Central Plains Bancshares, Inc.

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying consolidated financial statements (“the financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America and conform to practices within the banking industry.

Nature of Operations—Central Plains Bancshares, Inc. (the “Company”) was formed to serve as the holding company for Home Federal Savings and Loan Association of Grand Island (the “Association”), upon conversion into the stock form of organization, which was completed on October 19, 2023.

The Company completed its stock offering on October 19, 2023. The Company sold 4,130,815 shares of common stock at $10.00 per share in its subscription offering for gross proceeds of approximately $41.3 million. Shares of the Company's common stock began trading on October 20, 2023 on the Nasdaq Capital Market under the trading symbol "CPBI."

The consolidated financial statements include the accounts of the Company and the Association, a wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (GAAP) as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).

The Association is a federally chartered stock savings and loan association whose primary business is providing mortgage, consumer, commercial real estate, and commercial loans in the Grand Island, Nebraska area, with additional lending opportunities through the Association’s participation network of banks in Nebraska and other states, and acquiring consumer and commercial deposits to fund these investments.

Use of Estimates—In preparing the 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 at the date of the balance sheet and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to change in the near term include the allowance for credit losses, the pension liability, and the fair value of investment securities. Actual results could differ materially from those estimates.

Accounting Developments—The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, in December 2023. The amendments require additional disclosures regarding the rate reconciliation and income taxes paid. ASU 2023-09 also removed certain existing disclosure requirements and is effective for annual periods beginning January 1, 2025. The Company adopted ASU 2023-09 effective April 1, 2025, and elected to adopt the amendments retrospectively. Other than the inclusion of additional disclosures, the adoption didnot have a significant effect on the Company’s consolidated financial statements.

In March 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2024-01, “Compensation—Stock Compensation (Topic 718): Scope Applications of Profits Interests and Similar Awards” (ASU 2024-01). ASU 2024-01 adds an example to Topic 718 which illustrates how to apply the scope guidance to determine whether profits interests and similar awards should be accounted for as share-based payment arrangements under Topic 718 or under other U.S. GAAP. ASU 2024-01 is effective for annual periods beginning after December 15, 2025, although early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial position, results of operations, or disclosures.

In November 2024, the FASB issued ASU 2024‑03, Income Statement Reporting—Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses, which requires expanded disclosures regarding the disaggregation of certain expense categories, including employee compensation, depreciation, and other material components of operating expenses. In January 2025, the FASB issued ASU 2025‑01, which clarifies the effective date of ASU 2024‑03. The guidance is effective for the Company for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this guidance; however, as the update is limited to expanded disclosures, it is not expected to have a material effect on the Company’s consolidated financial statements.

The Company has evaluated other recently issued accounting standards and determined that they are either not applicable or are not expected to have a material effect on its consolidated financial statements.

Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, federal funds sold, demand deposits at other financial institutions, and short-term investments with maturities of three months or less when purchased.

Investment Securities—Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity are classified as available for sale and recorded at fair value, with unrealized gains and losses on a net-of-tax basis excluded from earnings and reported in other comprehensive income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted market prices of similar instruments or discounted cash flow models that incorporate market inputs and assumptions including discount rates, prepayment speeds, and loss rates. The Company didnot have any securities classified as trading at March 31, 2026 or 2025.

Purchased premiums and discounts are amortized and accreted to the earlier of call or maturity of the related security using the effective interest method. Realized gains and losses on the sale of securities are recognized on the specific identification method in the statements of income.

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will sell, the security before recovery of its amortized cost basis. If either of the aforementioned criteria exists, the Company will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the statement of operations. Losses are charged against the allowance when management believes the available-for-sale security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale securities, totaling $222,000 and $223,000 as of March 31, 2026 and 2025, respectively, is excluded from the estimate of credit losses. If either of these criteria does not exist, the Company will evaluate the securities individually to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations.

Federal Home Loan Bank Stock—As a member of the Federal Home Loan Bank of Topeka (FHLB), the Association is required to maintain an investment in the capital stock of the FHLB. For financial reporting purposes, such stock is carried at cost, which approximates fair value, based on the redemption provisions.

Loans Held for Sale—Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Mortgage loans held for sale are generally sold with servicing rights retained. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related mortgage loan sold, which is reduced by the cost allocated to the servicing right. The Association generally locks in the sale price to the purchaser of the mortgage loan at the same time an interest rate commitment is made to the borrower.

Loans—Loans that management has the intent and ability to hold for the foreseeable future are stated at the amount of unpaid principal less an allowance for credit losses and any deferred fees or costs on originated loans. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. The accrual of interest on loans is discontinued when management believes that the borrower may be unable to make payments as scheduled, generally when a loan becomes contractually delinquent for three months or more. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent that cash payments are received in excess of principal due. Loan origination fees and commitment fees offset by certain direct loan origination costs are deferred and recognized over the contractual life of the loan as a yield adjustment.

Allowance for Credit Losses

The allowance for credit losses (“ACL”) represents management’s estimate of expected credit losses over the contractual life of financial assets measured at amortized cost, including loans held for investment, held-to-maturity debt securities, and certain off-balance sheet credit exposures. The ACL is established through a provision for credit losses charged to earnings and is presented as a valuation account that is deducted from the amortized cost basis of the related financial assets to present the net amount expected to be collected.

