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 UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549

 FORM 10-K

 (Mark One)

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

 For the fiscal year ended June 30, 2025
 OR

 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: 001-41220

 CFSB Bancorp, Inc.
 (Exact Name of Registrant as Specified in its Charter)

 United States of America

 87-4396534

 (State or other jurisdiction of incorporation or organization)

 (I.R.S. Employer Identification No.)

 15 Beach Street, Quincy, Massachusetts

 02170

 (Address of principal executive offices)

 (Zip Code)

 Registrant's telephone number, including area code: ( 617) 471-0750

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

 Title of each class Trading Symbol(s) Name of each exchange on which registered
 Stock, Par Value $0.01 Common Per Share CFSB The Nasdaq Stock Market, LLC

 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 Section 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

 Emerging growth company

 Non-accelerated filer Smaller reporting 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. Yes No
 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
 The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant, computed by reference to the last sale price at the end of the most recently completed second quarter was $ 17.4 million.
 As of September 18, 2025, the registrant had 6,548,575 shares of common stock, $ 0.01 par value per share, outstanding.

 Page

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity Risk, Management, Strategy and Governance

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accounting Fees and Services

 Item 15.

 Exhibits and Financial Statement Schedules

 Item 16.

 Form 10-K Summary

 Signatures

 This annual report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements include, but are not limited to:
 • statements of our goals, intentions and expectations;

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

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

 • estimates of our risks and future costs and benefits.

 These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not assume any obligation to update any forward-looking statements after the date of this report.
 The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
 • general economic conditions, either nationally or in our market areas, that are worse than expected;

 • changes in the amount of loan or trend in delinquencies and write-offs and changes in the estimates of or the methodology to calculate the adequacy of the allowance for credit losses;

 • failure to complete the proposed merger with Hometown Financial Group, Inc. ("Hometown Financial") or unexpected delays related to the merger or either party's inability to satisfy closing conditions required to complete the merger;

 • failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger;

 • certain restrictions during the pendency of the proposed merger with Hometown Financial that may impact the Company's ability to pursue certain business opportunities or strategic transactions;

 • because of the merger, the diversion of management's attention from ongoing business operations and opportunities;

 • our ability to access cost-effective funding;

 • fluctuations in real estate values and both residential and commercial real estate market conditions;

 • demand for loans and deposits in our market area;

 • our ability to implement and change our business strategy;

 • competition among depository and other financial institutions;

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

 • adverse changes in the securities or secondary mortgage markets;

 • changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements, insurance premiums and changes in the monetary policies of the U. S. Treasury and the Board of Governors of the Federal Reserve System;

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

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

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

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

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

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

 • our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management 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;

 • changes in consumer spending, borrowing and savings habits;

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

 • the current or anticipated impact of military conflict, terrorism or other geopolitical event;

 • our ability to retain key employees;

 • our compensation expense associated with equity allocated or awarded to our employees; and

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

 Because of these and a variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
 Item 1. Business.
 CFSB Bancorp, Inc.
 CFSB Bancorp, Inc. ("CFSB Bancorp" or the "Company") is a federal corporation that was formed in January 2022 to become the savings and loan holding company of Colonial Federal Savings Bank (the "Bank") as part of the mutual holding company reorganization of the Bank. Since its incorporation, other than holding the common stock of the Bank, retaining approximately 50% of the net cash proceeds of the stock offering and making a loan to the employee stock ownership plan (the "ESOP") of the Bank, CFSB Bancorp has not engaged in any other business activities.
 CFSB Bancorp completed its stock offering in connection with the mutual holding company reorganization of the Bank on January 12, 2022. The Company sold 2,804,306 shares of common stock at $10.00 per share for gross proceeds of $28.0 million. In connection with the reorganization, the Company also contributed 130,433 shares of common stock and $250,000 in cash to the Colonial Federal Savings Bank Charitable Foundation and issued 3,586,903 shares of common stock to 15 Beach, MHC, its federally-chartered mutual holding company parent. Shares of the Company's common stock began trading on January 13, 2022 on the Nasdaq Stock Market under the trading symbol "CFSB."
 CFSB Bancorp, as the holding company of the Bank, is authorized to pursue other business activities permitted by applicable laws and regulations, which may include the acquisition of banking and financial services companies. We currently have no agreements to acquire other financial institutions or financial services companies.
 CFSB Bancorp's cash flows will depend on earnings from the investment of the net offering proceeds and from any dividends it receives from the Bank. The Bank is subject to regulatory limitations on the amount of dividends that it may pay. CFSB Bancorp does not own or lease any property, but instead pays the Bank for the use of its premises, furniture, and equipment. We only employ as officers of CFSB Bancorp only persons who are officers of the Bank. However, we will use the support staff of the Bank from time to time. We will pay the Bank for the time the Bank employees devote to CFSB Bancorp; however, these individuals will not be separately compensated by CFSB Bancorp.
 At June 30, 2025, CFSB Bancorp, on a consolidated basis, had total assets of $366.6 million, total deposits of $274.2 million and total equity of $75.7 million. We had a net loss of $265,000 for the year ended June 30, 2025, compared to net income of $33,000 for the year ended June 30, 2024.
 Proposed Merger
 On May 20, 2025, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Hometown Financial Group, MHC ("Hometown MHC"), Hometown Financial, Hometown Financial Acquisition Corp. II ("Merger Sub"). Pursuant to the Merger Agreement, 15 Beach MHC will merge with and into Hometown MHC (the "MHC Merger") with Hometown MHC as the surviving entity. Immediately following the MHC Merger, the Company will merge with Merger Sub (the "Merger") with the Company as the surviving entity. Immediately following the Merger, the Company will merge with and into Hometown (the "Second-Step Merger") with Hometown Financial as the surviving corporation. Immediately following the Second-Step Merger, the Bank will merge with and into North Shore Bank, a wholly owned subsidiary of Hometown Financial, with North Shore Bank as the surviving entity.

 Pursuant to the terms of the Merger Agreement, the Company shareholders will receive $14.25 in cash for each share of the Company's common stock.
 On September 16, 2025, CFSB Bancorp, Inc. (the "Company") held a Special Meeting of Shareholders (the "Special Meeting"). At the close of business on the record date for the Special Meeting, there were 6,548,575 shares of Company common stock outstanding and entitled to vote at the Special Meeting.

 The proposal to approve the Agreement and Plan of Merger, by and among Hometown Financial Group, MHC, Hometown Financial Group, Inc. ("Hometown Financial"), Hometown Financial Acquisition Corp. II ("Merger Sub"), a newly formed wholly-owned subsidiary of Hometown Financial, 15 Beach, MHC and the Company, dated May 20, 2025, pursuant to which (i) the Company will merge with Merger Sub, with the Company as the surviving corporation and a wholly owned subsidiary of Hometown Financial, and (ii) Colonial Federal Savings Bank will merge with and into North Shore Bank, with North Shore Bank as the surviving entity, was approved by the affirmative vote of a majority of the votes cast by shareholders at the Special Meeting.
 15 Beach, MHC
 15 Beach, MHC was formed in January 2022 as a federally-chartered mutual holding company in connection with the reorganization of the Bank into the "two-tier" mutual holding company form of organization. 15 Beach, MHC will, for as long as it is in existence, own a majority of the outstanding shares of CFSB Bancorp's common stock. As a mutual holding company, 15 Beach, MHC is a non-stock company.
 15 Beach, MHC's principal assets are the common stock of CFSB Bancorp it received in the reorganization and offering and $100,000 cash in initial capitalization. Presently, it is expected that the only business activity of 15 Beach, MHC is to own a majority of CFSB Bancorp's common stock. 15 Beach, MHC is authorized, however, to engage in any other business activities that are permissible for mutual holding companies under federal law, including investing in loans and securities. 15 Beach, MHC is subject to comprehensive regulation and examination by the Federal Reserve Board.
 Colonial Federal Savings Bank
 Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential real estate loans and, to a lesser extent, multi-family real estate loans, commercial real estate loans, second mortgage loans, home equity lines of credit and consumer loans. Subject to market conditions, we will continue our focus on growing our balance sheet and improving profitability by continuing to originate one- to four-family residential mortgage loans and emphasizing the origination of multi-family and commercial real estate loans.
 Corporate Information
 Our principal executive offices are located at 15 Beach Street Quincy, Massachusetts, 02170, and our telephone number is (617) 471-0750. Our website address is www.colonialfed.com. The information contained on, or that can be accessed through, our website is not part of, and is not incorporated by reference into this Form 10-K.
 Available Information
 We file annual, quarterly, and current reports, proxy statements and other documents with the SEC under the Exchange Act. The SEC maintains an Internet website that contains reports, proxy and information statements, and other information regarding issuers, including us, that file electronically with the SEC. The public can obtain any documents that we file with the SEC at www.sec.gov. Copies of each of our filings with the SEC can also be viewed and downloaded free of charge at our website, www.colonialfed.com, after the reports and amendments are electronically filed with or furnished to the SEC.
 Market Area
 We conduct our operations from our three full-service banking offices and one limited-service banking office located in Norfolk County, Massachusetts. We consider our primary lending market area to be Norfolk and Plymouth Counties, Massachusetts, however, we occasionally make loans secured by properties located outside of our primary lending market.

 Norfolk County is located directly south of Boston, Massachusetts. The county includes 28 communities, all of which are residential suburbs of Boston. Norfolk County is the wealthiest county in the Commonwealth of Massachusetts and is characterized by a high concentration of white-collar professionals who work in the Boston Metropolitan Statistical Area. According to the United States Census Bureau, the total population of Norfolk County was 740,754 as of July 1, 2024, the most recent date for which data is available.
 According to the United States Census Bureau from 2019 through 2023:
 • The median household income in Norfolk County was $126,497 compared to a median household income for Massachusetts of $101,341 and $80,610 for the United States;

 • The median home value was $649,400, compared to $615,000 for Massachusetts and $398,400 for the United States;

 • Approximately 57.6% of the population of Norfolk County held a bachelor's degree or higher, compared to 50.6% for Massachusetts and 34.9% for the United States; and

 • Approximately 7.7% of the population of Norfolk County had incomes below the poverty level, compared to 11.1% for Massachusetts and 11.7% for the United States.

 Additionally, according to the U.S. Bureau of Labor Statistics, the unemployment rate at June 30, 2025 was 4.9% for Norfolk County, compared to 4.8% for Massachusetts and 4.1% for the United States.
 Competition
 We face significant competition within our market both in making loans and attracting deposits. Our market area has a high concentration of financial institutions, including large money centers and regional banks, community banks and credit unions. Some of our competitors offer products and services that we currently do not offer, such as trust services and private banking. Our competition for loans and deposits comes principally from commercial banks, savings institutions, mortgage banking firms, consumer finance companies and credit unions. We face additional competition for deposits from short-term money market funds, brokerage firms, mutual funds, and insurance companies.
 As of June 30, 2024 (the latest date for which information is available), our market share was 0.80% of total deposits in Norfolk County, Massachusetts, making us the 22nd largest out of 39 banks operating in Norfolk County.
 Lending Activities
 Our principal lending activity is one- to four-family residential real estate loans, and, to a lesser extent, multi-family real estate loans, commercial real estate loans, second mortgage loans, home equity lines of credit and consumer loans. Subject to market conditions and our asset-liability analysis, we expect to increase our focus on the origination of multi-family and commercial real estate loans in an effort to diversify our overall loan portfolio and increase the overall yield earned on our portfolio. We compete by focusing on personalized service for consumers as well as businesses. Due to our structure, we are able to move quickly on customer requests and are able to price competitively compared to our competitors. Our responsiveness has historically enabled us to grow and retain our customer base.

 Loan Portfolio Composition. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated. At June 30, 2025 and 2024, we had no loans held for sale.

 At June 30,

 2025

 2024

 $

 142,252

 79.42

 %

 $

 138,005

 80.06

 %

 9.14

 7.00

 4,195

 2.34

 3,372

 1.96

 7.98

 9.77

 Total mortgage loans on real estate

 177,109

 98.88

 170,276

 98.79

 0.04

 0.04

 1,933

 1.08

 2,037

 1.17

 Total other loans

 2,014

 1.12

 2,102

 1.21

 %

 %

 Less:

 (1,547

)

 (1,553

)

 Net deferred loan fees

 (362

)

 (387

)

 Loans, net

 $

 177,214

 $

 170,438

 The Company adopted ASU 2016-13 on July 1, 2023 with a modified retrospective approach. Accordingly, at June 30, 2025 and June 30, 2024, the allowance for credit losses was determined in accordance with Accounting Standards Codification ("ASC") 326, "Financial Instruments - Credit Losses."
 Contractual Maturities. The following tables set forth the contractual maturities of our loan portfolio at June 30, 2025. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments. Actual maturities may differ.

 Amounts Due in:

 One Year or Less

 More than One to Five Years

 More than Five to Fifteen Years

 More than Fifteen Years

 Total

 $

 $

 2,393

 $

 23,871

 $

 115,909

 $

 142,252

 -

 1,393

 14,823

 -

 3,460

 4,195

 -

 1,338

 12,731

 Total mortgage loans on real estate

 2,805

 30,062

 144,163

 177,109

 -

 1,100

 -

 1,933

 Total other loans

 1,148

 2,014

 $

 $

 3,953

 $

 30,873

 $

 144,190

 $

 Fixed Versus Adjustable-Rate Loans. The following table sets forth our fixed-rate and adjustable-rate loans at June 30, 2025 that are contractually due after June 30, 2026:

 Fixed

 Adjustable

 Total

 $

 135,428

 $

 6,746

 $

 142,174

 2,696

 13,670

 3,141

 1,054

 4,195

 13,861

 Total mortgage loans on real estate

 141,700

 35,331

 177,031

 Home Improvement

 1,911

 -

 1,911

 Total other loans

 1,959

 1,986

 $

 143,659

 $

 35,358

 $

 179,017

 One- to Four-Family Residential Real Estate Lending. Our primary lending activity is the origination of one- to four-family, owner-occupied, residential mortgage loans, virtually all of which are secured by properties located in our market area. At June 30, 2025, one- to four-family residential real estate loans totaled $142.3 million, or 79.4% of our total loan portfolio. The average principal balance of our one- to four-family residential real estate loans was $255,000 at June 30, 2025.
 We currently offer one- to four-family residential real estate loans with terms of up to 30 years. The one- to four-family residential real estate loans that we originate are generally underwritten to Fannie Mae and Freddie Mac guidelines. We currently retain in our portfolio all of the one- to four-family residential real estate loans we originate. We primarily originate fixed-rate one- to four-family residential real estate loans, but, on a much more limited basis, also originate adjustable-rate loans. At June 30, 2025, $135.4 million, or 95.2%, of our one- to four- family residential real estate loans had fixed rates of interest, and $6.7 million, or 4.7%, of our one- to four-family residential real estate loans, had adjustable rates of interest. One- to four-family residential real estate loans often remain outstanding for significantly shorter periods than their contractual terms because borrowers have the right to refinance or prepay their loans. We generally limit the loan-to-value ratios of our mortgage loans to 80% of the sales price or appraised value, whichever is lower.
 Our adjustable-rate one- to four-family residential real estate loans carry terms to maturity ranging from 10 to 30 years and generally have fixed rates for initial terms of one, three or five years, and adjust annually thereafter at a margin, which in recent years has been tied to the one-year constant maturity U.S. Treasury rate. The maximum amount by which the interest rate may be increased or decreased is, subject to a contractual floor (which is generally the initial interest rate on the loan), generally 2% annually, with a lifetime interest rate cap of generally 6% over the initial interest rate of the loan.
 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.
 At June 30, 2025, $15.4 million, or 10.9%, of the one- to four-family residential real estate loan portfolio was secured by non-owner-occupied properties. We generally originate these loans to individuals to whom we have had a previous borrowing relationship. Generally, we require personal guarantees on these properties if the loan is made to an entity other than individual borrowers. We will not make loans in excess of 80% loan-to-value on non-owner- occupied properties.
 We have not offered "interest only" mortgage loans on permanent one- to four-family residential real estate loans (where the borrower pays interest for an initial period, after which the loan converts to a fully amortizing loan). We also have not offered loans that provide for negative amortization of principal, such as "Option ARM" loans, where the borrower can pay less than the interest owed on the loan, resulting in an increased principal balance during the life of the loan. We have not offered "Alt-A" loans (i.e., loans that generally target borrowers with better credit

 scores who borrow with alternative documentation such as little or no verification of income). We also do not originate subprime loans to customers with weakened credit histories.
 We require title insurance on all of our one- to four-family residential real estate mortgage loans, and we also require that borrowers maintain fire and extended coverage casualty insurance (and, if appropriate, flood insurance) in an amount at least equal to the lesser of the loan balance or the replacement cost of the improvements. We do not conduct environmental testing on residential real estate unless specific concerns for hazards are identified in the appraisal conducted in connection with the origination of the loan.
 When underwriting residential real estate loans, we review and verify each loan applicant's employment, income, and credit history and, if applicable, our experience with the borrower. Our policy is to obtain credit reports on all borrowers and guarantors. We also obtain tax returns and financial statements for non-owner-occupied loans. All properties securing residential real estate loans are appraised by independent appraisers.
 Multi-Family and Commercial Real Estate Lending. At June 30, 2025, multi-family real estate loans totaled $16.4 million, or 9.1% of our loan portfolio. Our multi-family real estate loans are generally secured by properties consisting of five or more rental units within our market area. At June 30, 2025, commercial real estate loans totaled $14.3 million, or 8.0% of our portfolio. Our commercial real estate loans are generally secured by office buildings, small retail facilities, mixed-use facilities, and warehouses within our market area. We currently offer multi-family and commercial real estate loans with terms of up to 30 years. We currently retain in our portfolio all the multi-family and commercial real estate loans we originate.
 We primarily originate adjustable-rate multi-family and commercial real estate loans, but we do, on a much more limited basis, originate fixed-rate loans. At June 30, 2025, $13.7 million, or 83.5%, of multi-family real estate loans had adjustable rates of interest, and $2.7 million, or 16.5%, of our multi-family real estate loans, had fixed rates of interest. At June 30, 2025, $13.9 million, or 97.0%, of our commercial real estate loans had adjustable rates of interest, and $435,000, or 3.0%, of our commercial real estate loans, had fixed rates of interest. Interest rates on our adjustable-rate multi-family and commercial real estate loans are generally fixed for the first five years and adjust annually thereafter based on the one-year U.S. Treasury constant maturity rate, plus a margin.
 At June 30, 2025, the average size of our outstanding multi-family real estate loans was $564,000, and our largest multi-family residential real estate loan had an outstanding balance of $1.7 million and is secured by an apartment building located in our primary market area. At June 30, 2025, this loan was performing according to its original terms. At June 30, 2025, the average size of our outstanding commercial real estate loans was $841,000, and our largest commercial real estate loan had an outstanding balance of $4.9 million and is secured by three properties related to an ambulance dispatching and maintenance center located in our primary market area. At June 30, 2025, this loan was performing according to its original terms.
 We consider a number of factors in originating multi-family and commercial real estate loans. We evaluate the qualifications, income level, and financial condition of the borrower, including project-level and global cash flows, credit history, management 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 properties, 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). We generally require a debt service ratio of at least 1.20x. Multi-family and commercial real estate loans have loan-to-value ratios of up to 80% of the appraised value of the property securing the loans. When underwriting multi-family and commercial real estate loans, we review and verify each loan applicant's employment, income and credit history. Our policy is to obtain credit reports, financial statements, and tax returns on all borrowers and guarantors. Generally, all properties securing real estate loans are appraised by independent appraisers. Generally, we require personal guaranties from the principals on the loans.
 Multi-family and commercial real estate loans entail greater credit risks compared to one- to four-family residential real estate loans because they typically involve larger loan balances concentrated with single borrowers or groups of related borrowers. In addition, the payment of loans secured by income-producing properties typically depends on the successful operation of the property, as repayment of the loan generally is dependent, in large part, on sufficient income from the property to cover operating expenses and debt service. Changes in economic conditions affect the value of the collateral for the loan or the future cash flows of the property. Additionally, any decline in real estate values may be more pronounced for commercial real estate than residential properties. If we foreclose on a

 multi-family or commercial real estate loan, the marketing and liquidation period to convert the real estate asset to cash can be lengthy with substantial holding costs. In addition, vacancies, deferred 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 it takes them to return the property to profitability. Depending on the individual circumstances, initial charge-offs and subsequent losses on multi-family and commercial real estate loans can be both unpredictable and substantial.
 Second Mortgage Loans and Home Equity Lines of Credit. At June 30, 2025, second mortgage loans and home equity lines of credit totaled $4.2 million, or 2.3%, of our loan portfolio. Second mortgage loans and home equity lines of credit are multi-purpose loans used to finance various home or personal needs for which a one- to four-family primary or secondary residence serves as collateral. We generally originate home equity lines of credit on owner-occupied properties with adjustable rates of interest based on the prime interest rate published in The Wall Street Journal, plus a margin. We generally originate home equity lines of credit with a maximum loan-to-value ratio of 80% (including the value of the underlying mortgage loan) and with terms of up to 20 years. We originate second mortgage loans on owner-occupied properties with fixed rates of interest. We generally originate these loans with a maximum loan-to-value ratio of 80% (including the value of the underlying mortgage loan) and with terms of up to 15 years.
 The procedures for underwriting these loans include assessing the applicant's payment history on other indebtedness, the applicant's ability to meet existing obligations and payments on the proposed loan, and the loan-to-value ratio. Although the applicant's creditworthiness is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, to the proposed loan amount.
 Consumer Lending. We offer a variety of consumer loans to individuals, including home improvement loans, and new and used automobile loans. At June 30, 2025, our consumer loan portfolio totaled $2.0 million, or 1.1%, of our total loan portfolio, $1.9 million of which were home improvement loans. Home improvement loans are unsecured fixed-rate loans that must be used to improve a one- to four-family residential real estate property with a maximum amount of $25,000 and up to a term of seven years. Automobile loans are made with a term of five years for vehicles that are two years old or less and up to four years for vehicles that are more than two years old. These loans may be originated with loan-to-value ratios of up to 90% of the value of the vehicle.
 Consumer loans generally entail greater risk than one- to four-family residential mortgage loans, particularly in the case of loans that are unsecured or are secured by assets that tend to depreciate in value. As a result, consumer loan collections are primarily dependent on the borrower's continuing financial stability and thus are more likely to be adversely affected by job loss, divorce, illness, or personal bankruptcy. In these cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan, and the remaining value often does not warrant further substantial collection efforts against the borrower.
 Originations, Sales, Participations and Purchases of Loans
 Most of our loan originations are generated by our loan personnel and from referrals from existing customers, real estate brokers, accountants, and other professionals. All loans we originate are underwritten pursuant to our policies and procedures. While we originate both fixed-rate and adjustable-rate loans, our ability to generate each type of loan depends upon relative borrower demand, market conditions, the interest rate environment and pricing levels established by competing banks, thrifts, credit unions, and mortgage banking companies. Our volume of loan originations is influenced significantly by market interest rates, borrower demand and competition and, accordingly, the volume of our loan originations can vary from period to period. We do not sell any of the loans we originate.
 From time to time, we may purchase loan participations in which we are not the lead lender. From time to time, we may also purchase whole loans. In both of these situations, we follow our customary loan underwriting and approval policies. At June 30, 2025, the outstanding balances of our loan participations where we are not the lead lender totaled $1.4 million, or 0.8%, of our loan portfolio, and consisted of four borrower relationships secured by multi-family and commercial real estate located in Connecticut. All such loans were performing in accordance with their original terms. We did not purchase any whole loans during the years ended June 30, 2025 and 2024. We also did not participate out portions of loans during the years ended June 30, 2025 or 2024.
 Loan Approval Procedures and Authority
 Pursuant to federal law, the aggregate amount of loans that the Bank is permitted to make to any one borrower or a group of related borrowers is generally limited to 15% of the Bank's unimpaired capital and surplus (25% if the

 amount in excess of 15% is secured by "readily marketable collateral" or 30% for certain residential development loans). At June 30, 2025, based on the 15% limitation, the Bank's loans-to-one-borrower limit was approximately $9.9 million. On the same date, the Bank had no borrowers with outstanding balances in excess of this amount. At June 30, 2025, our largest loan relationship with one borrower was for $7.1 million and consisted of two loans secured by mixed-use real estate. These loans were performing in accordance with their original terms on that date.
 Our lending is subject to written underwriting standards and origination procedures. Decisions on loan applications are made on the basis of detailed information submitted by the prospective borrower, credit histories that we obtain, and property valuations (consistent with our appraisal policy) prepared by outside independent licensed appraisers approved by our board of directors or internal evaluations, where permitted by regulations.
 The board of directors has granted loan approval authority to a Loan Committee that is comprised of our President and Chief Executive Officer, Treasurer and Chief Operating Officer, Senior Vice President of Retail Lending, Senior Vice President of Financial Markets and Assistant Vice President of Operations. The Loan Committee can approve individual loans up to prescribed limits, depending on the type of loan as follows:
 • For all real estate loans, the approval of two Loan Committee members is required for loans up to $400,000 and the approval of three Loan Committee members (one of which must be our President and Chief Executive Officer) is required for loans between $400,000 and $750,000. Real estate loans greater than $750,000 require the approval of three Loan Committee members (one of which must be our President and Chief Executive Officer) and the board of directors.

 • For consumer loans, the approval of two Loan Committee members is required for loans up to $50,000 and the approval of three Loan Committee members is required for consumer loans greater than $50,000.

 Loans that involve policy exceptions also must be approved by the Loan Committee and ratified by the board of directors.
 Delinquencies and Non-Performing Assets
 Delinquency Procedures. A late notice is sent to a borrower between the 16th and 18th day after a loan is past due. When the loan is 30 days past due, we mail the borrower a letter reminding the borrower of the delinquency and attempt to contact the borrower personally to determine the reason for the delinquency. If necessary, at 45 days past due, additional contact will be made with the borrower, which usually includes an in-person meeting, and the account will be monitored on a regular basis thereafter. The collateral will be inspected between the 30th and 90th day of delinquency. When the loan reaches the 60th day of delinquency, we will send the borrower a letter informing the borrower of their rights and our intent to proceed with further collection efforts, including foreclosure, if the loan default is not cured within 90 days. At the end of the 90-day cure period, a decision will be made whether to begin foreclosure proceedings. Loans are charged off when we believe that the recovery of principal is improbable. A summary report of all loans 30 days or more past due is provided to the board of directors each month.
 Modifications made to Borrowers Experiencing Financial Difficulties ("BEFD"). A loan is classified as a modification to borrowers experiencing financial difficulties if, for economic or legal reasons related to the borrower's financial difficulties, we grant a concession to the borrower that we would not otherwise consider. This usually includes a modification of loan terms, such as a reduction of the interest rate to below market terms, capitalizing past due interest or extending the maturity date and possibly a partial forgiveness of the principal amount due. Interest income on modified loans is accrued after the borrower demonstrates the ability to pay under the modified terms through a sustained period of repayment performance, which is generally six consecutive months. We had no loans classified as BEFD at June 30, 2025 or June 30, 2024.
 The CARES Act, in addition to providing financial assistance to both businesses and consumers, created a forbearance program for federally-backed mortgage loans, protected borrowers from negative credit reporting due to loan accommodations related to the national emergency, and provided financial institutions the option to temporarily suspend certain requirements under U.S. generally accepted accounting principles related to troubled debt restructurings for a limited period of time to account for the effects of COVID-19. The federal banking regulatory agencies also issued guidance encouraging financial institutions to work prudently with borrowers who are, or may be, unable to meet their contractual payment obligations because of the effects of COVID-19. That guidance, with concurrence of the Financial Accounting Standards Board and provisions of the CARES Act, allows modifications made on a good faith basis in response to COVID-19 to borrowers who were generally current with their payments on December 31, 2019, to not be treated as troubled debt restructurings. Modifications may include payment deferrals, fee waivers, extensions of repayment term, or other delays in payment. We worked with our customers affected by

 COVID-19 and accommodated 26 loan modifications totaling $9.5 million, none of which remained on modified payment status at June 30, 2025.
 Delinquent Loans. There were no loans past due more than 30 days at June 30, 2025 or 2024.
 Loans Past Due and Non-performing Assets. Loans are reviewed on a regular basis. Management determines that a loan is non-performing or requires individual evaluation when it is probable at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral dependent. For an individually evaluated loan, the measurement of the loan in the allowance for credit losses is based on the present value of expected future cash flows, except that all collateral-dependent loans are measured for impairment based on the fair value of the collateral. Non-accrual loans are loans for which collectability is questionable and, therefore, interest on such loans will no longer be recognized on an accrual basis. All loans that become 90 days or more delinquent are placed on non-accrual status unless the loan is well secured and is in the process of collection. When loans are placed on non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received on a cash basis or cost recovery method.
 We generally cease accruing interest on our loans when contractual payments of principal or interest have become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Interest received on non-accrual loans generally is applied against principal and is recognized on a cash basis. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt.
 We had no non-performing loans at June 30, 2025 or 2024.
 Real Estate Owned. When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at fair value, less estimated costs to sell. Soon after acquisition, we order a new appraisal, or evaluation when acceptable, to determine the current market value of the property. Any excess of the recorded value of the loan satisfied over the market value of the property is charged against the allowance for credit losses, or, if the existing allowance is inadequate, charged to expense, in either case during the applicable period of such determination. After acquisition, all costs incurred in maintaining the property are expensed. 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. We had no real estate owned at June 30, 2025 or 2024.
 Non-Performing Assets. There were no non-performing assets at June 30, 2025 or 2024.
 Classified Assets. Federal regulations provide for the classification of loans and other assets, such as debt and equity securities considered by the Office of the Comptroller of the Currency (the "OCC") to be of lesser quality, as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. 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 loss reserve 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" by our management.
 When an insured institution classifies problem assets as either substandard or doubtful, it may establish general allowances in an amount deemed prudent by management to cover probable accrued losses in the loan portfolio. General allowances represent loss allowances that have been established to cover probable accrued losses associated with lending activities, but that, unlike specific allowances, have not been allocated to particular 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 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 loss allowances.

 In accordance with our loan policy, we regularly review the problem loans in our portfolio to determine whether any loans require classification in accordance with applicable regulations. Loans are listed on the "watch list" initially because of emerging financial weaknesses even though the loan is currently performing as agreed, or if the loan possesses weaknesses although currently performing. If a loan deteriorates in asset quality, the classification is changed to "special mention," "substandard," "doubtful" or "loss" depending on the circumstances and the evaluation. Generally, loans 90 days or more past due are placed on non-accrual status and classified "substandard." Management reviews the status of each individually evaluated loan on our watch list on a quarterly basis.
 On the basis of this review of our assets, our classified and special mention loans at the dates indicated were as follows:

 At June 30,

 2025

 2024

 $

 1,352

 $

 1,390

 Doubtful

 -

 -

 Loss

 -

 -

 Total classified loans

 $

 1,352

 $

 1,390

 Special mention loans

 $

 -

 $

 -

 The $1.4 million of substandard loans at June 30, 2025 and June 30, 2024, consisted of four residential real estate loans to one borrower, classified due to the borrowers continued inability to show that property operations are sufficient to cover annual debt service. These loans were performing according to their terms at June 30, 2025.

