Bogota Financial Corp. 10-Q

Item 1. Financial Statements BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) As of As of June 30, 2026 December 31, 2025 Assets Cash and due from banks $ 7,500,397 $ 11,584,648 Interest-bearing deposits in other banks 22,396,729 24,013,947 Cash and cash equivalents 29,897,126 35,598,595 Securities available for sale, at fair value 140,411,551 158,064,631 Loans, net of allowance for credit losses of $ 2,579,949 and $ 2,529,949 , respectively 637,312,833 647,645,607 Premises and equipment, net 4,458,385 4,399,202 Federal Home Loan Bank ("FHLB") stock and other restricted securities 7,513,600 5,403,900 Accrued interest receivable 3,889,180 4,261,410 Core deposit intangibles 87,934 107,604 Bank-owned life insurance 32,225,477 31,774,855 Right of use asset 10,557,850 10,265,125 Investment in limited partnership 3,963,163 2,413,320 Other assets 4,670,025 5,013,251 Total Assets $ 874,987,124 $ 904,947,500 Liabilities and Equity Non-interest bearing deposits $ 30,478,615 $ 28,177,516 Interest bearing deposits 543,740,963 624,269,541 Total deposits 574,219,578 652,447,057 FHLB advances-short term 101,000,000 20,000,000 FHLB advances-long term 40,020,176 73,322,132 Advance payments by borrowers for taxes and insurance 2,027,965 2,591,007 Lease liabilities 10,782,407 10,434,759 Other liabilities 4,971,332 5,244,197 Total liabilities 733,021,458 764,039,152 Stockholders’ Equity Preferred stock $ 0.01 par value 1,000,000 shares authorized, none issued and outstanding at June 30, 2026 and December 31, 2025 — — Common stock $ 0.01 par value, 30,000,000 shares authorized, 12,770,973 issued and outstanding at June 30, 2026 and 12,925,572 at December 31, 2025 127,709 129,255 Additional paid-in capital 54,026,204 54,949,369 Retained earnings 93,550,894 92,097,426 Unearned ESOP shares ( 342,926 shares at June 30, 2026 and 356,188 shares at December 31, 2025) ( 4,068,789 ) ( 4,219,390 ) Accumulated other comprehensive loss ( 1,670,352 ) ( 2,048,312 ) Total stockholders’ equity 141,965,666 140,908,348 Total liabilities and stockholders’ equity $ 874,987,124 $ 904,947,500 See accompanying notes to unaudited consolidated financial statements. 1 Table of Contents BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Interest income Loans, including fees $ 7,522,862 $ 8,291,923 $ 15,510,465 $ 16,895,052 Securities Taxable 1,855,996 1,943,360 4,117,414 3,773,754 Tax-exempt 2,888 2,894 5,777 5,789 Other interest-earning assets 207,404 266,987 443,991 754,158 Total interest income 9,589,150 10,505,164 20,077,647 21,428,753 Interest expense Deposits 4,613,406 5,524,138 9,603,665 11,286,462 FHLB advances 1,136,032 1,286,421 2,207,779 2,854,448 Total interest expense 5,749,438 6,810,559 11,811,444 14,140,910 Net interest income 3,839,712 3,694,605 8,266,203 7,287,843 Provision (recovery) for credit losses — — 50,000 ( 80,000 ) Net interest income after provision (recovery) for credit losses 3,839,712 3,694,605 8,216,203 7,367,843 Non-interest income Fees and service charges 46,343 59,755 111,494 115,574 Gain on sale of loans — 8,768 — 37,830 Bank-owned life insurance 228,330 228,392 450,622 990,623 Other 386,046 34,795 419,850 77,055 Total non-interest income 660,719 331,710 981,966 1,221,082 Non-interest expense Salaries and employee benefits 1,984,689 2,059,942 4,037,535 4,140,141 Occupancy and equipment 640,405 640,444 1,342,762 1,311,913 FDIC insurance assessment 86,404 103,934 185,404 210,520 Data processing 318,138 305,034 588,853 620,731 Advertising 38,500 16,000 90,500 121,500 Director fees 126,631 170,812 265,262 330,256 Professional fees 247,166 372,364 489,447 571,094 Other 212,307 185,972 434,135 408,017 Total non-interest expense 3,654,240 3,854,502 7,433,898 7,714,172 Income before income taxes 846,191 171,813 1,764,271 874,753 Income tax expense (benefit) 98,669 ( 52,582 ) 310,803 ( 80,589 ) Net income $ 747,522 $ 224,395 $ 1,453,468 $ 955,342 Earnings per Share - basic $ 0.06 $ 0.02 $ 0.12 $ 0.08 Earnings per Share - diluted $ 0.06 $ 0.02 $ 0.12 $ 0.08 Weighted average shares outstanding - basic 12,492,325 12,635,990 12,598,741 12,642,744 Weighted average shares outstanding - diluted 12,507,536 12,641,179 12,609,946 12,644,701 See accompanying notes to unaudited consolidated financial statements. 2 Table of Contents BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Net income $ 747,522 $ 224,395 $ 1,453,468 $ 955,342 Other comprehensive income (loss): Net unrealized (loss) gain on securities available for sale: ( 73,841 ) ( 379,866 ) ( 10,616 ) 566,084 Tax effect 20,757 106,780 2,983 ( 159,127 ) Net of tax ( 53,084 ) ( 273,086 ) ( 7,633 ) 406,957 Defined benefit retirement plans: Reclassification adjustment for amortization of prior service cost and net (loss) gain included in salaries and employee benefits ( 9,501 ) 180,712 ( 9,501 ) 180,712 Tax effect 2,700 ( 50,798 ) 2,700 ( 50,798 ) Net of tax ( 6,801 ) 129,914 ( 6,801 ) 129,914 Derivatives: Unrealized gain (loss) on swap contracts accounted for as cash flow hedges 215,255 ( 226,145 ) 545,825 ( 670,961 ) Tax effect ( 60,508 ) 63,570 ( 153,431 ) 188,608 Net of tax 154,747 ( 162,575 ) 392,394 ( 482,353 ) Total other comprehensive income (loss) 94,862 ( 305,747 ) 377,960 54,518 Comprehensive income (loss) $ 842,384 $ ( 81,352 ) $ 1,831,428 $ 1,009,860 See accompanying notes to unaudited consolidated financial statements. 