CSBA 10-K & 10-Q changes, risk factors and insider trading

This report contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “believe,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but are not limited to:

Comparison of Financial Condition at MarchJune 31,30, 2026 and December 31, 2025

Total Assets. Total assets increased $872,000,$9.4 million, or 0.8%,8.6%, to $111.1$119.6 million at MarchJune 31,30, 2026 from $110.2 million at December 31, 2025. The increase was primarily dueattributable to higheran otherincrease assets,in reflectingcash costsand associatedcash equivalents resulting from the subscription funds received in connection with the Company's stock offering, which were being held in escrow pending completion of the conversion and stock offeringoffering. thatThe areincrease capitalizedin oncash thewas balancepartially sheetoffset untilby thedecreases conversionin net loans receivable and stockinvestment offering is completed.securities.

Cash and Due from Banks. Cash and due from banks increased $1.6$9.4 million, or 24.3%,145.4%, to $8.0$15.8 million at MarchJune 31,30, 2026 from $6.4 million at December 31, 2025. The increase was primarily attributable to higherthe depositsubscription balancesfunds received in connection with the stock offering, which were being held in escrow pending completion of the conversion and astock reduction in loan balances during the quarter, resulting in higher on-balance sheet liquidity.offering.

Securities Available for Sale. Securities available for sale decreased $69,000,$139,000, or 1.3%,2.5%, to $5.4 million at MarchJune 31,30, 2026 from $5.5 million at December 31, 2025 due to scheduled maturities. ThereNo securities were no securities purchasespurchased during the six-month period, asand excessproceeds liquidityfrom wasmaturing deployedsecurities intocontributed theto loanhigher portfolio.cash and cash equivalents.

Federal Home Loan Bank Stock. Federal Home Loan Bank stock remained unchanged at $600,000 at MarchJune 31,30, 2026 and December 31, 2025, respectively.

Loans, net. Loans decreased $979,000,$686,000, or 1.1%,0.7%, to $91.6$91.9 million at MarchJune 31,30, 2026 from $92.6 million at December 31, 2025. The decrease was primarily duereflected tothe acontinued $2.0runoff millionof reduction in consumer and commercial loansthe purchased from Bankers Healthcare Group, LLC d/b/a BHG Financial consumer loan portfolio as ascheduled resultrepayments ofand payoffs,payoffs partiallyexceeded new loan purchases. The decline was offset by a $1.3 million increasegrowth in commercialthe residential real estate loan portfolio as well as increases in multifamily and nonresidential real estate loans and second mortgage and home equity loans. The increase in commercial real estate loans primarily relates to loans secured by commercial/industrial warehouse properties.

Deposits. Deposits increased $988,000,$12.2 million, or 1.2%,14.9%, to $83.1$94.4 million at MarchJune 31,30, 2026 from $82.2 million at December 31, 2025. The increase was primarily attributable to athe $1.3subscription million,funds or 2.7%, increasereceived in connection with the stock offering that were deposited into an escrow account pending completion of the conversion and stock offering. Brokered certificates of deposit,deposit partiallytotaled offset by a $281,000, or 0.8%, decrease in demand deposits and savings accounts to $34.6$6.1 million at MarchJune 31,30, 2026 fromand $34.9$8.0 million at December 31, 2025. At March 31, 2026 and December 31, 2025, brokered certificates of deposit totaled $8.0 million.

Federal Home Loan Bank Advances. Federal Home Loan Bank advances remaineddecreased unchanged$3.2 million, or 30.2% to $7.4 million at June 30, 2026, from $10.6 million at March 31, 2026 and December 31, 2025.

Total Capital. Capital increased $76,000,$243,000, or 0.5%,1.5%, to $15.9$16.0 million at MarchJune 31,30, 2026 from $15.8 million at December 31, 2025. The increase was primarily attributable to net income for the threesix months ended MarchJune 31,30, 2026, partially offset by an increase in accumulated other comprehensive loss of $11,000.$13,000.

Average Balances and Yields. The following table sets forth average balance sheets, average yields and costs, and certain other information at the dates and for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average yields include the effect of net deferred fee income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average balances are calculated using monthly average balances. Non-accrual loans are included in the computation of average balances only. Average loan balances include loans held for sale.

Comparison of Operating Results for the Three Months Ended MarchJune 31,30, 2026 and 2025

Net Income. Net income was $87,000$169,000 for the three months ended MarchJune 31,30, 2026, compared to $57,000$162,000 for the three months ended MarchJune 31,30, 2025, an increase of $30,000,$7,000, or 52.6%.4.3%. The increase was primarily attributable to a $192,000$57,000 increase in net interest income, partially offset by a $152,000$51,000 increase in noninterest expense and a $10,000$2,000 increase in income tax expense.