 Allowance for credit losses on loans
 The allowance for credit losses ("ACL") is an estimate of current expected losses within the Company's loan portfolio. The ACL, as reported on our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by loan charge-offs, net of recoveries. Accrued interest receivable on loans was $581,000 at June 30, 2025 and $520,000 at June 30, 2024, and was excluded from the estimate of credit losses.
 The loan loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments, which are disaggregated by call report code. For each of these pools, the Company collects historical loss data, dating back to March 2008, from a selection of peer banks and applies the annual historical loss rate over the estimated remaining average life of the loan portfolio segment. The use of peer banks' historical loss rates is due to the lack of loss history experienced by the Bank. The average remaining life of a loan portfolio segment is adjusted for estimated prepayment and curtailment expectations. The modeling for estimated prepayment speeds and curtailment rates is based on a combination of internal and market estimates. The quantitative component of the ACL on loans is model-based and utilizes a forward-looking macroeconomic forecast. The Company uses a Weighted Average Remaining Maturity ("WARM") method, incorporating historical loss data based on statistically derived economic variable loss drivers, to estimate expected credit losses. This process includes estimates which involve modeling loss projections attributable to existing loan balances, and considers historical experience, current conditions, and future expectations for segments of loans over a reasonable and supportable forecast period. The historical information is collected from a selection of peer banks and is derived from a combination of recessionary and non-recessionary performance periods for which data is available.
 Allowance for credit losses on off-balance sheet credit exposures, including unfunded loan commitments
 The Company maintains a separate allowance for credit losses for off-balance sheet credit exposures, including unfunded loan commitments, which is included in accrued expenses and other liabilities on the balance sheet. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancelable by the Company and applying the loss factors used in the ACL methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No estimate for credit losses is reported for off-balance sheet exposures that are unconditionally cancelable by the Company, such as undrawn amounts under arrangements that may be drawn prior to the cancellation of the agreement. The allowance for credit losses on off-balance sheet credit exposures is adjusted as credit loss expense. Categories of off-balance sheet credit exposures correspond to the loan portfolio segment used for the allowance for credit losses on loans. Management evaluates the need for a reserve on unfunded loan commitments in a manner consistent with loans.
 We will continue to monitor and modify our allowance for credit losses as conditions dictate. No assurances can be given that the level of allowance for credit losses will cover all of the current expected losses on the loans or that future adjustments to the allowance for credit losses will not be necessary if economic and other conditions differ substantially from the economic and other conditions used by management to determine the current level of the allowance for credit losses.
 As an integral part of their examination process, the OCC periodically reviews our allowance for credit losses, and as a result of such reviews, we may have to adjust our allowance for credit losses. However, regulatory agencies are not directly involved in the process of establishing the allowance for credit losses as the process is our responsibility and any increase or decrease in the allowance is the responsibility of management.

 Allowance for Credit Losses. The following table sets forth activity in our allowance for credit losses for the years indicated.

 At or For the Year Ended June 30,

 2025

 2024

 $

 1,547

 $

 1,553

 Total loans outstanding

 Allowance for credit losses to total loans outstanding

 0.86

 %

 0.90

 %

 Non-accrual loans

 $

 -

 $

 -

 Total loans outstanding

 Non-accrual loans to total loans outstanding

 $

 -

 $

 -

 $

 1,547

 $

 1,553

 Non-accrual loans

 -

 -

 Allowance for credit losses to non-accrual loans

 -

 %

 -

 %

 Net charge-offs (recovery) during the period to daily average outstanding loans outstanding

 Residential one-to four- family

 $

 -

 $

 -

 137,968

 137,593

 -

 %

 -

 %

 $

 -

 $

 -

 13,602

 12,463

 -

 %

 -

 %

 $

 -

 $

 -

 3,692

 3,255

 -

 %

 -

 %

 Construction

 $

 -

 $

 -

 -

 -

 -

 %

 -

 %

 Commercial real estate

 $

 -

 $

 -

 15,590

 19,500

 -

 %

 -

 %

 $

 -

 $

 -

 %

 4.35

 %

 $

 -

 $

 -

 1,931

 2,148

 -

 %

 -

 %

 $

 -

 $

 $

 172,859

 $

 175,028

 -

 %

 -

 %

 Allocation of Allowance for Credit Losses. The following table sets forth the allowance for credit losses allocated by loan category and the percent of the allowance in each category to the total allocated allowance at the dates indicated. The allowance for credit losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.

 At June 30,

 2025

 2024

 Percent of Allowance to Total Allowance

 Percent of Loans to Total Loans

 Allowance for Loan Losses

 Percent of Allowance to Total Allowance

 Percent of Loans to Total Loans

 $

 1,028

 66.45

 %

 79.42

 %

 $

 1,043

 67.17

 %

 80.06

 %

 13.45

 9.14

 12.30

 7.00

 3.36

 2.34

 1.16

 1.96

 12.99

 7.98

 15.45

 9.77

 Total real estate

 1,489

 96.25

 %

 98.88

 %

 1,492

 96.08

 %

 98.79

 %

 0.06

 0.04

 0.06

 0.04

 3.69

 1.08

 3.86

 1.17

 Total consumer

 3.75

 %

 1.12

 %

 3.92

 %

 1.21

 %

 Total allocated allowance

 1,547

 %

 %

 1,553

 %

 %

 Unallocated

 -

 -

 -

 -

 Total

 $

 1,547

 %

 $

 1,553

 %

 Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluation. In addition, the OCC, as an integral part of its examination process, periodically review our allowance for credit losses, and as a result of such reviews, we may have to adjust our allowance for credit losses. However, regulatory agencies are not directly involved in establishing the allowance for credit losses as the process is our responsibility and any increase or decrease in the allowance is the responsibility of management. A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings.
 Investment Activities
 The board of directors is responsible for approving and overseeing the investment policy, which is reviewed at least annually by the board. The objectives of our investment policy are to: (1) provide liquidity necessary to meet short- and long-term business needs in accordance with our liquidity policy; (2) maintain a balance of high-quality, diversified investments to minimize risk; (3) provide collateral for pledging requirements; (4) generate a reasonable rate of return within the context of our liquidity and credit risk objectives; (5) help mitigate interest rate risk and (6) take advantage of allowable tax benefits. The board has delegated to our President and Chief Executive Officer the primary responsibility for oversight and implementation of daily investment activities. The President and Chief Executive Officer has appointed the Treasurer and Chief Operating Officer and the Senior Vice President of Financial Markets as investment officers to assist in overseeing our investing activities and strategies. Investment officers may purchase or sell on our behalf up to $2.0 million of individual securities and up to $10.0 million in the aggregate per calendar month. Amounts that exceed those thresholds require the approval of the board of directors. The board of directors reviews the activities of the investment officers at each of its meetings.
 Our current investment policy authorizes us to invest in various types of investment grade investment securities and liquid assets, including U.S. Treasury obligations (up to 55% of our total investment portfolio), securities of various government-sponsored enterprises (up to 55% of our total investment portfolio), corporate debt (up to 45% of our total investment portfolio), mortgage-backed securities (up to 75% of our total investment portfolio), collateralized mortgage obligations (up to 45% of our total investment portfolio), asset-backed securities (up to 10% of our total investment portfolio), municipal obligations (up to 55% of our total investment portfolio), mutual funds (up to 10%

 of our total investment portfolio) and certificates of deposit of federally insured institutions (up to 10% of our total investment portfolio). We do not engage in any investment hedging activities or trading activities, nor do we purchase any high-risk mortgage derivative products, corporate junk bonds, or certain types of structured notes.
 Generally accepted accounting principles require that, at the time of purchase, we designate a debt security as held to maturity ("HTM"), available for sale ("AFS"), or trading, depending on our ability and intent to hold such security. Debt securities designated as available for sale are reported at fair value, while debt securities designated as held to maturity are reported at amortized cost.
 On July 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as Current Expected Credit Losses ("CECL") methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. The Company measures expected credit losses on HTM debt securities on a collective basis by security type and risk rating where available. Any expected credit losses on HTM securities would be presented as an allowance for credit loss.
 In addition, ASC 326 made changes to the accounting for AFS debt securities. The Company measures expected credit losses on AFS debt securities based upon the gain or loss position of the security. If the Company does not expect to recover the entire amortized cost basis of an AFS debt security, an allowance for credit losses would be recorded, with a related charge to earnings, limited by the amount of the fair value of the security less its amortized cost. If the Company intends to sell the AFS debt security or it is more likely than not that the Company will be required to sell the AFS debt security before recovery of its amortized cost basis, the Company recognizes the entire difference between the amortized cost basis of the security and its fair value in earnings. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income.
 At June 30, 2025, our investment portfolio totaled $145.8 million, which consisted of debt obligations, mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored enterprises as well as corporate and municipal bonds. At such date, $145.8 million was designated as held to maturity and $91,000 was designated as available for sale. At June 30, 2025, we did not hold any trading securities. At June 30, 2025, the allowance for credit losses - investments was $204,000. At June 30, 2025, we also owned $704,000 of Federal Home Loan Bank of Boston stock. As a member of the Federal Home Loan Bank of Boston, we are required to purchase stock in the Federal Home Loan Bank of Boston, which is carried at cost and classified as a restricted investment.
 The following table sets forth the amortized cost and fair values of our securities portfolio at the dates indicated.

 At June 30,

 2025

 2024

 $

 $

 $

 $

 $

 $

 $

 $

 Debt obligations

 $

 -

 $

 -

 $

 $

 48,891

 43,806

 4,872

 4,869

 4,462

 4,470

 4,167

 4,162

 2,975

 2,984

 32,515

 41,171

 34,822

 45,998

 50,981

 46,359

 $

 $

 $

 147,143

 $

 133,420

 The following table sets forth the weighted average yield for each range of contractual maturities of available for sale securities and held to maturity securities portfolios at June 30, 2025. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yields in the table below have been calculated based on the amortized cost of the security. Yields on tax-exempt obligations have not been computed on a tax-exempt basis.

 Within 1 Year

 After 1 Year Through 5 Years

 After 5 Years Through 10 Years

 Over 10 Years

 Total

 $

 -

 -

 $

 4.91

 %

 $

 5.59

 %

 $

 4.67

 %

 $

 5.42

 %

 $

 -

 -

 $

 4.91

 %

 $

 5.59

 %

 $

 4.67

 %

 $

 5.42

 %

 $

 3.42

 %

 $

 3,059

 2.71

 %

 $

 12,497

 2.21

 %

 $

 34,649

 4.42

 %

 $

 3.77

 %

 -

 -

 3,414

 4.98

 %

 1,458

 5.12

 %

 -

 -

 4,872

 5.02

 %

 -

 -

 4.89

 %

 3,193

 5.05

 %

 -

 -

 4,167

 5.01

 %

 3.42

 %

 8,169

 3.29

 %

 14,630

 2.78

 %

 14,747

 2.27

 %

 2.70

 %

 2,500

 2.56

 %

 39,512

 2.63

 %

 5,052

 3.02

 %

 1,679

 2.47

 %

 2.66

 %

 $

 2,923

 2.69

 %

 $

 55,128

 2.91

 %

 $

 36,830

 2.91

 %

 $

 51,075

 3.74

 %

 $

 3.20

 %

 For additional information regarding our investment securities portfolio, see Note 3 to the notes to our consolidated financial statements.
 Sources of Funds
 General. Deposits are our primary source of funds for use in lending and investment activities. We also use borrowings, primarily Federal Home Loan Bank of Boston advances, to supplement cash flow needs, lengthen or shorten 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, loan prepayments, maturities, prepayments, and calls of securities, retained earnings 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.
 Deposits. Our deposits are generated primarily from residents within our primary market area. We offer a selection of deposit accounts, including non-interest-bearing checking accounts, interest-bearing checking accounts,

 money market accounts, savings accounts, and certificates of deposit. 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. At June 30, 2025, our core deposits, which are deposits other than certificates of deposit, were $133.8 million, representing 48.8% of total deposits.
 Interest rates, 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. The variety of deposit accounts that we offer allows us to be competitive in generating deposits and to respond with flexibility to changes in our customers' demands. Our ability to gather deposits is impacted by the competitive market in which we operate, which includes numerous financial institutions of varying sizes offering a wide range of products. We believe that deposits are a stable source of funds, but our ability to attract and maintain deposits at favorable rates will be affected by market conditions, including competition and prevailing interest rates.
 The following table sets forth the distribution of total average deposits by account type at the dates indicated.

 For the Years Ended June 30,

 2025

 2024

 Average Rate

 Average Rate

 Non-interest bearing NOW and demand

 $

 28,829

 10.66

 %

 -

 %

 $

 29,380

 11.25

 %

 -

 %

 Interest bearing NOW and demand

 29,913

 11.06

 0.05

 29,845

 11.43

 0.05

 Regular and other

 52,945

 19.57

 0.10

 58,569

 22.42

 0.10

 Money market deposits

 21,593

 7.98

 0.24

 24,044

 9.20

 0.24

 Total non-certificate accounts

 133,280

 49.27

 0.08

 141,838

 54.30

 0.09

 Term certificates of $250,000 or more

 26,128

 9.66

 3.72

 23,879

 9.14

 4.44

 Term certificates less than $250,000

 111,101

 41.07

 3.68

 95,503

 36.56

 4.22

 Total certificate accounts

 137,229

 50.73

 3.69

 119,382

 45.70

 4.36

 Total deposits

 $

 270,509

 %

 1.88

 %

 $

 261,220

 %

 2.13

 %

 The following tables set forth the amount and maturities of our term certificates by interest rate at the dates indicated.

 As of June 30, 2025

 Amount Due

 Three Months or Less

 Over Three Months to Twelve Months

 Over 1 Year to 2 Years

 Over 2 Years to 3 Years

 Over Three Years

 Total

 0.00%-1.00%

 $

 4,732

 $

 12,307

 $

 2,885

 $

 $

 $

 21,366

 1.01%-2.00%

 -

 -

 -

 -

 -

 -

 2.01%-3.00%

 -

 -

 -

 -

 -

 -

 3.01%-4.00%

 -

 23,052

 -

 -

 -

 23,052

 4.01%-5.00%

 64,957

 29,930

 1,061

 -

 -

 95,948

 5.01%-6.00%

 -

 -

 -

 -

 -

 -

 Total

 $

 69,689

 $

 65,289

 $

 3,946

 $

 $

 $

 140,366

 At June 30, 2025 and 2024, the estimated amounts of uninsured deposits were $37.3 million and $42.9 million, respectively. In addition, as of June 30, 2025, the aggregate amount of certificates of deposit that exceeded the FDIC insurance limit of $250,000 was $28.1 million. We have no deposits that are uninsured for any reason other than being in excess of the maximum amount for federal deposit insurance. The following table sets forth the maturity of certificates of deposit of $250,000 or more as of June 30, 2025.

 Maturity Period:

 Three months or less

 $

 15,126

 Over three through six months

 7,487

 Over six through twelve months

 4,115

 Over twelve months

 1,327

 Total

 $

 28,055

 Borrowed Funds. We may obtain advances from the Federal Home Loan Bank of Boston upon the security of our capital stock in the Federal Home Loan Bank of Boston and certain of our mortgage loans. Such advances may be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities. We use such advances to provide funding as a supplement to our deposits. To the extent such borrowings have different terms to repricing than our deposits, they can change our interest rate risk profile. At June 30, 2025, we had $10.4 million outstanding in short-term advances or advances having a maturity less than one year from the Federal Home Loan Bank of Boston, with a weighted average interest rate of 4.51%. At June 30, 2025, we had the capacity to borrow an additional $53.0 million in Federal Home Loan Bank of Boston advances. For the year ended June 30, 2025, the average amount of FHLB borrowings outstanding during the period was $10.4 million. The maximum borrowings outstanding at any month end during the year ended June 30, 2025 was $10.4 million.
 Additionally, at June 30, 2025, we had a $2.4 million available line of credit with the Federal Home Loan Bank of Boston, none of which was drawn at June 30, 2025.
 Human Capital Resources
 Employees
 As of June 30, 2025, we had 28 full-time employees. None of our employees are represented by a labor union or covered by collective bargaining agreements, and we believe our relationship with our employees is good.
 Diversity and Inclusion
 We are committed to creating and maintaining a workplace free from discrimination or harassment on the basis of color, race, sex, national origin, ethnicity, religion, age, disability, sexual orientation, gender identification or expression, or any other status protected by applicable law. Our management team and employees are expected to exhibit and promote honest, ethical, and respectful conduct in the workplace. All our employees must adhere to a code

 of conduct that sets standards for appropriate behavior and are required to attend annual training to help prevent, identify, report, and stop any type of discrimination and harassment. Recruitment, hiring, development, training, compensation, and advancement are based on qualifications, performance, skills, and experience without regard to gender, race, and ethnicity.
 Competitive Pay and Benefits
 We strive to provide pay, comprehensive benefits, and services that help meet the varying needs of our employees. Our total rewards package includes competitive pay, comprehensive healthcare benefits package for employees, family medical leave, pension plan, and flexible work schedules. We sponsor a 401(k) plan and we match employee contributions up to a certain limit. In addition, nearly all of our employees are stockholders of the Company through participation in our Employee Stock Ownership Plan, which aligns stockholder interests by providing stock ownership on a tax-deferred basis at no cost to the employee.
 Employee Development and Training
 We focus on attracting, retaining, and cultivating talented individuals. We emphasize employee development and training by providing access to a wide range of online and instructor-led development and continual learning programs. Employees are encouraged to attend meetings and conferences and have access to broad resources they need to be successful.
 Supervision and Regulation
 General
 As a federal savings bank, the Bank is subject to examination, supervision, and regulation by the OCC and by the FDIC as deposit insurer pursuant to its backup examination authority. The federal system of regulation and supervision establishes a comprehensive framework of activities in which the Bank may engage and is intended primarily for the protection of depositors and the FDIC's Deposit Insurance Fund, and not for the protection of security holders. The regulatory structure also gives the regulatory authorities 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; provide oversight for the adequacy of loan loss reserves for regulatory purposes; and establish the timing and amounts of assessments and fees.
 Moreover, as part of their examination authority, the banking regulators assign numerical ratings to banks and savings associations relating to capital, asset quality, management, liquidity, earnings, interest rate sensitivity and other factors. These ratings are inherently subjective and the receipt of a less than satisfactory rating in one or more categories may result in supervisory or enforcement action by the banking regulators against a financial institution. A less than satisfactory rating may also prevent a financial institution from obtaining necessary regulatory approvals to access the capital markets, pay dividends, acquire other financial institutions, or establish new branches.
 In addition, the Bank must comply with significant anti-money laundering and anti-terrorism financing laws and regulations, the Community Reinvestment Act and its implementing regulations, and fair lending laws and regulations. Government agencies have the authority to impose monetary penalties and other sanctions on institutions 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. In addition, the Bank is a member of and owns stock in the Federal Home Loan Bank of Boston, which is one of the 11 regional banks in the Federal Home Loan Bank System.
 As a savings and loan holding company, CFSB Bancorp is required to comply with the rules and regulations of the Federal Reserve Board. It is subject to examination and supervision by, and is required to file certain reports with, the Federal Reserve Board. CFSB Bancorp is also subject to the rules and regulations of the SEC under the federal securities laws.
 Set forth below are certain material regulatory requirements that are applicable to CFSB Bancorp and the Bank. This description of statutes and regulations is not intended to be a complete description of such statutes and regulations and their effects on CFSB Bancorp and the Bank. Any changes in applicable laws or regulations, whether by Congress, the OCC, the FDIC, the Federal Reserve Board, or the SEC, could have a material adverse impact on the operations and financial performance of CFSB Bancorp and/or the Bank.

 Federal Banking Regulation
 Business Activities. A federal savings bank derives its lending and investment powers from the Home Owners' Loan Act, as amended, and applicable federal regulations. Under this statute and its implementing regulations, the Bank may generally invest in mortgage loans secured by residential and commercial real estate and consumer loans, certain types of debt securities and certain other assets, subject to applicable limits. The Bank may also establish, subject to specified investment limits, subsidiaries that may engage in certain activities not otherwise permissible for the Bank, including real estate investment and securities and insurance brokerage.
 The OCC permits an eligible federal savings bank with assets of $20.0 billion or less as of December 31, 2017 to elect to operate with the business powers of a national bank, generally subject to the same limitations and restrictions, without converting to a national bank charter. A federal savings bank that makes the so-called "covered savings association" election must divest any activities or investments that are not permitted for a national bank. The Bank had not made such an election as of June 30, 2025.
 Capital Requirements. Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets ratio of 8.0%, and a Tier 1 capital to total assets leverage ratio of 4.0%.
 In determining the amount of risk-weighted assets for calculating risk-based capital ratios, all assets, including certain off-balance sheet assets (e.g., recourse obligations, direct credit substitutes, residual interests) are multiplied by a risk-weight factor assigned by the regulations based on the risks believed inherent in the type of asset. Higher levels of capital are required for asset categories believed to present greater risk. Common equity Tier 1 capital is generally defined as common stockholders' equity and retained earnings. Tier 1 capital is generally defined as common equity Tier 1 and additional Tier 1 capital. Additional Tier 1 capital includes certain non-cumulative perpetual preferred stock and related surplus and minority interests in equity accounts of consolidated subsidiaries. Total capital includes Tier 1 capital (common equity Tier 1 capital plus additional Tier 1 capital) and Tier 2 capital. Tier 2 capital is comprised of capital instruments and related surplus, meeting specified requirements, and may 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 the allowance for credit losses limited to a maximum of 1.25% of risk-weighted assets. Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations.
 In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a "capital conservation buffer" consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements.
 Financial institutions and their holding companies with total consolidated assets of less than $10 billion, and that meet certain qualifying criteria, may elect to use the optional community bank leverage ratio framework to satisfy regulatory capital requirements, including the risk-based capital requirements. This framework requires maintaining a "Community Bank Leverage Ratio" (the ratio of Tier 1 capital to average total consolidated assets) of greater than 9.0%. The Bank has not elected to be subject to the Community Bank Leverage Ratio framework.
 At June 30, 2025, the Bank's capital exceeded all applicable minimum regulatory requirements.
 Qualified Thrift Lender Test. As a federal savings bank, the Bank must satisfy the qualified thrift lender, or QTL, test. Under the QTL test, it must maintain at least 65% of its "portfolio assets" in "qualified thrift investments" (primarily residential mortgages and related investments, including mortgage-backed securities) in at least nine months of the most recent 12-month period. "Portfolio assets" generally means total assets of a federal savings bank, less the sum of specified liquid assets up to 20% of total assets, goodwill and other intangible assets, and the value of property used in the conduct of the federal savings bank's business.
 A federal savings bank that fails the QTL test must operate under specified restrictions set forth in the Home Owners' Loan Act. The Dodd-Frank Act made noncompliance with the QTL test subject to agency enforcement action for a violation of law. At June 30, 2025, the Bank complied with the QTL test.
 Loans-to-One Borrower. Generally, a federal savings bank may not make a loan or extend credit to a single or related group of borrowers in excess of 15% of unimpaired capital and surplus. An additional amount may be loaned,

 equal to 10% of unimpaired capital and surplus, if secured by readily marketable collateral, which generally includes certain financial instruments (but not real estate). As of June 30, 2025, the Bank was in compliance with the loans-to-one borrower limitations.
 Standards for Safety and Soundness. Federal law requires each federal banking agency to prescribe certain standards for all insured depository institutions. These standards relate to, among other things, internal controls, information systems and audit systems, loan documentation, credit underwriting, interest rate risk exposure, asset growth, compensation, and other operational and managerial standards as the agency deems appropriate. Interagency guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired. If the appropriate federal banking agency determines that an institution fails to meet any standard prescribed by the guidelines, the agency may require the institution to submit to the agency an acceptable plan to achieve compliance with the standard. Failure to implement such a plan can result in further enforcement action, including the issuance of a cease-and-desist order or the imposition of civil money penalties.
 Prompt Corrective Action. Federal law requires, among other things, that federal bank regulators take "prompt corrective action" with respect to institutions that do not meet minimum capital requirements. For this purpose, the law establishes five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Under applicable regulations, an institution is deemed to be "well capitalized" if it has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a leverage ratio of 5.0% or greater, and a common equity Tier 1 capital ratio of 6.5% or greater. An institution is deemed to be "adequately capitalized" if it has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, a leverage ratio of 4.0% or greater, and a common equity Tier 1 capital ratio of 4.5% or greater. An institution is deemed to be "undercapitalized" if it has a total risk-based capital ratio of less than 8.0%, a Tier 1 risk-based capital ratio of less than 6.0%, a leverage ratio of less than 4.0%, or a common equity Tier 1 capital ratio of less than 4.5%. An institution is deemed to be "significantly undercapitalized" if it has a total risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a leverage ratio of less than 3.0%, or a common equity Tier 1 capital ratio of less than 3.0%. An institution is considered to be "critically undercapitalized" if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2.0%.
 At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on the payment of dividends, and restrictions on the acceptance of brokered deposits. Furthermore, if an insured depository institution is classified in one of the undercapitalized categories, it is required to submit a capital restoration plan to the appropriate federal banking agency, and the holding company must guarantee the performance of that plan.
 At June 30, 2025, the Bank met the criteria for being considered "well capitalized."
 Capital Distributions. Federal regulations govern capital distributions by a federal savings bank, which include cash dividends and other transactions charged to the bank's capital account. A federal savings bank must file an application with the OCC for approval of a capital distribution if:
 • it would not be at least well capitalized following the distribution;

 • the total capital distributions for the applicable calendar year exceed the sum of its net income for that year to date plus its retained net income for the preceding two years;

 • its proposed capital distribution would reduce the amount of or retire any part of its common or preferred stock or retire any part of debt instruments such as notes or debentures included in capital;

 • its proposed capital distribution is payable in property other than cash;

 • it is directly or indirectly controlled by a mutual savings and loan holding company or by a company that is not a savings and loan holding company; or

 • the distribution would violate any applicable statute, regulation, agreement or regulatory condition.

 Even if an application is not otherwise required, every federal savings bank that is a subsidiary of a savings and loan holding company must file a notice with the Federal Reserve Board at least 30 days before the bank's board of directors declares a dividend or approves a capital distribution. If a federal savings bank subsidiary of a savings and

 loan holding company is filing a notice with the Federal Reserve Board for a dividend, and an application to the OCC is not otherwise required, then the bank must provide to the OCC an informational copy of the notice filed with the Federal Reserve Board at the same time the notice is filed.
 An application or notice related to a capital distribution may be disapproved by the agency if:
 • the federal savings bank would be undercapitalized, significantly undercapitalized or critically undercapitalized following the distribution;

 • the proposed capital distribution raises safety and soundness concerns; or

 • the capital distribution would violate a prohibition contained in any statute, regulation, agreement or regulatory condition.

 In addition, an insured depository institution may not make any capital distribution if, after making such distribution, the institution would fail to meet any applicable regulatory capital requirement.
 Community Reinvestment Act and Fair Lending Laws. All federal savings banks have a responsibility under the Community Reinvestment Act and its implementing regulations to help meet the credit needs of their communities, including low- and moderate-income borrowers. The OCC is required to assess a federal savings bank's record of compliance with the Community Reinvestment Act. A federal savings bank's failure to comply with the provisions of the Community Reinvestment Act could, at a minimum, result in denial of certain corporate applications such as branches or mergers, or in restrictions on its activities. The Community Reinvestment Act requires all institutions insured by the FDIC to publicly disclose their rating. The Bank received a "Satisfactory" rating in its most recent evaluation.
 In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from discriminating in their lending practices. The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions by the OCC, as well as other federal regulatory agencies and the Department of Justice.
 Transactions with Affiliates. A federal savings bank's authority to engage in transactions with its affiliates is limited by Sections 23A and 23B of the Federal Reserve Act and Regulation W of the Federal Reserve Board. Under Sections 23A and 23B and Regulation W, an affiliate includes a company that controls, or is under common control with, an insured depository institution such as the Bank. CFSB Bancorp and 15 Beach MHC are affiliates of the Bank because both entities control the Bank. Certain "covered transactions" between an insured depository institution and its affiliates are subject to quantitative limits and collateral requirements, must be consistent with safe and sound banking practices, and not involve the purchase of low-quality assets from an affiliate.. In addition, federal regulations prohibit a federal savings bank from lending to any of its affiliates that are engaged in activities that are not permissible for bank holding companies and from purchasing or investing in securities issued by any affiliate, other than a subsidiary. Finally, transactions with affiliates must be on terms and under circumstances that are substantially the same, or at least as favorable to, the institution as those prevailing at the time for comparable transactions with or involving non-affiliates.
 Extensions of Credit to Insiders. The Bank's authority to extend credit to its or its affiliates' insiders, i.e., its directors, executive officers and 10% or greater stockholders, as well as to their related interests, i.e., entities controlled by such persons, is governed by the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve Board. Among other things, these provisions generally require that extensions of credit to insiders and their related interests:
 • be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing at the time for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and

 • not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the Bank's unimpaired capital and unimpaired surplus.

 In addition, extensions of credit in excess of certain limits must be approved by a majority of the Bank's board of directors. Extensions of credit to executive officers are subject to additional limits based on the type of credit extension involved.
 Enforcement. The OCC has primary enforcement responsibility over federal savings banks and has authority to bring enforcement actions against all the banks' "institution-affiliated parties," a term that includes directors, officers, employees, and controlling stockholders, stockholders who participate in the affairs of the bank, as well as attorneys, appraisers and accountants who knowingly or recklessly participate in violations of law or regulation, breaches of fiduciary duty, or unsafe or unsound practices. Formal enforcement actions by the OCC may include the issuance of a capital directive, formal agreement, cease and desist orders, and removals and prohibitions of officers and/or directors of the institution, as well as the assessment of civil money penalties ("CMPs"). CMPs can be assessed for various types of conduct against the institution and/or its institution-affiliated parties.
 The FDIC also has the authority to terminate deposit insurance or recommend to the OCC that enforcement action be taken with respect to a particular federal savings bank. If such action is not taken, the FDIC has authority to take action under specified circumstances.
 Anti-Money Laundering. The Bank must comply with the anti-money laundering ("AML") provisions of the Bank Secrecy Act ("BSA") as amended by the USA PATRIOT Act and implementing regulations issued by the Financial Crimes Enforcement Network ("FinCEN") of the U.S. Department of the Treasury, as well as AML related regulations issued by the OCC. The USA PATRIOT Act gives the federal government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing, and broadened AML requirements.
 The federal bank regulatory agencies have increased the regulatory scrutiny of BSA/AML programs maintained by financial institutions. Significant penalties and fines, as well as other supervisory orders may be imposed on a financial institution for non-compliance with these requirements. In addition, the federal bank regulatory agencies must consider the effectiveness of financial institutions' efforts to combat money laundering when these institutions seek to engage in a merger transaction. The Bank has adopted policies and procedures in compliance with these requirements.
 Branching. A federal savings bank that has not elected "covered savings association" status generally has authority to establish branches in any state or states of the United States and its territories. Such authority is subject to OCC approval for new branches.
 Insurance of Deposit Accounts. The Deposit Insurance Fund of the FDIC insures deposits at FDIC-insured financial institutions such as the Bank generally up to a maximum of $250,000 per separately insured depositor per account ownership category.
 The FDIC imposes deposit insurance assessments against all insured depository institutions. An institution's assessment rate depends upon the perceived risk of the institution to the Deposit Insurance Fund, with institutions deemed less risky paying lower rates. Currently, assessments for institutions of less than $10 billion of total assets are based on financial measures and supervisory ratings derived from statistical models estimating the probability of failure within three years. Effective January 1, 2023, the assessment range for insured institutions with less than $10 billion in total assets is 2.5 to 32 basis points of total assets less tangible equity.
 The FDIC has authority to increase insurance assessments. Any significant increases would have an adverse effect on the operating expenses and results of operations of the Bank. The Bank cannot predict what assessment rates will be in the future.
 Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, order, or condition imposed by the FDIC. We do not currently know of any practice, condition or violation that may lead to termination of our deposit insurance.
 Privacy Regulations. Federal regulations generally require that the Bank disclose its privacy policy, including identifying with whom it shares a customer's "non-public personal information," to customers at the time of establishing the customer relationship and annually thereafter. In addition, the Bank is required to provide its customers with the ability to "opt-out" of having their personal information shared with unaffiliated third parties and

 not to disclose account numbers or access codes to non-affiliated third parties for marketing purposes. The Bank currently has a privacy policy in place and believes that such policy complies with the regulations.
 Prohibitions Against Tying Arrangements. Federal savings banks are prohibited, subject to certain exceptions, from extending credit to or offering any other service, or fixing or varying the consideration for such extension of credit or service, on the condition that the customer obtain some additional service from the institution or its affiliates or not obtain services of a competitor of the institution.
 Other Regulations
 Interest and other charges collected or contracted for by the Bank are subject to state usury laws and federal laws concerning interest rates. Loan operations are also subject to state and federal laws applicable to credit transactions, such as the:
 • Truth-in-Lending Act, governing disclosures of credit terms to consumer borrowers;

 • Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;

 • Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, color, religion, national origin and other prohibited factors in extending credit;

 • Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;

 • Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected; and

 • rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.