3 Table of Contents BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) Accumulated Common Additional Unearned Other Total Stock Common Paid-in Retained ESOP Comprehensive Stockholders Shares Stock Capital Earnings shares (Loss) Income Equity Balance January 1, 2025 13,059,175 $ 130,592 $ 55,269,962 $ 90,006,648 $ ( 4,520,594 ) $ ( 3,597,448 ) $ 137,289,160 Net income — — — 730,947 — — 730,947 Other comprehensive income — — — — — 360,265 360,265 Stock based compensation — — 221,180 — — — 221,180 Stock purchased and retired ( 50,211 ) ( 503 ) ( 397,712 ) — — — ( 398,215 ) ESOP Shares released ( 6,447 shares) — — ( 24,832 ) — 75,301 — 50,469 Balance March 31, 2025 13,008,964 130,089 55,068,598 90,737,595 ( 4,445,293 ) ( 3,237,183 ) $ 138,253,806 Net income — — — 224,395 — — 224,395 Other comprehensive loss — — — — — ( 305,747 ) ( 305,747 ) Stock based compensation — — 225,435 — — — 225,435 Stock purchased and retired ( 575 ) ( 6 ) ( 4,571 ) — — — ( 4,577 ) ESOP Shares released ( 6,668 shares) — — ( 28,912 ) — 75,301 — 46,389 Balance June 30, 2025 13,008,389 $ 130,083 $ 55,260,550 $ 90,961,990 $ ( 4,369,992 ) $ ( 3,542,930 ) $ 138,439,701 Balance January 1, 2026 12,925,572 $ 129,255 $ 54,949,369 $ 92,097,426 $ ( 4,219,390 ) $ ( 2,048,312 ) $ 140,908,348 Net income — — — 705,946 — — 705,946 Other comprehensive income — — — — — 283,098 283,098 Stock based compensation — — 225,435 — — — 225,435 Stock purchased and retired ( 15,041 ) ( 150 ) ( 124,755 ) — — — ( 124,905 ) ESOP shares released ( 6,595 shares) — — ( 20,852 ) — 75,300 — 54,448 Balance March 31, 2026 12,910,531 $ 129,105 $ 55,029,197 $ 92,803,372 $ ( 4,144,090 ) $ ( 1,765,214 ) $ 142,052,370 Net income — — — 747,522 — — 747,522 Other comprehensive income — — — — — 94,862 94,862 Stock based compensation — — 225,435 — — — 225,435 Stock purchased and retired ( 139,558 ) ( 1,396 ) ( 1,208,993 ) — — — ( 1,210,389 ) ESOP shares released ( 6,668 shares) — — ( 19,435 ) — 75,301 — 55,866 Balance June 30, 2026 12,770,973 $ 127,709 $ 54,026,204 $ 93,550,894 $ ( 4,068,789 ) $ ( 1,670,352 ) $ 141,965,666 See accompanying notes to unaudited consolidated financial statements. 4 Table of Contents BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the six months ended June 30, 2026 2025 Cash flows from operating activities Net income $ 1,453,468 $ 955,342 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Amortization of intangible assets 26,466 46,341 Provision (recovery) for credit losses 50,000 ( 80,000 ) Depreciation of premises and equipment 180,620 201,684 Amortization of deferred loan costs, net 174,104 16,914 Amortization of premiums and accretion of discounts on securities, net 279,393 42,886 Deferred income benefit ( 78,901 ) ( 69,637 ) Gain on sale of loans — ( 37,830 ) Proceeds from sale of loans — ( 1,932,899 ) Origination of loans held for sale — 1,970,729 Increase in cash surrender value of bank owned life insurance ( 450,622 ) ( 990,623 ) Employee stock ownership plan expense 110,314 96,858 Stock-based compensation 450,870 446,615 Changes in: Accrued interest receivable 372,230 7,367 Net changes in other assets 773,692 1,902,625 Net changes in other liabilities ( 282,365 ) ( 672,292 ) Net cash provided by operating activities 3,059,269 1,904,080 Cash flows from investing activities Purchases of securities available for sale ( 5,714,414 ) ( 27,699,938 ) Maturities, calls, and repayments of securities available for sale 23,077,484 23,928,115 Net decrease in loans 10,153,705 18,581,405 Purchase of equity investment ( 1,500,000 ) — Purchases of premises and equipment ( 239,804 ) ( 36,169 ) Purchase of FHLB stock ( 5,241,500 ) ( 2,420,100 ) Redemption of FHLB stock 3,131,800 4,018,200 Net cash provided by investing activities 23,667,271 16,371,513 Cash flows from financing activities Net decrease in deposits ( 78,227,717 ) ( 13,958,256 ) Net increase in short-term FHLB advances 81,000,000 10,500,000 Repayments of long-term FHLB non-repo advances ( 33,301,956 ) ( 46,732,049 ) Repurchase of common stock ( 1,335,294 ) ( 398,215 ) Net increase (decrease) in advance payments from borrowers for taxes and insurance ( 563,042 ) 414,274 Net cash used for financing activities ( 32,428,009 ) ( 50,174,246 ) Net decrease in cash and cash equivalents ( 5,701,469 ) ( 31,898,653 ) Cash and cash equivalents at beginning of year 35,598,595 52,232,208 Cash and cash equivalents at end of period $ 29,897,126 $ 20,333,555 Supplemental cash flow information Income taxes paid $ 100,000 $ 100,000 Interest paid 12,048,077 14,140,910 Fair value change in cash flow hedges $ 545,825 $ ( 670,961 ) Fair value change in fair value hedges, net 32,618 9,397 Non-cash investment and financing activities Initial right of use asset $ 544,120 $ — Initial lease liability 544,120 — See accompanying notes to unaudited consolidated financial statements. 5 Table of Contents NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation : On January 15, 2020, Bogota Financial Corp. (the “Company,” “we” or “our”) became the mid-tier stock holding company for Bogota Savings Bank (the “Bank”) in connection with the reorganization of Bogota Savings Bank into the two -tier mutual holding company structure. The Company completed its stock offering in connection with the mutual holding company reorganization of the Bank on January 15, 2020. The Bank maintains two subsidiaries. Bogota Securities Corp. was formed to buy, sell and hold investment securities. Bogota Properties, LLC, formed to hold real estate owned by the Company, is inactive. The Bank generally originates residential, commercial and consumer loans to, and accepts deposits from, customers in New Jersey. The debtors’ ability to repay the loans is dependent upon the region’s economy and the borrowers’ circumstances. The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examination by those regulatory authorities. Reclassifications : Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or stockholders' equity. Earnings per Share: Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders 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 employee stock ownership plan shares that have not been committed for release and non-vested shares of restricted stock. Diluted EPS is computed using the same method as basic EPS, except it also reflects the potential dilution which could occur if non-vested restricted stock vested or stock options 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 three and six months ended June 30, 2026 and June 30, 2025 , options to purchase 508,619 c ommon shares with an exercise price of $ 10.45 were outstanding but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. Anti-dilutive