Allowance for Credit Losses on Loans—The ACL on loans is estimated using a current expected credit loss (“CECL”) methodology, which considers historical loss experience, current conditions, and reasonable and supportable forecasts. The estimate reflects expected losses over the contractual term of the loans, adjusted for expected prepayments.

The determination of the ACL requires significant management judgment and is inherently subjective, as it involves evaluating a variety of quantitative and qualitative factors that may affect collectability. These factors include, but are not limited to, economic conditions, portfolio composition, borrower creditworthiness, collateral values, and changes in underwriting standards.

Loans are evaluated on a collective (pool) basis when they share similar risk characteristics. The Company has identified the following portfolio segments:

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Residential real estate - Loans collateralized by 1–4 family residential properties, including owner-occupied, second homes, investment properties, home equity, and junior lien loans. Repayment is primarily dependent on borrower credit quality and housing market conditions.

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Construction real estate - Loans to finance residential and commercial construction, land acquisition, and development. Repayment is dependent on project completion, market absorption, and borrower financial capacity.

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Commercial real estate - Loans secured by income-producing or owner-occupied commercial properties. Repayment is largely dependent on property cash flows and market conditions such as vacancy rates.

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Commercial - Loans to businesses secured by non-real estate assets. Repayment depends on business operations and cash flow generation.

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Consumer - Loans to individuals for personal expenditures, including both secured and unsecured credits. Repayment is dependent on borrower financial capacity and economic conditions..

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Land development/sanitary improvement districts (SIDS) - Loans associated with land development and infrastructure financing, with repayment typically dependent on property development progress, lot sales, or assessments.

The Company estimates expected credit losses using the Scaled CECL Allowance for Losses Estimator (“SCALE”) method, which utilizes publicly available regulatory data to develop proxy lifetime loss rates. These rates are adjusted for Company-specific factors and current conditions to arrive at an appropriate estimate of expected losses

Qualitative Adjustments—Management applies qualitative factor adjustments to reflect risks not fully captured in the quantitative model. These factors may include:

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Changes in the nature, volume, and composition of the loan portfolio;

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The existence and extent of credit concentrations;

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Trends in delinquency, nonaccrual, and classified assets;

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Changes in collateral values for collateral-dependent loans;

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Changes in lending policies, underwriting standards, and collection practices;

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Effectiveness of the credit review function;

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Experience and depth of lending and credit staff;

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Regulatory, legal, and technological developments; and

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Actual and expected changes in economic conditions at the national, regional, and local levels.

Loans that do not share similar risk characteristics, including collateral-dependent or nonperforming loans, are evaluated individually. For collateral-dependent loans, expected credit losses are generally measured based on the fair value of collateral, less estimated costs to sell, when repayment is expected to be derived from the collateral.

Charge-Off and Recovery Policy—Loans are charged off when management determines that a loan balance is uncollectible. Recoveries of amounts previously charged off are credited to the ACL. Adjustments to the ACL are recorded through the provision for credit losses. While the ACL methodology incorporates management’s best estimate of expected losses, actual losses may differ due to factors beyond the Company’s control. Accrued interest receivable is excluded from the amortized cost basis of loans for purposes of estimating expected credit losses. The Company has elected to write off accrued interest receivable in a timely manner when deemed uncollectible.

Allowance for Credit Losses on Unfunded Loan Commitments—The Company estimates expected credit losses on off-balance sheet credit exposures, including unfunded loan commitments, over the contractual period in which the Company is exposed to credit risk, unless the obligation is unconditionally cancelable. The ACL for unfunded commitments is recorded as a liability within accrued expenses and other liabilities and is adjusted through the provision for credit losses. The estimate incorporates both the likelihood of funding and the expected credit losses on amounts expected to be funded.

Allowance for Credit Losses on Securities Available-for-Sale—For available-for-sale (“AFS”) debt securities in an unrealized loss position, the Company first evaluates whether it intends to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either condition is met, the security is written down to fair value through earnings. If neither condition is met, the Company evaluates whether the decline in fair value is attributable to credit-related factors. If so, an ACL is established for the credit loss component, limited to the amount by which amortized cost exceeds fair value. Noncredit-related changes in fair value are recognized in other comprehensive income. In performing this assessment, management considers factors such as issuer financial condition, credit ratings, payment performance, and the nature of any guarantees or government support.

Allowance for Credit Losses on Held-to Maturity Securities—The ACL on held-to-maturity (“HTM”) debt securities is estimated under the CECL framework and reflects expected credit losses over the contractual life of the securities. The Company’s HTM portfolio consists primarily of securities issued or guaranteed by U.S. government agencies or government-sponsored enterprises. These securities carry minimal credit risk due to explicit or implicit government guarantees and a long history of no credit losses. Accordingly, the Company has determined that expected credit losses on these securities are not material.

Premises and Equipment—Office properties and equipment are carried at cost less accumulated depreciation. Depreciation is computed based on the straight-line basis over the estimated useful lives of the assets, which range from 3 to 39 years. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

Real Estate Owned—Real estate owned (“REO”) represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. REO is recorded at the fair value less estimated selling costs at the date of foreclosure. Any write-down at the date of transfer is charged to the allowance for credit losses related to loans. The recognition of gains or losses on sales of REO is dependent upon various factors relating to the nature of the property being sold and the terms of sale. REO values are reviewed on an ongoing basis and any decline in value is recognized as foreclosed asset expense in the current period. All legal fees and direct costs, including foreclosure and other related costs, are expensed as incurred.