 The operations of the Bank also are subject to the:
 • Truth in Savings Act, governing disclosures and advertising with respect to deposit accounts;

 • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;

 • Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking services;

 • Check Clearing for the 21st Century Act (also known as "Check 21"), which gives "substitute checks," such as digital check images and copies made from that image, the same legal standing as the original paper check; and

 • Regulations of the Office of Foreign Assets Control that enforce economic and trade sanctions against targeted foreign countries, regimes, and other designated individuals and organizations.

 Banking organizations are required to notify their primary federal regulator as soon as possible and no later than 36 hours of determining that a "computer-security incident" that arises to the level of a "notification incident" has occurred. A notification incident is a "computer-security incident" that has materially disrupted or degraded, or is reasonably likely to materially disrupt or degrade, the banking organization's ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or impact the stability of the financial sector. Bank service providers are also required to notify any affected bank to or on behalf of which the service provider provides services "as soon as possible" after determining that it has experienced an incident that materially disrupts or degrades, or is reasonably likely to materially disrupt or degrade, covered services provided to such bank for four or more hours.
 Federal Home Loan Bank System

 The Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks. The Federal Home Loan Bank provides a central credit facility primarily for member institutions. Members of the Federal Home Loan Bank are required to acquire and hold shares of capital stock in the Federal Home Loan Bank. The Bank was in compliance with this requirement at June 30, 2025. Based on redemption provisions of the Federal Home Loan Bank of Boston, the stock has no quoted market value and is carried at cost. The Bank reviews for impairment, based on the ultimate recoverability, the cost basis of the Federal Home Loan Bank of Boston stock. At June 30, 2025, no impairment had been recognized.
 Holding Company Regulation
 General. CFSB Bancorp and 15 Beach, MHC are savings and loan holding companies within the meaning of the Home Owners' Loan Act. As such, CFSB Bancorp and 15 Beach, MHC are registered with the Federal Reserve Board and subject to the regulation, examination, supervision, and reporting requirements applicable to savings and loan holding companies. In addition, the Federal Reserve Board has enforcement authority over CFSB Bancorp, 15 Beach, MHC and their non-savings association subsidiaries. Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to the Bank.
 Permissible Activities. Under present law, the business activities of CFSB Bancorp and 15 Beach, MHC are generally limited to those activities permissible for multiple savings and loan holding companies unless they have elected financial holding company status. CFSB Bancorp and 15 Beach, MHC have not elected financial holding company status. A multiple savings and loan holding company is generally limited to activities permissible for bank holding companies under Section 4(c)(8) of the Bank Holding Company Act, subject to regulatory approval, and certain additional activities authorized by federal regulations.
 Federal law prohibits savings and loan holding companies, including CFSB Bancorp and 15 Beach, MHC, directly or indirectly, or through one or more subsidiaries, from acquiring more than 5% of another savings association or savings and loan holding company, without prior Federal Reserve Board approval. In evaluating applications by savings and loan holding companies to acquire savings associations, the Federal Reserve Board considers factors such as the financial and managerial resources, future prospects of the company and institution involved, the effect of the acquisition on and the risk to the Deposit Insurance Fund, the convenience and needs of the community, and competitive factors.
 The Federal Reserve Board is prohibited from approving any acquisition that would result in a savings and loan holding company controlling savings associations in more than one state, subject to two exceptions:
 • the approval of interstate supervisory acquisitions by savings and loan holding companies; and

 • the acquisition of a savings association in another state if the laws of the state of the target savings association specifically permit such acquisition.

 Capital. Savings and loan holding companies with less than $3.0 billion in consolidated assets are generally not subject to the regulatory capital requirements unless otherwise advised by the Federal Reserve Board.
 Source of Strength. The Dodd-Frank Act extended the "source of strength" doctrine to savings and loan holding companies. The Federal Reserve Board has issued regulations requiring that all savings and loan holding companies serve as a source of financial and managerial strength to their subsidiary depository institutions.
 Dividends and Stock Repurchases. The Federal Reserve Board has issued a policy statement regarding the payment of dividends and the repurchase of shares of common stock by holding companies. In general, the policy provides that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the holding company appears consistent with the organization's capital needs, asset quality and overall supervisory financial condition. Regulatory guidance provides for prior consultation with Federal Reserve Bank staff concerning dividends in certain circumstances such as where the company's net income for the past four quarters, net of capital distributions previously paid over that period, is insufficient to fully fund the dividend or the company's overall rate or earnings retention is inconsistent with the company's capital needs and overall financial condition. The ability of a holding company to pay dividends may be restricted if a subsidiary federal savings bank becomes undercapitalized. Federal Reserve Board guidance also states that a holding company should inform Federal Reserve Bank supervisory staff prior to redeeming or repurchasing common stock or perpetual preferred stock if the holding company is experiencing financial weaknesses or the repurchase or redemption would result in a net reduction, at the end of a

 quarter, in the amount of such equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred. These regulatory policies may affect the ability of CFSB Bancorp to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions.
 Waivers of Dividends by 15 Beach, MHC. CFSB Bancorp may pay dividends on its common stock to public stockholders. If it does, it is also required to pay dividends to 15 Beach, MHC, unless 15 Beach, MHC elects to waive the receipt of dividends. 15 Beach, MHC must receive the approval of the Federal Reserve Board before it may waive the receipt of any dividends from CFSB Bancorp. The Federal Reserve Board has issued an interim final rule providing that it will not object to dividend waivers under certain circumstances, including circumstances where the waiver is not detrimental to the safe and sound operation of the savings bank and a majority of the mutual holding company's members have approved the waiver of dividends by the mutual holding company within the previous twelve months. In addition, for a "non-grandfathered" mutual holding company such as 15 Beach, MHC, each officer or director of CFSB Bancorp and the Bank, and any tax-qualified stock benefit plan or non-tax-qualified stock benefit plan in which such individual participates that holds any shares of stock to which the waiver would apply, must waive the right to receive any such dividend declared. In addition, any dividends waived by 15 Beach, MHC must be considered in determining an appropriate exchange ratio in the event of a conversion of the mutual holding company to stock form.
 Change in Bank Control Act and Implementing Regulations
 Under the Change in Bank Control Act and its implementing regulations, no person may acquire "control" of a savings and loan holding company, such as CFSB Bancorp, unless the Federal Reserve Board has been given 60 days' prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition. Control, as defined under the Change in Bank Control Act, means the power, directly or indirectly, to direct the management or policies of an insured depository institution or to vote 25% or more of any class of voting securities of an insured depository institution. There is a presumption of control upon the acquisition of 10% or more of a class of voting stock under certain circumstances, such as where the holding company involved has its shares registered under Section 12 of the Exchange Act.
 Sarbanes-Oxley Act of 2002
 The Sarbanes-Oxley Act of 2002 is intended to improve corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws. We have policies, procedures and systems designed to comply with this Act and its implementing regulations, and we review and document such policies, procedures, and systems to ensure continued compliance with this Act and its implementing regulations.
 Emerging Growth Company Status
 CFSB Bancorp is an emerging growth company. For as long as CFSB Bancorp continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies," including, but not limited to, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As an emerging growth company, CFSB Bancorp also is not subject to Section 404(b) of the Sarbanes-Oxley Act of 2002, which would require that its independent auditors review and attest as to the effectiveness of its internal control over financial reporting. CFSB Bancorp has also elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Such an election is irrevocable during the period a company is an emerging growth company. Accordingly, its financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.
 A company loses emerging growth company status on the earlier of: (1) the last day of the fiscal year of the company during which it had total annual gross revenues of $1.235 billion or more; (2) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the company pursuant to an effective registration statement under the Securities Act of 1933; (3) the date on which such company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (4) the date on

 which such company is deemed to be a "large accelerated filer" under SEC regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).
 Taxation
 15 Beach, MHC, CFSB Bancorp and the Bank are subject to federal and state income taxation in the same general manner as other corporations, with some exceptions discussed below. The following discussion of federal and state taxation is intended only to summarize material income tax matters and is not a comprehensive description of the tax rules applicable to 15 Beach, MHC, CFSB Bancorp and the Bank.
 Our federal and state tax returns have not been audited in the past five years.
 Federal Taxation
 Method of Accounting. For federal income tax purposes, the Bank currently reports its income and expenses on the accrual method of accounting and uses a tax year ending June 30 for filing its federal income tax returns. CFSB Bancorp and the Bank file a consolidated federal income tax return. The Small Business Protection Act of 1996 eliminated the use of the reserve method of accounting for income taxes on bad debt reserves by savings institutions with more than $500 million in assets. For taxable years beginning after 1995, the Bank has been subject to the same bad debt reserve rules as commercial banks. It currently utilizes the experience method under Section 585(b)(2) of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code").
 Net Operating Loss Carryovers. Effective with the passage of the Tax Cuts and Jobs Act, net operating loss carrybacks are no longer permitted, and net operating losses are allowed to be carried forward indefinitely. Net operating loss carryforwards arising from tax years beginning after January 1, 2018 are limited to offset a maximum of 80% of a future year's taxable income.
 Capital Loss Carryovers. Generally, a financial institution may carry back capital losses to the preceding three taxable years and forward to the succeeding five taxable years. Any capital loss carryback or carryover is treated as a short-term capital loss for the year to which it is carried. As such, it is grouped with any other capital losses for the year to which carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period that has not been deducted is no longer deductible. At June 30, 2025, the Bank had no capital loss carryovers.
 Corporate Dividends. CFSB Bancorp may generally exclude from its income 100% of dividends received from the Bank as a member of the same affiliated group of corporations.
 State Taxation
 Financial institutions in Massachusetts are required to file combined income tax returns. The current Massachusetts excise tax rate for financial institutions is 9.0% of federal taxable income, adjusted for certain items. Taxable income includes gross income as defined under the Internal Revenue Code, plus interest from bonds, notes and evidences of indebtedness of any state, including Massachusetts, less deductions, but not the credits, allowable under the provisions of the Internal Revenue Code, except for those deductions relating to dividends received and income or franchise taxes imposed by a state or political subdivision. Carryforwards and carrybacks of net operating losses and capital losses are not allowed.
 A financial institution or business corporation is generally entitled to special tax treatment as a "security corporation" under Massachusetts law provided that: (1) its activities are limited to buying, selling, dealing in or holding securities on its own behalf and not as a broker; and (2) it has applied for, and received, classification as a "security corporation" by the Commissioner of the Massachusetts Department of Revenue. A security corporation that is also a bank holding company under the Internal Revenue Code must pay a tax equal to 0.33% of its gross income. A security corporation that is not a bank holding company under the Internal Revenue Code must pay a tax equal to 1.32% of its gross income. Beach Street Securities Corporation is qualified as a security corporation that is not a bank holding company. As such, it has received security corporation classification by the Massachusetts Department of Revenue and does not conduct any activities deemed impermissible under the governing statutes and the various regulations, directives, letter rulings and administrative pronouncements issued by the Massachusetts Department of Revenue.

 Item 1A. Risk Factors.
 The material risks that management believes affect the Company are described below. You should carefully consider the risks as described below, together with all of the information included herein. The risks described below are not the only risks the Company faces. Additional risks not presently known also may have a material adverse effect on the Company's results of operations and financial condition.
 Risks Related to the Merger
 CFSB Bancorp will be subject to business uncertainties and contractual restrictions while the merger is pending.
 Uncertainty about the effect of the merger on employees and customers may have an adverse effect on CFSB Bancorp. These uncertainties may impair CFSB Bancorp's ability to attract, retain and motivate key personnel until the merger is consummated, and could cause customers and others that do business with CFSB Bancorp to seek to change existing business relationships with CFSB Bancorp. In addition, the merger agreement restricts CFSB Bancorp from taking certain actions without the consent of Hometown Financial until the merger occurs. These restrictions may prevent CFSB Bancorp from pursuing attractive business opportunities that may arise prior to the completion of the merger.
 CFSB Bancorp has incurred and expects to continue to incur significant costs related to the merger.
 CFSB Bancorp has incurred and expects to incur significant, non-recurring costs in connection with negotiating the merger agreement and closing the merger. CFSB Bancorp will also incur significant legal and financial advisory fees relating to regulatory filings and notices, SEC filing fees, printing and mailing fees and other costs associated with the merger. Some of these costs are payable regardless of whether the merger is completed.
 CFSB Bancorp may also incur additional costs to maintain employee morale and to retain key employees. There can be no assurances that the expected benefits and efficiencies related to the integration of the businesses will be realized to offset these transaction and integration costs over time.
 The merger agreement limits CFSB Bancorp's ability to pursue alternatives to the merger and could discourage a potential acquirer that might be willing to pay more to acquire or merge with CFSB Bancorp.
 The merger agreement contains provisions that limit CFSB Bancorp's ability to solicit, initiate, encourage or take any actions to facilitate competing third-party proposals to acquire all or substantially all of CFSB Bancorp. These provisions, which include a $1.6 million termination fee, payable to Hometown Financial under certain circumstances, might discourage a potential competing acquiror that might have an interest in acquiring all or substantially all of CFSB Bancorp from considering or proposing that acquisition even if it were prepared to pay consideration with a higher per share market price than that proposed in the merger, or might result in a potential competing acquiror proposing to pay a lower per share price to acquire CFSB Bancorp than it might otherwise have proposed to pay.
 Regulatory approvals may not be received, may take longer to receive than expected or may impose burdensome conditions that are not presently anticipated.
 Before the merger may be completed, certain approvals or consents must be obtained from the various bank regulatory and other authorities of the United States and the Commonwealth of Massachusetts. These governmental entities, including the Federal Reserve Board and the Massachusetts Division of Banks, may impose conditions on the completion of the merger or require changes to the terms of the merger. While Hometown Financial and CFSB Bancorp do not currently expect that any such conditions or changes would be imposed, there can be no assurance that they will not be, and such conditions or changes could have the effect of delaying completion of the merger or imposing additional costs on or limiting the revenues of Hometown Financial following the merger, any of which might have a material adverse effect on Hometown Financial following the merger. Hometown Financial is not obligated to complete the merger if the regulatory approvals received in connection with the completion of the merger include any conditions or restrictions that would constitute a "Burdensome Condition" as defined in the merger agreement.
 Although the parties believe they have filed all applications and notice materials and have submitted or will submit all requested supplemental information necessary to obtain these regulatory approvals or confirmations in accordance with applicable law, there can be no assurance as to whether the regulatory approvals will be received or the timing of the approvals.

 If the merger is not completed by March 31, 2026, either Hometown Financial or CFSB Bancorp may choose not to proceed with the merger.
 Either Hometown Financial or CFSB Bancorp may terminate the merger agreement if the merger has not been completed by March 31, 2026, unless the failure of the merger to be completed has resulted from the failure of the party seeking to terminate the merger agreement to perform its obligations.
 Failure to complete the merger could negatively impact the future business and financial results of CFSB Bancorp.
 If the merger is not completed, the ongoing business of CFSB Bancorp may be adversely affected and CFSB Bancorp will be subject to several risks, including the following:
 • CFSB Bancorp may be required, under certain circumstances, to pay Hometown Financial a termination fee of $1.6 million under the merger agreement;

 • CFSB Bancorp will be required to pay certain costs relating to the merger, whether or not the merger is completed, such as legal and financial advisor and printing fees;

 • under the merger agreement, CFSB Bancorp is subject to certain restrictions on the conduct of its business before completion of the merger, which may adversely affect its ability to execute certain of its business strategies; and

 • matters relating to the merger may require substantial commitments of time and resources by CFSB Bancorp's management, which could otherwise have been devoted to other opportunities that may have been beneficial to CFSB Bancorp as an independent company.

 In addition, if the merger is not completed, CFSB Bancorp may experience negative reactions from its customers and employees. CFSB Bancorp also could be subject to litigation related to any failure to complete the merger. If the merger is not completed, CFSB Bancorp cannot assure its stockholders that the risks described above will not materialize and will not materially affect the business and financial results of CFSB Bancorp.
 Stockholder litigation could prevent or delay the completion of the merger or otherwise negatively impact the business and operations of Hometown Financial and CFSB Bancorp.
 Stockholders of CFSB Bancorp may file lawsuits against CFSB Bancorp and/or its directors and officers in connection with the merger. One of the conditions to the closing is that no order, injunction or decree issued by any court or governmental entity of competent jurisdiction or other legal restraint preventing the consummation of the merger, the bank merger or any of the other transactions contemplated by the merger agreement be in effect. If any plaintiff were successful in obtaining an injunction prohibiting the completion of the merger, the bank merger or any of the other transactions contemplated by the merger agreement, then such injunction may delay or prevent the effectiveness of the merger and could result in significant costs to CFSB Bancorp, including any cost associated with the indemnification of directors and officers of each company. CFSB Bancorp may incur costs in connection with the defense or settlement of any stockholder lawsuits filed in connection with the merger. Such litigation could have an adverse effect on the financial condition and results of operations of CFSB Bancorp and could prevent or delay the completion of the merger.
 Risks Related to our Lending Activities
 Almost all of our loans are secured by real estate, and a downturn in the local real estate market could negatively impact our profitability.
 At June 30, 2025, approximately $177.1 million, or 98.9%, of our total loan portfolio was secured by real estate, most of which is located in our primary lending market area of Norfolk and Plymouth Counties, Massachusetts. Declines in the real estate values in our primary lending markets could significantly impair the value of the particular collateral securing our loans and our ability to sell the collateral upon foreclosure for an amount necessary to satisfy the borrower's obligations to us. This could require increasing our allowance for credit losses to address the decrease in the value of the real estate securing our loans, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects.
 If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings could decrease.

 We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of many of our loans. In determining the amount of the allowance for credit losses, we review our loans and our and our peers' loss and delinquency experience, and we evaluate economic conditions. If our assumptions or the results of our analyses are incorrect, our allowance for credit losses may not be sufficient to cover current expected losses in our loan portfolio, resulting in additions to our allowance. In addition, our emphasis on loan growth and on increasing our portfolio of multi-family and commercial real estate loans, as well as any future credit deterioration, could require us to increase our allowance for credit losses. At June 30, 2025, our allowance for credit losses as a percentage of total loans was 0.86%. Material additions to our allowance would materially decrease our net income.
 In addition, bank regulators periodically review our allowance for credit losses and, as a result of such reviews, we may be required to increase our provision for credit losses or recognize further loan charge-offs. Any increase in our allowance for credit losses or loan charge-offs as a result of such review or otherwise may have a material adverse effect on our financial condition and results of operations.
 We intend to increase the origination of multi-family and commercial real estate loans. These loans involve credit risks that could adversely affect our financial condition and results of operations.
 At June 30, 2025, commercial real estate loans totaled $14.3 million, or 8.0% of our loan portfolio and multi-family real estate loans totaled $16.4 million, or 9.1% of our loan portfolio. Given their larger balances and the complexity of the underlying collateral, multi-family and commercial real estate loans generally have more risk than the owner-occupied one- to four-family residential real estate loans that we originate. Because the repayment of multi-family and commercial real estate loans depends on the successful management and operation of the borrower's properties or related businesses, repayment of such loans can be affected by adverse conditions in the local real estate market or economy. If we foreclose on these loans, our holding period for the collateral typically is longer than for a one- to four-family residential property because there are fewer potential purchasers of the collateral. In addition, multi-family and commercial real estate loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential loans. Accordingly, charge-offs on multi-family and commercial real estate loans may be larger on a per loan basis than those incurred by our one- to four-family residential real estate or consumer loan portfolios.
 As our multi-family and commercial real estate loan portfolio increases, the corresponding risks and potential for losses from these loans may also increase, which would adversely affect our business, financial condition, and results of operations.
 Our non-owner-occupied one- to four-family residential real estate loans may expose us to increased credit risk.
 At June 30, 2025, $15.4 million, or 10.9% of our total loan portfolio consisted of loans secured by non-owner-occupied one- to four-family residential real estate properties. At June 30, 2025, all of our non-owner-occupied one- to four-family residential real estate loans were performing in accordance with their repayment terms. One- to four-family residential loans secured by non-owner-occupied properties generally expose a lender to greater risk of non-payment and loss than loans secured by owner-occupied properties because repayment of such loans depend primarily on the tenant's continuing ability to pay rent to the property owner, who is our borrower, or, if the property owner is unable to find a tenant, the property owner's ability to repay the loan without the benefit of a rental income stream. In addition, the physical condition of non-owner-occupied properties may be below that of owner-occupied properties due to lenient property maintenance standards that negatively impact the value of the collateral properties.
 Risks Related to Economic Conditions
 Inflation can have an adverse impact on our business and on our customers.
 Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. In response to a rise in inflation the Federal Reserve Board raised certain benchmark interest rates which remain at an elevated level. As inflation increases, the value of our investment securities, particularly those with longer maturities, would decrease, although this effect can be less pronounced for floating rate instruments. In addition, inflation increases the cost of goods and services we use in our business operations, such as electricity and other utilities, which increases our noninterest expense. Furthermore, our customers are also affected by inflation and the rising costs of goods and services used in their households and businesses, which could have a negative impact on their ability to repay their loans with us.

 We have a high concentration of loans secured by real estate in our market area. Adverse economic conditions, both generally and in our market area, could adversely affect our financial condition and results of operations.
 Unlike larger financial institutions that are more geographically diversified, our profitability depends primarily on the general economic conditions in our primary market area. Local economic conditions have a significant impact on our real estate and other types of lending, including the ability of borrowers to repay these loans and the value of the collateral securing these loans.
 Moreover, a significant decline in general economic conditions, caused by inflation, acts of terrorism, an outbreak of hostilities or other international or domestic calamities or other factors beyond our control could further impact local economic conditions and could further negatively affect our financial performance. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.
 Risks Related to our Business Strategy
 Our business strategy includes loan growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. Growing our operations could also cause our expenses to increase faster than our revenues.
 Our business strategy primarily focuses on loan growth, funded by deposits. Achieving such growth may require us to attract customers that currently bank at other financial institutions in our market area. Our ability to successfully grow will depend on a variety of factors, including our ability to attract and retain experienced bankers, the continued availability of desirable business opportunities, the level of competition from other financial institutions in our market area and our ability to manage our growth. Growth opportunities may not be available, or we may not be able to manage our growth successfully. If we do not manage our growth effectively, our financial condition and operating results could be negatively affected. Furthermore, there can be considerable costs involved in opening branches and expanding lending capacity, and generally a period of time is required to generate the necessary revenues to offset these costs, especially in areas in which we do not have an established presence. Accordingly, any business expansion can be expected to negatively impact our earnings until certain economies of scale are reached. Our expenses could be further increased if we encounter delays in the opening of new branches.
 A significant percentage of our assets is invested in securities, which have a lower yield than our loan portfolio.
 Our results of operations depend substantially on our net interest income. At June 30, 2025, 46.5% of our assets were invested in investment securities and cash and cash equivalents. These investments yield less than the loans we hold in our portfolio. While we intend to invest a greater proportion of our assets in loans with the goal of increasing our net interest income, we may not be able to increase originations of loans that are acceptable to us. Further, at June 30, 2025, $145.8 million, or 99.9%, of our securities portfolio was designated as held to maturity. As a result, we are unable to sell these securities to respond to changes in interest rates that may occur in the future.
 We depend on our management team and other key personnel to implement our business strategy and execute successful operations and we could be harmed by the loss of their services or the inability to hire additional personnel.
 We depend on the services of the members of our senior management team who direct our strategy and operations. Our executive officers and lending personnel possess substantial expertise, extensive knowledge of our markets and key business relationships. Any one of them could be difficult to replace. Our loss of these persons, or our inability to hire additional qualified personnel, could impact our ability to implement our business strategy and could have a material adverse effect on our results of operations and our ability to compete in our markets.
 Risks Related to Our Securities Portfolio
 Our investments in corporate and municipal debt securities obligations expose us to additional credit risks, which could adversely affect our financial condition and results of operations.
 Our investment portfolio historically has consisted primarily of mortgage-backed securities insured or guaranteed by the United States or agencies thereof. We also have invested in bank-qualified municipal obligations and corporate bonds that are not backed by the federal government and expose us to a greater credit risk than U.S.

 agency securities. Any decline in the credit quality of these securities exposes us to the risk that the market value of the securities could decrease that may require us to write down their value and could lead to a possible default in payment.
 Changes in the valuation of our securities portfolio may reduce our profits and our capital levels.
 Our securities portfolio may be affected by fluctuations in market value, potentially reducing accumulated other comprehensive income or earnings. Fluctuations in market value may be caused by changes in market interest rates, lower market prices for securities and limited investor demand. In analyzing a debt issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, industry analysts' reports and spread differentials between the effective rates on instruments in the portfolio compared to risk-free rates. If this evaluation shows impairment to the actual or projected cash flows associated with one or more securities, we may take a charge to earnings to reflect such impairment. Changes in interest rates may also have an adverse effect on our financial condition, as our available-for-sale securities are reported at their estimated fair value, and therefore are affected by fluctuations in interest rates. We increase or decrease our stockholders' equity by the amount of change in the estimated fair value of the available-for-sale securities, net of taxes. Declines in market value may result in other-than-temporary impairments of these assets, which may lead to accounting charges that could have a material adverse effect on our net income and stockholders' equity.
 Risks Related to Market Interest Rates
 Future changes in interest rates could negatively affect our operating results and asset values.
 Net income is the amount by which net interest income and non-interest income exceed non-interest expense and the provision for credit losses. Net interest income makes up a majority of our income and is based on the difference between:
 • the interest income we earn on interest-earning assets, such as loans and securities; and

 • the interest expense we pay on interest-bearing liabilities, such as deposits and borrowings.

 The rates we earn on our assets and the rates we pay on our liabilities are generally fixed for a contractual period of time. Like many savings institutions, our liabilities generally have shorter contractual maturities than our assets. This is exacerbated due to our historical focus on one- to four-family residential real estate loans, almost all of which have fixed interest rates. This imbalance can create significant earnings volatility because market interest rates change over time. In a period of rising interest rates, the interest income we earn on our assets may not increase as rapidly as the interest we pay on our liabilities. Furthermore, increases in interest rates may adversely affect our ability to originate loans and/or the ability of our borrowers to make loan repayments on adjustable-rate loans, as the interest owed on such loans would increase as interest rates increase. In a period of declining interest rates, the interest income we earn on our assets may decrease more rapidly than the interest we pay on our liabilities, as borrowers prepay mortgage loans, and mortgage-backed securities and callable securities are called, requiring us to reinvest those cash flows at lower interest rates.
 In addition, changes in interest rates can affect the average life of loans and mortgage-backed and related securities. A decline in interest rates generally results in increased prepayments of loans and mortgage-backed and related securities as borrowers refinance their debt to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we may not be able to reinvest prepayments at rates that are comparable to the rates we earned on the prepaid loans or securities. Furthermore, an inverted interest rate yield curve, where short-term interest rates (which are usually the rates at which financial institutions borrow funds) are higher than long-term interest rates (which are usually the rates at which financial institutions lend funds for fixed-rate loans) can reduce a financial institution's net interest margin and create financial risk for financial institutions that originate longer-term, fixed-rate mortgage loans.
 Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition, liquidity, and results of operations. Changes in the level of interest rates also may negatively affect the value of our assets and ultimately affect our earnings.
 We monitor interest rate risk through the use of simulation models, including estimates of the amounts by which the fair value of our assets and liabilities (our economic value of equity or "EVE") and our net interest income would change in the event of a range of assumed changes in market interest rates. As of June 30, 2025, in the event of an

 instantaneous 100 basis point increase in interest rates, we estimate that we would experience a 10.3% decrease in EVE and a 7.1% decrease in net interest income. For further discussion of how changes in interest rates could impact us, see Item 7 - "Management's Discussion and Analysis of Financial Condition and Results of Operations of Colonial Federal Savings Bank—Management of Market Risk."
 Risks Related to Our Funding
 Our inability to generate core deposits may cause us to rely more heavily on wholesale funding strategies for funding and liquidity needs, which could have an adverse effect on our net interest margin and profitability.
 We must maintain sufficient funds to respond to the needs of depositors and borrowers. Deposits have traditionally been our primary source of funds for use in lending and investment activities. We also receive funds from loan repayments, investment maturities and income on other interest-earning assets. Certificates of deposit comprised $140.4 million, or 51.2%, of our total deposits at June 30, 2025. Certificates of deposit due within one year of June 30, 2025 totaled $135.0 million, or 49.2%, of total deposits. While we emphasize generating transaction accounts, we cannot guarantee if and when this will occur. Further, the considerable competition for deposits in our market area also has made, and may continue to make, it difficult for us to obtain reasonably priced deposits. Moreover, deposit balances can decrease if customers perceive alternative investments as providing a better risk/return tradeoff. If we are not able to increase our lower-cost transactional deposits at a level necessary to fund our asset growth or deposit outflows, we may be forced to seek other sources of funds, including other certificates of deposit, Federal Home Loan Bank advances, brokered deposits and lines of credit to meet the borrowing and deposit withdrawal requirements of our customers, which may be more expensive and have an adverse effect on our net interest margin and profitability.
 Risks Related to Competitive Matters
 Strong competition within our market areas may limit our growth and profitability.
 Competition in the banking and financial services industry is intense. In our market area, we compete with commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, and securities brokerage firms and unregulated or less regulated non-banking entities, operating locally and elsewhere. Many of these competitors have substantially greater resources and higher lending limits than we have and offer certain services that we do not or cannot provide. If we have to raise interest rates paid on deposits or lower interest rates charged on our loans to remain competitive, our net interest margin and profitability could be adversely affected. In addition, some of our competitors offer loans with lower interest rates or more attractive terms than loans we offer. Competition also makes it increasingly difficult and costly to attract and retain qualified employees. Our profitability depends upon our continued ability to successfully compete in our market area.
 The financial services industry could become even more competitive as a result of new legislative, regulatory, and technological changes and continued consolidation. Banks, securities firms, and insurance companies can merge under the umbrella of a financial holding company, which can offer virtually any type of financial service, including banking, securities underwriting, insurance (both agency and underwriting) and merchant banking. Also, technology has lowered barriers to entry and made it possible for non-banks, such as financial technology companies, securities companies, and specialty finance companies to offer products and services traditionally provided by banks, such as automatic transfer and automatic payment systems. Many of our competitors have fewer regulatory constraints and may have lower cost structures. Additionally, due to their size, many competitors may be able to achieve economies of scale and, as a result, may offer a broader range of products and services as well as better pricing for those products and services than we can. For additional information see Item 1 - "Business of Colonial Federal Savings Bank—Market Area" and "—Competition."
 Our asset size may make it more difficult for us to compete.
 Our asset size may make it more difficult to compete with other financial institutions that are larger and can more easily afford to invest in the marketing and technologies needed to attract and retain customers. Because our principal source of income is the net interest income we earn on our loans and investments after deducting interest paid on deposits and other sources of funds, our ability to generate the revenues needed to cover our expenses and finance such investments is limited by the size of our loan and investment portfolios. Accordingly, we are not always able to offer new products and services as quickly as our competitors. Our lower earnings may also make it more difficult to offer competitive salaries and benefits. In addition, our smaller customer base may make it difficult to generate meaningful non-interest income from non-traditional banking activities. Finally, as a smaller institution, we

 are disproportionately affected by the continually increasing costs of compliance with new banking and other regulations.
 Risks Related to Laws and Regulations
 Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations.
 The Bank is subject to extensive regulation, supervision, and examination by the OCC, and CFSB Bancorp is subject to extensive regulation, supervision, and examination by the Federal Reserve Board. Such regulation and supervision governs the activities in which an institution and its holding company may engage and are intended primarily for the protection of the federal deposit insurance fund and our depositors and borrowers, rather than for our stockholders.
 Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets and determination of the level of our allowance for credit losses. These regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules, standards, policies, and interpretations, control the methods by which financial institutions conduct business, implement strategic initiatives, and tax compliance, and govern financial reporting and disclosures. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation, executive order or supervisory action, may have a material impact on our operations. Further, changes in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by us and our independent accounting firm. These changes could materially impact, potentially even retroactively, how we report our financial condition and results of operations.
 Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
 The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury's Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure to comply with these regulations could result in fines or sanctions, including restrictions on pursuing acquisitions or establishing new branches. The policies and procedures we have adopted that are designed to assist in compliance with these laws and regulations may not be effective in preventing violations of these laws and regulations.
 The Federal Reserve Board may require us to commit capital resources to support the Bank, and we may not have sufficient access to such capital resources.
 Federal law requires that a holding company act as a source of financial and managerial strength to its subsidiary bank and to commit resources to support such subsidiary bank. Under the "source of strength" doctrine, the Federal Reserve Board may require a holding company to make capital injections into a troubled subsidiary bank and may charge the holding company with engaging in unsafe and unsound practices for failure to commit resources to a subsidiary bank. A capital injection may be required at times when the holding company may not have the resources to provide it and therefore may be required to attempt to borrow the funds or raise capital. Any loans by a holding company to its subsidiary bank are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank. It is possible that we will be unable to borrow funds when we need to do so.
 Changes to trade policies and tariffs can have an adverse impact on our business and our customers.
 Changes in trade policies, including the imposition of tariffs or the escalation of a trade war, could negatively impact the economic conditions in the markets we serve. Our customers—particularly local businesses engaged in manufacturing and retail—may face higher costs for imported goods and materials, reduced export demand and supply chain disruptions due to increased tariffs. These challenges could lead to lower revenues, reduced profitability and potential layoffs, all of which may impair our customers' ability to meet their financial obligations. Furthermore, prolonged trade tensions and economic uncertainty could lead to market volatility, declining asset values and weakened consumer confidence. If our customers experience financial stress, we could see loan delinquencies and credit losses, negatively affecting our asset quality and overall financial performance. Additionally, any decline in

 local economic activity could reduce loan demand and deposit growth, which are critical to our long-term success. While we actively monitor economic and policy developments, we cannot predict the outcome of trade negotiations or the full impact of tariffs and trade restrictions on our business, customers, and the broader economy. Any adverse effects from tariffs or a trade war could materially and negatively impact our financial condition, results of operations, and future growth prospects.
 Monetary policies and regulations of the Federal Reserve Board could adversely affect our business, financial condition, and results of operations.
 In addition to being affected by general economic conditions, our earnings and growth are affected by the policies of the Federal Reserve Board. An important function of the Federal Reserve Board is to regulate the money supply and credit conditions. Among the instruments used by the Federal Reserve Board to implement these objectives are open market purchases and sales of U.S. government securities, adjustments of the discount rate and changes in banks' reserve requirements against bank deposits. These instruments are used in varying combinations to influence inflation, overall economic growth and the distribution of credit, bank loans, investments, and deposits. Their use also affects market interest rates, which impacts the rates we charge on loans or pay on deposits.
 The monetary policies and regulations of the Federal Reserve Board have had a significant effect on the operating results of financial institutions in the past and are expected to continue to do so in the future. The effects of such policies upon our business, financial condition and results of operations cannot be predicted.
 We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors.
 We are an emerging growth company, and, for as long as we continue to be an emerging growth company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies," including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As an emerging growth company, we also will not be subject to Section 404(b) of the Sarbanes-Oxley Act, which would require that our independent auditors review and attest as to the effectiveness of our internal controls over financial reporting. We have also elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.
 We can remain an "emerging growth company" for up to five years, or until the earliest of (1) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (2) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (3) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period.
 As a result, our stockholders may not have access to certain information they may deem important, and investors may find our common stock less attractive if we choose to rely on these exemptions. This could result in a less active trading market for our common stock and the price of our common stock may be more volatile.
 We qualify as a smaller reporting company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors.
 We are a smaller reporting company, and, for as long as we continue to qualify as a smaller reporting company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to smaller reporting companies, including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and two years of audited financial statements in our annual report instead of three years. As long as we are not an accelerated filer, we will not be subject to Section 404(b) of the Sarbanes-Oxley Act, which requires that our independent registered public accountants review and attest as to the effectiveness of our internal control over financial reporting. In addition, as a non-accelerated filer, we will have longer deadlines to file our periodic reports with the Securities and Exchange Commission.