options are those options with exercise prices in excess of the weighted average market value for the periods presented. For the three and six months ended June 30, 2026 , 15,211 and 11,205 sha res of outstanding non-vested stock were added in the computation of diluted earnings per share. The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and six months ended June 30, 2026 and 2025 . For the three months ended June 30, 2026 For the three months ended June 30, 2025 For the six months ended June 30, 2026 For the six months ended June 30, 2025 Numerator Net income $ 747,522 $ 224,395 $ 1,453,468 $ 955,342 Denominator: Weighted average shares outstanding - basic 12,492,325 12,635,990 12,598,741 12,642,744 Effect of unvested restricted stock 15,211 5,189 11,205 1,957 Weighted average shares outstanding - diluted 12,507,536 12,641,179 12,609,946 12,644,701 Earnings per common share: Basic $ 0.06 $ 0.02 $ 0.12 $ 0.08 Diluted 0.06 0.02 0.12 0.08 Use of Estimates : To prepare financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ under different conditions than those assumed. 6 Table of Contents NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation : The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting in Article 10 of Regulation S- X of the Securities Exchange Act of 1934, as amended. These financial statements include the accounts of the Company, the Bank and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period. The unaudited financial statements and other financial information contained in this Quarterly Report on Form 10 -Q should be read in conjunction with the audited financial statements, and related notes, of the Company at and for the year ended December 31, 2025 . Segment Reporting : The Company operates one reportable segment of business, “community banking.” Through its community banking segment, the Company provides a broad range of retail and commercial banking services. The accounting policies of the community banking segment are the same as those described in the summary of significant accounting policies. The Company's chief operating decision maker is the President and Chief Executive Officer, who decides how to allocate resources based on net income that also is reported on the statement of operations as consolidated net income. The measure of segment assets is reported on the statement of financial condition as total consolidated assets. NOTE 2 – SECURITIES AVAILABLE FOR SALE The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity, none of which had an allowance for credit losses at June 30, 2026 and December 31, 2025 : Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2026 U.S. government and agency obligations due in: Less than one year $ 3,000,000 $ — $ ( 44,489 ) $ 2,955,511 Corporate bonds due in: Less than one year 3,981,881 16,881 ( 3,655 ) 3,995,107 One through five years 2,681,533 40,224 ( 59,234 ) 2,662,523 Five through ten years 37,250,000 847,114 ( 374,361 ) 37,722,753 Greater than ten years 4,378,212 176,833 — 4,555,045 Municipal obligations due in: Five through ten years 505,147 — ( 84,784 ) 420,363 MBS – residential 76,966,261 283,095 ( 1,667,331 ) 75,582,025 MBS – commercial 14,311,878 — ( 1,793,654 ) 12,518,224 Total $ 143,074,912 $ 1,364,147 $ ( 4,027,508 ) $ 140,411,551 7 Table of Contents NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued) Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2025 U.S. government and agency obligations due in: One through five years $ 3,000,000 $ — $ ( 56,319 ) $ 2,943,681 Corporate bonds due in: One through five years 10,662,539 74,584 ( 106,769 ) 10,630,354 Five through ten years 36,076,049 494,579 ( 575,789 ) 35,994,839 Greater than ten years 6,358,703 232,308 — 6,591,011 Municipal obligations due in: Greater than ten years 505,672 — ( 78,482 ) 427,190 MBS – residential 89,609,605 696,248 ( 1,637,909 ) 88,667,944 MBS – commercial 14,504,808 — ( 1,695,196 ) 12,809,612 Total $ 160,717,376 $ 1,497,719 $ ( 4,150,464 ) $ 158,064,631 All of the mortgaged-backed securities (“MBS”) are issued by the Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association. There w ere no sales of securities during the three and six months ended June 30, 2026 or June 30, 2025 . The age of unrealized losses and the fair value of related securities as of June 30, 2026 and December 31, 2025 were as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2026 U.S. government and agency obligations $ — $ — $ 2,955,511 $ ( 44,489 ) $ 2,955,511 $ ( 44,489 ) Corporate bonds 988,322 ( 3,655 ) 12,310,864 ( 433,595 ) 13,299,186 ( 437,250 ) Municipal obligations — — 420,363 ( 84,784 ) 420,363 ( 84,784 ) MBS – residential 18,283,328 ( 19,157 ) 15,571,532 ( 1,648,174 ) 33,854,860 ( 1,667,331 ) MBS – commercial 1,259,579 ( 40,370 ) 13,011,929 ( 1,753,284 ) 14,271,508 ( 1,793,654 ) Total $ 20,531,229 $ ( 63,182 ) $ 44,270,199 $ ( 3,964,326 ) $ 64,801,428 $ ( 4,027,508 ) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2025 U.S. government and agency obligations $ — $ — $ 2,943,681 $ ( 56,319 ) $ 2,943,681 $ ( 56,319 ) Corporate bonds 4,481,117 ( 32,182 ) 10,599,624 ( 650,376 ) 15,080,741 ( 682,558 ) Municipal obligations - - 427,190 ( 78,482 ) 427,190 ( 78,482 ) MBS – residential 17,214,292 ( 55,057 ) 12,991,116 ( 1,582,852 ) 30,205,408 ( 1,637,909 ) MBS – commercial 1,315,717 ( 6,871 ) 11,493,894 ( 1,688,325 ) 12,809,611 ( 1,695,196 ) Total $ 23,011,126 $ ( 94,110 ) $ 38,455,505 $ ( 4,056,354 ) $ 61,466,631 $ ( 4,150,464 ) 8 Table of Contents NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued) Unrealized losses on corporate bonds and municipal obligations available for sale are not considered to be credit losses because the bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions. At June 30, 2026 , 100 % of the mortgage-backed securities were issued by U.S. government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support. There were 36 securities in a l oss position at June 30, 2026 . Because the decline