehensive ~~depositors~~Income (“AOCI”), ~~and~~up ~~not~~to 45% of net unrealized gains on available-for-sale ~~the~~equity ~~protection~~securities ofwith ~~security~~readily ~~holders~~determinable fair market values. ~~Home~~Institutions ~~Federal~~that ~~Savings~~have ~~also~~not isexercised athe ~~member~~AOCI ofopt-out have AOCI incorporated into common equity Tier 1 capital (including unrealized gains and ~~owns~~losses ~~stock~~on inavailable-for-sale-securities). ~~the~~Home Federal ~~Home~~Savings ~~Loan~~exercised ~~Bank~~its ofAOCI ~~Topeka,~~opt-out ~~which~~election. Calculation isof ~~one~~all types of ~~the~~regulatory 11capital ~~regional~~is ~~banks~~subject into ~~the~~deductions ~~Federal~~and ~~Home~~adjustments ~~Loan~~specified ~~Bank~~in ~~System~~the regulations.

~~Under~~In ~~this~~determining ~~system of regulation,~~ the ~~regulatory~~amount ~~authorities~~of ~~have~~risk-weighted ~~extensive~~assets ~~discretion~~for inpurposes ~~connection~~of ~~with~~calculating ~~their~~risk-based ~~supervisory,~~capital ~~enforcement~~ratios, ~~rulemaking~~all ~~and examination activities and policies~~assets, including ~~rules~~certain oroff-balance ~~policies~~sheet ~~that:~~assets ~~establish~~(e.g., ~~minimum~~recourse ~~capital~~obligations, ~~levels;~~direct ~~restrict~~credit ~~the~~substitutes, ~~timing~~residual ~~and~~interests) ~~amount~~are ofmultiplied ~~dividend~~by ~~payments;~~a ~~govern~~risk ~~the~~weight ~~classification~~factor ofassigned ~~assets;~~by ~~determine~~ the ~~adequacy~~regulations ofbased ~~loan~~on ~~loss~~the ~~reserves~~risks ~~for~~believed ~~regulatory~~inherent ~~purposes;~~in ~~and establish~~ the ~~timing~~type ~~and amounts~~ of ~~assessments and fees~~asset. ~~Moreover,~~Higher aslevels ~~part~~ of ~~their~~capital ~~examination~~are ~~authority,~~required ~~the~~for ~~banking~~asset ~~regulators~~categories ~~assign~~believed ~~numerical ratings~~ to ~~banks~~present ~~and~~greater ~~savings~~risk. For ~~institutions~~example, ~~relating~~a torisk ~~capital,~~weight ~~asset~~of ~~quality,~~0% ~~management,~~is ~~liquidity,~~assigned ~~earnings~~to cash and ~~other factors~~U. ~~The~~S. ~~receipt~~government ofsecurities, a ~~less~~risk ~~than~~weight ~~satisfactory~~of ~~rating~~50% inis ~~one~~generally orassigned ~~more~~to ~~categories~~prudently ~~may~~underwritten ~~result~~first inlien ~~enforcement~~one- ~~action~~to byfour-family ~~the~~residential ~~banking~~real ~~regulators~~estate ~~against~~loans, a ~~financial~~risk ~~institution. A~~weight ~~less~~of ~~than~~100% ~~satisfactory~~is ~~rating~~assigned ~~may~~to ~~also~~commercial ~~prevent~~and consumer loans, a ~~financial~~risk ~~institution,~~weight ~~such~~of as150% ~~Home~~is ~~Federal~~assigned ~~Savings~~to orcertain ~~its~~past ~~holding~~due ~~company,~~loans ~~from~~and ~~obtaining~~a ~~necessary~~risk ~~regulatory~~weight ~~approvals~~of tobetween ~~access~~0% ~~the~~to ~~capital~~600% ~~markets,~~is ~~pay~~assigned ~~dividends,~~to ~~acquire~~permissible ~~other~~equity ~~financial~~interests, ~~institutions~~depending oron ~~establish~~certain ~~new~~specified ~~branches~~factors.