Leases—Lease expense for operating and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Association’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. When the rate implicit in the lease is unknown, the present value of the lease payments is determined using our incremental borrowing rate based on the FHLB amortizing advance rate, adjusted for the lease term and other factors.

Revenue Recognition—Most of the Association’s revenue is not subject to ASC 606. Revenue subject to ASC 606 includes customer services fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. Also included is revenue generated through service charges from the use of of ATM machines and interchange income from the use of Association issued debit cards.

Under ASC 606, the Association must identify the contract with a customer, identify the performance obligation(s) within the contract, determine the transaction price, allocate the transaction price to the performance obligation(s) within the contract, and recognize revenue when (or as) the performance obligation(s) are satisfied. The core principle under ASC 606 requires the Association to recognize revenue to depict the transfer of services or products to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services or products recognized as performance obligations are satisfied. The Association generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Since performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

Mortgage Servicing Rights—Mortgage servicing rights are established based on the allocated fair value of servicing rights retained on loans originated by the Association and subsequently sold in the secondary market. Mortgage servicing rights are amortized into servicing fees on loans on the consolidated statements of income in proportion to, and over the period of, the estimated net servicing income and are evaluated for impairment based on their fair value. Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income.

Transfer of Financial Assets—Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Association, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Association doesnot maintain effective control over the transferred assets through an agreement to repurchase them before maturity.

Retirement Plans—Pension expense is the net of service and interest cost, return on plan assets, and amortization of gains and losses not immediately recognized. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Interest Rate Risk—The Association is engaged principally in originating and investing in first mortgage loans, consumer loans to individuals, agricultural loans and commercial loans to businesses primarily in Grand Island, Nebraska. These loans are funded primarily with short-term liabilities that have interest rates that vary with market rates over time. The earnings of the Association are exposed to interest rate risk largely because of the mismatch between the repricing intervals of its assets and liabilities.

To reduce interest rate risk, the Association has employed the strategy of selling a majority of the single family fixed-rate home loans the Association originates into the secondary market. The Association holds any adjustable-rate single family home loans in their portfolio. In addition, the commercial loans the Association originates and maintains in its portfolio are either tied to some variant of Wall Street Journal Prime (WSJP) and adjust as WSJP adjusts or they contain shorter term call dates (typically three orfive years) when amortized over longer periods of time. The consumer portfolio hasthree-to-five-year amortized terms which mitigate long term interest rate exposure in this portfolio.

Income Taxes—The Company and its subsidiary file consolidated income tax returns. Income taxes are accounted for using an asset and liability method. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to operating loss and tax credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the currently enacted tax rates expected to apply in the year in which those temporary differences are expected to be recovered or settled. If needed, a valuation allowance is recorded to reduce deferred tax assets to the amount expected to be realized. The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in tax returns that do not meet these recognition and measurement standards. The Company recognizes both interest and penalties (if applicable) as a component of income tax expense.

Comprehensive Income—Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and minimum pension liability adjustments, are reported as a separate component of the equity section of the consolidated statements of financial condition; such items, along with net income, are components of comprehensive income, net of tax.

Financial Instruments and Loan Commitments—Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Instruments, such as standby letters of credit, that are considered financial guarantees are recorded at fair value.

Operating Segments—The Company's revenue is primarily derived from the business of banking. The Company's financial performance is monitored on consolidated basis by Mr. Dannel Garness, President/CEO, who is considered to be the Company's Chief Operating Decision Maker ("CODM"). Financial performance is reported to the CODM monthly, and the primary measure of performance is consolidated net income. The allocation of resources throughout the Company is determined annually based upon consolidated net income performance. The presentation of financial performance to the CODM is consistent with amounts and financial statement line items shown in the Company's consolidated balance sheets and consolidated statements of operations. Additionally, the Company's significant expenses are adequately segmented by category and amount in the consolidated statements of operations to include all significant items when considering both qualitative and quantitative factors. Significant expenses of the Company include salaries and employee benefits, equipment and occupancy expense, data processing, professional services and advertising.

All of the Company’s financial results are similar and considered by management to be aggregated intoone reportable operating segment. While the Company has assigned certain management responsibilities by business-line, the Company’s CODM evaluates financial performance on a Company-wide basis. The Company's assigned business lines have similar economic characteristics, products, services and customers. Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment.

Stock Based Compensation—The Company maintains an equity incentive plan under which restricted stock and stock options may be granted to employees and directors, see Note 17.

The Company recognizes the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of those awards in accordance with ASC 718,“Compensation-Stock Compensation”. The Company estimates the per-share fair value of option grants on the date of grant using the Black-Scholes option pricing model using assumptions for the expected dividend yield, expected stock price volatility, risk-free interest rate and expected option term. These assumptions are subjective in nature, involve uncertainties and, therefore, cannot be determined with precision. The Black-Scholes option pricing model also contains certain inherent limitations when applied to options that are not traded on public markets.

The per share fair value of options is highly sensitive to changes in assumptions. In general, the per-share fair value of options will move in the same direction as changes in the expected stock price volatility, risk-free interest rate and expected option term, and in the opposite direction as changes in the expected dividend yield. For example, the per-share fair value of options will generally increase as expected stock price volatility increases, risk-free interest rate increases, expected option term increases and expected dividend yield decreases. The use of different assumptions or different option pricing models could result in materially different per share fair values of options.