in fair value was attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Bank does not consider these losses to be credit-related at June 30, 2026 . As of June 30, 2026 and December 31, 2025, no allowance for credit losses ("ACL") was required on available for sale securities. At June 30, 2026 and December 31, 2025 , securi ties available for sale with a carrying value of $ 5,156,715 and $ 5,361,240 were pledged to secure public deposits. Table of Contents NOTE 3 – INVESTMENT IN LIMITED PARTNERSHIP At June 30, 2026 the Company had a $ 4.0 million investment in a limited partnership, which is part of a $ 10.0 million commitment. The fund invests in sale leaseback transactions. The original investment in 2025 was $ 2.5 million and an additional $ 1.5 million was invested in 2026. The Bank had an $ 87,000 loss during 2025 and a gain of $ 50,000 in 2026. NOTE 4 – LOANS Loans are summarized as follows at June 30, 2026 and December 31, 2025 : June 30, December 31, 2026 2025 Real estate: (unaudited) Residential First Mortgage $ 435,989,187 $ 443,894,498 Commercial Real Estate 116,887,887 121,960,681 Multi-Family Real Estate 65,539,077 58,944,579 Construction 18,867,564 22,046,399 Commercial and Industrial 2,494,250 3,211,338 Consumer 114,817 118,061 Total loans 639,892,782 650,175,556 Allowance for credit losses ( 2,579,949 ) ( 2,529,949 ) Net loans $ 637,312,833 $ 647,645,607 The Bank has granted loans to officers and directors of the Bank. At June 30, 2026 and December 31, 2025 , such loans totaled $ 1,922,247 and $ 2,256,911 , respectively. 9 Table of Contents NOTE 4 – LOANS (Continued) At June 30, 2026 and December 31, 2025 , deferred loan fees were $ 2,049,665 and $ 2,287,876 , respectively. The following table presents the activity in the ACL by portfolio segment for the three and six months ended June 30, 2026 and 2025 : Residential First Mortgage Commercial Real Estate Multi-Family Real Estate Construction Commercial and Industrial Consumer Total Three months ended June 30, 2026 Allowance for credit losses: Beginning balance $ 1,558,462 $ 701,200 $ 243,300 $ 65,250 $ 11,550 $ 187 $ 2,579,949 Provision for of credit losses — — — — — — — Loans charged off — — — — — — — Recoveries — — — — — — — Total ending allowance balance $ 1,558,462 $ 701,200 $ 243,300 $ 65,250 $ 11,550 $ 187 $ 2,579,949 Residential First Mortgage Commercial Real Estate Multi-Family Real Estate Construction Commercial and Industrial Consumer Total Three Months Ended June 30, 2025 Allowance for credit losses: Beginning balance $ 1,660,885 $ 533,874 $ 278,916 $ 92,712 $ 24,340 $ 222 $ 2,590,949 Provision for of credit losses — — — — — — — Loans charged off — — — — — — — Recoveries — — — — — — — Total ending allowance balance $ 1,660,885 $ 533,874 $ 278,916 $ 92,712 $ 24,340 $ 222 $ 2,590,949 10 Table of Contents NOTE 4 – LOANS (Continued) Residential First Mortgage Commercial Real Estate Multi-Family Real Estate Construction Commercial and Industrial Consumer Total Six Months Ended June 30, 2026 Allowance for credit losses: Beginning balance $ 1,617,949 $ 586,000 $ 241,000 $ 69,000 $ 16,000 $ — $ 2,529,949 Provision for of credit losses ( 59,487 ) 115,200 2,300 ( 3,750 ) ( 4,450 ) 187 50,000 Loans charged off — — — — — — — Recoveries — — — — — — — Total ending allowance balance $ 1,558,462 $ 701,200 $ 243,300 $ 65,250 $ 11,550 $ 187 $ 2,579,949 Residential First Mortgage Commercial Real Estate Multi-Family Real Estate Construction Commercial and Industrial Consumer Total Six Months Ended June 30, 2025 Allowance for credit losses: Beginning balance $ 1,680,949 $ 508,000 $ 289,000 $ 123,000 $ 20,000 $ — $ 2,620,949 Provision for of credit losses ( 20,064 ) 25,874 ( 10,084 ) ( 30,288 ) 4,340 222 ( 30,000 ) Loans charged off — — — — — — — Recoveries — — — — — — — Total ending allowance balance $ 1,660,885 $ 533,874 $ 278,916 $ 92,712 $ 24,340 $ 222 $ 2,590,949 For the three and six months ended June 30, 2026 , the provision for credit losses was $ 50,000 , which was all recorded in the three months ended March 31, 2026, due to an increase in delinquent commercial real estate loans offset by loan growth and the absence of charge-offs. Since the Bank continues to have limited historical loss history, the majority of changes in the ACL noted in the above tables are driven by changes in the balances of the related loan segments and in the economic forecast. 11 Table of Contents NOTE 4 – LOANS (Continued) The following table presents the balance of non-performing loans by portfolio segments as of June 30, 2026 and December 31, 2025 : Nonaccrual with a Allowance for Credit Loss Nonaccrual with no Allowance for Credit Loss Total nonaccrual loans Loans Past Due 90 Days or More Still Accruing June 30, 2026 Residential First Mortgage $ — $ 2,516,827 $ 2,516,827 $ — Commercial Real Estate — 14,355,456 14,355,456 — Construction — 10,893,713 10,893,713 — Consumer — — — — Total $ — $ 27,765,996 $ 27,765,996 $ — Nonaccrual with a Allowance for Credit Loss Nonaccrual with no Allowance for Credit Loss Nonaccrual loans end of period Loans Past Due 90 Days or More Still Accruing December 31, 2025 Residential First Mortgage $ — $ 2,417,596 $ 2,417,596 $ — Commercial Real Estate — — — — Construction — 10,893,713 10,893,713 — Consumer — — — — Total $ — $ 13,311,309 $ 13,311,309 $ — Collateral-dependent loans individually evaluated with the ACL by collateral type were as follows at June 30, 2026 and December 31, 2025 : June 30, 2026 Portfolio segment Real estate Other Residential First Mortgage $ 2,516,827 $ — Commercial Real Estate 14,355,456 — Multi-Family Real Estate — — Construction 10,893,713 — Commercial and Industrial — — Other Consumer — — $ 27,765,996 $ — December 31, 2025 Portfolio segment Real estate Other Residential First Mortgage $ 2,417,596 $ — Commercial Real Estate — — Multi-Family Real Estate — — Construction 10,893,713 — Commercial and Industrial — — Other Consumer — — $ 13,311,309 $ — No no naccrual loans had specific reserves as of June 30, 2026 as they were all well-secured. The Bank had no other real estate owned at June 30, 2026 or December 31, 2025 . 