 We would remain a smaller reporting company and a non-accelerated filer for so long as our voting and non-voting equity held by non-affiliates ("public float") is less than $250 million or our annual revenues are less than $100 million and our public float is less than $700 million. Public float is determined each year as of the end of a company's previous second fiscal quarter.
 As a result of our smaller reporting company and non-accelerated filer status, our stockholders may not have access to certain information they may deem important, and investors may find our common stock less attractive if we choose to rely on these exemptions. This could result in a less active trading market for our common stock and the price of our common stock may be more volatile.
 Risks Related to Operational Matters
 We face significant operational risks because of our reliance on technology. Our information technology systems may be subject to failure, interruption, or security breaches.
 Information technology systems are critical to our business. Our business requires us to collect, process, transmit and store significant amounts of confidential information regarding our customers, employees, business, operations, plans, and business strategies. We use various technology systems to manage our customer relationships, general ledger, securities investments, deposits, and loans. Our computer systems, data management and internal processes, as well as those of third parties, are integral to our performance. Our operational risks include the risk of malfeasance by employees or persons outside our company, errors relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery. There have been increasing efforts by third parties to breach data security at financial institutions. Such attacks include computer viruses, malicious or destructive code, phishing attacks, denial of service or information or other security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information, damages to systems, or other material disruptions to network access or business operations. Although we take protective measures and believe that we have not experienced any of the data breaches described above, the security of our computer systems, software, and networks may be vulnerable to breaches, unauthorized access, misuse, computer viruses, or other malicious code and cyber-attacks that could have an impact on information security. Because the techniques used to cause security breaches change frequently, we may be unable to proactively address these techniques or to implement adequate preventative measures.
 In the event of a breakdown in our internal control systems, improper operation of systems or improper employee actions, or a breach of our security systems, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, loss of customers and damage to our reputation, and face regulatory action or civil litigation. Any of these events could have a material adverse effect on our financial condition and results of operations. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits.
 We rely on third-party vendors, which could expose us to additional cybersecurity risks.
 Third-party vendors provide key components of our business infrastructure, including certain data processing and information services. Accordingly, our operations are exposed to risk that these vendors will not perform in accordance with our contractual agreements with them, or we also could be adversely affected if such an agreement is not renewed by the third-party vendor or is renewed on terms less favorable to us. If our third-party providers encounter difficulties, or if we have difficulty communicating with those service providers, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely affected, which could have a material adverse effect on our financial condition and results of operations. Threats to information security also exist in the processing of customer information through various other vendors and their personnel.
 We may be subject to risks and losses resulting from fraudulent activities that could adversely impact our financial performance and results of operations.
 As a bank, we are susceptible to fraudulent activity that may be committed against us or our customers, which may result in financial losses or increased costs to us or our customers, disclosure or misuse of our information or our customer information, misappropriation of assets, privacy breaches against our customers, litigation or damage to our reputation. We are most susceptible to fraud and compliance risk in connection with the origination of loans,

 automated clearing house transactions, wire transactions, automated teller machine transactions, checking transactions, debit cards that we have issued to our customers and through our online banking portals.
 We maintain a system of internal controls and insurance coverage to mitigate against such risks, including data processing system failures and errors, and customer fraud. If our internal controls fail to prevent or detect any such occurrence, or if any resulting loss is not insured or exceeds applicable insurance limits, it could have a material adverse effect on our business, financial condition, and results of operations.
 The cost of additional finance and accounting systems, procedures, and controls to satisfy our public company reporting requirements will increase our expenses.
 The obligations of being a public company, including the substantial public reporting obligations, require significant expenditures and place additional demands on our management team. We have made, and may continue to make, changes to our internal controls and procedures for financial reporting and accounting systems to meet our reporting obligations as a public company. However, the measures we take may not be sufficient to satisfy our obligations as a public company. Section 404 of the Sarbanes-Oxley Act of 2002 requires annual management assessments of the effectiveness of our internal control over financial reporting. Any failure to achieve and maintain an effective internal control environment could have a material adverse effect on our business and stock price.
 Risks Related to Accounting Matters
 Changes in accounting standards could affect reported earnings.
 The bodies responsible for establishing accounting standards, including the Financial Accounting Standards Board, the SEC and other regulatory bodies, periodically change the financial accounting and reporting guidance that govern the preparation of our financial statements. These changes can be hard to predict and can materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively.
 If management's estimates and assumptions are incorrect, it may have a material impact on our consolidated financial statements and our financial condition or operating results.
 In preparing the periodic reports we are required to file under the Exchange Act, including our consolidated financial statements, our management is required under applicable rules and regulations to make estimates and assumptions as of a specified date. These estimates and assumptions are based on management's best estimates and experience as of that date and are subject to substantial risk and uncertainty. Materially different results may occur as circumstances change and additional information becomes known. The most significant areas requiring significant estimates and assumptions by management is our evaluation of the adequacy of our allowance for credit losses.
 Other Risks Related to Our Business
 Legal and regulatory proceedings and related matters could adversely affect us.
 We have been and may in the future become involved in legal and regulatory proceedings. We consider most of the proceedings to be in the normal course of our business or typical for the industry. However, it is difficult to assess the outcome of these matters, and we may not prevail in any proceedings or litigation. There could be substantial costs and management diversion in such litigation and proceedings, and any adverse determination could have a materially adverse effect on our business, brand or image, or our financial condition and results of our operations.
 Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.
 Concerns over the long-term effects of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts. Consumers and businesses also may voluntarily change their behavior as a result of these concerns. We and our customers will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. We and our customers may face cost increases, asset value reductions and operating process changes. The impact on our customers will likely vary depending on their specific attributes, including reliance on or role in carbon intensive activities. Among the impacts to us could be a drop in demand for our products and services, particularly in certain sectors. In addition, we could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans. Our efforts

 to take these risks into account in making lending and other decisions, including by increasing our business with climate-friendly companies, may not be effective in protecting us from the negative impact of new laws and regulations or changes in consumer or business behavior.
 We are a community bank and our ability to maintain our reputation is critical to the success of our business, and failure to do so may materially adversely affect our performance.
 We are a community bank, and our reputation is one of the most valuable components of our business. A key component of our business strategy is to rely on our reputation for customer service and knowledge of local markets to expand our presence by capturing new business opportunities from existing and prospective customers in our market area and contiguous areas. As such, we strive to conduct our business in a manner that enhances our reputation. This is done, in part, by recruiting, hiring, and retaining employees or by retaining, appointing, or electing directors who share our core values of being an integral part of the communities we serve, delivering superior service to our customers and caring about our customers and employees. If our reputation is negatively affected by the actions of our employees or directors, by our inability to conduct our operations in a manner that is appealing to current or prospective customers, or otherwise, our business and, therefore, our operating results may be materially adversely affected.
 Risks Related to the Ownership of Stock
 Our public stockholders own a minority of CFSB Bancorp's common stock and cannot exercise voting control over most matters put to a vote of stockholders.
 Public stockholders own a minority of the outstanding shares of CFSB Bancorp's common stock. As a result, stockholders other than 15 Beach, MHC cannot exercise voting control over most matters put to a vote of stockholders. 15 Beach, MHC owns a majority of CFSB Bancorp's common stock and, through its board of directors, can exercise voting control over most matters put to a vote of stockholders. The same directors and officers who manage the Bank also manage CFSB Bancorp and 15 Beach, MHC. The board of directors and officers of 15 Beach, MHC must ensure that the interests of depositors of the Bank (as members of 15 Beach, MHC) are represented and considered in matters put to a vote of stockholders of CFSB Bancorp. Therefore, 15 Beach, MHC may take action that the public stockholders believe to be contrary to their interests. For example, 15 Beach, MHC may exercise its voting control to defeat a stockholder nominee for election to the board of directors of CFSB Bancorp.
 In addition, stockholders will not be able to force a merger or second-step conversion transaction without the consent of 15 Beach, MHC since such transactions also require the approval of a majority of all of the outstanding voting stock of CFSB Bancorp, which can only be achieved if 15 Beach, MHC votes to approve such transactions. Some stockholders may desire a sale or merger transaction, since stockholders typically receive a premium for their shares, or a second-step conversion transaction, since, on a fully-converted basis, most full stock institutions tend to trade at higher multiples than mutual holding companies.
 Our common stock is not heavily traded, and the stock price may fluctuate significantly.
 Our common stock is traded on The Nasdaq Stock Market. Certain brokers currently make a market in the common stock, but such transactions are infrequent and the volume of shares traded is relatively small. Management cannot predict whether these or other brokers will continue to make a market in our common stock. Prices on stock that is not heavily traded can be more volatile than heavily traded stock. Factors such as our financial results, the introduction of new products and services by us or our competitors, publicity regarding the banking industry, and various other factors affecting the banking industry may have a significant impact on the market price of the shares of the common stock. Management also cannot predict the extent to which an active public market for our common stock will develop or be sustained in the future. Accordingly, stockholders may not be able to sell their shares of our common stock at the volumes, prices, or times that they desire.
 Federal Reserve Board regulations and policy effectively prohibit 15 Beach, MHC from waiving the receipt of dividends, which will likely preclude us from paying any dividends on our common stock.
 CFSB Bancorp's board of directors have the authority to declare dividends on our common stock subject to statutory and regulatory requirements. We currently intend to retain all our future earnings for use in our business and do not expect to pay any cash dividends on our common stock in the foreseeable future. Any future determination to pay cash dividends will be made by our board of directors and will depend upon our financial condition, results of

 operations, capital requirements, restrictions under Federal Reserve Board regulations and policy, our business strategy, and other factors that our board of directors deems relevant.
 Under Federal Reserve Board regulations and policy, if CFSB Bancorp pays dividends to its public stockholders, it also would be required to pay dividends to 15 Beach, MHC, unless 15 Beach, MHC waives the receipt of such dividends. Federal Reserve Board regulations implemented after the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act effectively prohibit federally-chartered mutual holding companies from waiving dividends declared by their subsidiaries. See "Supervision and Regulation—Holding Company Regulation—Waivers of Dividends by 15 Beach, MHC" for a further discussion of the applicable requirements related to the potential waiver of dividends by a mutual holding company. Unless Federal Reserve Board regulations and policy change by allowing 15 Beach, MHC to waive the receipt of dividends declared by CFSB Bancorp without diluting minority stockholders, it is unlikely that CFSB Bancorp will pay any dividends.
 Various factors may make takeover attempts more difficult to achieve.
 Stock banks or their holding companies, as well as individuals, may not acquire control of a mutual holding company, such as CFSB Bancorp. As a result, the only persons that may acquire control of a mutual holding company are other mutual savings institutions or mutual holding companies. Accordingly, it is very unlikely that CFSB Bancorp would be subject to any takeover attempt by activist stockholders or other financial institutions. There also are provisions in our charter and bylaws that may be used to delay or block a takeover attempt, including a provision that prohibits any person, other than 15 Beach, MHC, from voting more than 10% of the shares of common stock outstanding. In addition, federal banking laws, including regulatory approval requirements, could make it more difficult for a third party to acquire control of CFSB Bancorp without our board of directors' prior approval.
 Under federal law, subject to certain exemptions, a person, entity, or group must notify the Federal Reserve Board before acquiring control of a savings and loan holding company. Acquisition of 10% or more of any class of voting stock of a savings and loan holding company creates a rebuttable presumption that the acquirer "controls" the savings and loan holding company. Also, a savings and loan holding company must obtain the prior approval of the Federal Reserve Board before, among other things, acquiring direct or indirect ownership or control of more than 5% of any class of voting shares of any financial institution holding company or bank, including the Bank.
 In addition, a section in CFSB Bancorp's charter provides that for a period of five years from the closing of the offering, no person, other than 15 Beach, MHC, may directly or indirectly offer to acquire or acquire the beneficial ownership of more than 10% of any class of equity security of CFSB Bancorp, held by persons other than 15 Beach, MHC, and that any shares acquired in excess of this limit will not be entitled to be voted and will not be counted as voting stock in connection with any matters submitted to the stockholders for a vote.
 Taken as a whole, these statutory provisions and provisions in our charter and bylaws make it very difficult for any potential acquiror from acquiring control of CFSB Bancorp without the approval of our board of directors, which could adversely affect the market price of our common stock.
 Item 1B. Unresolved Staff Comments.
 None.
 Item 1C. Cybersecurity Risk, Management, Strategy and Governance.
 Cybersecurity is a significant and integrated component of CFSB Bancorp's risk management strategy, designed to protect the confidentiality, integrity, and availability of sensitive information contained within the Company's information services. As a financial services company, cyber threats are present and growing, and the potential exists for a cybersecurity incident to disrupt business operations, compromise sensitive data or both. To date, we have not, to our knowledge, experienced a cybersecurity incident materially affecting or reasonably likely to materially affect the Company.
 To prepare and respond to incidents, the Company has implemented a multi-layered "defense-in-depth" cybersecurity strategy, integrating people, technology, and processes. This includes employee training, the use of innovative technologies, and the implementation of policies and procedures in the areas of Information Security, Data Governance, Business Continuity and Disaster Recovery, Privacy, Third-Party Risk Management, and Incident Response. Core activities supporting our strategy include cybersecurity training, technology optimization, threat

 intelligence, vulnerability and patch management and the testing of incident response, business continuity and disaster recovery capabilities. The Company engages third-party consultants and independent auditors to, among other things, conduct penetration tests and audits of the areas noted above, including cybersecurity-related vendors.
 The Board of Directors designated the Chief Information Officer as the Information Security Officer (the "ISO") and for oversight, the full Board receives threat intelligence reports and a Cybersecurity Executive Dashboard from the ISO each month. The ISO has more than thirty years' experience with the Company and meets with full Board of Directors in person at least annually. The ISO works with the Company's third-party Security Operations Center and the Company's Compliance/Enterprise Risk Management ("ERM") Team to identify, assess, and manage material risks from cybersecurity threats. The ISO also oversees the Company's Information Security Program, which governs various information security and cybersecurity processes, systems development, change control, disaster recovery/business continuity, physical asset classification and control policies. The Information Security Program identifies data sources, threats, and vulnerabilities and ensures awareness, accountability, and oversight for data protection throughout the Company and with trusted third parties to ensure that data is protected and able to be recovered in the event of a breach or failure (technical or other disaster). The ISO is a member of various management committees, including the quarterly Management Control meetings which serve as the Company's IT Steering Committee.

 Risk Assessment
 On a periodic basis, but not less than annually, the ISO in conjunction with the Compliance/ERM Team, identifies and documents internal and external vulnerabilities that could result in unauthorized disclosure, misuse, alteration, or destruction of customer information or customer records. Based on the results of the risk assessment, the Company's Information Security Program may be revised to protect against any anticipated threats or hazards to the security or integrity of such information. The Compliance/ERM Team reviews changes to the program designed to monitor, measure, and respond to vulnerabilities identified.

 Response to Security Vulnerabilities
 In response to identified risks, management may take certain steps to correct and respond to security vulnerabilities, which may include:
 • Eliminating unwarranted risks by applying vendor-provided software fixes, commonly called patches.

 • Ensuring that changes to security configurations are documented, approved, and tested.

 • Ensuring that exploitable files and services are assessed and removed or disabled based upon known vulnerabilities and business needs.

 • Updating vulnerability scanning and intrusion detection tools to identify known vulnerabilities and related unauthorized activities.

 • Conducting subsequent penetration testing and vulnerability assessments, as warranted.

 • Reviewing performance with service providers to ensure security maintenance and reporting responsibilities are operating according to contract provisions and that service providers provide notification of system security breaches that may affect the Company.

 Employees and Training
 Employees are an integral part in the line of defense against cybersecurity risks. Every employee is responsible for protecting Company and client information. Accordingly, employees complete formal training including regular simulated phishing assessments designed to sharpen threat detection and reporting capabilities. Our employees are supported with solutions designed to identify, prevent, detect, respond to, and recover from incidents. Notable technologies include firewalls, intrusion detection systems, managed endpoint security automation and response capabilities, user behavior analytics, multi-factor authentication when available, encrypted data backups, and business continuity applications. Notable services include 24/7 security monitoring and response, real-time vulnerability scanning, third-party monitoring, and threat intelligence.
 Service Providers

 The Company relies on third-party vendor services and solutions to support its operations. Many of these vendors have access to sensitive and proprietary information. Third-party vendors continue to be a notable source of operational and informational risk. Accordingly, the Company has implemented an Outsourcing Management Policy which includes a detailed onboarding process and periodic reviews of vendors with access to sensitive Company data. The Outsourcing Management program is audited as part of the Company's external audit program.
 Board Reporting
 At least annually, the ISO reports to the Board the overall status of the Information Security Program and the Company's compliance with the Interagency Guidelines for Safeguarding Customer Information. Any material findings related to the risk assessment, risk management and control decisions, service provider arrangements, results of testing, security breaches or violations are discussed as are management's responses and any recommendations for program changes.
 Program Adjustments
 The ISO monitors, evaluates, and adjusts the Information Security Program considering any relevant changes in technology, the sensitivity of its customer information, internal or external threats to information, and changing business arrangements, such as mergers and acquisitions, alliances and joint ventures, outsourcing arrangements, and changes to customer information systems.
 Incident Response Plan
 The Company has implemented an Incident Response Plan (the "IRP") to provide a structured and systematic incident response process for information security incidents that affect any of the information technology systems, network, or data. The Company's business continuity and disaster recovery programs provide a coordinated response when responding to incidents. The IRP is implemented and maintained by the ISO and is subject to annual review and approval by the Board. Cybersecurity metrics are reported to the board monthly.
 The IRP includes:
 • Identifying the incident response team (the "IRT") and any appropriate sub-teams to address specific information security incidents, or categories of information security incidents.

 • Coordinating IRT activities, including developing, maintaining, and following appropriate procedures to respond to and document identified information security incidents.

 • Conducting post-incident reviews to gather feedback on information security incident response procedures and address any identified gaps in security measures.

 • Providing training and conducting periodic exercises to promote employee and stakeholder preparedness and awareness of the IRP.

 • Reviewing the IRP at least annually, or whenever there is a material change in the Company's business practices that may reasonably affect its cyber incident response procedures.

 Item 2. Properties.
 We conduct our operations from our main office in Quincy, Massachusetts and two additional branch offices in Holbrook and Weymouth, Massachusetts. We also maintain a limited branch office located within, and only available to residents of, a senior citizen housing facility in Quincy, Massachusetts. All of our branch offices are located in Norfolk County, Massachusetts. As of June 30, 2025, the net book value of our real properties, including land, buildings and building improvements, was $3.0 million.
 Item 3. Legal Proceedings.
 From time to time, we may be involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any legal proceedings that, in the opinion of management, would have a material adverse

 effect on our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.
 Item 4. Mine Safety Disclosures.
 Not applicable.

 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
 Market Information
 Our common stock is traded on the Nasdaq Stock Market under the symbol "CFSB." Trading of our common stock commenced on January 13, 2022, following the completion of our initial public offering. Prior to that time, there was no established public trading market for our common stock.
 Stockholders
 As of September 16, 2025, there were 200 stockholders of record of our common stock. This number does not include beneficial owners whose shares are held in street name.
 Dividends
 We have not declared or paid any dividends to our stockholders since our inception and we do not plan to declare or pay cash dividends in the foreseeable future. We currently anticipate that we will retain all available funds and any future earnings for the operation and expansion of our business. Any future determination related to dividend policy will be made at the discretion of our board of directors and will depend on, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects and other factors our board of directors may deem relevant. Investors should not purchase our common stock with the expectation of receiving cash dividends.
 Unregistered Securities and Share Repurchases
 There were no sales of unregistered securities during the year ended June 30, 2025.
 On April 5, 2024, the Company announced it had adopted a plan to repurchase up to 152,287 shares of its common stock, which was approximately 5% of its then outstanding common stock (excluding shares held by 15 Beach, MHC). The program does not have a scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.
 The following table provides information on repurchases made during the three months ended June 30, 2025:

 Period

 Total Number of Shares Purchased

 Weighted Average Price Paid per Share

 Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs

 Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs

 April 1, 2025 through April 30, 2025

 -

 $

 -

 84,067

 68,220

 May 1, 2025 through May 31, 2025

 -

 -

 84,067

 68,220

 June 1, 2025 through June 30, 2025

 -

 -

 84,067

 68,220

 Total

 -

 $

 -

 84,067

 68,220

 Item 6. [Reserved.]

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
 This discussion and analysis reflects our consolidated financial statements and other relevant statistical data and is intended to enhance your understanding of our financial condition and results of operations. The information in this section has been derived from our audited consolidated financial statements, which appear beginning on page F-1 of this Form 10-K. You should read the information in this section in conjunction with the business and financial information regarding the Company provided elsewhere in this Form 10-K.
 Overview
 Our results of operations depend primarily on our net interest income and, to a lesser extent, non-interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets, consisting primarily of loans, securities, and other interest-earning assets (primarily cash and cash equivalents), and the interest we pay on our interest-bearing liabilities, consisting of deposits and borrowings. Non-interest income consists primarily of earnings on bank-owned life insurance, service charges on deposit accounts and other income. Our results of operations also are affected by our provision for credit losses and non-interest expense. Non-interest expense consists primarily of salaries and employee benefits, occupancy and equipment, data processing costs, advertising, FDIC deposit insurance premiums, and other expenses. Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, government policies and actions of regulatory authorities.
 Critical Accounting Policies
 The discussion and analysis of the financial condition and results of operations are based on our audited consolidated financial statements, which are prepared in conformity with generally accepted accounting principles used in the United States of America. The preparation of these consolidated financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policy discussed below to be a critical accounting policy. The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.
 The Jumpstart Our Business Startups Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an "emerging growth company," we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our audited consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards.
 On July 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires that the recognition of the allowance for credit losses be estimated using the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities, including the requirement that impairment related to credit losses be presented as an allowance rather than as a write-down. For further discussion related to the implementation of CECL please refer to Notes 1, 3 and 4 of the consolidated financial statements.

 The allowance for credit losses ("ACL") is an estimate of current expected losses within the Company's loan portfolio. The ACL, as reported on our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by loan charge-offs, net of recoveries. Accrued interest receivable on loans was $581,000 at June 30, 2025 and $520,000 at June 30, 2024, and is excluded from the allowance for credit losses.
 The credit loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments, which are disaggregated by call report code. For each of these pools, the Company collects historical loss data, dating back to March 2008, from a selection of peer banks and applies the annual historical loss rate over the estimated remaining average life of the loan portfolio segment. The use of peer banks' historical loss rates is due to the lack of loss history experienced by the Bank. The average remaining life of a loan portfolio segment is adjusted for estimated prepayment and curtailment expectations. The modeling for estimated prepayment speeds and curtailment rates is based on a combination of internal and market estimates. The quantitative component of the ACL on loans is model-based and utilizes a forward-looking macroeconomic forecast. The Company uses a Weighted Average Remaining Maturity ("WARM") method, incorporating historical loss data based on statistically derived economic variable loss drivers, to estimate expected credit losses. This process includes estimates which involve modeling loss projections attributable to existing loan balances, and considers historical experience, current conditions, and future expectations for segments of loans over a reasonable and supportable forecast period. The historical information is collected from a selection of peer banks and is derived from a combination of recessionary and non-recessionary performance periods for which data is available.
 Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluation. In addition, the OCC, as an integral part of its examination process, periodically reviews our allowance for credit losses, and as a result of such reviews, we may have to adjust our allowance for credit losses. However, regulatory agencies are not directly involved in establishing the allowance for credit losses as the process is our responsibility and any increase or decrease in the allowance is the responsibility of management. A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings.
 Comparison of Financial Condition at June 30, 2025 and June 30, 2024
 Total Assets. Total assets increased $3.2 million, or 0.9%, to $366.6 million at June 30, 2025 from $363.4 million at June 30, 2024. The increase resulted primarily from an increase in net loans of $6.8 million, or 4.0%, partially offset by a decrease in cash and cash equivalents of $2.3 million, or 8.5%, and a decrease in securities held to maturity of $1.2 million, or 0.8%.
 Cash and Cash Equivalents. Cash and cash equivalents decreased $2.3 million, or 8.5%, to $24.7 million at June 30, 2025 from $27.0 million at June 30, 2024. The decrease in cash and cash equivalents was due to increases in loans, partially offset by decreases in securities and increases in deposits.
 Securities Available for Sale. Securities available for sale decreased $22,000 to $91,000 at June 30, 2025 from $113,000 at June 30, 2024. The decrease was due to principal payments on mortgage-backed securities.
 Securities Held to Maturity. Securities held to maturity decreased $1.2 million, or 0.8%, to $145.8 million at June 30, 2025 from $147.0 million at June 30, 2024, as maturities and prepayments exceeded purchases of securities.
 Net Loans. Net loans increased $6.8 million, or 4.0% to $177.2 million at June 30, 2025 from $170.4 million at June 30, 2024. The increase was due to an increase of $4.2 million, or 3.1%, in one- to four-family residential real estate loans, an increase of $4.3 million, or 35.6%, in multi-family real estate loans, and an increase of $823,000, or 24.4%, in second mortgages and home equity lines of credit, partially offset by a decrease of $2.5 million, or 15.1%, in commercial real estate loans, and a decrease of $104,000, or 5.1%, in home improvement loans. The increases in one- to four-family residential real estate loans, and multi-family real estate loans, during the year ending June 30, 2025, were primarily due to originations outpacing normal principal payments.
 Total Liabilities. Total liabilities increased $3.5 million, or 1.2%, to $290.9 million at June 30, 2025 from $287.4 million at June 30, 2024. The increase was primarily the result of an increase in interest-bearing deposits of

 $4.2 million, or 1.8% and an increase in mortgagor's escrow accounts of $109,000, or 7.1%, partially offset by a decrease in non-interest-bearing deposits of $850,000, or 2.5%.
 Deposits. Deposits increased $3.3 million, or 1.2%, to $274.2 million at June 30, 2025 from $270.8 million at June 30, 2024. The increase was the result of an increase in interest-bearing deposits of $4.2 million, or 1.8%, offset by a decrease in non-interest-bearing deposits of $850,000, or 2.5%. The increase in interest-bearing deposits was the result of increases in term certificates of $8.1 million, or 6.1%, offset by a decrease of $2.8 million, or 12.7%, in money market accounts, a decrease of $1.2 million, or 1.9%, in NOW and demand accounts, and a decrease of $730,000, or 1.3%, in regular and other accounts as new and existing depositors moved funds to products offering higher interest rates. At June 30, 2025, the Bank held $37.3 million in uninsured deposits.
 Borrowings. Borrowings, consisting entirely of Federal Home Loan Bank advances, were $10.4 million at June 30, 2025 and 2024.
 Stockholders' Equity. Total stockholders' equity decreased $319,000, or 0.4%, to $75.7 million at June 30, 2025 from $76.1 million at June 30, 2024. The decrease was due to net loss of $265,000 for the year ended June 30, 2025, and the repurchase of CFSB Bancorp stock of $495,000, offset by stock-based compensation of $358,000 and ESOP shares committed to be released of $81,000.
 Comparison of Operating Results for the Year Ended June 30, 2025 and 2024
 General. We had net loss of $265,000 for the year ended June 30, 2025, compared to net income of $33,000 for the year ended June 30, 2024, a decrease of $298,000. The decrease in net income was primarily due to an increase in the provision for credit losses of $368,000 and an increase in non-interest expenses of $207,000, offset by an increase in net interest income of $274,000, or 4.1%.
 Interest and Dividend Income. Interest and dividend income increased $1.4 million, or 12.2%, to $13.1 million for the year ended June 30, 2025 from $11.7 million for the year ended June 30, 2024. The increase was due to an increase of $586,000, or 15.7%, in interest and dividends on taxable debt securities, an increase of $287,000, or 4.1%, in interest and fees on loans and an increase of $624,000, or 113.0%, in interest on short-term investments, offset by a decrease of $75,000, or 20.7%, in interest and dividends on tax-exempt debt securities. Interest income on loans increased due to an increase in the average yield on loans of 23 basis points to 4.24% for the year ended June 30, 2025 from 4.01% for the year ended June 30, 2024, offset by a decrease in the average balance of loans of $2.8 million to $172.2 million for the year ended June 30, 2025 from $175.0 million for the year ended June 30, 2024. Interest income on securities increased due to an increase in the average yield on securities of 36 basis points to 3.17% for the year ended June 30, 2025 from 2.81% for the year ended June 30, 2024, offset by a decrease in the average balance of securities of $1.1 million to $148.0 million for the year ended June 30, 2025 from $149.2 million for the year ended June 30, 2024. The interest income on short-term investments increased due to an increase in the average balance of short-term investments of $14.2 million, offset by a decrease in the average yield of 40 basis points to 4.69% for the year ended June 30, 2025, from 5.09% for the year ended June 30, 2024.
 Interest Expense. Interest expense increased $1.1 million, or 23.1%, to $6.1 million for the year ended June 30, 2025 from $5.0 million for the year ended June 30, 2024. The increase was primarily due to an increase of $1.1 million, or 26.1%, in interest expense on certificates of deposit. The average cost of certificates of deposit increased 35 basis points to 4.02% for the year ended June 30, 2025 from 3.67% for the year ended June 30, 2024, due to increased market rates and intense competition, while the average balance of certificates of deposit increased $17.8 million to $137.2 million for the year ended June 30, 2025 from $119.4 million for the year ended June 30, 2024. Interest expense on borrowings, consisting entirely of FHLB advances, increased $20,000, to $473,000 for the year ended June 30, 2025 from $453,000 for the year ended June 30, 2024 due to the increase in the average balance of borrowings to $10.4 million for the year ended June 30, 2025 from $9.1 million for the year ended June 30, 2024, offset by a decrease in the average cost of 41 basis points to 4.57% for the year ended June 30, 2025 from 4.98% for the year ended June 30, 2024 as we lengthened the terms of the borrowings.
 Net Interest Income. Net interest income increased $274,000, or 4.1%, to $7.0 million for the year ended June 30, 2025 from $6.7 million for the year ended June 30, 2024. The increase was primarily due to an increase in the average balance of interest-earning assets of $10.3 million, to $345.3 million for the year ended June 30, 2025 from $335.0 million for the year ended June 30, 2024, and an increase in the average rate earned on interest-earning assets

 of 30 basis points to 3.81% for the year ended from 3.51% for the year ended June 30, 2024, offset by an increase in the average balance of certificates of deposit of $17.8 million to $137.2 million for the year ended June 30, 2025 from $119.4 million for the year ended June 30, 2024 and an increase in the average cost of certificates of deposit of 35 basis points to 4.02% for the year ended June 30, 2025, compared to 3.67% for the year ended June 30, 2024. Our net interest margin increased to 2.04% for the year ended June 30, 2025 compared to 2.03% for the year ended June 30, 2024.
 Provision for Credit Losses. A provision for credit losses of $46,000 was recorded for the year ended June 30, 2025 compared to a reversal of credit to the provision for credit losses of $322,000 for the year ended June 30, 2024. A provision of $55,000 to the provision for credit losses on investments for the year ended June 30, 2025 was primarily due to the change in Moody's baseline economic forecast for June 2025 which led to increases in the probability of default for most corporate bonds, resulting in a higher reserve. The reversal of $3,000 to the provision for credit losses for the year ended June 30, 2025 for off-balance sheet exposures was primarily due to a decrease of $120,000 in unfunded commitments for multifamily real estate loans and a decrease of $190,000 in unfunded commitments for 1-4 family residential first liens for the year ended June 30, 2025. A reversal of $6,000 to the provision for credit losses on loans was primarily due to strong asset quality, improving economic factors and reduced loan balances. The allowance for credit losses for loans was $1.5 million, or 0.86% of total loans, at June 30, 2025, compared to $1.6 million, or 0.90% of total loans, at June 30, 2024. At June 30, 2025, the Company had $1.4 million in residential one- to four-family loans rated substandard and individually evaluated due to the borrowers' inability to show sufficient rent receipts to support the debt coverage with a provision of $10,000. These loans are current as the borrower continues to make timely payments. There were no loans categorized as special mention, doubtful or loss and no non-performing loans.
 Non-Interest Income. Non-interest income information is as follows.