The Company recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of the awards. The Company’s accounting policy is to recognize forfeitures as they occur. Forfeited shares are added back to the pool of shares available for future grants.

Employee Stock Ownership Plan—The ESOP shares pledged as collateral are reported as unearned ESOP shares in the Consolidated Statements of Financial Condition. As shares are committed to be released from collateral, the Association reports compensation expense equal to the average market price of the shares during the year, and the shares become outstanding for basic net income per common share computations. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce the ESOP's debt and accrued interest.

Earnings per Share—Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from the assumed issuance.

Note 2 - Investment SECURITIES

The following is a summary of investment securities at March 31, 2026 and March 31, 2025:

The fair value and gross unrealized losses on the Association’s available-for-sale investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2026 and March 31, 2025, are as follows:

The unrealized losses at March 31, 2026 are related to mortgage-backed securities and municipal bonds. Government-sponsored enterprises, such as the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association, have an implied guarantee by the U.S. government. At March 31, 2026, all of the mortgage-backed securities held by the Association were issued by U.S. government-sponsored entities and agencies. The issuers continue to make timely principal and interest payments on the mortgage-backed securities.

Unrealized losses on municipal bonds have not been recognized into income because the issuers’ bonds are high credit quality, the Association does not intend to sell and it is likely that the Association will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

At March 31, 2026 and March 31, 2025, investment securities with amortized cost of $22.5 million, and $44.2 million, respectively, and estimated fair value of $21.2 million and $41.0 million, respectively, were pledged to secure public, consumer, and commercial deposits.

The Company’s held-to-maturity securities portfolio at March 31, 2026 consists entirely of mortgage-backed securities. These securities do not have a single contractual maturity date and are instead characterized by monthly principal and interest payments, with expected lives that may differ from contractual terms due to prepayments of the underlying mortgage loans. As a result, the Company has not presented the held-to-maturity portfolio by contractual maturity.

The amortized cost and fair values of available for sale investment securities as of March 31, 2026 by contractual maturity, are shown below:

The Association hadno sales of available for sale investment securities for the years ended March 31, 2026 or 2025.

Note 3 - LOANS AND ALLOWANCE FOR Credit LOSSES

A summary of loans by major category as of March 31, 2026 and 2025 is as follows:

Related Party Loans: In the normal course of business, loans are made to directors and officers of the Association. Loans to Association directors and key officers outstanding as of March 31, 2026 and March 31, 2025 were $1.7 million and $1.8 million, respectively. Additionally, the Association had loans totaling $861,000 and $940,000 as of March 31, 2026 and March 31, 2025, respectively, to related parties that were originated by the Association, sold to Federal Home Loan Mortgage Company and are serviced by the Association.

The following tables present the activity in the allowance for credit losses for the years ended March 31, 2026 and 2025:

The allowance for credit losses on loans excludes $215,000 of allowance for off-balance sheet credit exposures as of March 31, 2026 and 2025, which is recorded within other liabilities on the Consolidated Statements of Financial Condition. No provision for credit losses related to off-balance sheet credit exposures was recorded during the years ended March 31, 2026 and 2025.

Collateral dependent loans individually evaluated for purposes of the ACL by collateral type were as follows at March 31, 2026 and 2025:

The increase in collateral dependent loans without an allowance for credit losses during the year ended March 31, 2026 was primarily attributable to the migration of two agricultural credits to nonaccrual status. Subsequent to year end, these loans were paid in full in May 2026.

Credit Risk—The Association monitors the credit risk within the loan portfolio by assessing the strength of the borrowers' repayment capacity and the probability of default. The Association first assesses the paying capacity of the borrower; then, it analyzes the sound worth of any pledged collateral or guarantees. In estimating the allowance for credit losses management also uses a quarterly Loan Concentration Report to monitor any concentrations that may develop in any specific category of the loan portfolio. It identifies four varying degrees of credit worthiness:

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Pass Loans: Loans in the pass category are loans that do not raise Association concerns.

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Special Mention Loans: Loans in this category may have a potential for weakness which, if not corrected, could weaken the asset and increase the risk in the future. By classifying a loan as Special Mention the Association can give the loan the attention needed to remedy any credit deficiencies or potential weaknesses.

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Substandard Loans: Loans identified as Substandard are assets that are inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans in this classification category must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Association will sustain some loss if the deficiencies are not corrected. If a loan is classified as Substandard, a determination based upon objective evidence must be made as to any specific or general valuation allowance within the guidelines of generally accepted accounting principles.

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Doubtful Loans: Loans in this category have all the weaknesses inherent in Substandard loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. If a loan is classified as Doubtful, a determination based upon objective evidence must be made as to any specific or general valuation allowance within the guidelines of generally accepted accounting principles.

Based on the most recent analysis performed, the risk category of loans by class and year of origination is as follows:

Nonperforming and Past-Due Loans—All loans in the Association’s portfolio are considered past due if the required principal and interest payments have not been received as of the date such payments were due.

The following table presents certain information with respect to loans on nonaccrual status as of and for the years ended March 31, 2026 and 2025. As of April 1, 2024, the amortized cost basis of loans on nonaccrual status was $537,000.