12 Table of Contents NOTE 4 – LOANS (Continued) The following table presents the aging of the recorded investment in past due loans as of June 30, 2026 and December 31, 2025 , by class of loans: Greater than 30-59 Days 60-89 Days 89 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total June 30, 2026 Residential First Mortgage $ 72,924 $ 892,393 $ 1,224,591 $ 2,189,908 $ 433,799,279 $ 435,989,187 Commercial Real Estate — 471,860 14,355,456 14,827,316 102,060,571 116,887,887 Multi-Family Real Estate — — — — 65,539,077 65,539,077 Construction — — 10,893,713 10,893,713 7,973,851 18,867,564 Commercial and Industrial — — — — 2,494,250 2,494,250 Consumer — — — — 114,817 114,817 Total $ 72,924 $ 1,364,253 $ 26,473,760 $ 27,910,937 $ 611,981,845 $ 639,892,782 Greater than 30-59 Days 60-89 Days 89 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total December 31, 2025 Residential First Mortgage $ — $ 762,980 $ 1,467,950 $ 2,230,930 $ 441,663,568 $ 443,894,498 Commercial Real Estate — 13,682,575 — 13,682,575 108,278,106 121,960,681 Multi-Family Real Estate — 106,687 — — 58,944,579 58,944,579 Construction — — 10,893,713 10,893,713 11,152,686 22,046,399 Commercial and Industrial — — — — 3,211,338 3,211,338 Consumer - — — - 118,061 118,061 Total $ — $ 14,552,242 $ 12,361,663 $ 26,807,218 $ 623,368,338 $ 650,175,556 Credit Quality Indicators The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. Commercial and multi-family real estate, commercial and industrial and construction loans are graded on an annual basis. Residential and consumer loans are primarily evaluated based on performance. Refer to the immediately preceding table for the aging of the recorded investment of these loan segments. The Bank uses the following definitions for risk ratings: Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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. Loans not meeting the criteria above are considered to be Pass rated loans. 13 Table of Contents NOTE 4 – LOANS (Continued) The following table presents loans, by risk category, loan class and year of origination as of June 30, 2026 and December 31, 2025 : Term Loans by Origination Year June 30, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Totals Residential First Mortgage Pass $ 9,533,486 $ 7,469,151 $ 24,714,597 $ 3,027,577 $ 93,910,692 $ 145,689,712 $ 149,127,145 $ 433,472,360 Special Mention 149,178 — — — 330,030 746,434 822,808 2,048,450 Substandard — — — — — 153,684 314,693 468,377 Doubtful — — — — — — — — Total 9,682,664 7,469,151 24,714,597 3,027,577 94,240,722 146,589,830 150,264,646 435,989,187 Gross charge-offs by vintage — — — — — — — — Commercial Real Estate Pass — 521,534 1,119 — 2,879,452 17,991,881 81,138,445 102,532,431 Special Mention — — 1,115,612 — — 7,091,580 6,148,264 14,355,456 Substandard — — — — — — — — Doubtful — — — — — — — — Total — 521,534 1,116,731 — 2,879,452 25,083,461 87,286,709 116,887,887 Gross charge-offs by vintage — — — — — — — — Multi-Family Real Estate Pass — — — — 2,102,849 2,331,136 61,105,092 65,539,077 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total — — — — 2,102,849 2,331,136 61,105,092 65,539,077 Gross charge-offs by vintage — — — — — — — — Construction Pass — — — — — — 7,973,851 7,973,851 Special Mention — — — — — — — — Substandard — — — — — — 10,893,713 10,893,713 Doubtful — — — — — — — — Total — — — — — — 18,867,564 18,867,564 Gross charge-offs by vintage — — — — — — — — Commercial and Industrial Pass — 20,260 1,519,213 132,361 — 38,296 784,120 2,494,250 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total — 20,260 1,519,213 132,361 — 38,296 784,120 2,494,250 Gross charge-offs by vintage — — — — — — — — Consumer Pass — 53,133 61,684 — — — — 114,817 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total — 53,133 61,684 — — — — 114,817 Gross charge-offs by vintage — — — — — — — — Total loans $ 9,682,664 $ 8,064,078 $ 27,412,225 $ 3,159,938 $ 99,223,023 $ 174,042,723 $ 318,308,131 $ 639,892,782 14 Table of Contents NOTE 4 – LOANS (Continued) Term Loans by Origination Year December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Totals Residential First Mortgage Pass $ 8,300,835 $ 26,483,619 $ 3,226,455 $ 98,091,242 $ 30,149,035 $ 126,475,739 $ 148,749,978 $ 441,476,903 Special Mention — — — 335,091 — 762,663 845,254 1,943,008 Substandard — — — — — 156,969 317,618 474,587 Doubtful — — — — — — — — Total 8,300,835 26,483,619 3,226,455 98,426,333 30,149,035 127,395,371 149,912,850 443,894,498 Gross charge-offs by vintage — — — — — — — — Commercial Real Estate Pass 540,696 1,125,536 — 2,919,030 — 25,722,648 91,652,771 121,960,681 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total 540,696 1,125,536 — 2,919,030 — 25,722,648 91,652,771 121,960,681 Gross charge-offs by vintage — — — — — — — — Multi-Family Real Estate Pass — — — 2,157,087 — 2,739,832 54,047,660 58,944,579 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total — — — 2,157,087 — 2,739,832 54,047,660 58,944,579 Gross charge-offs by vintage — — — — — — — — Construction Pass — — — — — — 11,152,686 11,152,686 Special Mention — — — — — — — — Substandard — — — — — — 10,893,713 10,893,713 Doubtful — — — — — — — — Total — — — — — — 22,046,399 22,046,399 Gross charge-offs by vintage — — — — — — — — Commercial and Industrial Pass 22,757 1,820,820 152,949 — — 119,842 1,094,970 3,211,338 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total 22,757 1,820,820 152,949 — — 119,842 1,094,970 3,211,338 Gross charge-offs by vintage — — — — — — — — Consumer Pass — — — — — — 118,061 118,061 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total — — — — — — 118,061 118,061 Gross charge-offs by vintage — — — — — — — — Total loans $ 8,864,288 $ 29,429,975 $ 3,379,404 $ 103,502,450 $ 30,149,035 $ 155,977,693 $ 318,872,711 $ 650,175,556 There were no loan modifications during the six -month periods ended June 30, 2026 or 2025. 