 Year Ended

 Change

 2025

 2024

 Customer service fees

 $

 $

 $

 (6

)

 (3.9

 %)

 Income on bank-owned life insurance

 6.7

 %

 Other income

 0.8

 %

 Total non-interest income

 $

 $

 $

 2.1

 %

 Non-interest income increased $14,000, or 2.1%, to $679,000 for the year ended June 30, 2025 from $665,000 for the year ended June 30, 2024. The increase was due to an $18,000 increase in income on bank-owned life insurance and a $2,000 increase in other income, offset by a $6,000 decrease in customer service fees.
 Non-Interest Expense. Non-interest expense information is as follows.

 Year Ended

 Change

 2025

 2024

 Salaries and employee benefits

 $

 4,361

 $

 4,558

 $

 (197

)

 (4.3

 %)

 Occupancy and equipment

 (1

)

 (0.1

 %)

 Advertising

 0.7

 %

 Data processing

 8.9

 %

 Deposit insurance

 3.8

 %

 Other

 1,889

 1,523

 24.0

 %

 Total non-interest expense

 $

 7,905

 $

 7,698

 $

 2.7

 %

 Non-interest expense increased $207,000, or 2.7%, to $7.9 million for the year ended June 30, 2025 from $7.7 million for the year ended June 30, 2024. The increase was due primarily to a $366,000 increase in other non-interest expense due to merger costs, a $33,000 increase in data processing fees and a $5,000 increase in deposit insurance, offset by a $197,000 decrease in salaries and employee benefit expense due to reduced head count.

 Provision for Income Taxes. The Company recorded an income tax benefit of $28,000 for the year ended June 30, 2025, compared to a benefit for income taxes of $39,000 for the year ended June 30, 2024. The lower effective tax rate for the years ended June 30, 2025 and 2024 as compared to the statutory rate reflected the benefit of our investment in tax-advantaged municipal securities and bank-owned life insurance, as well as reduced state taxes through utilization of a Massachusetts securities corporation to hold our investment securities.
 Average Balance and Yields. The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances. Tax-equivalent adjustments have been made. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Deferred loan fees totaled $362,000 and $387,000 at June 30, 2025 and 2024, respectively.

 For the Year Ended June 30,

 2025

 2024

 Average
Outstanding
Balance

 Interest

 Average
Yield/Rate

 Average
Outstanding
Balance

 Interest

 Average
Yield/Rate

 Interest-earning assets:

 Loans

 $

 172,244

 $

 7,307

 4.24

 %

 $

 175,028

 $

 7,020

 4.01

 %

 Securities(1)

 148,045

 4,687

 3.17

 %

 149,160

 4,195

 2.81

 %

 Other

 25,056

 1,176

 4.69

 %

 10,849

 5.09

 %

 Total interest-earning assets

 345,345

 13,170

 3.81

 %

 335,037

 11,767

 3.51

 %

 Non-interest-earning assets

 17,190

 16,838

 Total assets

 $

 362,535

 $

 351,875

 Interest-bearing liabilities:

 Interest-bearing demand deposits

 $

 29,913

 $

 0.05

 %

 $

 29,845

 $

 0.05

 %

 Savings deposits

 52,945

 0.10

 %

 58,569

 0.10

 %

 Money market deposits

 21,593

 0.24

 %

 24,044

 0.25

 %

 Certificates of deposit

 137,229

 5,520

 4.02

 %

 119,382

 4,379

 3.67

 %

 Total interest-bearing deposits

 241,680

 5,641

 2.33

 %

 231,840

 4,513

 1.95

 %

 FHLB advances

 4.57

 %

 9,091

 4.98

 %

 Total interest-bearing liabilities

 252,030

 6,114

 2.43

 %

 240,931

 4,966

 2.06

 %

 Noninterest-bearing liabilities

 Non-interest-bearing demand deposits

 28,829

 29,380

 Other non-interest-bearing liabilities

 5,827

 5,765

 Total liabilities

 286,686

 276,076

 Stockholders' equity

 75,849

 75,799

 Total liabilities and stockholders' equity

 $

 362,535

 $

 351,875

 Net interest income - FTE

 $

 7,056

 $

 6,801

 Net interest rate spread(2)

 1.39

 %

 1.45

 %

 Net interest-earning assets(3)

 $

 93,315

 $

 94,106

 Net interest margin - FTE(4)

 2.04

 %

 2.03

 %

 Average interest-bearing assets to interest-bearing liabilities

 137.03

 %

 139.06

 %

 (1) Includes tax equivalent adjustments for municipal securities, based on a statutory rate of 21%, of $77,000 and $96,000 for the years ended June 30, 2025 and 2024, respectively.

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

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

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

 A reconciliation of income presented on a generally accepted accounting principles basis as compared to a fully-tax equivalent basis is below:

 2025

 2024

 Securities interest income (no tax adjustment)

 $

 4,610

 $

 4,099

 Tax-equivalent adjustment

 Securities (tax-equivalent basis)

 $

 4,687

 $

 4,195

 Net interest income (no tax adjustment)

 6,979

 6,705

 Tax-equivalent adjustment

 Net interest income (tax-equivalent adjustment)

 $

 7,056

 $

 6,801

 Rate/Volume Analysis
 The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.

 June 30, 2025 vs. 2024

 Increase (Decrease) Due to Volume

 Increase (Decrease) Due to Rate

 Total Increase (Decrease)

 Interest-earning assets:

 Loans

 $

 (112

)

 $

 $

 Securities

 (31

)

 Other

 (99

)

 Total interest-earning assets

 1,403

 Interest-bearing liabilities:

 Interest-bearing demand deposits

 -

 -

 -

 Savings deposits

 (6

)

 -

 (6

)

 Money market deposits

 (6

)

 (1

)

 (7

)

 Certificates of deposit

 1,141

 Total deposits

 1,128

 FHLB advances

 (43

)

 Total interest-bearing liabilities

 1,148

 Change in net interest income

 $

 (126

)

 $

 $

 Includes tax equivalent adjustments for municipal securities, based on a statutory rate of 21%, of $77,000 and $96,000 for the years ended June 30, 2025 and 2024, respectively.
 Management of Market Risk
 General. The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans and investment securities, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage the impact of changes in market interest rates on net interest income and capital. We have an Asset/Liability Committee that is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of directors. The Asset/Liability Committee establishes and monitors the amount, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.
 As part of our ongoing asset-liability management, we use the following strategies to manage our interest rate risk:
 • market our non-interest-bearing demand, money market, savings, and demand accounts;

 • diversify our loan mix;

 • invest in short- to medium-term repricing and/or maturing securities whenever the market allows; and

 • maintain a strong capital position.

 We do not engage in hedging activities, such as engaging in futures, options, or interest rate swap transactions, or investing in high-risk mortgage derivatives, such as collateralized mortgage obligation residual interests, real estate mortgage investment conduit residual interests or stripped mortgage-backed securities.

 We consider two types of simulations impacted by changes in interest rates, which are (1) net interest income and (2) changes in the economic value of equity.
 Net Interest Income Analysis. We analyze our sensitivity to changes in interest rates through our net interest income simulation model, the results of which are provided to us by an independent third party. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. We estimate what our net interest income would be for a one-year period based on current interest rates. We then calculate what the net interest income would be for the same period under different interest rate assumptions. The following table shows the estimated impact on net interest income for the one-year period beginning June 30, 2025 resulting from potential changes in interest rates, expressed in basis points. These estimates require certain assumptions to be made, including loan and mortgage-related investment prepayment speeds, reinvestment rates, and deposit maturities and decay rates. These assumptions are inherently uncertain. As a result, no simulation model can precisely predict the impact of changes in interest rates on our net interest income.
 Although the net interest income table below provides an indication of our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.

 Change in Interest Rates (basis points)(1)

 Net Interest Income
Year 1 Forecast (In thousands)

 Year 1 Change from Level

 +400

 $

 5,762

 (27.3

 %)

 +300

 6,290

 (20.7

 %)

 +200

 6,817

 (14.0

 %)

 +100

 7,370

 (7.1

 %)

 Level

 7,931

 -

 -100

 8,168

 3.0

 %

 -200

 8,293

 4.6

 %

 -300

 8,414

 6.1

 %

 -400

 8,441

 6.4

 %

 (1) Assumes an immediate uniform change in interest rates at all maturities.

 Economic Value of Equity. We monitor interest rate risk through the use of a simulation model that estimates the amounts by which the fair value of our assets and liabilities (our economic value of equity or "EVE") would change in the event of a range of assumed changes in market interest rates. The quarterly reports developed in the simulation model assist us in identifying, measuring, monitoring, and controlling interest rate risk to ensure compliance within our policy guidelines.
 The table below sets forth, as of June 30, 2025, the calculation of the estimated changes in the Company's EVE that would result from the designated immediate changes in the United States Treasury yield curve.

 As of June 30, 2025

 Estimated Increase (Decrease) in EVE

 EVE as a Percentage of Present Value of Assets(3)

 Change in Interest Rates (basis points)(1)

 Estimated EVE(2)

 EVE Ratio(4)

 Decrease
(basis points)

 +400

 $

 33,814

 $

 (22,872

)

 (40.3

 %)

 11.3

 %

 (530

)

 +300

 39,238

 (17,448

)

 (30.8

 %)

 12.7

 %

 (390

)

 +200

 44,932

 (11,754

)

 (20.7

 %)

 14.0

 %

 (260

)

 +100

 50,871

 (5,815

)

 (10.3

 %)

 15.4

 %

 (120

)

 Level

 56,686

 -

 -

 16.6

 %

 -

 -100

 61,269

 4,583

 8.1

 %

 17.4

 %

 -200

 64,542

 7,856

 13.9

 %

 17.9

 %

 -300

 67,139

 10,453

 18.4

 %

 18.1

 %

 -400

 66,280

 9,594

 16.9

 %

 17.6

 %

 (1) Assumes an immediate uniform change in interest rates at all maturities.

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

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

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

 The table above indicates that at June 30, 2025, in the event of an instantaneous 200 basis point increase in interest rates, we would experience a 20.7% decrease in EVE, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 13.9% increase in EVE.
 Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the net interest income and EVE tables presented assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assume that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the tables provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates and will differ from actual results.
 Interest rate calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans, deposits, and borrowings.
 Liquidity and Capital Resources
 Liquidity. Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities and proceeds from maturities and calls of securities. We also have the ability to borrow from the Federal Home Loan Bank of Boston. At June 30, 2025, we had $10.4 million outstanding in advances from the Federal Home Loan Bank of Boston. At June 30, 2025, we had the ability to borrow an additional $53.0

 million in Federal Home Loan Bank of Boston advances. Additionally, we had a $2.4 million line of credit with the Federal Home Loan Bank of Boston, none of which was drawn at June 30, 2025.
 While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.
 Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $465,000 and $404,000 for the years ended June 30, 2025 and 2024, respectively. Net cash used in investing activities, which consists primarily of disbursements for loan originations and the purchase of investment securities, offset by principal collections on loans and proceeds from maturing securities and pay downs on securities, was $5.7 million for the year ended June 30, 2025, primarily due to a net increase in loans of $6.7 million and the purchase of $15.7 million of securities, partially offset by maturities, prepayments and calls of securities of $16.8 million. Net cash flows provided by investing activities for the year ended June 30, 2024 was $5.7 million, primarily related to a decrease in net loans of $5.6 million and maturities, prepayments and calls of securities held to maturity of $17.1 million, offset by purchases of securities held to maturity of $16.7 million. Net cash provided by financing activities was $2.9 million for the year ended June 30, 2025, primarily due to a net increase in deposits of $3.3 million.
 We are committed to maintaining a strong liquidity position and monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments based on our current strategy to increase loans with an increase in core deposits as supplemented by the use of Federal Home Loan Bank of Boston advances as needed.
 Capital Resources. At June 30, 2025 and 2024 the Bank exceeded all of its regulatory capital requirements. See Note 9 to the consolidated financial statements of this annual report.
 Off-Balance Sheet Arrangements and Contractual Obligations
 Off-Balance Sheet Arrangements. We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. The financial instruments include commitments to originate loans, unused lines of credit and standby letters of credit, which involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. Our exposure to credit loss is represented by the contractual amount of the instruments. We use the same credit policies in making commitments as we do for on-balance sheet instruments.
 At June 30, 2025, we had $585,000 of commitments to originate loans and $5.6 million of unadvanced funds under home equity lines of credit. See Note 10 to the audited consolidated financial statements for further information.
 Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include data processing services, operating leases for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.
 Recent Accounting Pronouncements
 For a discussion of the impact of recent accounting pronouncements, see Note 1 of the notes to our consolidated financial statements beginning on page F-1 of this Form 10-K. As an emerging growth company, we have elected to use the extended transition period to delay the adoption of new or re-issued accounting pronouncements applicable to public companies until such pronouncements are applicable to non-public companies.

 Impact of Inflation and Changing Prices
 The audited consolidated financial statements and related data presented herein have been prepared in accordance with generally accepted accounting principles in the United States of America, which requires the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution's performance than does inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
 For information regarding market risk, see Item 7. "Management's Discussion and Analysis of Financial Conditions and Results of Operations—Management of Market Risk."

 Item 8. Index to Consolidated Financial Statements
 Page

 Report of Independent Registered Public Accounting Firm (PCAOB ID: 392)

 Consolidated Balance Sheets

 Consolidated Statements of Operations

 Consolidated Statements of Comprehensive Income

 Consolidated Statements of Stockholders' Equity

 Consolidated Statements of Cash Flows

 Notes to Consolidated Financial Statements

 Report of Independent Registered Public Accounting Firm

 To the Stockholders and the Board of Directors of CFSB Bancorp, Inc.:

 Opinion on the Consolidated Financial Statements
 We have audited the accompanying consolidated balance sheets of CFSB Bancorp, Inc. and subsidiaries (the Company) as of June 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in stockholders' equity, and cash flows for the years then ended and the related notes (collectively, "the financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

 Basis for Opinion
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 We have served as the Company's auditor since 2004.

 By:/s/ Wolf & Company, P.C.
 Boston, Massachusetts

 Consolidated Balance Sheets
 (Dollars in thousands, except per share data)

 2025

 2024

 Assets:

 Cash and due from banks

 $

 1,691

 $

 1,339

 Short-term investments

 22,974

 25,620

 Total cash and cash equivalents

 Securities available for sale, at fair value

 Securities held to maturity, net of allowance for credit losses of $ 204 and $ 149, fair value of $ 136,435 and $ 133,420 at June 30, 2025 and June 30, 2024, respectively

 145,752

 146,994

 Federal Home Loan Bank stock, at cost

 Loans, net of allowance for credit losses of $ 1,547 at June 30, 2025 and
 $ 1,553 at June 30, 2024

 177,214

 170,438

 Premises and equipment, net

 3,027

 3,246

 Accrued interest receivable

 1,451

 1,398

 Bank-owned life insurance

 10,956

 10,670

 Deferred tax asset

 1,291

 1,245

 Operating lease right of use asset

 Other assets

 Total assets

 $

 366,605

 $

 363,439

 Liabilities and Stockholders' Equity:

 Deposits

 Non-interest bearing

 $

 33,274

 $

 34,124

 Interest-bearing

 240,901

 236,717

 Total deposits

 274,175

 270,841

 Federal Home Loan Bank of Boston advances

 Mortgagors' escrow accounts

 1,634

 1,525

 Operating lease liability

 Accrued expenses and other liabilities

 3,926

 3,796

 Total liabilities

 290,874

 287,389

 Stockholders' Equity

 Preferred Stock, $.01 par value, 10,000,000 shares authorized, none outstanding

 $

 -

 $

 -

 Common Stock, $.01 par value, 90,000,000 shares authorized,
 6,548,575 issued and outstanding as of June 30, 2025 and
 6,621,152 issued and outstanding as of June 30, 2024

 Additional paid-in capital

 28,476

 28,139

 Treasury stock at cost, 84,067 and 11,490 shares at June 30, 2025 and 2024, respectively

 ( 573

)

 ( 78

)

 Retained earnings

 49,961

 50,226

 Accumulated other comprehensive income (loss)

 ( 1

)

 Unearned compensation - ESOP, 219,856 and 230,084 shares unallocated
 at June 30, 2025 and June 30, 2024, respectively

 ( 2,199

)

 ( 2,301

)

 Total stockholders' equity

 75,731

 76,050

 Total liabilities and stockholders' equity

 $

 366,605

 $

 363,439

 The accompanying notes are an integral part of these consolidated financial statements.

 Consolidated Statements of Operations
 (Dollars in thousands, except per share data)

 2025

 2024

 Interest and dividend income:

 Interest and fees on loans

 $

 7,307

 $

 7,020

 Interest and dividends on debt securities:

 Taxable

 4,322

 3,736

 Tax-exempt

 Interest on short-term investments

 1,176

 Total interest and dividend income

 13,093

 11,671

 Interest expense:

 Deposits

 5,641

 4,513

 Borrowings

 Total interest expense

 6,114

 4,966

 Net interest income

 6,979

 6,705

 Provision for (reversal of) credit losses:

 Securities held to maturity

 ( 127

)

 Off-balance sheet credit exposures-loans

 ( 3

)

 Loans

 ( 6

)

 ( 203

)

 Total provision for (reversal of) credit losses:

 ( 322

)

 Net interest income after provision for (reversal of) credit losses

 6,933

 7,027

 Non-interest income:

 Customer service fees

 Income on bank-owned life insurance

 Other income

 Total non-interest income

 Non-interest expenses:

 Salaries and employee benefits

 4,361

 4,558

 Occupancy and equipment

 Advertising

 Data processing

 Deposit insurance

 Other general and administrative

 1,889

 1,523

 Total non-interest expenses

 7,905

 7,698

 Loss before income taxes

 ( 293

)

 ( 6

)

 Benefit for income taxes

 ( 28

)

 ( 39

)

 $

 ( 265

)

 $

 Net (loss) income per share:

 Basic

 $

 ( 0.04

)

 $

 0.01

 Diluted

 $

 ( 0.04

)

 $

 0.01

 Weighted average shares outstanding:

 Basic

 6,267,146

 6,291,529

 Diluted

 6,267,146

 6,291,529

 The accompanying notes are an integral part of these consolidated financial statements.

 Consolidated Statements of Comprehensive Income

 2025

 2024

 $

 ( 265

)

 $

 Other comprehensive loss:

 Change in unrealized holding losses

 Net change in unrealized losses

 Tax effect

 -

 ( 2

)

 Net-of-tax amount

 Comprehensive (loss) income

 $

 ( 263

)

 $

 The accompanying notes are an integral part of these consolidated financial statements.

 Consolidated Statements of Stockholders' Equity
 (Dollars in thousands, except share data)

 Accumulated

 Additional

 Other

 Unearned

 Common Stock

 Paid-in

 Treasury

 Retained

 Comprehensive

 Compensation

 Shares

 Capital

 Stock

 Earnings

 Income (Loss)

 ESOP

 Total

 6,621,152

 $

 $

 28,139

 $

 ( 78

)

 $

 50,226

 $

 ( 1

)

 $

 ( 2,301

)

 $

 76,050

 Net loss

 -

 -

 -

 -

 ( 265

)

 -

 -

 ( 265

)

 Other comprehensive income

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 Treasury stock purchased

 ( 72,577

)

 -

 -

 ( 495

)

 -

 -

 -

 ( 495

)

 ESOP shares committed to be released

 -

 -

 ( 21

)

 -

 -

 -

 6,548,575

 $

 $

 28,476

 $

 ( 573

)

 $

 49,961

 $

 $

 ( 2,199

)

 $

 75,731

 Balance at June 30, 2023

 6,632,642

 $

 $

 27,814

 $

 -

 $

 50,416

 $

 ( 3

)

 $

 ( 2,403

)

 $

 75,889

 Cumulative effect accounting adjustment(1)

 -

 -

 -

 -

 ( 223

)

 -

 -

 ( 223

)

 Net income

 -

 -

 -

 -

 -

 -

 Other comprehensive income

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 Treasury stock purchased

 ( 11,490

)

 -

 -

 ( 78

)

 -

 -

 -

 ( 78

)

 ESOP shares committed to be released

 -

 -

 ( 33

)

 -

 -

 -

 6,621,152

 $

 $

 28,139

 $

 ( 78

)

 $

 50,226

 $

 ( 1

)

 $

 ( 2,301

)

 $

 76,050

 (1) Represents adjustment needed to reflect the cumulative impact on retained earnings pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment presented includes $ 12,000 ($ 9,000, net of tax) attributable to the change in accounting methodology for estimating the allowance for credit losses related to loans, $ 276,000 ($ 198,000, net of tax) attributable to the change in accounting methodology for estimating the allowance for credit losses related to securities held to maturity and $ 23,000 ($ 16,000, net of tax) related to the reserve for off-balance sheet exposures resulting from the Company's adoption of the standard. Amount shown in the table above is presented net of tax.

 The accompanying notes are an integral part of these consolidated financial statements.

 Consolidated Statements of Cash Flows

 2025

 2024

 Cash flows from operating activities:

 $

 ( 265

)

 $

 Adjustments to reconcile net income to net cash provided by operating activities:

 Provision for (reversal of) credit losses

 ( 322

)

 Amortization of securities, net

 Net change in deferred loan costs and fees

 ( 26

)

 Increase in cash surrender value of bank-owned life insurance

 ( 286

)

 ( 268

)

 Deferred income tax expense

 ( 46

)

 ( 80

)

 Depreciation and amortization, net

 ESOP expense

 Net increase in accrued interest receivable

 ( 53

)

 ( 35

)

 Other, net

 Net cash provided by operating activities

 Cash flows from investing activities:

 Activity in securities available for sale:

 Maturities, prepayments and calls

 Activity in securities held to maturity:

 Maturities, prepayments and calls

 16,760

 17,132

 Purchases

 ( 15,743

)

 ( 16,700

)

 Purchases of Federal Home Loan Bank of Boston stock

 -

 ( 323

)

 Loan originations and payments, net

 ( 6,744

)

 5,628

 Additions to premises and equipment

 ( 4

)

 ( 71

)

 Net cash (used in) provided by investing activities

 ( 5,707

)

 5,703

 Cash flows from financing activities:

 Net increase in deposits

 3,334

 7,465

 Treasury stock purchased

 ( 495

)

 ( 78

)

 Net change in short-term borrowings

 -

 ( 3,675

)

 Net change in long-term borrowings

 -

 Net change in mortgagors' escrow accounts

 ( 71

)

 Net cash provided by financing activities

 2,948

 13,991

 Net change in cash and cash equivalents

 ( 2,294

)

 20,098

 Cash and cash equivalents at beginning of period

 6,861

 Cash and cash equivalents at end of period

 $

 $

 Supplemental information:

 Interest paid on deposits and short-term borrowings

 $

 6,145

 $

 4,898

 Income taxes paid

 $

 $

 Adoption of ASU 2016-13

 $

 -

 $

 The accompanying notes are an integral part of these consolidated financial statements.

 Notes to Consolidated Financial Statements

 1. Summary of Significant Accounting Policies
 Basis of presentation and consolidation
 These consolidated financial statements of CFSB Bancorp, Inc. (the "Company") include the accounts of Colonial Federal Savings Bank (the "Bank") and its wholly-owned subsidiary, Beach Street Security Corporation, which was established to buy, hold, and sell securities. All significant intercompany balances and transactions have been eliminated in consolidation.
 In the opinion of management, all adjustments necessary for a fair presentation are reflected in these consolidated financial statements, and all adjustments made are of a normal recurring nature.

 Business
 The Bank provides a variety of financial services to individuals and small businesses through its offices in Quincy, Holbrook, and Weymouth. Its primary deposit products are savings, checking and term certificate accounts, and its primary lending products are one- to four-family residential mortgage, multi-family, and commercial real estate loans.

 Proposed Merger
 On May 20, 2025, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Hometown Financial Group, MHC ("Hometown MHC"), Hometown Financial, Hometown Financial Acquisition Corp. II ("Merger Sub"). Pursuant to the Merger Agreement, 15 Beach will merge with and into Hometown MHC (the "MHC Merger") with Hometown MHC as the surviving entity. Immediately following the MHC Merger, the Company will merge with Merger Sub (the "Merger") with the Company as the surviving entity. Immediately following the Merger, the Company will merge with and into Hometown (the "Second-Step Merger") with Hometown Financial as the surviving corporation. Immediately following the Second-Step Merger, the Bank will merge with and into North Shore Bank, a wholly owned subsidiary of Hometown Financial, with North Shore Bank as the surviving entity.
 Pursuant to the terms of the Merger Agreement, the Company shareholders will receive $ 14.25 in cash for each share of the Company's common stock.

 Reorganization and Offering
 On January 12, 2022, the Bank reorganized from a federally chartered mutual savings bank to a two-tier mutual holding company structure. As part of the reorganization, a mutual holding company (the "MHC") was formed as a federal corporation, into which all of the current voting rights of the members of the Bank were transferred. As part of the reorganization, the Bank converted to a federal stock savings bank. The Company, a stock holding company, was established as a federal corporation and a majority-owned subsidiary of the MHC at all times so long as the MHC remains in existence. Concurrently with the reorganization, the Company sold 43 % of its common stock in a stock offering on a priority basis to depositors of the Bank and the tax qualified employee plans of the Bank and contributed 2 % of its common stock to a charitable foundation established as a part of the reorganization. The remainder of the Company common stock is held by the MHC. The Company sold 2,804,306 shares of common stock at $ 10.00 per share for gross offering proceeds of $ 28.0 million.
 Following the completion of the reorganization, all depositors who had liquidation rights with respect to the Bank as of the effective date of the reorganization will continue to have such rights solely with respect to 15 Beach, MHC so long as they continue to hold their deposit accounts with the Bank. In addition, all persons who become depositors of the Bank subsequent to the reorganization will have such liquidation rights with respect to 15 Beach, MHC.

 Employee Stock Ownership Plan (the "ESOP")
 The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders' equity. The Company records compensation expense for the ESOP equal to the fair market value of shares when they are committed to be released from the suspense account to participants' accounts under the plan.

 Earnings Per Share
 Basic earnings per share ("EPS") is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. For purposes of calculating basic EPS, weighted average common shares outstanding excludes unallocated ESOP shares and non-vested restricted shares. Diluted EPS is computed using the same method as basic EPS but also reflects the potential dilution that could occur if stock options shares were exercised and converted into common stock. The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. For the years ended June 30, 2025, and June 30, 2024, there were no anti-dilutive shares. Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the average market value for the periods presented.
 The following is a reconciliation of the numerators and denominators of the basic and diluted EPS calculation for the years ended June 30, 2025 and 2024.

 (Dollars In thousands, except per share amounts)

 $

 ( 265

)

 $

 Weighted average number of common shares outstanding

 6,574,761

 6,631,443

 Less: Average unallocated ESOP shares

 ( 225,388

)

 ( 235,611

)

 Less: Average non-vested restricted shares

 ( 82,226

)

 ( 104,303

)

 Weighted average number of common shares outstanding used to calculate basic earnings per common share

 6,267,146

 6,291,529

 Dilutive effect of share-based compensation

 -

 -

 Weighted average number of common shares outstanding used to calculate diluted earnings per common share

 6,267,146

 6,291,529

 Earnings (loss) per common share

 Basic

 $

 ( 0.04

)

 $

 0.01

 Diluted

 $

 ( 0.04

)

 $

 0.01

 Use of estimates
 In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term is the determination of the allowance for credit losses.

 Reclassification
 Certain amounts in the 2024 consolidated financial statements have been reclassified to conform to the 2025 presentation.

 Cash and cash equivalents
 For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, and interest-bearing deposits consisting primarily of balances at the Federal Reserve Bank of Boston and deposits sold that mature overnight. The Company may from time to time have deposits in financial institutions which exceed federally insured limits. At June 30, 2025 and 2024, the Company had a concentration of cash on deposit at the Federal Reserve Bank of Boston amounting to $ 18,469,000 and $ 22,682,000, respectively.