The following is an aging analysis of the contractually past due loans as of March 31, 2026 and 2025:

The Association may modify loans to borrowers experiencing financial difficulty by providing modifications to repayment terms; more specifically, modifications to loan interest rates. Management performs an analysis at the time of loan modification. Any reserve required is recorded through a provision to the allowance for credit losses on loans. There wereno modifications on loans to borrowers experiencing financial difficulty during the years ended March 31, 2026 and 2025.

Note 4 - PREMISES AND EQUIPMENT

Premises and equipment at March 31, 2026 and March 31, 2025, consist of the following:

(1)

Construction work in progress represents new branch construction in Lincoln and Hastings, NE. At March 31, 2025; the Lincoln full service branch was 89% billed and the Hastings full service branch was 78% billed. Certificates of occupancy were received in late March 2025 for Lincoln and Mid May 2025 for Hastings.

Depreciation expense included in occupancy and equipment on the consolidated statements of income totaled $965,000 and $455,000 for the years ended March 31, 2026 and 2025, respectively.

Note 5 - DEPOSITS

A summary of time deposits included in interest bearing deposits in the consolidated statements of financial condition by maturity at March 31, 2026, is as follows:

The aggregate amount of jumbo certificates of deposit, each with a minimum denomination greater than $250, was $35.5 million at March 31, 2026 and $28.6 million at March 31, 2025, respectively. At March 31, 2026, the Company had $27.6 million in brokered deposits and $7.3 million in brokered deposits at March 31, 2025.

In the normal course of business, deposit accounts are held by directors and officers of the Association (related parties). The terms for these accounts, including interest rates, fees, and other attributes, are similar to those prevailing for comparable transactions with other customers and do not involve more than the normal level of risk associated with deposit accounts. At March 31, 2026 and 2025, total deposits held by directors and officers of the Company and the Association were $3.3 million and $3.4 million, respectively.

Note 6 - Borrowings

The Company hadno outstanding borrowings as of March 31, 2026 and March 31, 2025.

The following table shows certain information regarding our borrowings at or for the dates indicated:

As of March 31, 2026, the Association had remaining available borrowing capacity with the Federal Home Loan Bank (“FHLB”) of approximately $47.0 million, compared to $40.5 million at March 31, 2025, subject to collateral requirements and FHLB credit policies. The Association had $13.0 million in irrevocable letters of credit outstanding with the FHLB at March 31, 2026 to secure public deposits. The FHLB retains sole discretion to grant or deny additional advances. At March 31, 2026, the Association had pledged investment securities with a carrying value of $25,000 and loans with a carrying value of $80.0 million as collateral for FHLB borrowings.

As of March 31, 2026, the Association had an approved line of credit with the Federal Reserve Bank (“FRB”) Discount Window. The Association had pledged commercial real estate loans with a carrying value of $13.4 million as collateral for potential borrowings and had remaining borrowing capacity of approximately $10.0 million at March 31, 2026.

Additionally, the Association maintained a $5.0 million unsecured federal funds line of credit with a private bankers’ bank at March 31, 2026 and March 31, 2025.

Note 7 - INCOME TAXES

Income tax expense for the years ended March 31, 2026 and 2025, is summarized as follows:

The Association’s provision for income taxes for the years ended March 31, 2026 and 2025, differs from the amounts determined by applying the statutory federal income tax rate to income before income taxes as a result of the following:

Deferred income taxes result from temporary differences in the recognition of income and expense for tax and financial statement purposes. The primary sources of these temporary differences relate to the timing of the recognition of allowances for credit losses, net operating losses, mortgage-backed securities premium amortization, employee benefits, mortgage servicing rights and the market adjustment of available-for-sale securities.

The deferred tax assets and the deferred tax liabilities measured at the federal tax rate of 21% at March 31, 2026 and 2025 are as follows:

The Association does not expect the total amount of unrecognized tax benefits to change significantly in the next twelve months. As of March 31, 2026 and 2025, the Association had federal net operating loss (NOL) carryforwards of approximately $1.4 million, and $1.6 million, respectively. These NOLs are scheduled to expire between 2030 and 2036 and are subject to annual utilization limitations under Section 382 of the Internal Revenue Code. During 2025, management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. Based on this assessment, and growth of the Association, the deferred tax asset is expected to be utilized in future years.

The amount of the deferred tax asset considered realizable, however, could be adjusted, and a valuation allowance recorded, if estimates of future taxable income during the carryforward period are reduced or if objective negative evidence in the form of cumulative losses is present and additional weight cannot be given to subjective evidence such as our projections for growth. Our projections for growth are based on growth within our deposit and loan portfolios and maintaining an adequate net interest margin.

The Association is permitted under the Internal Revenue Code to deduct an annual addition to a reserve for bad debts in determining taxable income, subject to certain limitations. This addition differs from the bad debt expense used for financial accounting purposes. Bad debt deductions for income tax purposes are included in taxable income of later years only if the bad debt reserve is used subsequently for purposes other than to absorb bad debt losses. For years beginning after December 31, 1995, the special provisions described above have been repealed. Because the Association does not intend to use the reserve for purposes other than to absorb losses, no deferred income taxes have been provided. Retained earnings at March 31, 2026 and 2025 include approximately $4.5 million, representing such bad debt deductions for which no deferred income taxes have been provided.