15 Table of Contents NOTE 5 – DERIVATIVES AND HEDGING ACTIVITIES The Company uses derivative financial instruments as components of its market risk management, principally to manage interest rate risk. Certain derivatives may be entered into in connection with transactions with commercial customers. Derivatives are not used for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Financial Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability. The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exists between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recognized in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting is not applied are recognized in current earnings. The Company formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments. The Company also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative is not highly effective or has ceased to be a highly effective hedge, the Company would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in other comprehensive income (loss) and are (accreted) amortized to earnings over the remaining period of the former hedging relationship. Certain derivative financial instruments are offered to certain commercial banking customers to manage their risk of exposure and risk management strategies. These derivative instruments consist primarily of currency forward contracts and interest rate swap contracts. The risk associated with these transactions is mitigated by simultaneously entering into similar transactions having essentially offsetting terms with a third party, i.e. back-to-back swaps. In addition, the Company executes interest rate swaps with third parties in order to hedge the interest rate risk of short-term FHLB advances. Interest Rate Swaps. At June 30, 2026 and December 31, 2025 , the Company had five cash flow interest rate swaps with notional amounts of $ 67.5 million and six cash flow interest rate swaps with notional amounts of $ 85.0 million, respectively, which were used to hedge certain FHLB advances and brokered deposits. The Company also had one fair value interest rate swap with notional amounts of $ 30.0 million hedging certain fixed-rate residential loans. These interest rate swaps meet the hedge accounting requirements. Changes in the fair value of cash flow hedges are recorded in comprehensive income. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount, which converts variable-rate liabilities to a fixed rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreement without the exchange of the underlying notional amount, which convert fixed-rate assets into a variable rate. The fair value hedges are recorded as components of other assets and other liabilities on the Company’s Consolidated Statement of Financial Condition. Changes in fair value of the fair value hedges are recorded against the basis of the asset or liability being hedged. The gain or loss on these derivatives, as well as the offsetting loss or gain on the hedged items attributable to the hedged risk, are recognized in interest income in the Company’s Consolidated Statements of Operations. 16 Table of Contents NOTE 5 – DERIVATIVES AND HEDGING ACTIVITIES (Continued) The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at June 30, 2026 and December 31, 2025. June 30, December 31, 2026 2025 Hedge Type Consolidated Statements of Financial Condition Fair Value Fair Value Interest rate swaps Cash Flow Other Assets (Liabilities) $ 345,491 $ ( 200,334 ) Interest rate swaps Fair Value Other Assets (Liabilities) $ 3,683 $ ( 165,389 ) Interest rate swaps Fair Value Loans, net $ 30,770 $ 232,460 Total derivative instruments $ 379,944 $ ( 133,263 ) For the three and six months ended June 30, 2026 , unrealized gains of $ 155,000 and $ 33,000 were recorded for changes in fair value of interest rate swaps with third parties and at June 30, 2026 , accrued interest was $ 8,000 , after-tax. The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of its derivative obligations. During the six months ended June 30, 2026 and 2025 , the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was an increased expense of $ 21,000 and a reduced expense of $ 363,000 , respectively. NOTE 6 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a bank’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. 17 Table of Contents NOTE 6 – FAIR VALUE (Continued) The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: The Bank’s available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The securities available-for-sale portfolio consists of corporate bonds and mortgage-backed securities. The fair values of these securities are obtained from an independent nationally recognized pricing service. An independent pricing service provides prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities. The Bank’s derivatives are carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The derivatives consist of both cash flow and fair value hedges. The fair values of these hedges are obtained from an independent nationally recognized pricing service. An independent pricing service provides prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the derivatives. Assets measured at fair value on a recurring basis are summarized below: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) As of June 30, 2026 Assets: Securities available for sale: U.S. government and agency obligations $ 2,955,511 $ — $ 2,955,511 $ — Corporate bonds 48,935,428 — 48,935,428 — Municipal obligations 420,363 — 420,363 — MBS - residential 75,582,025 — 75,582,025 — MBS - commercial 12,518,224 — 12,518,224 — Cash flow and fair value hedges 349,174 — 349,174 As of December 31, 2025 Assets: Securities available for sale: U.S. government and agency obligations $ 2,943,681 $ — $ 2,943,681 $ — Corporate bonds 53,216,205 — 53,216,205 — Municipal obligations 427,190 — 427,190 — MBS - residential 88,667,944 — 88,667,944 — MBS - commercial 12,809,612 — 12,809,612 — Liabilities: Cash flow hedges 200,334 — 200,334 Fair value hedges 165,389 — 165,389 — There w ere no transfe rs between level 1 and level 2 during the three or six months ended June 30, 2026 . 