 Fair value hierarchy

 The Company groups its assets that are measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value.
 Level 1 – Valuation is based on quoted prices in active exchange markets for identical assets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
 Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets.
 Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

 Securities
 Debt securities that management has the positive intent and ability to hold to maturity are classified as "held to maturity" ("HTM") and recorded at amortized cost. Securities not classified as held to maturity are classified as "available for sale" ("AFS") and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of tax effects.
 Purchase premiums and discounts are recognized in interest income using the level yield method over the terms of the securities except for purchase premiums on callable securities which are amortized to the earliest call date. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.
 As of June 30, 2025, HTM securities are carried at amortized cost and AFS securities are carried at fair value. On July 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Losses ("CECL") methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. The Company measures expected credit losses on HTM debt securities on a collective basis by security type and risk rating where available. Any expected credit losses on HTM securities would be presented as an allowance for credit loss.
 In addition, ASC 326 made changes to the accounting for AFS debt securities. The Company measures expected credit losses on AFS debt securities based upon the gain or loss position of the security. If the Company does not expect to recover the entire amortized cost basis of an AFS debt security, an allowance for credit losses would be recorded, with a related charge to earnings, limited by the amount of the fair value of the security less its amortized cost. If the Company intends to sell the AFS debt security or it is more likely than not that the Company will be required to sell the AFS debt security before recovery of its amortized cost basis, the Company recognizes the entire difference between the amortized cost basis of the security and its fair value in earnings. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income.

 Federal Home Loan Bank Stock
 The Bank, as a member of the Federal Home Loan Bank ("FHLB") system, is required to maintain an investment in capital stock of the FHLB of Boston. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB of Boston may declare dividends on the stock. The Company reviews its investment in FHLB stock for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of June 30, 2025 and 2024, no impairment has been recognized.

 Loans
 The Company's loan portfolio includes residential real estate, commercial real estate, construction, and consumer loan segments. Residential real estate loans include classes for one- to four-family, multi-family, second mortgages and home equity lines of credit.

 Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for credit losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. When loans are sold or paid off, any unamortized fees and costs are recorded in earnings.
 The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual status is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are less than 90 days past due and future payments are reasonably assured, generally after six months.

 The allowance for credit losses ("ACL") is an estimate of expected losses inherent within the Company's existing loan portfolio. The ACL, as reported on our consolidated balance sheet, is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Accrued interest receivable on loans was $ 581,000 at June 30, 2025, and $ 520,000 at June 30, 2024 and was excluded from the ACL.
 The loan loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments, which are disaggregated by call report code. For each of these pools, the Company collects historical loss data, dating back to March 2008, from a selection of peer banks and applies the annual historical loss rate over the estimated remaining average life of the loan portfolio segment. The use of peer banks' historical loss rates is due to the lack of loss history experienced by the Bank. The average remaining life of a loan portfolio segment is adjusted for estimated prepayment and curtailment expectations. The modeling for estimated prepayment speeds and curtailment rates is based on a combination of internal and market estimates. The quantitative component of the ACL on loans is model-based and utilizes a forward-looking macroeconomic forecast. The Company uses a Weighted Average Remaining Maturity ("WARM") method, incorporating historical loss data based on statistically derived economic variable loss drivers, to estimate expected credit losses. This process includes estimates which involve modeling loss projections attributable to existing loan balances, and considers historical experience, current conditions, and future expectations for segments of loans over a reasonable and supportable forecast period. The historical information is collected from a selection of peer banks and is derived from a combination of recessionary and non-recessional performance periods for which data is available.
 Residential one- to four-family: This segment consists of one- to four-family, owner-occupied, residential mortgage loans, virtually all of which are secured by properties in our market area. Generally, mortgages with loan-to-value ratios greater than 80 % require private mortgage insurance, with limited exceptions. Underwriting approval is dependent on review of the borrower's ability to repay and credit history in accordance with the Company's policy. The overall health of the economy, including unemployment rates and housing pricing, will have an effect on the credit quality of this segment.
 Multi-family: This segment consists of real estate loans secured by properties of five or more rental units within our market area. We consider a number of factors in originating multi-family loans. We evaluate the qualifications, income level and financial condition of the borrower, including project-level and global cash flows, credit history, and management expertise, as well as the value and condition of the property securing the loan. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy due to increased vacancy rates or diminished cash flows, which in turn would have an effect on the credit quality of this segment. Management obtains financial information annually and continually monitors the cash flows of these loans.
 Second mortgages and home equity lines of credit: Second mortgage loans and home equity lines of credit are multi-purpose loans used to finance various home or personal needs for which a one- to four-family primary or secondary residence serves as collateral. We generally originate home equity lines of credit with a maximum loan-to-value ratio of 80 % (including the value of the underlying mortgage loan) and with terms of up to 20 years. We originate second mortgage loans on owner-occupied properties with fixed rates of interest. We generally originate these loans

 with a maximum loan-to-value ratio of 80 % (including the value of the underlying mortgage loan) and with terms of up to 15 years. Underwriting approval is dependent on review of the borrower's ability to repay and credit history in accordance with the Company's policy. The overall health of the economy, including unemployment rates and housing pricing, will have an effect on the credit quality of this segment.
 Commercial real estate: This segment consists of real estate loans generally secured by office buildings, small retail facilities, mixed-use facilities, and warehouses within our market area. We consider a number of factors in originating commercial real estate loans. We evaluate the qualifications, income level and financial condition of the borrower, including project-level and global cash flows, credit history, and management expertise, as well as the value and condition of the property securing the loan. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy due to diminished cash flows, which in turn, would have an effect on the credit quality of this segment. Management obtains financial information annually and continually monitors the cash flows of these loans.
 Consumer and home improvement: We offer a variety of consumer loans to individuals, including home improvement loans and new and used automobile loans. The overall health of the economy, including unemployment rates, will have an effect on the credit quality of this segment.
 WARM method
 In estimating the component of the ACL for loans that share similar credit characteristics with other loans, such loans are segregated into loan segments. Loans are designated into loan segments based on call report code, for ease of use of historical peer bank data. In determining the ACL, we derive an estimated credit loss assumption from a model that categorizes loans to their call report codes. The model calculates an expected loss percentage for each loan call report code segment by considering the related historical annual net charge-off rate for that segment, based on historical averages from a select group of peer banks dating back to March 2008, and the average remaining life of the loan segment, based on estimated prepayment and curtailment rates. The use of peer banks' historical loss rates is due to the lack of loss history experienced by the Bank. The historical loss rates over the remaining life of the loan segment are adjusted for differences between the historical net charge-off rates and the expected conditions over the remaining lives of the loans related to: (1) national, regional and local economic and business conditions and developments that effect the collectability of the portfolio; (2) changes in the volume and severity of past due loans and adversely classified or graded loans, the amount of non-accrual loans and trends in charge-offs and recoveries; (3) changes in the size and composition of the portfolio and the terms of loans; (4) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not considered elsewhere in estimating credit losses; (5) changes in the experience, ability and depth of lending management and other relevant staff; (6) changes in the quality of the institution's review system; (7) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution's existing portfolio; and (8) the existence of any concentrations of credit, and changes in the level of such concentrations. The Company uses regression analysis of historical peer data to determine which variables are best suited to be economic variables utilized when modeling lifetime net charge-off rates. This analysis also determines how net charge-off rates will react to forecasted levels of the economic variables.
 For all WARM models, management has determined that eight quarters represents a reasonable and supportable forecast period and reverts back to the historical net charge-off rates thereafter. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.
 Individually evaluated financial assets
 For a loan that does not share risk characteristics with other loans, expected credit loss is measured on a net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan costs and fees), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit losses is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is

 adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than on the operation) of the collateral.
 Allowance for credit losses on off-balance sheet credit exposures, including unfunded loan commitments
 The Company maintains a separate allowance for credit losses for off-balance sheet credit exposures, including unfunded loan commitments, which is included in accrued expenses and other liabilities on the balance sheet. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancelable by the Company and applying the loss factors used in the ACL methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No estimate for credit losses is reported for off-balance sheet exposures that are unconditionally cancelable by the Company, such as undrawn amounts under such arrangements that may be drawn prior to the cancellation of the agreement. The allowance for credit losses on off-balance sheet credit exposures is adjusted as credit loss expense. Categories of off-balance sheet credit exposures correspond to the loan portfolio segment described above. Management evaluates the need for a reserve on unfunded loan commitments in a manner consistent with loans. The reserve for unfunded loan commitments is recorded in accrued expense and other liabilities.

 Premises and equipment
 Land is carried at cost. Buildings and equipment are carried at cost, less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the term of the respective leases.

 Accrued interest receivable
 The Company elected not to measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest.

 Bank-owned life insurance
 Bank-owned life insurance policies are reflected on the consolidated balance sheet at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income in the consolidated statements of operations and are not subject to income taxes.

 Deferred Compensation Plan
 The Company has entered into individual Deferred Compensation Agreements with specified executives. The Company recognizes the cost of providing these benefits over the time period the individuals render service through the retirement date.

 Advertising
 Advertising expenses are charged to earnings when incurred.

 Pension plan
 Costs of the multi-employer pension plan are based on the contribution required to be made to the plan. It is the Company's policy to fund pension costs in the year of accrual.

 Income taxes
 Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted accordingly through the provision for income taxes in the period of enactment. A valuation allowance is established against deferred tax assets when, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

 The Company's base amount of its federal income tax reserve for credit losses is a permanent difference for which there is no recognition of a deferred tax liability. However, the credit loss allowance maintained for financial reporting purposes is a temporary difference with allowable recognition of a related deferred tax asset, if it is deemed realizable.
 The Company does not have any uncertain tax positions at June 30, 2025 or 2024 which require disclosure. The Company accounts for interest and penalties as part of its provision for federal and state taxes. No interest and penalties were recorded for the years ended June 30, 2025 or 2024.

 Transfers of financial assets
 Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets.
 During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.

 Comprehensive income/loss
 Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the retained earnings section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income.
 The components of accumulated other comprehensive income (loss), included in stockholders' equity, are as follows:

 Net unrealized gains (losses) on available for sale securities

 $

 $

 ( 1

)

 Tax effect

 -

 -

 Other comprehensive income (loss)

 $

 $

 ( 1

)

 Leases
 The Company leases certain branch locations under noncancelable operating leases. Under the Company's policy, operating leases do not have renewal options to extend lease terms. Upon commencement of a new lease, the Company will recognize a right of use ("ROU") asset and corresponding lease liability. The discount rate used in determining the present value of lease payments is based on the Company's incremental borrowing rate for borrowings with terms similar to each lease at commencement date. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be separated. The Company has elected the short-term lease recognition exemption for all leases that qualify.

 Stock-Based Compensation

 The fair value of restricted stock and stock options is determined on the date of grant and amortized to compensation expense with a corresponding increase to additional paid-in capital over the required service period. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted based on actual forfeiture experience. The Black Scholes option-pricing model is used to determine the fair value of the stock options granted.

 Recent accounting pronouncements
 As an emerging growth company as defined in the Jumpstart Our Business Startups Act, the Company has elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to non-public companies. As of June 30, 2025, there is no significant difference in the comparability of the financial statements as a result of this extended transition period.
 On July 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires the recognition of the allowance for credit losses be estimated using the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Accounting Standards Codification (ASC) 326 made changes to the accounting for available-for-sale debt securities, including the requirement that credit losses be presented as an allowance rather than as a write-down on available-for-sale debt securities that are determined to have impairment related to credit losses. For further discussion related to the implementation of CECL please refer to Notes 3 and 4 of the consolidated financial statements.
 Segment Reporting
 The Company has one reportable segment, "Banking Services." All of the Company's activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit.
 The Company adopted ASU 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures," on July 1, 2024 which provides updated guidance for segment reporting. The Company has determined that all of its banking services meet the aggregation criteria of ASC 280, Segment Reporting, as its current operating model is structured whereby the Bank serves a similar base of customers who utilize a company-wide offering of similar products and services managed through similar processes that are collectively reviewed by the Company's Chief Executive Officer, who has been identified as the chief operating decision maker ("CODM").
 The CODM regularly assesses performance of the aggregated single operating and reporting segment and decides how to allocate resources based upon net income or loss calculated on the same basis as net income or loss is reported in the Company's consolidated statements of net loss and other comprehensive (loss) income. The CODM is also regularly provided with the expense information at a level consistent with that disclosed in the Company's consolidated statements of net loss and other comprehensive (loss) income.
 For additional information on our critical accounting policies, please refer to the information contained in Note 1 of the audited consolidated financial statements contained elsewhere within this Form 10-K.
 Recent Accounting Pronouncements Yet to Be Adopted
 In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", effective January 1, 2025, with early adoption permitted, updating accounting guidance. The updated guidance requires additional disclosure and disaggregated information in the income tax rate reconciliation using both percentages and reporting currency amounts, with additional qualitative explanations of individually significant reconciling items. The updated guidance also requires disclosure of the amount of income taxes paid (net of refunds

 received) disaggregated by jurisdictional categories (federal (national), state and foreign). The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial statements.
 In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures – Disaggregation of Income Statement Expenses (Subtopic 220-40). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular form, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. This ASU is effective for the Company, on a prospective basis, for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027 and is not expected to have a material impact on the Company's consolidated financial statements.
 In January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures – Disaggregation of Income Statement Expenses (Subtopic 220-40). ASU 2025-01 amends the effective date of Update 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027.

 2. Restrictions on cash and amounts due from banks
 Effective March 26, 2020, the Board of Governors of the Federal Reserve reduced reserve requirement ratios to zero percent and therefore no reserve balance was required at June 30, 2025 or 2024.

 3. Securities
 The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

 Net Carrying Amount

 Gross Unrealized Gains

 $

 $

 -

 $

 $

 $

 -

 $

 $

 $

 -

 $

 $

 $

 -

 $

 $

 $

 -

 $

 $

 $

 ( 1,512

)

 $

 48,891

 4,872

 -

 4,872

 ( 9

)

 4,869

 4,167

 -

 4,167

 -

 ( 5

)

 4,162

 37,949

 ( 5,435

)

 32,515

 48,540

 ( 2,571

)

 45,998

 $

 $

 $

 145,752

 $

 $

 ( 9,532

)

 $

 Net Carrying Amount

 Gross Unrealized Gains

 $

 $

 -

 $

 $

 -

 $

 ( 1

)

 $

 $

 $

 -

 $

 $

 -

 $

 ( 1

)

 $

 Debt obligations

 $

 $

 -

 $

 $

 -

 $

 ( 19

)

 $

 -

 ( 2,763

)

 43,806

 4,462

 -

 4,462

 ( 3

)

 4,470

 2,975

 -

 2,975

 -

 2,984

 41,171

 41,169

 -

 ( 6,347

)

 34,822

 50,981

 50,834

 ( 4,478

)

 46,359

 $

 147,143

 $

 $

 146,994

 $

 $

 ( 13,610

)

 $

 133,420

 Securities with an amortized cost of $ 32,173,000 and a fair value of $ 28,777,000 at June 30, 2025 were pledged to secure a credit line with the Federal Reserve Bank. See Note 7 of these consolidated financial statements.

 The amortized cost and fair value of debt securities, by contractual maturity, at June 30, 2025 is shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 Due in One Year or Less

 Due After One Year to Five Years

 Due after Five Years to Ten Years

 Due After 10 Years

 Total

 $

 -

 $

 -

 $

 $

 $

 $

 $

 $

 $

 $

 $

 -

 $

 -

 $

 $

 $

 $

 $

 $

 $

 $

 $

 $

 $

 3,059

 $

 2,996

 $

 12,497

 $

 11,929

 $

 34,649

 $

 33,947

 $

 $

 48,891

 -

 -

 3,414

 3,408

 1,458

 1,461

 -

 -

 4,872

 4,869

 -

 -

 3,193

 3,188

 -

 -

 4,167

 4,162

 8,169

 8,123

 14,630

 12,587

 14,747

 11,400

 32,515

 2,500

 2,474

 39,512

 37,650

 5,052

 4,564

 1,679

 1,310

 45,998

 $

 2,923

 $

 2,898

 $

 55,128

 $

 53,151

 $

 36,830

 $

 33,729

 $

 51,075

 $

 46,657

 $

 $

 On July 1, 2023, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses on Financial Instruments, as amended, which replaced the incurred loss methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and securities held to maturity. In addition, ASC 326 made changes to the accounting for securities available for sale.

 Allowance for Credit Losses - Securities Available for Sale
 The Company measures expected credit losses on securities available for sale based upon the gain or loss position of the security. For securities available for sale in an unrealized loss position which the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost, the Company evaluates qualitative criteria to determine any expected loss. This includes among other items the financial health of, and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. The Company also evaluates quantitative criteria including determining whether there has been an adverse change in expected future cash flows of the security. Securities available for sale which are guaranteed by government agencies do not currently have an allowance for credit loss, as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), or Government National Mortgage Association ("GNMA"). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. The Company will evaluate its position no less than annually. However, certain items may cause the Company to change this methodology, which include legislative changes that remove a government-sponsored enterprise's ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government's implicit guarantee on such securities. Accrued interest receivable on securities available for sale guaranteed by government agencies totaled $ 400 at June 30, 2025 and $ 500 at June 30, 2024 and was excluded from the estimate of credit losses. If the Company does not expect to recover the entire amortized cost basis of the security, an allowance for credit losses would be recorded, with a related charge to earnings, limited by the amount of the fair value of the security less its amortized cost. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis, the Company recognizes the entire difference between the amortized cost basis of the security and its fair value in earnings. Any credit impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income. There were no securities available for sale not guaranteed by government agencies at June 30, 2025.
 Allowance for Credit Losses - Securities Held to Maturity
 The Company measures expected credit losses on securities held to maturity on a collective basis by security type and risk rating where available. The reserve for each pool is calculated based on a Probability of Default/Loss Given Default basis taking into consideration the expected life of each security. Held-to-maturity securities which are issued by the United States Treasury or are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise FHLMC, FNMA, or GNMA. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. The Company will evaluate its position no less than annually. However, certain items may cause the Company to change this methodology which include legislative changes that remove a government-sponsored enterprise's ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government's implicit guarantee on such securities. Any expected credit losses on held-to-maturity securities would be presented as an allowance for credit loss. Accrued interest receivable on held-to-maturity securities totaled $ 869,000 at June 30, 2025 and $ 863,000 at June 30, 2024 and was excluded from the estimate of credit losses.

 The following tables summarize the activity in the allowance for credit losses for securities held to maturity by security type for the dates indicated:

 Municipal Bonds

 Corporate Bonds

 Total

 $

 $

 $

 Provision for credit losses

 ( 1

)

 $

 $

 $

 Municipal Bonds

 Corporate Bonds

 Total

 Balance at June 30, 2023

 $

 -

 $

 -

 $

 -

 Adoption of ASU 2016-13

 Adjusted beginning balance

 Reversal of credit losses

 -

 ( 127

)

 ( 127

)

 $

 $

 $

 Information pertaining to securities with gross unrealized losses at June 30, 2025 and 2024 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

 Less Than Twelve Months

 Over Twelve Months

 Number of Securities

 Depreciation from Amortized Cost Basis (%)

 Number of Securities

 Depreciation from Amortized Cost Basis (%)

 -

 $

 -

 $

 -

 -

 %

 -

 $

 -

 $

 -

 -

 %

 Total temporarily impaired securities available for sale

 -

 $

 -

 $

 -

 -

 %

 -

 $

 -

 $

 -

 -

 %

 $

 $

 6,439

 0.5

 %

 $

 1,479

 $

 25,839

 5.4

 %

 1,595

 0.3

 %

 0.6

 %

 3,189

 0.2

 %

 -

 -

 -

 -

 %

 4,293

 0.3

 %

 5,420

 25,489

 17.5

 %

 -

 -

 -

 -

 %

 2,571

 43,647

 5.6

 %

 Total temporarily impaired securities held to maturity

 $

 $

 15,516

 0.4

 %

 $

 9,475

 $

 95,801

 9.0

 %

 Less Than Twelve Months

 Over Twelve Months

 Number of Securities

 Depreciation from Amortized Cost Basis (%)

 Number of Securities

 Depreciation from Amortized Cost Basis (%)

 -

 $

 -

 $

 -

 -

 %

 $

 $

 1.3

 %

 Total temporarily impaired securities available for sale

 -

 $

 -

 $

 -

 -

 %

 $

 $

 1.3

 %

 $

 $

 3,575

 0.7

 %

 $

 2,738

 $

 34,679

 7.3

 %

 1,885

 0.1

 %

 -

 -

 -

 -

 Debt obligations

 -

 -

 -

 -

 1.9

 %

 3,724

 1.5

 %

 6,291

 30,085

 17.3

 %

 1,529

 0.3

 %

 4,473

 43,975

 9.2

 %

 Total temporarily impaired securities held to maturity

 $

 $

 10,713

 0.8

 %

 $

 13,521

 $

 109,718

 11.0

 %

 At June 30, 2025, 193 debt securities have unrealized losses with aggregate depreciation of 7.9 % from the Company's amortized cost basis. These unrealized losses are the result of changes in the interest rate environment and there have been no downgrades in the investment quality of these securities or the issuers. The contractual terms of these securities do not permit the entities to settle the security at a price less than par value. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, it does not consider these securities to be credit impaired at June 30, 2025.
 There were no sales of securities available for sale during the years ended June 30, 2025 or 2024.

 Credit Quality Indicators
 The Company monitors the credit quality of securities through the use of credit ratings on a quarterly basis. Based on credit ratings, all securities were investment grade at June 30, 2025 and 2024. The following tables provide the amortized cost of securities available for sale and securities held to maturity at the dates indicated:

 Aaa

 Aa1

 Aa2

 Aa3

 A1

 A2

 A3

 Baa1

 Baa2

 Total

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 4,872

 -

 -

 -

 -

 -

 -

 -

 -

 4,872

 4,167

 -

 -

 -

 -

 -

 -

 -

 -

 4,167

 9,169

 12,951

 11,145

 1,954

 1,310

 1,421

 -

 -

 -

 1,679

 -

 4,707

 7,551

 12,233

 10,198

 7,996

 3,866

 $

 70,111

 $

 12,951

 $

 15,852

 $

 9,505

 $

 13,543

 $

 11,619

 $

 7,996

 $

 3,866

 $

 $

 Aaa

 Aa1

 Aa2

 Aa3

 A1

 A2

 A3

 Baa2

 Total

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 Debt obligations

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 -

 -

 -

 -

 -

 -

 4,462

 -

 -

 -

 -

 -

 -

 -

 4,462

 2,975

 -

 -

 -

 -

 -

 -

 -

 2,975

 8,741

 13,882

 13,173

 2,643

 1,020

 1,712

 -

 -

 41,171

 2,192

 -

 4,767

 2,062

 16,475

 14,281

 10,690

 50,981

 $

 65,924

 $

 13,882

 $

 17,940

 $

 4,705

 $

 17,495

 $

 15,993

 $

 10,690

 $

 $

 147,143

 4. Loans
 A summary of the balances of loans follows:

 $

 142,252

 $

 138,005

 4,195

 3,372

 Total mortgage loans on real estate

 177,109

 170,276

 1,933

 2,037

 Total other loans

 2,014

 2,102

 Allowance for credit losses(1)

 ( 1,547

)

 ( 1,553

)

 Net deferred loan fees

 ( 362

)

 ( 387

)

 Loans, net

 $

 177,214

 $

 170,438

 (1) The Company adopted ASU 2016-13 on July 1, 2023 with a modified retrospective approach. Accordingly, at June 30, 2025 and 2024, the allowance for credit losses was determined in accordance with ASC 326, "Financial Instruments - Credit Losses."

 Residential loans are subject to a blanket lien securing FHLB advances. See Note 7 of these consolidated financial statements.
 Included in total loans are loans due from directors and other related parties of $ 1.9 million and $ 2.0 million at June 30, 2025 and 2024, respectively. All loans made to directors have substantially the same terms and interest rates as other Bank borrowers at their origination date. The Board of Directors confirms that collateral requirements, terms, and rates are comparable to other borrowers and are in compliance with underwriting policies prior to approving loans to individual directors. The following presents the activity in amount due from directors and other related parties for the years ended June 30, 2025 and 2024:

 Outstanding related party loans at July 1,

 $

 1,978

 $

 2,078

 New loans

 -

 -

 Draws

 -

 -

 Transfers

 -

 -

 Repayments

 ( 102

)

 ( 100

)

 Outstanding related party loans at June 30,

 $

 1,876

 $

 1,978

 Effect of New Financial Accounting Standards
 On July 1, 2023, the Company adopted ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses on Financial Instruments", as amended, which requires that the recognition of the allowance for credit losses be estimated using the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and securities held to maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326, Financial Instruments - Credit Losses, made changes to the accounting for securities available for sale. One such change is to require credit

 losses be presented as an allowance rather than as a write-down on securities available for sale that are determined to have impairment related to credit losses.
 The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning July 1, 2023 are presented under ASC 326 while prior amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $ 223,000 as of July 1, 2023 for the cumulative effect of adopting ASC 326, which includes a net deferred tax liability of $ 88,000.
 The following table illustrates the impact of ASC 326:

 Pre-ASC Adoption

 As Reported Under ASC 326

 Impact of ASC 326

 June 30, 2023

 July 1, 2023

 Adoption

 Assets

 Allowance for credit losses on securities held to maturity

 $

 -

 $

 ( 276

)

 $

 ( 276

)

 Allowance for credit losses on loans

 ( 1,747

)

 ( 1,759

)

 ( 12

)

 Deferred tax asset on allowance for credit losses

 ( 88

)

 Liabilities

 Allowance for credit losses on off-balance sheet exposures

 $

 -

 $

 $

 Stockholders' Equity

 Retained earnings

 $

 50,416

 $

 50,193

 $

 ( 223

)

 Activity in the allowance for credit losses and allocation of the allowance to loan segments follows:

 Residential 1-4 Family

 Second Mortgages and Home Equity Lines of Credit

 Construction

 Commercial Real Estate

 Home Improvement

 Unallocated

 Total

 Allowance for credit losses for loans

 $

 1,043

 $

 $

 $

 -

 $

 $

 $

 $

 -

 $

 1,553

 Provision (benefit) for credit losses

 ( 15

)

 -

 ( 39

)

 -

 ( 3

)

 -

 ( 6

)

 $

 1,028

 $

 $

 $

 -

 $

 $

 $

 $

 -

 $

 1,547

 Allowance for credit losses for off-balance sheet exposures

 $

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 Provision (benefit) for credit losses

 ( 1

)

 ( 2

)

 -

 -

 -

 -

 -

 -

 ( 3

)

 $

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 Allowance for credit losses for loans

 Balance at June 30, 2023

 $

 $

 $

 $

 -

 $

 $

 -

 $

 $

 $

 1,747

 Adoption of ASU 2016-13(1)

 -

 ( 19

)

 ( 144

)

 Adjusted beginning balance

 $

 1,113

 $

 $

 $

 -

 $

 $

 $

 $

 -

 $

 1,759

 Provision (benefit) for credit losses

 ( 70

)

 ( 1

)

 ( 34

)

 -

 ( 87

)

 ( 13

)

 -

 ( 203

)

 Loans charged-off

 -

 -

 -

 -

 -

 ( 3

)

 -

 -

 ( 3

)

 $

 1,043

 $

 $

 $

 -

 $

 $

 $

 $

 -

 $

 1,553

 Allowance for credit losses for off-balance sheet exposures

 Balance at June 30, 2023

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 Adoption of ASU 2016-13

 -

 -

 -

 -

 Adjusted beginning balance

 $

 $

 $

 -

 $

 -

 $

 $

 $

 -

 $

 -

 $

 Provision (benefit) for credit losses

 -

 -

 -

 ( 7

)

 ( 4

)

 -

 -

 $

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 (1) Represents the net adjustment needed to reflect the cumulative day one impact pursuant to the Company's adoption of ASU 2016-13 (i.e., the cumulative effect adjustment related to the adoption of ASU 2016-13 as of July 1, 2023).

 The allocation of the allowance for credit losses on loans to each category is presented as of June 30, 2025.

 Residential 1-4 Family

 Second Mortgages and Home Equity Lines of Credit

 Commercial Real Estate

 Home Improvement

 Total

 Allowance for credit losses on loans

 Individually evaluated for credit losses

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 Collectively evaluated for credit losses

 1,018

 1,537

 Total

 $

 1,028

 $

 $

 $

 $

 $

 $

 1,547

 Loans

 Individually evaluated for credit losses

 $

 1,352

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 1,352

 Collectively evaluated for credit losses

 140,900

 4,195

 1,933

 177,771

 Total

 $

 142,252

 $

 $

 4,195

 $

 $

 $

 1,933

 $

 Residential 1-4 Family

 Second Mortgages and Home Equity Lines of Credit

 Commercial Real Estate

 Home Improvement

 Total

 Individually evaluated for credit losses

 $

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 Collectively evaluated for credit losses

 1,033

 1,543

 Total

 $

 1,043

 $

 $

 $

 $

 $

 $

 1,553

 Loans

 Individually evaluated for credit losses

 $

 1,390

 $

 -

 $

 -

 $

 -

 $

 -

 $

 -

 $

 1,390

 Collectively evaluated for credit losses

 136,615

 3,372

 2,037

 170,988

 Total

 $

 138,005

 $

 $

 3,372

 $

 $

 $

 2,037

 $

 At June 30, 2025 and 2024 there were no past due loans or loans on non-accrual status and there were no loans past due ninety days or more and still accruing.
 At June 30, 2025 and 2024 we had four loans with one borrower classified as substandard. At June 30, 2025 and 2024 there were no loans classified as doubtful or loss.

 Modified Loans
 Occasionally, the Company will modify the contractual terms of loans to a borrower experiencing financial difficulties as a way to mitigate loss, proactively work with borrowers in financial difficulty, or to comply with regulations regarding the treatment of certain bankruptcy filing and discharge situations. Loans are designated as modified when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Company grants the borrower a concession on the terms that would not otherwise be considered. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit based on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company's position or significantly extends the note's maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan's origination. When principal forgiveness is provided, the amount forgiven is charged-off against the allowance for credit losses on loans.
 During the years ended June 30, 2025 and 2024, there were no modifications of loans to borrowers experiencing financial difficulties ("BEFD"). During the years ended June 30, 2025 and 2024, there were no modifications of loans to BEFD that defaulted in the first twelve months after restructuring. There were no charge-offs on modified or BEFD loans during the years ended June 30, 2025 and 2024, respectively.
 Credit Quality Information
 The Company utilizes an internal loan rating system for residential real estate, commercial real estate, and construction loans as follows:
 Pass: Loans in this category are considered to pose low to average risk. Passed assets are generally protected by the current net worth and paying capacity of the obligor or by the value of collateral pledged.
 Special Mention: Loans in this category possess credit deficiencies or potential weaknesses deserving management's close attention. If uncorrected, such deficiencies or weaknesses may expose the Company to an increased risk of loss.
 Substandard: Loans in this category are considered to be inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. These assets have a well-defined weakness and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
 Doubtful: Loans in this category have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.
 Loss: Loans in this category are considered uncollectible and continuance as a bankable asset is not warranted. Loans in this category are generally charged-off.
 On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate and construction loans. On a monthly basis, the Company reviews the residential and other loan portfolios for credit quality primarily through the use of delinquency reports.