The Association does not have material uncertain tax positions.

Note 8 - REGULATORY CAPITAL REQUIREMENTS

The Association is subject to various regulatory capital requirements administered by 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 Association’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Association’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios as set forth in the following tables of tangible, core, and total risk-based capital. To be considered well-capitalized under the regulatory framework for Prompt Corrective Action provisions, the Association must maintain minimum Tier I leverage, Tier I risk- based, common equity Tier 1, and total risk-based capital ratios (as defined) as set forth in the following tables.

As of March 31, 2026 and March 31, 2025, the Association was well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Association must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. There are no conditions or events since March 31, 2026, that management believes have changed the Association’s category.

The Association’s actual capital amounts and ratios as of March 31, 2026 and March 31, 2025, are also presented in the table below:

Note 9 - MORTGAGE SERVICING

Activity for mortgage servicing rights ("MSRs") measured using the amortized cost method was as follows:

At March 31, 2026 and 2025, the Association serviced loans for others totaling approximately $118.5 million and $108.4 million, respectively. These loans are not included in the accompanying consolidated financial statements. Servicing activities primarily include collecting payments, managing escrow accounts, and remitting funds to investors. Servicing income is recognized on the accrual basis and consists of servicing fees and ancillary charges.

Borrowers’ escrow balances held in connection with servicing activities totaled approximately $3.0 million and $2.9 million at March 31, 2026 and 2025, respectively, and are included in interest-bearing deposits.

The Association utilizes derivative instruments, including interest rate lock commitments and forward loan sale commitments, to manage interest rate risk associated with mortgage banking activities. These instruments are not designated as hedging instruments, and their notional amounts and fair values were insignificant at March 31, 2026 and 2025.

Mortgage servicing rights are evaluated for impairment at least annually. The fair value of mortgage servicing rights was $1.2 million and $1.3 million at March 31, 2026 and 2025, respectively. Fair value at March 31, 2026 was determined using a discount rate of 9.75%, prepayment speeds ranging from 7.04% to 24.2%, depending on the stratification of the specific mortgage servicing rights. Fair value at March 31, 2025 was determined using a discount rate of 9.75%, prepayment speeds ranging from 6.0% to 17.5%, depending on the stratification of the specific mortgage servicing rights.

Note 10 - COMMITMENTS AND CONTINGENCIES

The Association is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers including commitments to extend credit and lines or letters of credit and commitments to sell to investors loans held for sale. The Association uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

At March 31, 2026 and March 31, 2025, the Association had approved outstanding loan origination commitments of $5.6 million and $1.1 million, respectively. Loan commitments, which are funded subject to certain limitations, extend over various periods of time and may expire without being drawn upon. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract. All outstanding loan origination commitments were subject to forward sales commitments to various entities. Also, at March 31, 2026 and March 31, 2025, the Association has committed unused lines of credit, equity lines, loans in process and letters of credit to consumers totaling $48.4 million and $45.0 million, respectively. The Association evaluates each customer’s creditworthiness on an individual basis and determines collateral requirements based on this evaluation. Collateral securing these commitments varies by product and borrower and may include residential and commercial real estate, agricultural real estate, inventory, equipment, accounts receivable, and other business and personal assets.

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 Association’s consolidated financial statements.

Note 11 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Association measures certain financial assets and liabilities at fair value in accordance with GAAP, which defines fair value as 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. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows:

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. The inputs are developed based on the best information available in the circumstances, which might include the Association’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment.

Fair Value of Financial Instruments—Financial instruments are classified within the fair value hierarchy using the methodologies described above. The following disclosures include financial instruments that are not carried at fair value on the Statements of Financial Condition. The calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values.

Certain financial instruments generally expose the Association to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. The carrying value of these financial instruments assumes to approximate the fair value of these instruments. These instruments include cash and cash equivalents, non-interest-bearing deposit accounts, FHLB and FRB advances, FHLB stock, escrow deposits and accrued interest receivable and payable.

The carrying amounts and estimated fair values by fair value hierarchy of certain financial instruments are as follows:

Assets Measured at Fair Value on a Recurring Basis

Available-for-Sale Securities

Where quoted market prices are available in an active market, securities such as U.S. Treasuries, would be classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities would be classified within Level 3 of the hierarchy.

The Association’s financial assets measured at fair value on a recurring basis are available-for-sale securities. Available-for-sale securities are classified within Level 2 because they are valued based on market prices for similar assets. The fair value of the Association’s available-for-sale securities as of March 31, 2026 and March 31, 2025 was $62.5 million and $59.4 million, respectively. The Association doesnot have any other assets or liabilities measured at fair value on a recurring basis as of March 31, 2026 or March 31, 2025.

There wereno transfers of financial instruments between Levels 1, 2, and 3 during the year ended March 31, 2026. The Association does not have any financial instruments measured at fair value on a recurring basis classified as Level 3.

Nonrecurring Measurements

The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2026 and March 31, 2025:

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Individually Evaluated Loans

Individually evaluated loans are measured at fair value on a nonrecurring basis when they require a specific allocation of the allowance for credit losses. Fair value is generally based on recent real estate appraisals, which may incorporate a single valuation approach or a combination of approaches, including the comparable sales method and the income approach. Independent appraisers routinely make adjustments to account for differences between the subject property and comparable sales or income data; such adjustments are often significant and result in a Level 3 classification of inputs used to determine fair value.