18 Table of Contents NOTE 6 – FAIR VALUE (Continued) Fair Value on a Non-Recurring Basis: Certain assets and liabilities are not measured at fair value: (Level 1) (Level 2) (Level 3) Total (In thousands) As of June 30, 2026 Collateral dependent loans $ — $ — $ 27,766 $ 27,766 As of December 31, 2025 Collateral dependent loans $ — $ — $ 13,311 $ 13,311 All collateral dependent individually evaluated loans have an independent third -party full appraisal to determine the NRV based on the fair value of the underlying collateral, less cost to sell (a range of 5 % to 10 %) and other costs, such as unpaid real estate taxes, that have been identified. The appraisal will be based on an "as-is" valuation and will follow a reasonable valuation method that addresses the direct sale comparison, income, and cost approaches to market value, reconciles those approaches, and explains the elimination of each approach not used. Appraisals are updated as needed or sooner if we have identified possible further deterioration in value. The carrying amounts and estimated fair values of financial instruments not measured at fair value, at June 30, 2026 and December 31, 2025 , were as follows: Carrying Fair Fair Value Measurement Placement Amount Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2026 Financial instruments - assets Loans, net $ 637,313 $ 621,986 $ — $ — $ 621,986 Financial instruments - liabilities Certificates of deposit 402,535 401,590 — 401,590 — Borrowings 141,020 141,334 — 141,334 — Carrying Fair Fair Value Measurement Placement Amount Value (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2025 Financial instruments - assets Loans, net $ 647,646 $ 626,438 $ — $ — $ 626,438 Financial instruments - liabilities Certificates of deposit 493,934 494,596 — 494,596 — Borrowings 93,322 93,742 — 93,742 — Carrying amount is the estimated fair value for cash and cash equivalents. Other balance sheet instruments such as cash and cash equivalents, accrued interest receivable, accrued interest payable and Bank owned life insurance holding costs approximate fair value. The fair value of off-balance sheet items is not considered material. 19 Table of Contents NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss included in equity (net of tax) for the three and six months ended June 30, 2026 and 2025 was as follows: Unrealized gain and losses on available for sale securities Benefit plans Derivatives Total Three months ended June 30, 2026 Beginning balance $ ( 1,861,607 ) $ 2,766 $ 93,627 $ ( 1,765,214 ) Other comprehensive (loss) income before reclassification ( 53,084 ) — 154,747 101,663 Amounts reclassified — ( 6,801 ) — ( 6,801 ) Net period comprehensive (loss) income ( 53,084 ) ( 6,801 ) 154,747 94,862 Ending balance $ ( 1,914,691 ) $ ( 4,035 ) $ 248,374 $ ( 1,670,352 ) June 30, 2025 Beginning balance $ ( 3,325,126 ) $ ( 60,526 ) $ 148,469 $ ( 3,237,183 ) Other comprehensive income (loss) before reclassification ( 273,086 ) — ( 162,575 ) ( 435,661 ) Amounts reclassified — 129,914 — 129,914 Net period comprehensive income (loss) ( 273,086 ) 129,914 ( 162,575 ) ( 305,747 ) Ending balance $ ( 3,598,212 ) $ 69,388 $ ( 14,106 ) $ ( 3,542,930 ) Unrealized gain and losses on available for sale securities Benefit plans Derivatives Total Six Months Ended June 30, 2026 Beginning balance $ ( 1,907,058 ) $ 2,766 $ ( 144,020 ) $ ( 2,048,312 ) Other comprehensive income (loss) before reclassification ( 7,633 ) — 392,394 384,761 Amounts reclassified — ( 6,801 ) — ( 6,801 ) Net period comprehensive income (loss) ( 7,633 ) ( 6,801 ) 392,394 377,960 Ending balance $ ( 1,914,691 ) $ ( 4,035 ) $ 248,374 $ ( 1,670,352 ) Six Months Ended June 30, 2025 Beginning balance $ ( 4,005,169 ) $ ( 60,526 ) $ 468,247 $ ( 3,597,448 ) Other comprehensive (loss) income before reclassification 406,957 — ( 482,353 ) 1,613,874 Amounts reclassified — 129,914 — 129,914 Net period comprehensive (loss) income 406,957 129,914 ( 482,353 ) 54,518 Ending balance $ ( 3,598,212 ) $ 69,388 $ ( 14,106 ) $ ( 3,542,930 ) 20 Table of Contents Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations General Management’s discussion and analysis of financial condition and results of operations at June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and June 30, 2025 is intended to assist in understanding the financial condition and results of operations of Bogota Financial Corp. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q. Cautionary Note Regarding Forward-Looking Statements This report may contain forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” 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 and strategic plans, prospects, financial condition and performance, 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. This includes statements regarding the planned merger of GSL Savings Bank (“GSL”) with and into the Company’s wholly owned subsidiary, the Bank, with the Bank as the surviving financial institution (the “Merger”). 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: ● the inability to obtain approvals and/or meet the other closing conditions required to close the Merger in a timely manner; ● general economic conditions, either nationally or in our market area, that are worse than expected, including potential recessionary conditions; ● the imposition of tariffs or other domestic or international governmental policies, trade restrictions and retaliatory measures impacting our borrowers and the broader economy; ● the impact of any federal government shutdown, debt ceiling and fiscal uncertainty; ● changes in the amount and trend of loan delinquencies, charge-offs and non-performing and classified loans and changes in estimates and the methodology for calculating the allowance for credit losses; ● our ability to access cost-effective funding; ● changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; ● 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 