 The following table details the amortized cost balances of the Company's loan portfolio at June 30, 2025 presented by risk rating and origination year as of the periods presented:

 Term Loans at Amortized Cost by Fiscal Origination Year

 Revolving Loans

 2025

 2024

 2023

 2022

 2021

 Prior

 Total

 Residential 1-4 family:

 Pass

 $

 18,256

 $

 6,820

 $

 10,515

 $

 27,606

 $

 15,776

 $

 61,948

 $

 -

 $

 140,921

 -

 -

 -

 -

 -

 1,352

 -

 1,352

 Total residential 1-4 family

 18,256

 6,820

 10,515

 27,606

 15,776

 63,300

 -

 142,273

 Multifamily:

 Pass

 2,474

 4,075

 2,915

 5,287

 16,362

 Total multifamily

 2,474

 4,075

 2,915

 5,287

 16,362

 Second mortgages and home equity lines of credit:

 Pass

 1,487

 1,031

 4,195

 Total second mortgages and home equity lines of credit

 1,487

 1,031

 4,195

 Commercial:

 Pass

 -

 2,859

 8,095

 2,537

 -

 14,293

 Total commercial

 -

 2,859

 8,095

 2,537

 -

 14,293

 Consumer:

 Pass

 -

 -

 -

 -

 Total consumer

 -

 -

 -

 -

 Home improvement:

 Pass

 -

 1,557

 Total home improvement

 -

 1,557

 Pass

 21,752

 12,134

 19,830

 32,644

 19,287

 70,184

 1,578

 177,409

 -

 -

 -

 -

 -

 1,352

 -

 1,352

 Net deferred fees

 -

 $

 21,811

 $

 12,224

 $

 19,912

 $

 32,671

 $

 19,326

 $

 71,601

 $

 1,578

 $

 At June 30, 2025 there were no loans rated doubtful or loss.

 The following table details the amortized cost balances of the Company's loan portfolio at June 30, 2024 presented by risk rating and origination year as of the periods presented:

 Term Loans at Amortized Cost by Fiscal Origination Year

 Revolving Loans

 2024

 2023

 2022

 2021

 2020

 Prior

 Total

 Residential 1-4 family:

 Pass

 $

 10,045

 $

 10,709

 $

 28,969

 $

 $

 17,533

 $

 52,153

 $

 $

 136,625

 -

 -

 -

 -

 1,035

 -

 1,390

 Total residential 1-4 family

 10,045

 10,709

 28,969

 17,888

 53,188

 138,015

 Multifamily:

 Pass

 -

 3,799

 2,259

 1,123

 3,840

 Total multifamily

 -

 3,799

 2,259

 1,123

 3,840

 Second mortgages and home equity lines of credit:

 Pass

 1,085

 3,372

 Total second mortgages and home equity lines of credit

 1,085

 3,372

 Commercial:

 Pass

 8,654

 1,059

 4,805

 Total commercial

 8,654

 1,059

 4,805

 Consumer:

 Pass

 -

 -

 -

 -

 Total consumer

 -

 -

 -

 -

 Home improvement:

 Pass

 -

 1,640

 Total home improvement

 -

 1,640

 Pass

 12,682

 20,510

 34,305

 20,564

 19,711

 61,238

 1,591

 170,601

 -

 -

 -

 -

 1,035

 -

 1,390

 Net deferred fees

 -

 $

 12,774

 $

 20,614

 $

 34,347

 $

 20,622

 $

 20,089

 $

 62,341

 $

 1,591

 $

 At June 30, 2024, there were no loans rated doubtful or loss.

 5. Premises and Equipment
 A summary of the cost and accumulated depreciation and amortization of premises and equipment follows:

 Land

 $

 1,553

 $

 1,553

 Bank buildings

 1,066

 1,066

 Building improvements

 Furniture, fixtures and equipment

 1,271

 1,267

 Leasehold improvements

 5,155

 5,151

 Accumulated depreciation and amortization

 ( 2,128

)

 ( 1,905

)

 $

 3,027

 $

 3,246

 Depreciation and amortization expense for the years ended June 30, 2025 and 2024 amounted to $ 223,000 and $ 238,000, respectively.

 6. Deposits
 A summary of deposit balances, by type, is as follows:

 NOW and demand

 $

 61,187

 $

 62,386

 Regular and other

 53,462

 54,192

 Money market deposits

 19,160

 21,956

 Total non-certificate accounts

 133,809

 138,534

 Term certificates of $ 250,000 or more

 28,055

 26,113

 Term certificates less than $ 250,000

 112,311

 106,194

 Total certificate accounts

 140,366

 132,307

 Total deposits

 $

 274,175

 $

 270,841

 A summary of certificate accounts by maturity is as follows:

 Weighted Average Rate

 Weighted Average Rate

 Due within 3 months

 $

 69,689

 4.16

 %

 $

 47,453

 4.84

 %

 Over 3 months to 1 year

 65,289

 3.39

 74,112

 4.17

 Over 1 year to 2 years

 3,946

 1.55

 8,200

 2.43

 Over 2 years to 3 years

 0.55

 2,231

 2.44

 Over 3 years to 5 years

 0.65

 0.65

 $

 140,366

 3.69

 %

 $

 132,307

 4.27

 %

 7. Federal Home Loan Bank Advances and Other Borrowings
 Long-term advances with remaining maturities less than one year totaled $ 10.4 million at June 30, 2025, at a weighted average rate of 4.51 %, consist of four fixed-rate advances with various maturity dates during the year ending June 30, 2026. There were no long-term advances having a maturity of greater than one year at June 30, 2025. There were no overnight advances at June 30, 2025.
 Long-term advances or advances having a maturity greater than one year totaled $ 10.4 million at June 30, 2024, at a weighted average rate of 4.51 %, consist of four fixed-rate advances with various maturity dates during the year ending June 30, 2026. There were no short-term advances or advances having a maturity of less than one year at June 30, 2024. There were no overnight advances at June 30, 2024.
 Selected information for such borrowings is as follows:

 Average daily balance

 $

 $

 9,091

 Maximum amount outstanding at any month end

 19,100

 At June 30, 2025, the Bank had an available line of credit in the amount of $ 2,354,000 with the FHLB at an interest rate that adjusts daily. Borrowings under the line are limited to 2 % of the Company's total assets. At June 30, 2025 and 2024 there were no funds advanced under the line of credit. All borrowings from the FHLB are secured by a blanket lien on qualified collateral, defined principally as first mortgage loans on owner-occupied one- to four-family residential properties.
 The Bank has an available line of credit under the Federal Reserve Bank Borrower-in-Custody program offered through the Discount Window. Under the terms of the credit line at June 30, 2025 and June 30, 2024, the Bank has pledged certain qualifying securities with a fair market value of $ 28,777,000 and $ 28,478,000, respectively. The line bears a variable interest rate equal to the federal funds rate plus 0.50 %. At June 30, 2025 and 2024, there was no outstanding balance under this program.

 8. Income Taxes
 Allocation of federal and state income taxes between current and deferred portions is as follows:

 For the Year Ended June 30,

 2025

 2024

 Current tax provision (benefit):

 Federal

 $

 ( 25

)

 $

 State

 Deferred tax expense (benefit):

 Federal

 ( 76

)

 ( 134

)

 State

 ( 25

)

 Valuation allowance

 ( 33

)

 ( 46

)

 ( 80

)

 Total income tax benefit

 $

 ( 28

)

 $

 ( 39

)

 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows:

 Years Ended June 30,

 2025

 2024

 Statutory amount

 $

 ( 62

)

 $

 ( 1

)

 Increase (decrease) resulting from:

 State taxes, net of federal tax expense (benefit)

 Tax exempt interest

 ( 40

)

 ( 42

)

 Bank-owned life insurance

 ( 57

)

 ( 73

)

 Merger expenses

 -

 Other, net

 ( 25

)

 ( 47

)

 Valuation allowance

 Effective (benefit) tax

 $

 ( 28

)

 $

 ( 39

)

 Effective tax rate

 ( 9.6

 %)

 ( 650.0

 %)

 The components of the net deferred tax asset are as follows:

 As of June 30,

 2025

 2024

 Deferred tax assets:

 $

 $

 Employee benefit plans

 ESOP

 Accrued rent

 Federal net operating loss carryforward

 Depreciation and amortization

 Charitable Foundation contribution carryforward

 Gross deferred tax assets

 1,612

 1,511

 Valuation allowance

 ( 321

)

 ( 266

)

 Net deferred tax asset

 $

 1,291

 $

 1,245

 A summary of the change in the net deferred tax asset is as follows:

 Years Ended June 30,

 2025

 2024

 Balance at beginning of fiscal year

 $

 1,245

 $

 1,079

 Deferred tax expense

 Adoption of ASU 2016-13 (CECL)

 -

 Deferred tax effects of net unrealized gain on available for sale securities

 -

 ( 2

)

 Balance at end of fiscal year

 $

 1,291

 $

 1,245

 The calculation of the Company's charitable contribution carryforward deferred tax asset is based upon a carryforward of approximately $ 1,251,000 of charitable contributions at June 30, 2025. As of June 30, 2025, it has been determined that it is more likely than not that a portion of the benefit from this charitable contribution carryforward will not be realized prior to expiration. As a result, a valuation allowance of $ 321,000 has been provided on this deferred tax asset for the year ended June 30, 2025. As of June 30, 2024, the valuation allowance related to the benefit from the charitable foundation contribution carryforward was $ 266,000. The increases of $ 55,000 in the year ended June 30, 2025 and $ 87,000 in the year ended June 30, 2024 relate to changes in assumptions regarding the realizability of the charitable contribution carryover. All other deferred tax assets as of June 30, 2025 and 2024 have not been reduced by a valuation allowance because management believes that it is more likely than not that the full amount of these deferred tax assets will be realized.
 The federal income tax reserve for loan losses at the Company's base year amounted to $ 2,582,000. If any portion of the reserve is used for purposes other than to absorb loan losses, approximately 150 % of the amount actually used, limited to the amount of the reserve, would be subject to taxation in the fiscal year in which used. As the Company intends to use the reserve only to absorb loan losses, a deferred income tax liability of $ 726,000 has not been provided.
 The Company and the Company's income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statues of limitations by the Internal Revenue Service for the years ended December 2021 through 2024. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2021 are open.
 At June 30, 2025, the Company has a net operating loss carryover of $ 549,000 with no expiration date.

 9. Minimum Regulatory Capital Requirements
 The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
 Federal banking regulations require minimum capital requirements for community banking institutions as set forth in the following table. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital, Tier 1 capital or total capital in an amount greater than 2.5 % of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. At June 30, 2025, the Company and the Bank met the required capital conservation buffer. Management believes that the Bank's capital levels will remain characterized as "well capitalized."
 As of June 30, 2025, the most recent notification from the Office of the Comptroller of Currency categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank's category. The Bank is subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year, to an amount that shall not exceed the Bank's net income for the current year, plus its net income retained for the two previous years, subject to regulatory approval.
 The Bank's actual capital amounts and ratios as of June 30, 2025 and 2024 are also presented in the table below.

 Actual

 Minimum Capital Requirement

 Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions

 Ratio

 Ratio

 Ratio

 Total capital (to risk weighted assets)

 $

 66,255

 34.2

 %

 $

 15,489

 8.0

 %

 $

 19,362

 10.0

 %

 Common equity Tier 1 capital (to risk weighted assets)

 64,476

 33.3

 8,713

 4.5

 12,585

 6.5

 Tier 1 capital (to risk weighted assets)

 64,476

 33.3

 11,617

 6.0

 15,489

 8.0

 Tier 1 capital (to adjusted total assets)

 64,476

 17.8

 14,461

 4.0

 18,076

 5.0

 Total capital (to risk weighted assets)

 $

 65,532

 33.8

 %

 $

 15,501

 8.0

 %

 $

 19,377

 10.0

 %

 Common equity Tier 1 capital (to risk weighted assets)

 63,799

 32.9

 8,719

 4.5

 12,595

 6.5

 Tier 1 capital (to risk weighted assets)

 63,799

 32.9

 11,626

 6.0

 15,501

 8.0

 Tier 1 capital (to adjusted total assets)

 63,799

 17.8

 14,317

 4.0

 17,896

 5.0

 10. Commitments and Contingencies
 Loan commitments
 The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and advance funds on lines of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the consolidated balance sheets.
 The Company's exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.
 At June 30, 2025 and 2024, the following financial instruments were outstanding whose contract amounts represent credit risk:

 Commitments to grant loans

 $

 $

 Unadvanced funds on equity lines of credit

 3,698

 4,107

 Unadvanced funds on commercial and other lines of credit

 1,878

 1,998

 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for construction loans and lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis and the commitments are collateralized by real estate.
 Operating lease commitments
 The Company adopted ASU 2016-02, Leases (Topic 842), on July 1, 2022, using the modified retrospective transition method. Therefore, periods prior to that date were not restated. The Company elected the package of practical expedients, which permits the Company not to reassess prior conclusions about lease identifications, lease classification and direct costs. The Company did not elect to apply the hindsight expedient pertaining to using hindsight knowledge as of the effective date when determining lease terms and impairment.
 As of June 30, 2025, the Company had entered into two noncancelable operating lease agreements for branch locations. The Company, by policy, does not include renewal options for leases as part of its ROU assets and lease liabilities unless they are deemed reasonably certain to exercise.
 The Company's ROU asset related to operating leases totaled $ 764,000 and $ 860,000 at June 30, 2025 and June 30, 2024, respectively and is recognized in the Company's consolidated balance sheet as an operating lease right of use asset.
 The weighted average remaining lease term for operating leases was 6.88 years and 7.88 years as of June 30, 2025 and June 30, 2024, respectively. The weighted average discount rate used in the measurement of operating lease liabilities was 3.56 % as of June 30, 2025 and 2024. The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at June 30, 2025 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in the Company's consolidated balance sheet in operating lease liability.

 Years ending

 2026

 $

 2027

 2028

 2029

 2030

 Thereafter

 Total minimum lease payments

 $

 Less: Imputed interest

 ( 101

)

 Total lease liability

 $

 The cost of lease payments is not included above. Total rent expense for the years ended June 30, 2025 and 2024 amounted to $ 137,000 and $ 139,000, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $ 117,000 for the years ended June 30, 2025 and 2024.
 Employment agreements
 The Company maintains employment agreements with two executives (each for a term of three years), which provide for a specified annual compensation and certain other benefits as defined in the agreement. Commencing on the first anniversary of the effective date of the agreement and continuing on each anniversary thereafter, members of the Board of Directors may extend the agreement for an additional year.
 The Company also maintains change in control agreements with certain executives setting forth the terms and conditions of payment due to the executive and the rights and obligations of the parties in the event of a change in control as defined in the agreement. The agreements are subject to renewal each year by the Board of Directors prior to the anniversary of the effective date.
 Other contingencies
 Various legal claims also arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company's consolidated financial statements.

 11. Employee Benefits Plan
 Employee Stock Ownership Plan
 As part of the stock offering, the Company established the Colonial Federal Savings Bank Employee Stock Ownership Plan ("ESOP") to provide eligible employees of the Company the opportunity to own Company common stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The number of shares committed to be released per year is 10,226.
 The ESOP funded its purchase of 255,648 shares through a loan from the Company equal to 100% of the purchase price of the common stock. The ESOP trustee will repay the loan principally through the Company's contributions to the ESOP over the loan term of 25 years. At June 30, 2025, the principal balance on the ESOP loan was $ 2.3 million.
 Total compensation expense recognized in connection with the ESOP for the years ended June 30, 2025 and 2024 was $ 81,000 and $ 69,000, respectively.
 Shares held by the ESOP include the following:

 Shares held by the ESOP include the following:

 Allocated

 30,678

 20,452

 Committed to be allocated

 5,114

 5,112

 Unallocated

 219,856

 230,084

 Total

 255,648

 255,648

 The fair value of unallocated shares was approximately $ 3.0 million and $ 1.5 million at June 30, 2025 and June 30, 2024, respectively.
 On September 16, 2025, the board of directors approved a resolution authorizing the Company to freeze the ESOP as of October 31, 2025.
 Defined benefit plan
 The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions ("the Pentegra DB Plan"), a tax-qualified defined-benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and is subject to the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan.
 The risks of participating in this multi-employer plan are different from a single-employer plan in the following aspects:
 a. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.
 b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
 c. If the Company chooses to stop participating in its multi-employer plan, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
 Pension expense under the plan for the years ended June 30, 2025 and 2024 amounted to $ 441,000 and $ 703,000, respectively.
 Total contributions made to the Pentegra DB Plan, as reported on Form 5500 amounted to $ 63,406,000 and $ 151,773,000 for the plan years ended June 30, 2024 and June 30, 2023, respectively, the latest data on file. The Company's contributions to the Pentegra DB Plan are not more than 5 % of the total contributions to the Pentegra DB

 Plan. Contributions of $ 439,000 and $ 675,000 were paid by the Company during the years ended June 30, 2025 and 2024, respectively.
 The funded status (market value of plan assets divided by funding target) of the Company's portion of the Pentegra DB Plan as of July 1, 2024 and 2023, was 101.90 % and 102.91 %, respectively, per the valuation reports. Market value of plan assets reflects any contributions received applied to the 2023-2024 plan year.
 On August 19, 2025, the board of directors approved a resolution authorizing the Company to freeze the Pentegra DB Plan as of October 31, 2025.
 401(k) plan
 The Company has a savings plan which is intended to qualify under Section 401(k) of the Internal Revenue Code. The plan provides for voluntary contributions by participating employees ranging from two percent to fifteen percent of their compensation, subject to certain limitations. The Company matches 10 % of the employee's voluntary contributions up to 3 % of their compensation. Employer 401(k) plan contribution expense amounted to $ 21,000 for the years ended June 30, 2025 and 2024.
 On September 16, 2025, the board of directors approved a resolution authorizing the Company to freeze the 401(k) Plan as of October 31, 2025.
 Supplemental compensation plan
 The Company has entered into a Supplemental Executive Retirement Plan (the "SERP") with certain officers, which provides for payments upon attaining the retirement age noted in the SERP. The present value of these future payments is provided over the remaining terms of the officers' employment and at June 30, 2025 and 2024, the accrued liability amounted to $ 1,007,000 and $ 941,000, respectively. SERP expense for the years ended June 30, 2025 and amounted to $ 65,000 and $ 64,000, respectively. In connection with these SERPs, the Company purchased life insurance policies, which have a cash surrender value of $ 6.3 million and $ 6.1 million at June 30, 2025 and 2024, respectively.
 In addition, the Company provides death benefits for officers and directors of the Company under the terms of Split Dollar Agreements. The Company has purchased life insurance contracts in connection with these agreements and the cash surrender value of the policies at June 30, 2025 and 2024 amounted to $ 4.6 million. For the years ended June 30, 2025 and 2024, post-retirement expense related to these obligations amounted to $ 82,000 and $ 59,000, respectively.

 12. Fair Value of Assets and Liabilities
 Determination of fair value
 The Company uses fair value measurements to record fair value adjustments to certain assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in some instances, quoted market prices may not be available. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques, including collateral value. Those techniques are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.
 Assets and liabilities measured at fair value on a recurring basis
 At June 30, 2025 and 2024, securities available for sale were measured at Level 2 with a fair value of $ 91,000 and $ 113,000, respectively. All fair value measurements are obtained from a third- party pricing service and are not adjusted by management. Securities measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. There are no securities measured at fair value in Levels 1 and 3.
 There are no liabilities measured at fair value on a recurring basis at June 30, 2025 and 2024.
 Assets and liabilities measured at fair value on a non-recurring basis
 The Company may also be required, from time to time, to measure certain other financial assets on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. There are no assets or liabilities measured at fair value on a non-recurring basis at June 30, 2025 or 2024.

 The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and 2024.

 Carrying
 Value

 Level 1

 Level 2

 Level 3

 Total

 Assets:

 Cash and cash equivalents

 $

 $

 $

 -

 $

 -

 $

 Securities available for sale

 -

 -

 Securities held to maturity

 145,752

 -

 -

 Federal Home Loan Bank of Boston stock

 -

 -

 Loans, net

 177,214

 -

 -

 161,693

 161,693

 Accrued interest receivable

 1,451

 -

 -

 1,451

 1,451

 Liabilities:

 Deposits

 274,175

 -

 -

 257,621

 257,621

 Long-term borrowings

 -

 -

 10,367

 10,367

 Carrying
 Value

 Level 1

 Level 2

 Level 3

 Total

 Assets:

 Cash and cash equivalents

 $

 $

 $

 -

 $

 -

 $

 Securities available for sale

 -

 -

 Securities held to maturity

 146,994

 -

 133,420

 -

 133,420

 Federal Home Loan Bank of Boston stock

 -

 -

 Loans, net

 170,438

 -

 -

 152,164

 152,164

 Accrued interest receivable

 1,398

 -

 -

 1,398

 1,398

 Liabilities:

 Deposits

 270,841

 -

 -

 251,463

 251,463

 Long-term borrowings

 -

 -

 10,282

 10,282

 13. Stock-Based Compensation
 Under the CFSB Bancorp, Inc. 2023 Equity Incentive Plan (the "2023 Equity Plan"), the Company may grant options, restricted stock, restricted stock units or performance awards to its directors, officers, and employees. Both incentive stock options and nonqualified stock options may be granted under the 2023 Equity Plan with 319,560 shares initially reserved for options. Any options forfeited because vesting requirements are not met or expired will become available for re-issuance under the 2023 Equity Plan. The exercise price of each option equals the market price of the Company's stock on the date of the grant and the maximum term of each option is 10 years. The total number of shares initially reserved for restricted stock is 127,824. Options and awards generally vest ratably over three to five year s. The fair value of shares awarded is based on the market price at the date of grant.
 Stock Options
 The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions:
 • Volatility is based on peer group volatility because the Company does not have a sufficient trading history.

 • Expected life represents the period of time that the options are expected to be outstanding, taking into account the contractual term, and the vesting period.

 • Expected dividend yield is based on the Company's history and expectations of dividend payouts.

 • The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant for a period equivalent to the expected life of the option.

 There were no options granted during the year ended June 30, 2025 and 2024.
 A summary of stock option activity for the year ended June 30, 2025 is presented in the table below:

 Outstanding

 Nonvested

 Stock Option Grants

 Weighted Average Exercise Price

 Weighted Average Remaining Contractual Term in Years

 Aggregate Intrinsic Value

 Stock Option Grants

 Weighted Average Grant Date Fair Value

 273,000

 $

 8.33

 -

 -

 218,400

 $

 3.17

 Granted

 -

 -

 -

 -

 -

 -

 Exercised

 -

 -

 -

 -

 -

 -

 Forfeited

 -

 -

 -

 -

 -

 -

 Vested

 -

 -

 -

 -

 ( 54,600

)

 3.17

 273,000

 $

 8.33

 7.70

 -

 163,800

 $

 3.17

 Exercisable at June 30, 2025

 109,200

 $

 8.33

 7.70

 -

 -

 -

 Unrecognized compensation cost

 $

 466,000

 Weighted average remaining recognition period (years)

 2.70

 Stock-based compensation expense applicable to stock options for the years ended June 30, 2025 and 2024 was $ 173,000. For the years ended June 30, 2025 and 2024, the tax benefits related to stock-based compensation expense applicable to stock-options was $ 16,600. There were no stock options exercised during the years ended June 30, 2025 and 2024.

 Restricted Stock
 Shares issued may be either authorized but unissued shares or reacquired shares held by the Company. Any shares forfeited because vesting requirements are not met will become available for reissuance under the 2023 Equity Plan. The fair market value of shares awarded, based on the market price at the date of grant, is amortized over the applicable vesting period. Restricted stock awarded to date has been at no cost to the awardee. The following table presents activity in restricted stock awards under the 2023 Equity Plan for the year ended June 30, 2025:

 Restricted Stock Awards

 Weighted Average Grant Price

 Non-vested restricted stock awards at July 1, 2024

 88,800

 $

 8.35

 Granted

 -

 -

 Vested

 ( 22,200

)

 8.35

 Forfeited

 -

 -

 Non-vested restricted stock awards at June 30, 2025

 66,600

 $

 8.35

 Unrecognized compensation cost

 $

 500,000

 Weighted average remaining recognition period (years)

 2.70

 Stock-based compensation related to restricted stock for the years ended June 30, 2025 and 2024 was $ 185,000. There were no tax benefits related to stock-based compensation expense applicable to restricted stock for the years ended June 30, 2025 and 2024.

 14. Other General and Administrative Expenses
 Included in other general and administrative expenses for the year ended June 30, 2025 and 2024 are certain items exceeding 1% of the Company's total interest and non-interest income as follows:

 2025

 2024

 Legal expense

 $

 $

 Audit expense

 Directors' compensation expense

 15. Parent Company Condensed Financial Statements
 Financial information as of June 30, 2025 and 2024 and for the years then ended pertaining to CFSB Bancorp, Inc. is as follows:
 BALANCE SHEETS

 2025

 2024

 Assets:

 Cash and due from banks

 $

 8,463

 $

 9,355

 Investment in Colonial Federal Savings Bank

 64,475

 63,800

 Due from Colonial Federal Savings Bank

 Accrued interest receivable on ESOP loan

 Deferred tax assets

 ESOP loan

 2,344

 2,416

 Other assets

 Total assets

 $

 75,791

 $

 76,086

 Liabilities and Stockholders' Equity:

 Liabilities

 Other liabilities

 $

 $

 Total liabilities

 Stockholders' Equity

 Common stock

 $

 $

 Additional paid-in capital

 28,476

 28,139

 Retained earnings

 49,961

 50,226

 Treasury stock

 ( 573

)

 ( 78

)

 Accumulated other comprehensive loss

 -

 -

 ESOP-Unearned compensation

 ( 2,199

)

 ( 2,301

)

 Total stockholders' equity

 75,730

 76,051

 Total liabilities and stockholders' equity

 $

 75,791

 $

 76,086

 STATEMENTS OF OPERATIONS

 2025

 2024

 Interest income

 $

 $

 Operating expenses

 Loss before income taxes and equity in undistributed net income in Colonial Federal Savings Bank

 ( 599

)

 ( 204

)

 Applicable income tax expense (benefit)

 ( 18

)

 Loss before equity in undistributed net income of Colonial Federal Savings Bank

 ( 581

)

 ( 235

)

 Equity in undistributed net income of Colonial Federal Savings Bank

 $

 ( 265

)

 $

 STATEMENTS OF CASH FLOWS

 For the Year Ended June 30,

 2025

 2024

 Cash flows from operating activities:

 $

 ( 265

)

 $

 Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 Equity in undistributed net income of Colonial Federal Savings Bank

 ( 316

)

 ( 268

)

 Decrease in due from Colonial Federal Savings Bank

 (Increase) Decrease in accrued interest receivable

 ( 1

)

 Other, net

 ( 398

)

 Net cash used in operating activities

 ( 469

)

 ( 188

)

 Cash flows from investing activities:

 Principal payments received on ESOP loan

 Net cash provided by investing activities

 Cash flows from financing activities:

 Purchase of treasury stock

 ( 495

)

 ( 78

)

 Net cash used in financing activities

 ( 495

)

 ( 78

)

 Net change in cash and cash equivalents

 ( 892

)

 ( 196

)

 Cash and cash equivalents at beginning of period

 9,355

 9,551

 Cash and cash equivalents at end of period

 $

 8,463

 $

 9,355

 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
 None.
 Item 9A. Controls and Procedures.
 Limitations on Effectiveness of Controls and Procedures
 In designing and evaluating our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
 Evaluation of Disclosure Controls and Procedures
 As of the end of the period covered by this Form 10-K, the Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Treasurer and Chief Operating Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply judgment in evaluating its controls and procedures. Based on their evaluation of the Company's disclosure controls and procedures as of June 30, 2025, the Company's Chief Executive Officer and Treasurer and Chief Operating Officer have concluded that the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and regulations are operating in an effective manner.
 Management's Annual Report on Internal Control over Financial Reporting
 Our management is responsible for establishing and maintaining effective internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Treasurer and Chief Operating Officer, we evaluated the effectiveness of our internal control over financial reporting based on criteria established in "Internal Control —Integrated Framework (2013)" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management, including our Chief Executive Officer and Treasurer and Chief Operating Officer, concluded that our internal control over financial reporting was effective and met the criteria of the "Internal Control — Integrated Framework (2013)" as of June 30, 2025.
 Changes in Internal Control over Financial Reporting
 There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) that occurred during the period covered by this Annual Report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 Item 9B. Other Information.
 Securities Trading Plans of Directors and Executive Officers
 During the three months ended June 30, 2025, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Corporation's securities that was intended to satisfy the affirmation defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
 Not Applicable.

 Item 10. Directors, Executive Officers and Corporate Governance.
 Delinquent Section 16(a) Reports
 Our executive officers and directors and beneficial owners of greater than 10% of the outstanding shares of common stock are required to file reports with the Securities and Exchange Commission disclosing beneficial ownership and changes in beneficial ownership of our common stock. Securities and Exchange Commission rules require disclosure if an executive officer, director or 10% beneficial owner fails to file these reports on a timely basis. Based on our review of ownership reports required to be filed during the year ended June 30, 2025, we believe that no executive officer, director or 10% beneficial owner of shares of Company common stock failed to file an ownership report on a timely basis.
 Directors
 Information regarding the directors is provided below as of August 31, 2025. Unless otherwise stated, each individual has held his or her current occupation for the last five years.
 Paul N. Baharian has over 40 years of experience in congregate elderly housing serving as the Executive Director of 1000 Southern Artery in Quincy, Massachusetts. He retired in 2010. Mr. Baharian currently serves on the Board of Trustees of 1000 Southern Artery. He also has both commercial and residential banking experience with South Shore National Bank prior to joining 1000 Southern Artery. Mr. Baharian has extensive experience in management, customer service and employee relations. Mr. Baharian has been involved in many civic and community projects over the years. Age 79. Director since 2000. Term expiring in 2026.
 Robert Guarnieri retired as President and Chief Executive Officer of Colonial Federal Savings Bank in 2012. He has been associated with Colonial Federal Savings Bank since 1975 and had served as Controller and Treasurer before being elected as the President and Chief Executive Officer and a director in 1989. He also served as Chairman of the Board for five years. Mr. Guarnieri formerly worked at the accounting firm of KPMG. He was a certified public accountant for many years. Mr. Guarnieri has a strong banking and accounting background and an excellent track record in sales, customer assessment, risk management and team building. Over the years, he has served on numerous boards in the congregate housing industry and various charitable endeavors. Age 79. Director since 1989. Term expiring in 2026.
 Edward J. Keohane is the past Chairman of the Board of Colonial Federal Savings Bank. He is the retired president of Keohane Funeral Service in Quincy, Massachusetts. Mr. Keohane is associated with Keohane Funeral Service in an advisory and mentoring role. He has extensive experience in the service industry and in employee recruitment, retention and professional development. He is a former president and director of National Selected Morticians. He is also one of the founders of the Quincy Chamber of Commerce and served as its first president. He brings a wealth of business knowledge, community and civic involvement to Colonial Federal Savings Bank. Age 81. Director since 1980. Term expiring in 2025.
 Stephen D. Marini has over 45 years of experience as a certified public accountant and an auditor. He is a retired vice president of the firm of Gerald T. Reilly & Co. CPAs. Mr. Marini serves as Chairperson of the Audit Committee. Mr. Marini also served on the Board of the former Braintree Savings Bank. He has significant experience building relationships with clients and developing employees. He had served as a director of the South Shore Chamber of Commerce for many years and has been involved in many non-profit and charitable endeavors. Age 79. Director since 1997. Term expiring in 2027.
 Michael E. McFarland is the President and Chief Executive Officer of Colonial Federal Savings Bank. He has served in this position for twelve years. His position as President and Chief Executive Officer fosters clear accountability, effective decision making, a clear and direct channel of communication from senior management to the full board of directors, and alignment on corporate strategy. Mr. McFarland has served as an elected member of both the Quincy City Council and the Quincy School Committee. Mr. McFarland has been involved in many community and civic endeavors including past board member of both the Quincy and South Shore Chambers of Commerce. He serves on the Quincy Affordable Housing Trust. Mr. McFarland serves on the Board of Trustees of 1000 Southern Artery in Quincy. Age 71. Director since 1994. Term expiring in 2025.