For loans collateralized by non-real estate assets, fair value may be determined using collateral appraisals, net book value information from the borrower’s financial statements, or aging reports. These values are adjusted or discounted, as appropriate, based on management’s assessment of historical experience, current market conditions, and the specific characteristics of the borrower and the underlying collateral. These inputs are also considered Level 3 within the fair value hierarchy.

Individually evaluated loans are reviewed at least monthly for additional impairment, and valuations are adjusted as necessary to reflect current conditions.

Due to the subjective nature of these valuations and the use of significant unobservable inputs, the disclosure of a range of such inputs is not considered meaningful.

Other Real Estate Owned (ORE)

Other real estate owned (“ORE”) is comprised of properties acquired through foreclosure or in satisfaction of loans and is carried at the lower of cost or fair value less estimated costs to sell. ORE is measured at fair value on a nonrecurring basis at the time of transfer and subsequently when events or changes in circumstances indicate that the carrying amount may not be recoverable.

Fair value is generally based on current real estate appraisals or evaluations, which may utilize the comparable sales approach, income approach, or a combination thereof. Independent appraisers commonly adjust valuation inputs to reflect differences between the subject property and comparable market transactions or income assumptions. These adjustments can be significant and result in a Level 3 classification within the fair value hierarchy.

Management also considers recent sales activity, listing prices, broker opinions of value, and other market data, as well as estimated costs to sell, in determining fair value. When appropriate, management applies additional discounts to reflect current market conditions, time-to-sell expectations, and the condition of the property.

ORE properties are periodically evaluated, and their carrying values are adjusted as necessary to reflect changes in market conditions or updated valuation information. Any write-downs are recorded as a charge to earnings.

Due to the subjective nature of these valuations and the use of significant unobservable inputs, disclosure of a range of such inputs is not considered meaningful.

Note 12 -accumulated other comprehensive loss

The components of accumulated other comprehensive loss for the years ended March 31, 2026 and 2025 are as follows:

The following table summarizes the significant amounts reclassified out of each component of AOCI for the years ended March 31, 2026 and 2025:

Note 13 -LEASES

The Association leases office space under operating leases that expire at various dates through October 2030.

Rent expense, which is included in occupancy expenses on the consolidated statements of income, was $58,000 and $79,000 for the years ended March 31, 2026 and 2025, respectively.

The following table shows the future undiscounted lease payments required under the leases described above as of March 31, 2026:

Note 14 - Pension plan

The Association has a defined benefit pension plan covering pre-merger employees. Benefits are based on the employee's compensation during the last 10 years of employment. Contributions are intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. The plan assets are invested in pooled separate accounts through an account at Principal Financial as of March 31, 2026. The separate accounts are quoted at net asset value (NAV), which is calculated based on the value of the underlying pool of assets. The accounts include investments in fixed income, equity, and real estate funds which have observable net asset values. As of March 31, 2026 and 2025, management determined the fair market value of the pension assets to be a Level 2 valuation as established by GAAP (see Note 11 for definitions of Level 1, Level 2, and Level 3).

The following table presents by level, within the fair value hierarchy, the pension plan's investments at fair value as of March 31, 2026 and 2025:

GAAP requires the recognition of the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in the consolidated statements of financial condition and recognition of changes in that funded status in the year in which the changes occur through comprehensive income.

Using a measurement date of March 31, the following tables provide a reconciliation of the benefit obligations, plan assets, and funded status of the pension plan:

The funded status of the plan is recognized as a separate line item in the consolidated statements of financial condition. The accumulated benefit obligation for the defined benefit pension plan was $7.1 million at March 31, 2026 and $6.5 million at March 31, 2025.

Amounts recognized in other comprehensive income, net of tax, for the years ended March 31, 2026 and 2025, related to the change in the minimum pension liability were $429,000 and 491,000, respectively.

Net periodic cost included the following components:

The components of net periodic benefit cost other than the service cost component are included inother general and administrative expenses in the consolidated statement of income.

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at March 31, 2026 and 2025, are as follows:

The Association expects to contribute $600,000 to its pension plan in the fiscal year 2027.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in following fiscal years:

The Association also provides supplemental retirement benefits to certain key executives under which the executives will receive a fixed monthly payment for 120 months following their retirement, subject to certain requirements. A liability of approximately $484,000 and $536,000 was recorded in accounts payable, accrued expenses and other liabilities on the consolidated statements of financial condition as of March 31, 2026 and 2025, respectively. This obligation is funded by certain insurance policies, recorded in other assets on the consolidated statements of financial condition, which have a cash surrender value of approximately $1.1 million and $1.0 million at March 31, 2026 and 2025, respectively.

Note 15 - LOW INCOME HOUSING TAX CREDIT

The Association makes equity investments in various limited partnerships that sponsor affordable housing projects utilizing the Low-Income Housing Tax Credit (“LIHTC”) program pursuant to Section 42 of the Internal Revenue Code. The objectives of these investments are to earn an acceptable return on capital, support the development and availability of affordable housing, and assist in meeting the requirements of the Community Reinvestment Act.

The limited partnerships’ primary activities include the identification, development, and operation of multifamily residential housing that is leased to qualifying tenants. These investments are generally funded through a combination of debt and equity.