Interest and Dividend Income. Interest and dividend income increased $327,000,$71,000, or 27.4%,4.9%, to $1.5 million for the three months ended MarchJune 31,30, 2026 from $1.2$1.5 million for the three months ended MarchJune 31,30, 2025. The increase was primarily attributable to a $303,000$65,000 increase in interest and fees on loans, reflecting both an increase of $14.4$2.1 million, or 18.5%,2.3%, in the average balance of loans to $92.1$92.0 million and an increase in the average yield on loans to 6.10%6.17% from 5.67%.6.02%. Interest income on interest-bearing deposits increased $20,000$6,000 due to higher average balances, while investment income decreasedremained $4,000.relatively unchanged. Average interest-earning assets increased $17.2$3.8 million, or 19.7%,3.8%, to $104.9$103.9 million, while the yield on interest-earning assets increased to 5.79%5.87% from 5.44%.5.80%.

Interest Expense. Interest expense increased $135,000,$14,000, or 28.8%,2.6%, to $604,000$586,000 for the three months ended MarchJune 31,30, 2026 from $469,000$572,000 for the three months ended MarchJune 31,30, 2025. The increase was driven by both higher average balances of interest-bearing liabilities and an increase in the overall cost of funds. Interest expense on deposits increased $61,000,$32,000, or 14.1%,6.8%, reflecting an $8.8$3.4 million increase in the average balance of interest-bearing deposits to $77.5$78.0 million, along with a slight increase in the average rate to 2.55%2.59% from 2.53%.2.54%. Interest expense on borrowings increaseddecreased $74,000,$18,000, or 211.4%,18.1%, driven by a $7.4$1.7 million increasedecrease in the average balance of Federal Home Loan Bank advances to $10.6$7.8 million, partially offset byand a decrease in the average rate to 4.11%4.15% from 4.33%.4.16%.

Net Interest Income. Net interest income increased $192,000,$57,000, or 26.6%,6.5%, to $915,000$938,000 for the three months ended MarchJune 31,30, 2026 from $723,000$881,000 for the three months ended MarchJune 31,30, 2025. The increase was primarily attributable to growth in average interest-earning assets, particularly loans, as well as higher asset yields. Net interest spread increased to 3.05%3.14% from 2.83%,3.08%, while net interest margin increased to 3.49%3.61% from 3.30%.3.52%. The improvement in margin reflects higher yields on interest-earning assets, partially offset by an increase in the cost of interest-bearing liabilities.

Provision for Credit Losses. No provisionProvision for credit losses was recorded$-0- and $13,000 for the three months ended MarchJune 31,30, 2026 orand 2025,June 30, 2025 respectively.

IncomeNon-Interest TaxIncome. Expense.Non-interest Incomeincome taxdecreased expense$9,000, increasedor $10,00019.6% to $12,000$37,000 for the three months ended MarchJune 31,30, 2026 from $2,000$46,000 for the three months ended MarchJune 31,30, 2025. The effective tax rateIt was 12.6% forprimarily the three months ended March 31, 2026. The effective tax rate for the three months ended March 31, 2025 is not meaningful due to the recognitionresult of a tax$5,000 benefitdecrease in again periodon withsale lowof pre-tax income.loans.

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 of securities. We also have the ability to borrow from the Federal Home Loan Bank of Cincinnati. At MarchJune 31,30, 2026, we had the capacity to borrow $26.9$27.3 million from the Federal Home Loan Bank of Cincinnati, of which $10.6$7.4 million was outstanding. At MarchJune 31,30, 2026, we also had a cash management line of credit agreement with the Federal Home Loan Bank of Cincinnati with a credit line of $3.0 million, none of which was outstanding. In addition, at MarchJune 31,30, 2026, we had a $5.0 million credit facility with a correspondent bank, none of which was outstanding. Management also considered brokered deposits scheduled to mature within the next twelve months. At MarchJune 31,30, 2026, approximately $1.8 million of brokered deposits are scheduled to mature on October 29, 2026.2026, and $681,000 on April 25, 2027.

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. At MarchJune 31,30, 2026, certificates of deposit that are scheduled to mature in less than one year from that date totaled $31.1$29.7 million. Based on our deposit retention experience and current pricing strategy, we anticipate retaining a significant portion of certificates of deposit as they mature. However, if a substantial portion is not retained, we may have to use Federal Home Loan Bank of Cincinnati borrowings and/or brokered deposits or raise interest rates on deposits to attract new accounts, which would increase interest expense.

Capital Resources. At MarchJune 31,30, 2026, Community Savings Bank exceeded all regulatory capital levels required to be considered “well capitalized.”

Off-Balance Sheet Arrangements. At MarchJune 31,30, 2026, we had $8.4$8.0 million of unfunded commitments under lines of credit and $5.3 million of standby letters of credit.