In addition, weto ~~must~~establishing ~~comply~~the ~~with~~minimum ~~significant~~regulatory ~~anti-money~~capital ~~laundering and anti-terrorism laws and regulations~~requirements, ~~Community~~the ~~Reinvestment Act laws and~~ regulations, ~~and~~limit ~~fair~~capital ~~lending~~distributions ~~laws~~ and ~~regulations. Government~~certain ~~agencies~~discretionary ~~have~~bonus ~~the~~payments ~~authority~~ to ~~impose~~management ~~monetary~~if ~~penalties~~the ~~and~~institution ~~other~~does ~~sanctions~~not onhold ~~institutions~~a ~~that~~“capital ~~fail~~conservation tobuffer” ~~comply~~consisting ~~with~~of ~~these~~2.5% ~~laws~~of ~~and~~common ~~regulations,~~equity ~~which~~Tier ~~could~~1 ~~significantly~~capital ~~affect~~to ~~our~~risk-weighted ~~business~~assets ~~activities,~~above ~~including~~the ~~our~~amount ~~ability~~necessary to ~~acquire~~meet ~~other~~its ~~financial~~minimum ~~institutions~~risk-based orcapital ~~expand our branch network~~requirements.

~~Central~~The ~~Plains~~federal ~~Bancshares~~banking isagencies have developed a ~~savings~~“Community ~~and~~Bank ~~loan~~Leverage ~~holding~~Ratio” ~~company~~(the ~~and~~ratio isof ~~required~~Tier 1 capital to ~~comply~~average ~~with~~total ~~the~~consolidated ~~rules~~assets) ~~and~~for ~~regulations~~financial institutions with assets of ~~the~~less ~~Federal~~than ~~Reserve~~$10 ~~Board~~billion that meet certain qualifying criteria. ItA “qualifying community bank” that exceeds this ratio is ~~required~~deemed to ~~file~~be ~~certain~~compliant ~~reports~~ with ~~the~~all ~~Federal~~other ~~Reserve~~capital ~~Board~~requirements, ~~and~~including isthe ~~subject~~capital requirements to ~~examination~~be byconsidered ~~the~~“well ~~enforcement~~capitalized” ~~authority~~under ofPrompt ~~the~~Corrective ~~Federal~~Action ~~Reserve Board~~statutes. The ~~Central~~federal ~~Plains~~banking ~~Bancshares~~agencies ishave ~~also~~set ~~subject~~the tominimum ~~the~~Community ~~rules~~Bank ~~and~~Leverage ~~regulations~~Ratio ofat ~~the~~9%. ~~Securities~~Home ~~and~~Federal ~~Exchange~~Savings ~~Commission~~has ~~under~~not elected to be subject to the ~~federal~~Community ~~securities~~Bank ~~laws~~Leverage Ratio framework.

~~Any~~Loans-to-One ~~change~~Borrower. Generally, ina ~~applicable~~federal ~~laws~~savings association may not make a loan or ~~regulations,~~extend ~~whether~~credit byto ~~the~~a ~~OCC,~~single ~~the~~or ~~FDIC,~~related ~~the~~group ~~Federal~~of ~~Reserve~~borrowers ~~Board,~~in ~~the~~excess ~~Securities~~of 15% of capital and ~~Exchange~~surplus. An ~~Commission~~additional oramount ~~Congress~~may be loaned, ~~could~~equal ~~have~~to a10% ~~material~~of ~~adverse~~capital ~~impact~~and onsurplus, if the ~~operations~~loan ~~and~~is ~~financial~~secured ~~performance~~by ofreadily ~~Central~~marketable ~~Plains~~collateral, ~~Bancshares~~which ~~and~~generally does not include real estate. At March 31, 2025, Home Federal Savings complied with the loans-to-one borrower limitations.