The Association accounts for a majority of its LIHTC investments using the proportional amortization method. These investments are included in other assets, and related unfunded commitments are included in accounts payable, accrued expenses, and other liabilities in the consolidated statements of financial condition.

The following table presents the balances of the Association’s affordable housing tax credit investments and related unfunded commitments as of March 31:

There wasno impairment recognized for the years ended March 31, 2026 and 2025.

Note 16 - EARNINGS PER SHARE

Basic earnings per share (EPS) represents income available to common stockholders divided by weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that should then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributed to common stockholders by the weighted-average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents.

Shares held by the Employee Stock Ownership Plan ("ESOP") that have not been allocated to employees in accordance with the terms of the ESOP, referred to as "unallocated ESOP shares", are not deemed outstanding for EPS calculations.

Note 17 - Stock based compensation

ESOP

In connection with the Association's mutual to stock conversion in October 2023, the Association established the Home Federal Savings and Loan Association of Grand Island Employee Stock Ownership Plan (“ESOP”) for all eligible employees. The ESOP purchased 330,465 shares of Company common stock in the Company’s initial public offering at $10.00 per share with the proceeds of a twenty-five (25) year loan from the Company in the amount of $3.3 million. The Association intends to make annual contributions to the ESOP that at a minimum will permit the ESOP to repay the principal and interest due on the ESOP debt. As the ESOP loan is repaid, shares of Company common stock pledged as collateral for the loan are released to Plan participants on the basis of each active participant’s proportional share of compensation. Participants vest 100% in their ESOP allocations after five years of service. In connection with the implementation of the ESOP, participants were given credit for past service with the Association for vesting purposes. Generally, participants will receive distributions from the ESOP upon separation from service. The plan reallocates any unvested shares of common stock forfeited upon termination of employment among the remaining participants in the plan.

ESOP compensation represents the average fair market value of the shares of Company common stock allocated or committed to be released as of that date. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. The ESOP compensation expense for the years ended March 31, 2026 and 2025 was $211,000 and $167,000.

The Company typically makes discretionary contributions to the ESOP each December in amounts sufficient to fund the required principal and interest payments on the loan. In December 2025, the Company made a contribution of $303,000 to the ESOP for this purpose.

Shares held by the ESOP were as follows:

Equity Incentive Plan

At the Company's annual meeting of stockholders held on November 26, 2024, stockholders approved the Central Plains Bancshares, Inc. 2024 Equity Incentive Plan (“2024 Equity Plan”), which provides for the granting of up to 578,313 shares (165,232 shares of restricted stock and 413,081 stock options) of the Company’s common stock pursuant to equity awards made under the 2024 Equity Plan.

Stock options granted under the 2024 Equity Plan generally vest in equal annual installments over a service period of five years beginning one year from the date of grant. The vesting of the options accelerates upon death, disability or an involuntary termination at or following a change in control of the Company. Stock options are generally granted at an exercise price equal to the fair value of the Company’s common stock on the grant date based on the closing market price of the Company's common stock on the date of grant, and have an expiration period of ten years. In November 2024, the Company granted 123,924 stock options under the 2024 Equity Plan. In January 2025, the Company granted 185,000 stock options under the 2024 Equity Plan. In May 2025, the Company granted 9,000 stock options under the 2024 Equity Plan. As of March 31, 2026, the Company has 93,157 shares available for future grants of stock options under the 2024 Equity Plan.

The weighted average grant date fair value of stock options granted during the year ended March 31, 2026 and 2025 was $5.86 and $5.61, respectively.

The following is a summary of the Company's stock option activity and related information for the periods presented.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, the difference between the Company's closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options.

Expected future expense relating to the non-vested options outstanding as of March 31, 2026 is $1.3 million over a weighted average period of 3.7 years.

Restricted shares granted under the 2024 Equity Plan generally vest in equal annual installments over a service period of five years beginning one year from the date of grant. The vesting of the awards accelerates upon death, disability or an involuntary termination at or following a change in control of the Company. The product of the number of shares granted and the grant date closing market price of the Company’s common stock determines the fair value of restricted shares under the 2024 Equity Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period.

In November 2024, the Company granted 49,566 shares of restricted stock under the 2024 Equity Plan. In January 2025, the Company granted 79,500 shares of restricted stock under the 2024 Equity Plan. In May 2025, the Company granted 9,000 shares of restricted stock under the 2024 Equity Plan. As of March 31, 2026, the Company has 28,367 shares available for future grants of restricted stock under the 2024 Equity Plan.

The following is a summary of the Company's restricted stock activity and related information for the periods presented.

Expected future expense relating to the non-vested restricted shares outstanding as of March 31, 2026, is $1.5 million over a weighted average period of 3.7 years.

The following table presents the stock based compensation expense for the periods presented.

Note 18 - CONDENSED Parent ONLY Financial INFORMATION

The Parent Company’s condensed balance sheet and related condensed statements of operations and cash flows are as follows.

CONDENSED BALANCE SHEETS

CONDENSED STATEMENTS OF OPERATIONS

CONDENSED STATEMENTS OF CASH FLOWS

Note 19 - SUBSEQUENT EVENTS

Management evaluated subsequent events through June 18, 2026, the date the financial statements were issued. Management does not believe there were any material subsequent events during this period that would have required further recognition or disclosure in the audited consolidated financial statements included in this report.