Financial Performance - Net income decreased approximately 12%[17] - Pre-Provision, Pre-Tax Income decreased approximately 5%[17] - Net Interest Income decreased approximately 4%[17] - Non-Interest Income decreased approximately 3%[17] - Operating Expenses decreased approximately 3%[17] - Net Interest Margin decreased eight basis points to 2.94%[17] Balance Sheet & Asset Quality - Loans Held for Investment balance decreased approximately 1%[41] - Total Deposits balance decreased approximately 1%[41] - Total Borrowings balance decreased approximately 1%[41] - Non-Performing Assets to Total Assets Ratio was unchanged at 0.11%[60] Capital Management - The company purchased approximately 76,000 shares of common stock in the fourth quarter of fiscal 2025[90]

Financial Data and Key Metrics Changes - The company originated $27.9 million in loans held for investment, a 23% decrease from $36.4 million in the prior sequential quarter [5] - Loan principal payments and payoffs were $23 million, down 33% from $34.3 million in the previous quarter [5] - Non-performing assets decreased to $1.4 million from $2.5 million, indicating improved asset quality [6] - The allowance for credit losses to gross loans held for investment decreased from 66 basis points to 62 basis points [9] - Net interest margin increased by 11 basis points to 3.02% compared to 2.91% in the previous quarter [9] Business Line Data and Key Metrics Changes - Loans held for investment increased by approximately $5.4 million compared to the previous quarter, driven by an increase in single-family loans [6] - There were declines in multifamily, commercial real estate, construction, and commercial business loans [6] - The company has seen more consumer demand for single-family adjustable-rate mortgage products due to higher fixed-rate mortgage interest rates [6] Market Data and Key Metrics Changes - Economic uncertainty has increased due to current fiscal policy, impacting real estate investor activity [6] - The company noted a shift in consumer demand towards adjustable-rate mortgage products as fixed rates rise [6] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing the shift to looser monetary policy [13] - The strategy includes maintaining cash dividends and utilizing stock buyback programs as a capital management tool [14] - The company is focused on improving operating efficiencies to lower operating expenses [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for net interest margin expansion in the upcoming quarter, albeit at a slower pace than the current quarter [11] - The company is monitoring commercial real estate loans, particularly those secured by office buildings, and remains confident in their performance [7] - Management acknowledged the challenges posed by higher mortgage rates and economic uncertainty but indicated a commitment to growth [6][13] Other Important Information - The company repurchased approximately 52,000 shares of common stock in the March quarter [14] - For the fiscal year to date, the company has distributed approximately $2.8 million in cash dividends and repurchased approximately $3.1 million worth of common stock [14] Q&A Session Summary Question: Inquiry about CD growth in the quarter - Management indicated that the growth was due to a remix of the liability profile and the opening of a government deposit desk, allowing for liquidity to pay down Federal Home Loan Bank advances [17] Question: Were new CDs at a better rate than wholesale market? - Management noted that the rates were similar to wholesale, and the strategy was adjusted due to lower short-term rates [18] Question: Thoughts on prepayment activity over the next twelve months? - Management stated that prepayment activity is difficult to predict, with lower prepayments observed in the March quarter due to mortgage rate volatility [28] Question: Capital allocation and potential buyback adjustments? - Management emphasized the importance of maintaining capital during uncertainty but indicated that if stock prices decline, they would consider repurchasing more shares [32][34] Question: Changes in loan competition behavior? - Management noted no significant changes in competition but acknowledged aggressive pricing in the multifamily loan market [35][36]

Financial Data and Key Metrics Changes - The company originated $27.9 million in loans held for investment, a 23% decrease from $36.4 million in the prior sequential quarter [6] - Loan principal payments and payoffs were $23 million, down 33% from $34.3 million in the previous quarter [6] - Non-performing assets decreased to $1.4 million from $2.5 million in the prior quarter [8] - The allowance for credit losses to gross loans held for investment decreased from 66 basis points to 62 basis points [10] - Net interest margin increased by 11 basis points to 3.02% compared to 2.91% in the previous quarter [10] Business Line Data and Key Metrics Changes - Loans held for investment increased by approximately $5.4 million compared to the previous quarter, with an increase in single-family loans [7] - There were declines in multifamily, commercial real estate, construction, and commercial business loans [7] - The company has seen more consumer demand for single-family adjustable-rate mortgage products due to higher fixed-rate mortgage interest rates [7] Market Data and Key Metrics Changes - Economic uncertainty has increased due to current fiscal policy, impacting real estate investor activity [7] - The company noted that the current credit quality remains strong, with only $199,000 of early-stage delinquencies reported [9] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing a shift to looser monetary policy [14] - The strategy includes maintaining cash dividends and utilizing stock buyback programs as a responsible capital management tool [16] - The company is focused on improving operating efficiencies to lower operating expenses [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for net interest margin expansion in the upcoming quarter, albeit at a slower pace than the current quarter [12] - The company is monitoring the impact of mortgage rate volatility on prepayment activity, which has historically affected their loan portfolio [31] - Management indicated that they are prepared to adjust their lending strategy based on market conditions and competitive pricing [43] Other Important Information - The company repurchased approximately 52,000 shares of common stock in the March quarter [16] - For the fiscal year to date, the company has distributed approximately $2.8 million in cash dividends and repurchased approximately $3.1 million worth of common stock [16] Q&A Session Summary Question: Inquiry about CD growth in the quarter - Management explained that they remixed the liability profile and opened their government deposit desk, accumulating government deposits which provided liquidity to pay down Federal Home Loan Bank advances [19] Question: Were the new CDs at a better rate than wholesale market? - Management noted that the rates were similar to wholesale, and the strategy change was due to a decrease in short-term rates [20] Question: Thoughts on prepayment activity over the next twelve months? - Management indicated that prepayment activity is difficult to predict, but lower mortgage rates tend to increase activity [31] Question: Capital allocation and potential buyback adjustments? - Management stated that while having more capital is preferable during uncertainty, they have already set their capital plans for the fiscal year [37] Question: Changes in loan competition behavior? - Management noted that they have not seen significant changes in competition, although some aggressive pricing in multifamily loans has been observed [39]