~~Set~~Qualified ~~forth~~Thrift ~~below~~Lender isTest. As a ~~brief~~federal ~~description~~savings ofassociation, ~~material~~Home ~~regulatory~~Federal ~~requirements~~Savings ~~that~~must ~~are~~satisfy the qualified thrift lender, or ~~will~~“QTL,” betest. Under ~~applicable~~the toQTL ~~Home~~test, ~~Federal~~it ~~Savings~~must maintain at least 65% of its “portfolio assets” in “qualified thrift investments” (primarily residential mortgages and ~~Central~~related ~~Plains~~investments, ~~Bancshares. The~~including ~~description~~mortgage-backed issecurities) ~~limited~~in toat ~~certain~~least ~~material~~nine ~~aspects~~months of the ~~statutes~~most ~~and~~recent ~~regulations~~12-month ~~addressed~~period. ~~and~~“Portfolio isassets” ~~not~~generally ~~intended~~means tototal beassets of a ~~complete~~savings ~~description~~association, less the sum of ~~such~~specified ~~statutes~~liquid assets up to 20% of total assets, goodwill and ~~regulations~~other intangible assets, and ~~their~~the ~~effects~~value onof ~~Home~~property ~~Federal~~used ~~Savings~~in ~~and~~the ~~Central~~conduct ~~Plains~~of ~~Bancshares~~the savings association’s business.

Home Federal ~~Banking~~Savings ~~Regulation~~also may satisfy the QTL test by qualifying as a “domestic building and loan association” as defined in the Internal Revenue Code of 1986, as amended. This test generally requires a savings association to have at least 75% of its deposits

Business Activities. A federal savings association derives its lending and investment powers from the Home Owners’ Loan Act, as amended, and applicable federal regulations. Under these laws and regulations, Home Federal Savings may invest in mortgage loans secured by residential and commercial real estate, commercial and industrial and consumer loans, certain types of debt securities and certain other assets, subject to applicable limits. Home Federal Savings may also establish subsidiaries that may engage in certain activities not otherwise permissible for Home Federal Savings to engage in directly, including real estate investment and securities and insurance brokerage.17

~~Capital~~Table ~~Requirements. Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-weighted assets ratio~~ of ~~4.5%, a Tier 1 capital to risk-weighted assets ratio of 6.0%, a total capital to risk-weighted assets of 8.0%, and a 4.0% Tier 1 capital to adjusted average total assets leverage ratio.~~Contents

~~Common~~held ~~equity~~by ~~Tier~~the 1public ~~capital is generally defined as common stockholders’ equity~~ and ~~retained~~earn ~~earnings. Tier~~at 1least ~~capital~~25% isof ~~generally~~its ~~defined~~income asfrom ~~common~~loans ~~equity Tier 1~~ and ~~additional Tier 1 capital~~U. ~~Additional Tier 1 capital includes certain noncumulative perpetual preferred stock and related surplus and minority interests in equity accounts of consolidated subsidiaries~~S. ~~Total~~ ~~capital~~government ~~includes Tier 1 capital (common equity Tier 1 capital plus additional Tier 1 capital) and Tier 2 capital~~obligations. ~~Tier~~ ~~2 capital is comprised of capital instruments and related surplus~~Alternatively, ~~meeting~~a ~~specified~~savings ~~requirements,~~association ~~and~~can ~~may~~satisfy ~~include~~this ~~cumulative~~test ~~preferred~~by ~~stock~~maintaining ~~and~~at ~~long-term~~least perpetual preferred stock, mandatory convertible securities, intermediate preferred stock and subordinated debt. Also included in Tier 2 capital is the allowance for loan losses limited to a maximum of 1.2560% of ~~risk-weighted~~its assets ~~and,~~in ~~for instituti~~

Filing Compare · Central Plains Bancshares, Inc.