 James M. O'Leary, Jr. is the Chairman of the Board of Colonial Federal Savings Bank. He was elected Chairperson in 2018. Mr. O'Leary is the President and Treasurer of Milton E. T. Lawrence Insurance Agency, a group insurance provider. Mr. O'Leary has extensive experience in insurance, employee benefit plans and risk management. He brings a wealth of knowledge of local contacts, sales experience, extensive insights into customers and the local real estate market. Mr. O'Leary is a former member of the BID Milton Hospital Board of Advisors. He is actively involved in a variety of civic and educational institutions. Age 69. Director since 2014. Term expiring in 2027.
 Tracy L. Wilson is a life-long resident of Quincy, Massachusetts. Ms. Wilson is an attorney and president of the Law Offices of Tracy Wilson, P.C., with offices located in Quincy and Canton, Massachusetts. Ms. Wilson is a former Norfolk County Assistant District Attorney. Ms. Wilson brings considerable legal perspective to both policy and employment matters. She is active in the local legal community, specializing in probate/estate, guardianship, civil litigation, divorce/family law and mediation/conciliation. Ms. Wilson has raised thousands of dollars for Children's Hospital-Boston running with the Miles for Miracles Team in the Boston Marathon. She remains active in the community, participates in various local charities and civic organizations, and is a long-time sponsor and supporter of local youth sports and the arts. Age 56. Director since 2018. Term expiring in 2025.
 Executive Officers Who Are Not Directors
 The following sets forth information regarding our executive officers who are not directors. Age information is as of August 31, 2025. The executive officers of CFSB Bancorp and Colonial Federal Savings Bank are elected annually.
 Susan J. Shea, age 67, has been employed at Colonial Federal Savings Bank since 1978 and is currently our Treasurer and Chief Operating Officer, positions she has held since 2013. Ms. Shea serves as a member of the Loan Committee, Asset Review Committee, Asset/Liability Committee, Compliance Committee and IT Steering Committee.
 Kemal A. Denizkurt, age 59, is the Senior Vice President of Financial Markets. He joined Colonial Federal Savings Bank in 2000 to manage interest rate risk and the investment portfolio. Mr. Denizkurt serves as Chairman of the Asset/Liability Committee and the Compliance Committee and oversees both compliance and internal audit programs for Colonial Federal Savings Bank. He is a long-serving member of the Loan Committee, conducts internal loan review, and provides oversight of the commercial real estate participation loan portfolio, including credit underwriting and monitoring. Prior to joining Colonial Federal Savings Bank, Mr. Denizkurt was a national bank examiner for the Office of Thrift Supervision, conducting safety and soundness examinations for a ten-year period. Mr. Denizkurt is a long-time member of the Zoning Board of Appeals in Weymouth, Massachusetts and currently serves as Chairman and also sits on the NAS Zoning Board of Appeals.
 William R. Esselstyn, age 57, is Senior Vice President of Information Systems for Colonial Federal Savings Bank, a position he has held since 1999. He also serves as the Information Security Officer and is the Assistant Secretary of the Bank. He is a member of the Compliance Committee and IT Steering Committee and is responsible for E-Banking services. Mr. Esselstyn began his employment at Colonial Federal Savings Bank in 1987. He is active in the local Quincy and Braintree communities, and currently serves as Treasurer of the Wollaston Church of the Nazarene.
 Mary E. Kuropatkin, age 56, is the Senior Vice President of Retail Banking for Colonial Federal Savings Bank. She has served in this position and also as Colonial Federal Savings Bank's BSA Officer since 1999. Ms. Kuropatkin began her employment with Colonial Federal in 1985. Ms. Kuropatkin serves as a member of the Asset/Liability Committee, Compliance Committee and IT Steering Committee.
 Angela M. Blanchard, age 58, is the Senior Vice President of Retail Lending and CRA Officer of Colonial Federal Savings Bank, positions she has held since 2012. She joined Colonial Federal in 1996. Ms. Blanchard serves as a member of the Loan Committee, the Asset Review Committee, the Asset/Liability Committee and the Compliance Committee. Prior to joining Colonial Federal Savings Bank, Ms. Blanchard was an Assistant Vice President – Asset Manager/Commercial Loan Workout Officer for Shawmut Bank N.A.
 Insider Trading Policy
 Our Board of Directors has adopted an Insider Trading Policy, which is filed as an exhibit to this Annual Report on Form 10-K, that governs the purchase, sale, and other dispositions of CFSB Bancorp's securities by our executive

 officers, directors, and employees and that is reasonably designed to promote compliance with insider trading laws, rules, and regulations and Nasdaq listing standards. Our Insider Trading Policy prohibits CFSB Bancorp's executive officers, directors, and employees from engaging in any derivative or hedging transactions in CFSB Bancorp's securities, including but not limited to short sales, put options, call options, collars, futures contracts, forward contracts, and swaps.
 Code of Ethics for Senior Officers
 We adopted a Code of Ethics for Senior Officers, which includes our principal executive officer and principal financial officer. The Code of Ethics for Senior Officers addresses conflicts of interest, the treatment of confidential information, and compliance with applicable laws, rules and regulations. In addition, it is designed to deter wrongdoing and promote honest and ethical conduct, the avoidance of conflicts of interest, full and accurate disclosure and compliance with all applicable laws, rules and regulations. The Code of Ethics for Senior Officers is available in the Corporate Governance portion of the Investor Relations section of Colonial Federal Savings Bank's website (www.colonialfed.com). Any amendments to and waivers from the Code of Ethics for Senior Officers will be disclosed in the Investor Relations section of Colonial Federal Savings Bank's website.
 A copy of the Code of Ethics for Senior Officers is available to shareholders of the "Investor Relations" portion on the Bank's website of www.colonialfed.com.
 Audit Committee
 The Audit Committee meets periodically with the independent registered public accounting firm and management to review accounting, auditing, internal control structure and financial reporting matters. The committee also receives and reviews the reports and findings and other information presented to them by CFSB Bancorp's officers regarding financial reporting policies and practices. The Audit Committee also reviews the performance of CFSB Bancorp's independent registered public accounting firm, the internal audit function and oversees policies associated with financial risk assessment and risk management. The Audit Committee selects the independent registered public accounting firm and meets with them to discuss the results of the annual audit and any related matters. The Board of Directors believes that Mr. Marini qualifies as an "audit committee financial expert" as such term is defined by the rules and regulations of the Securities and Exchange Commission.

 Item 11. Executive Compensation.
 Summary Compensation Table
 The table below summarizes the total compensation paid to or earned by our President and Chief Executive Officer and our two other most highly compensated executive officers for the years ended June 30, 2025 and 2024. Each individual listed in the table below is referred to as a "Named Executive Officer."

 Name and Principal Position

 Year

 Salary

 Bonus

 All other compensation(1)

 Total

 2025

 $

 335,240

 $

 -

 $

 18,346

 $

 353,586

 President and Chief Executive Officer

 2024

 327,740

 -

 18,545

 346,285

 Susan J. Shea

 2025

 254,550

 25,000

 4,729

 $

 284,279

 Treasurer and Chief Operating Officer

 2024

 247,800

 25,000

 11,475

 284,275

 Kemal A. Denizkurt

 2025

 189,400

 20,000

 1,896

 $

 211,296

 Senior Vice President of Financial Markets

 2024

 184,700

 20,000

 7,222

 211,922

 (1) The compensation represented by the amounts for 2025 set forth in the "Other Compensation" column for the named executive officers is detailed in the following table. The table excludes perquisites, which did not exceed $10,000 for any Named Executive Officer.

 Name

 401(k) Plan Matching Contributions

 Automobile Allowance

 Life Insurance Premiums

 BOLI Income(a)

 Total All Other Compensation

 $

 3,093

 $

 6,541

 $

 7,870

 $

 $

 18,346

 Susan J. Shea

 3,106

 -

 1,055

 4,729

 Kemal A. Denizkurt

 1,200

 -

 1,896

 (a) Represents imputed income on bank-owned life insurance and a cash reimbursement to offset taxes due on the imputed income.

 Stock-Based Compensation
 Set forth below is certain information regarding outstanding equity awards granted to the named executive officers at June 30, 2025:

 Outstanding Equity Awards at Fiscal Year-End

 Option Awards(1)

 Stock Awards(1)

 Market

 Number of

 Number of

 Number of

 value of

 securities

 securities

 shares or

 shares or

 underlying

 underlying

 units of

 units of

 unexercised

 unexercised

 Options

 Options

 stock that

 stock that

 options

 options

 exercise

 expiration

 have not

 have not

 Name

 exercisable

 unexercisable

 price ($)

 date

 vested (#)

 vested

 25,600

 34,400

 7.99

 3/22/2033

 14,400

 197,568

 Susan J. Shea

 19,200

 28,800

 7.99

 3/22/2033

 10,800

 148,176

 Kemal A. Denizkurt

 5,600

 8,400

 7.99

 3/22/2033

 3,600

 49,392

 (1) Awards vest at a rate of 20% per year beginning on March 22, 2024.
 (2) Based on the fair market value of our common stock on June 30, 2025 of $13.72 per share.
 Agreements and Benefit Plans
 Employment Agreements. Colonial Federal Savings Bank maintains amended and restated employment agreements with Mr. McFarland and Ms. Shea. The employment agreements have terms of three years. As of each January 1, the board of directors may extend the terms of the agreements for one additional year, so that the remaining terms are three years, unless the executive gives notice to Colonial Federal Savings Bank of non-renewal. In connection with determining whether to renew the terms of the employment agreements, the disinterested members of the board of directors of Colonial Federal Savings Bank will conduct a comprehensive evaluation and review of each executive's performance. Notwithstanding the foregoing, if CFSB Bancorp or Colonial Federal Savings Bank enters into an agreement to effect a transaction that would constitute a change in control, as defined under the employment agreements, the term of the agreements would automatically extend so that they would expire no less than two years following the effective date of the change in control.
 The employment agreements specify the base salaries of Mr. McFarland and Ms. Shea, which currently are $330,900 and $250,800, respectively. The board of directors of Colonial Federal Savings Bank will review the executives' salaries each year to determine whether any adjustment is necessary. In addition to base salary, the agreements provide that the executives will participate in any bonus plan or arrangement of Colonial Federal Savings Bank in which senior management is eligible to participate. The executives are also entitled to participate in all employee benefit plans, arrangements and perquisites offered to employees and officers of Colonial Federal Savings Bank and to the reimbursement of reasonable business expenses incurred in the performance of his or her duties with Colonial Federal Savings Bank.
 Colonial Federal Savings Bank may terminate the executives' employment, or the executives may resign from their employment, at any time with or without "good reason." Under the employment agreements, if Colonial Federal Savings Bank terminates the executive's employment without "cause" or the executive voluntary resigns for "good reason" (i.e., following a "qualifying termination event"), Colonial Federal Savings Bank will pay the executive a lump sum severance payment equal to the base salary he or she would have received during the remaining term of the employment agreement. In addition, the executive will continue to participate in benefit plans that provide medical, dental and life insurance for the remaining term of the employment agreement based on the same terms and conditions provided to senior officers. If Colonial Federal Savings Bank cannot provide those benefits, it will either provide the coverage under a comparable individual policy or make a cash equivalent payment to the executive.

 A "good reason" condition under the employment agreements means a material reduction in the executive's responsibilities or authority, an assignment of duties of a non-executive nature or duties for which the executive is not reasonably equipped by skills and experience, the failure to nominate the executive to the board of directors (in the case of Mr. McFarland), a reduction in salary or benefits, termination of incentive and benefit plans, programs or arrangements, or a reduction of the executive's participation in those plans, programs or arrangements that is not applicable to other similarly situated participants, a relocation of the executive's principal place of employment of more than 35 miles from its location at the effective date of the employment agreement, or a liquidation or dissolution of Colonial Federal Savings Bank.
 If a qualifying termination event occurs at or within two years following a change in control of CFSB Bancorp or Colonial Federal Savings Bank, the executive would be entitled to (in lieu of the payments and benefits described in the previous paragraph) a severance payment equal to three times the average of the amount reported in Box 5 of the executive's Form W-2 plus (1) the executive's share of non-taxable premiums paid for medical and dental insurance and (2) deductions taken from the executive's compensation to fund the executive's flexible spending account, for the five calendar years preceding the year of the executive's termination of employment or preceding the year in which the change in control occurs, whichever is higher. In addition, the executive will continue to participate in benefit plans that provide medical, dental and life insurance until the earlier of (1) the executive's death, (2) the executive's employment by another employer or (3) 36 months after the executive's termination of employment. If Colonial Federal Savings Bank or its successor cannot provide those benefits, it will either provide the coverage under a comparable individual policy or make a cash equivalent payment to the executive.
 Each employment agreement terminates upon the executive's death, retirement or disability. Upon termination of employment (other than a termination in connection with a change in control), the executive will be required to adhere to one-year non-competition and non-solicitation restrictions set forth in his or her employment agreement.
 Change in Control Agreement. Colonial Federal Savings Bank maintains a change in control agreement with Mr. Denizkurt. As of each January 1, the board of directors may extend the term of the agreement for one additional year, so that the remaining term is again two years, unless the executive gives notice to Colonial Federal Savings Bank of non-renewal. Notwithstanding the foregoing, if CFSB Bancorp or Colonial Federal Savings Bank enters into an agreement to effect a transaction that would constitute a change in control, as defined under the change in control agreement, the term of the agreement would automatically extend so that it would expire no less than two years following the effective date of the change in control.
 Upon termination of the executive's employment by Colonial Federal Savings Bank or its successor without "cause" or by the executive with "good reason" on or within two years after the effective date of a change in control of Colonial Federal Savings Bank or CFSB Bancorp, the executive would be entitled to a severance payment equal to two times the amount reported in Box 5 of the executive's Form W-2 plus (1) the executive's share of non-taxable premiums paid for medical and dental insurance and (2) deductions taken from the executive's compensation to fund the executive's flexible spending account, each for the calendar years preceding the year of the executive's termination of employment or preceding the year in which the change in control occurs, whichever is higher. In addition, the executive will continue to participate in benefit plans that provide medical and life insurance for 24 months. If Colonial Federal Savings Bank or its successor cannot provide those benefits, it will either provide the coverage under a comparable individual policy or make a cash equivalent payment to the executive.
 A "good reason" condition under the change in control agreement means a material reduction in base salary, a material reduction in authority, duties or responsibilities associated with the executive's position with Colonial Federal Savings Bank, a relocation of the executive's principal place of employment of more than 35 miles from its location as of the date of the agreement, an action by the bank that adversely effects the executive's overall compensation and benefits (unless the changes are made to substantially all employees), or the failure of a successor to assume Colonial Federal Savings Bank's obligation under the change in control agreement.
 Deferred Compensation Plan. Colonial Federal Savings Bank is a party to a Deferred Compensation Plan with each of the named executive officers (collectively, the "Deferred Compensation Plan"). Under the Deferred Compensation Plan, the annual normal retirement benefit (i.e., the benefit paid if the executive separates from service after attaining age 65) equals $25,000. The annual benefit is paid in monthly installments over ten years unless the executive has previously elected to receive the benefit in an actuarial equivalent single lump sum.

 If the executive separates from service before his or her normal retirement date, but after attaining age 62 and completing at least ten years of service with Colonial Federal Savings Bank, the executive will receive his or her vested retirement benefit. An executive is 0% vested in his or her benefit prior to attaining age 62, 91% vested at age 62, 94% vested at age 63, 97% at age 64 and 100% vested at age 65. The executive becomes 100% vested in his or her retirement benefit under the Deferred Compensation Plan if he or she is involuntarily separated from service within 24 months following a change in control of CFSB Bancorp or Colonial Federal Savings Bank and is entitled to the change in control benefit regardless of his or her age and years of service.
 If the executive dies while in active service, Colonial Federal Savings Bank will pay the executive's beneficiary an annual death benefit of $50,000 for ten years, commencing on the first day of the month following the executive's death. If the executive dies while receiving benefits under the Deferred Compensation Plan, his or her beneficiary will continue to receive the annual benefits in the same amount and at the same time the executive would have received the remaining benefits.
 The Deferred Compensation Plan contains certain provisions that allow for elections by the covered individual with respect to the form of payment and regarding the change in form or timing of distributions, so long as those elections or changes are made in compliance with Section 409A of the Internal Revenue Code. In addition, the Deferred Compensation Plan contains a provision that limits the individual's ability to compete with Colonial Federal Savings Bank for one year following his or her termination of employment; however, this provision does not apply to Mr. McFarland and Ms. Shea under the Deferred Compensation Plan since they have similar restrictions that would apply under their employment agreements.
 CFSB Bancorp, Inc. 2023 Equity Incentive Plan. The CFSB Bancorp, Inc.'s stockholders approved the CFSB Bancorp, Inc. 2023 Equity Incentive Plan (the "2023 Equity Incentive Plan") at the Annual Meeting of Stockholders on February 21, 2023. The 2023 Equity Incentive Plan authorizes the issuance or delivery to participants of up to 447,384 shares of CFSB Bancorp common stock pursuant to grants of incentive and non-qualified stock options, restricted stock awards and restricted stock units. The total number of shares initially reserved for restricted stock is 127,824 and 319,560 shares are initially reserved for options. Any options forfeited because vesting requirements are not met or expired will become available for re-issuance under the 2023 Equity Plan. The exercise price of each option equals the market price of the CFSB Bancorp's stock on the date of the grant and the maximum term of each option is ten years. Options and awards generally vest ratably over three to five years. The fair value of shares awarded is based on the market price at the date of grant.
 Group Term Replacement Plan. Ms. Shea and Mr. Denizkurt each participate in the Colonial Federal Savings Bank Group Term Replacement Plan (the "Group Term Replacement Plan"). Under the Group Term Replacement Plan, the participant's interest in the death benefit equals the benefit set forth on the participant's individual split dollar endorsement. Colonial Federal Savings Bank owns the bank-owned life insurance policies purchased to fund the death benefits under the Group Term Replacement Plan and has the right to receive all death benefits under the policies after the satisfaction of the participant's interest. Under the Group Term Replacement Plan, the death benefit for Ms. Shea and Mr. Denizkurt equals the lesser of (a) two times the participant's base salary (determined as of the earliest of (1) death, (2) disability or (3) the normal retirement date, which occurs on the participant's termination of employment after attaining age 65) or (b) $550,000 (in the case of Ms. Shea) and $587,784 (in the case of Mr. Denizkurt).
 Retirement Death Benefit Only Plan. Colonial Federal Savings Bank and Mr. McFarland are parties to a Retirement Death Benefit Only Plan (the "DBO Plan"). Under the DBO Plan, if Mr. McFarland dies while employed by Colonial Federal Savings Bank or dies after terminating employment with the bank on or after attaining age 67 (other than as a result of a termination for cause), Colonial Federal Savings Bank will pay his beneficiary a death benefit equal to four times his base salary in effect on the earlier of (1) his date of termination of employment or (2) the date of his death. The death benefit is paid in a lump sum within 90 days following Mr. McFarland's date of death and is offset by any benefit paid pursuant to a split-dollar life insurance agreement and/or a group-term replacement plan sponsored by Colonial Federal Savings Bank in which he participates.

 Director's Compensation
 The following table sets forth for the year ended June 30, 2025 certain information as to the total remuneration paid to directors other than Michael E. McFarland, who is also our President and Chief Executive Officer, receives no compensation for being a director.

 Fees earned

 Stock

 Option

 All other

 or paid in cash

 awards (1)

 awards (2)

 compensation (3)

 Total

 Paul Baharian

 $

 25,200

 $

 -

 $

 -

 $

 1,915

 $

 27,115

 Robert Guarnieri

 -

 -

 8,241

 34,041

 Edward Keohane

 -

 -

 4,047

 29,847

 Stephen Marini

 -

 -

 2,274

 28,074

 James O'Leary

 -

 -

 26,277

 Tracy Wilson

 -

 -

 25,906

 (1) Each director listed in the table was granted 6,000 shares of restricted stock during the year ended June 30, 2023, 3,600 of which remain unvested at June 30, 2025.

 (2) Each director listed in the table was granted 14,000 stock options during the year ended June 30, 2023, 8,400 of which remain unvested at June 30, 2025.

 (3) Represents imputed income on bank-owned life insurance and a cash reimbursement to offset taxes due to the imputed income.

 Director Fees
 Directors of Colonial Federal Savings Bank receive a fee of $2,000 per board meeting and $600 per Audit Committee meeting. No additional fees are paid for service on the Board of Directors of CFSB Bancorp.
 Split Dollar Life Insurance Agreements
 Colonial Federal Savings Bank maintains Amended and Restated Colonial Federal Savings Bank Split Dollar Agreements with each of the directors. Colonial Federal Savings Bank purchased life insurance policies on the life of each director in an amount sufficient to provide for the benefits under the plan. The director has the right to designate the beneficiary who will receive his or her share of the proceeds payable upon his or her death. The policies are owned by Colonial Federal Savings Bank, which paid the premium due on the policies. In accordance with their agreements, upon the death of a covered director, the proceeds of the policy are divided between the executive's beneficiary, who is entitled to the "director's interest" and Colonial Federal Savings Bank, which is entitled to the remainder of the death benefit. The director's interest is initially $50,000 and increases at the beginning of each plan year by $10,000 up to a maximum of $250,000; provided, however, that the director's interest will not increase after the director's termination from service on the Board of Directors. The agreement may only be amended or terminated by written agreement signed by Colonial Federal Savings Bank and the director. In addition, Colonial Federal Savings Bank will impute the economic benefit to the director on an annual basis and will pay the director annually the amount necessary to pay the federal and state taxes attributable to the imputed income.
 Group Term Replacement Plan
 As the former President and Chief Executive Officer of Colonial Federal Savings Bank, Mr. Guarnieri participates in the Group Term Replacement Plan (described below). Under the Group Term Replacement Plan, his interest in the death benefit equals the benefit set forth on his individual split dollar endorsement. Colonial Federal Savings Bank owns the bank-owned life insurance policies purchased to fund the death benefits and has the right to receive all death benefits under the policies after the satisfaction of the participant's interest. Under the Group Term Replacement Plan, the death benefit for Mr. Guarnieri equals $688,500.

 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
 Securities Ownership of certain beneficial owners, directors and executive officers
 The following table sets forth for the year ended June 30, 2025 information regarding stock ownership of certain beneficial owners, directors, and executive officers:

 Percent of

 Number of

 Common Stock

 Shares Owned (1)(2)

 Outstanding (3)

 15 Beach, MHC

 3,586,903

 54.2

 %

 15 Beach Street

 Quincy, MA 02170

 Directors:

 Paul N. Baharian

 30,600

 *

 Robert Guarnieri

 24,100(4)

 *

 Edward J. Keohane

 26,600(5)

 *

 Stephen D. Marini

 26,600(6)

 *

 76,814(5)

 *

 James M. O'Leary, Jr.

 26,600(8)

 *

 Tracy L. Wilson

 16,800(9)

 *

 Named Executive Officers Who

 Are Not Directors:

 Kemal A. Denizkurt

 23,291(10)

 *

 Susan J. Shea

 53,770(11)

 *

 All other directors and executive

 officers as a group

 (12 persons)

 381,868

 5.8

 %

 * Less than 1%.
 (1) Includes unvested shares of restricted stock as follows: Messrs. Baharian, Guarnieri, Keohane, Marini, O'Leary and Denizkurt and Ms. Wilson - 3,600 shares each; Mr. McFarland - 14,400 shares; and Ms. Shea - 10,800 shares.
 (2) Includes shares subject to stock options exercisable within 60 days of August 8, 2025 within 60 days of August 8, 2025 as follows: Messrs. Baharian, Guarnieri, Keohane, Marini, O'Leary and Denizkurt and Ms. Wilson - 5,600 shares each; Mr. McFarland - 25,600 shares; and Ms. Shea - 19,200 shares.
 (3) Based on 6,548,575 shares outstanding as of August 8, 2025 and the number of stock options exercisable within 60 days of August 8, 2025
 (4) Includes 2,500 shares held by his spouse
 (5) Includes 5,000 shares held by his spouse's trust
 (6) Includes 5,000 shares held by his spouse
 (7) Includes 5,000 shares held by his spouse and 4,215 shares held through the ESOP
 (8) Includes 5,000 shares held by his spouse
 (9) Includes 100 shares held by her child and 100 shares held by her spouse for the benefit of a child
 (10) Includes 2,390 shares held through the ESOP
 (11) Includes 2,500 shares held by her spouse and 3,147 shares held through the ESOP

 Securities Authorized for Issuance Under Equity Compensation Plans
 Set forth below is information as of June 30, 2025 with respect to compensation plans (other than our employee stock ownership plan) under which equity securities of the Registrant are authorized for issuance. Additional information regarding stock-based compensation plans is presented in Note 13 of the notes to consolidated financial statements included in Item 8. Financial Statements and Supplementary Data located elsewhere in this report.

 Number of Securities to be Issued Upon Exercise of Outstanding Option, Warrants and Rights

 Weighted Average Exercise Price of Outstanding Options, Warrants and Rights

 Number of Securities Remaining Available for Future Issuance Under Share-Based Compensation Plans

 Equity compensation plans approved by security holders

 273,000

 $

 8.33

 46,560

 Equity compensation plans not approved by security holders

 -

 -

 -

 Total

 273,000

 $

 8.33

 46,560

 Item 13. Certain Relationships and Related Transactions, and Director Independence.
 Director Independence
 The Board of Directors currently consists of seven members. Because 15 Beach, MHC owns a majority of our outstanding common stock, we are a "controlled company" within the meaning of The NASDAQ corporate governance guidelines. As a "controlled company," we are exempt from certain requirements, including that a majority of our Board of Directors be independent under those standards, and that executive compensation and director nominations be overseen by independent directors. However, at the present time, all of our directors are considered independent under the listing standards of the NASDAQ Stock Market, except for Michael E. McFarland, who serves as President and Chief Executive Officer of CFSB Bancorp and Colonial Federal Savings Bank. There were no transactions that the Board of Directors needed to review that are not required to be reported under "Other Information Relating to Directors and Executive Officers—Transactions With Related Persons" that would bear in the determination of the independence of the directors.
 Transactions with Related Persons
 The federal securities laws generally prohibit publicly traded companies from making loans to their executive officers and directors, but it contains a specific exemption from such prohibition for loans made by federally insured financial institutions, such as Colonial Federal Savings Bank, to their executive officers and directors in compliance with federal banking regulations. Federal regulations permit executive officers and directors to receive the same terms that are widely available to other employees as long as the director or executive officer is not given preferential treatment compared to the other participating employees. At June 30, 2025, all of our loans to directors and executive officers were made in the ordinary course of business, were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to CFSB Bancorp or Colonial Federal Savings Bank, and did not involve more than the normal risk of collectability or present other unfavorable features. These loans were performing according to their original repayment terms at June 30, 2025.
 Neither CFSB Bancorp nor Colonial Federal Savings Bank entered into any transactions in the fiscal year ended June 30, 2025 in which the amount involved exceeded $120,000 and in which any related persons had or will have a direct or indirect material interest.

 Item 14. Principal Accounting Fees and Services.
 Wolf & Company, P.C. served as our independent registered public accounting firm for the year ended June 30, 2025.
 Audit Fees. The following table sets forth the fees that Wolf & Company, P.C. billed to the Company and the Bank for the years ended June 30, 2025 and 2024, respectively.

 2025

 2024

 Audit fees

 $

 200,000

 $

 184,000

 Tax fees

 29,000

 26,800

 All other fees(1)

 52,500

 46,438

 (1) Consists of fees related to Information Technology assurance, Bank Secrecy Act model validation and licenses for Wolf PAC Module for 2025, Information Technology assurance, consent, licenses for Wolf PAC Module and adoption of ASU 2016-13 for 2024.

 Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm. The Audit Committee is responsible for appointing, setting compensation and overseeing the work of the independent registered public accounting firm. In accordance with its charter, the Audit Committee approves, in advance, all audit and permissible non-audit services to be performed by the independent registered public accounting firm. This approval process ensures that the firm does not provide any non-audit services to us prohibited by law or regulation.

 Item 15. Exhibits and Financial Statement Schedules.
 (1) Financial Statements:
 Our consolidated financial statements are set forth in Part II, Item 8 of this Annual Report on Form 10-K and are incorporated herein by reference.
 (2) Financial Statement Schedules:
 Schedules have been omitted since they are either not required or not applicable or the information is otherwise included herein.
 (3) Exhibits
 The exhibits filed as part of this Annual Report on Form 10-K are listed below.

 Exhibit
Number

 Description

 Form

 File No.

 Exhibit

 Exhibit Filing Date

 Furnished Herewith

 2.1

 Agreement and Plan of Merger, dated as of May 202, 2025, by and among Hometown Financial Group, MHC, Hometown Financial Group, Inc., Hometown Financial Acquisition Corp. II, 15 Beach, MHC and Colonial Federal Savings Bank

 001-41220

 2.1

 May 21, 2025

 3.1

 Charter of CFSB Bancorp, Inc.

 S-1

 3.1

 3.2

 Bylaws of CFSB Bancorp, Inc.

 S-1

 3.2

 October 26, 2021

 4.0

 Form of Common Stock Certificate of CFSB Bancorp, Inc.

 S-1

 10.1

 Amended and Restated Employment Agreement between Colonial Federal Savings Bank and Michael E. McFarland

 S-1

 10.1

 10.2

 Amended and Restated Employment Agreement between Colonial Federal Savings Bank and Susan J. Shea

 S-1

 10.2

 10.3

 Change in Control Agreement between Colonial Federal Savings Bank and Kemal A. Denizkurt

 S-1

 10.3

 10.4

 Amended and Restated Deferred Compensation Plan between Colonial Federal Savings Bank and Michael E. McFarland

 S-1

 10.4

 10.5

 Amended and Restated Deferred Compensation Plan between Colonial Federal Savings Bank and Susan J. Shea

 S-1

 10.5

 10.6

 Amended and Restated Deferred Compensation Plan between Colonial Federal Savings Bank and Kemal A. Denizkurt

 S-1

 10.5

 10.7

 Form of Amended and Restated Colonial Federal Savings Bank Group Term Replacement Plan

 S-1

 10.7

 10.8

 Retirement Death Benefit Only Plan between Colonial Federal Savings Bank and Michael E. McFarland

 S-1

 10.8

 10.9

 Amended and Restated Split Dollar Agreement between Colonial Federal Savings Bank and Michael E. McFarland

 S-1

 10.9

 10.10

 Amended and Restated Split Dollar Agreement between Colonial Federal Savings Bank and Paul Baharian

 S-1

 10.1

 10.11

 Amended and Restated Split Dollar Agreement between Colonial Federal Savings Bank and Edward Keohane

 S-1

 10.11

 10.12

 Amended and Restated Split Dollar Agreement between Colonial Federal Savings Bank and Stephen Marini

 S-1

 10.12

 10.13

 Amended and Restated Split Dollar Agreement between Colonial Federal Savings Bank and James M. O'Leary, Jr.

 S-1

 10.13

 10.14

 CFSB Bancorp, Inc. 2023 Equity Incentive Plan

 DEF 14A

 001-41220

 Appendix A

 January 13, 2023

 19.1

 Insider Trading Policy

 X

 21.1

 Subsidiaries of CFSB Bancorp, Inc.

 001-41220

 21.1

 September 22, 2022

 23.1

 Consent of Wolf & Company, P.C.

 X

 31.1

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

 X

 31.2

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

 X

 32.1

 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 X

 32.2

 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 X

 97.1

 CFSB Bancorp, Inc. Clawback Policy

 X

 101.INS

 X

 101.SCH

 X

 101.CAL

 X

 101.DEF

 X

 101.LAB

 X

 101.PRE

 X

 X

 16. Form 10-K Summary.
 None.

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

CFSB BANCORP, INC.

 Date: September 18, 2025

 By:

 /s/ Michael E. McFarland

 President and Chief Executive Officer

 (Principal Executive Officer)

 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.

 Signature

 Title

 Date

 /s/ Michael E McFarland

 President, Chief Executive Officer and Director

 Michael E McFarland

 (Principal Executive Officer)

 /s/ Susan Shea

 Treasurer and Chief Operating Officer

 Susan Shea

 (Principal Financial and Accounting Officer)

 /s/ James M. O'Leary, Jr.

 Chairman of the Board

 James M. O'Leary, Jr.

 /s/ Paul N. Baharian

 Paul N. Baharian

 /s/ Robert Guarnieri

 Robert Guarnieri

 /s/ Edward J. Keohane

 Edward J. Keohane

 /s/ Stephen D. Marini

 Stephen D. Marini

 /s/ Tracy L. Wilson

 Tracy L. Wilson