continue to implement our business strategies; ● competition among depository and other financial institutions; 21 Table of Contents ● monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; ● inflation and changes in market interest rates that reduce our margins and yields, reduce the fair value of financial instruments or reduce our volume of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make whether held in portfolio or sold in the secondary market; ● changes in the securities markets; ● changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; ● 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 or systems we may acquire, as well as new management personnel or customers, and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; ● changes in investor sentiment and consumer spending, borrowing and saving habits; ● changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; ● our ability to attract or retain key employees; ● risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors; ● the failure to maintain current technologies and to successfully implement future information technology enhancements and the operational risks associated with the adoption of artificial intelligence and other emerging technologies ; ● the current or anticipated impact of military conflict, terrorism or other geopolitical events; ● 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. Proposed Acquisition of GSL On June 1, 2026, the Bank and GSL entered into a definitive agreement pursuant to which the Bank will acquire GSL. Under the terms of the Merger Agreement, depositors of GSL will become depositors of the Bank and will have the same rights and privileges in Bogota Financial, MHC, as if their accounts had been established in the Bank on the date established at GSL. As part of the transaction, the Company will issue additional shares of its common stock to Bogota Financial, MHC in an amount equal to the fair value of GSL as determined by an independent appraisal. These shares are expected to be issued immediately prior to completion of the Merger. As of June 30, 2026, GSL had approximately $151.2 million of assets, gross loans of $119.7 million and deposits of $120.4 million and operated from two offices located in Guttenberg and Fairview, New Jersey. The Merger is expected to close in the second half of 2026, subject to receipt of all regulatory approvals, GSL receiving the requisite approval of its members (if required), and fulfillment of other customary closing conditions. Critical Accounting Policies Our accounting policies are described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 . Critical accounting estimates are necessary in the application of certain accounting policies and procedures and are particularly susceptible to significant change. Critical accounting policies are defined as those involving significant judgments and assumptions by management that could have a material impact on the carrying value of certain assets or on income under different assumptions or conditions. Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations. Comparison of Financial Condition at June 30, 2026 and December 31, 2025 Total Assets. Assets decreased $30.0 million, or 3.3%, from $904.9 million at December 31, 2025 to $875.0 million at June 30, 2026 , due largely to a $5.7 million, or 16.6%, decrease in cash and cash equivalents, an $10.3 million, or 1.6%, decrease in loans and $17.7 million, or 11.2% decrease in securities available for sale. 22 Table of Contents Cash and Cash Equivalents. Cash and cash equivalents decreased $5.7 million, or 16.6%, to $29.9 million at June 30, 2026 from $35.6 million at December 31, 2025 , as excess funds from increased borrowings, security maturities and loan payments were used to offset deposit outflows. Investment in Limited Partnership. Net equity investments increased $1.6 million, or 64.2% to $4.0 million, at June 30, 2026 from $2.4 million at December 31, 2025. This investment was part of a $10 million commitment to fund a limited partnership which invests in sale leaseback transactions. Securities Available for Sale. Securities available for sale decreased $17.7 million, or 11.2%, to $140.4 million at June 30, 2026 from $158.1 million at December 31, 2025 , due to principal repayments of mortgage-backed securities and maturities of corporate bonds. Net Loans. Net loans decreased $10.3 million, or 1.6%, to $637.3 million at June 30, 2026 from $647.6 million at December 31, 2025 . The decrease was due to a decrease of $7.9 million, or 1.8%, in one- to four-residential real estate loans to $436.0 million from $443.9 million at December 31, 2025 , a decrease of $3.2 million, or 14.4%, in construction loans to $18.9 million at June 30, 2026 from $22.0 million at December 31, 2025 , a decrease of $717,000, or 22.3%, in commercial and industrial loans to $2.5 million at June 30, 2026 from $3.2 million at December 31, 2025 , and a decrease of $5.1 million, or 4.2%, in commercial real estate loans to $116.9 million at June 30, 2026 from $122.0 million at December 31, 2025 , offset by a $6.6 million, or 11.2%, increase in multi-family real estate loans to $65.5 million at June 30, 2026 from $58.9 million at December 31, 2025 . The decreases in one- to four-residential real estate loans and construction loans reflected a decrease in demand for such loans due to the interest rate environment. As of June 30, 2026 and December 31, 2025 , the Bank had no loans held for sale. Asset Quality. Delinquent loans increased $1.1 million to $27.9 million, or 4.4% of total loans, at June 30, 2026, compared to $26.8 million, or 4.1% of total loans, at December 31, 2025. The increase was primarily due to an increase of $1.1 million in commercial real estate loans. All delinquent loans are considered well-secured. During the same timeframe, non-performing assets increased from $13.3 million at December 31, 2025 to $27.8 million, which represented 3.2% of total assets at June 30, 2026. Non-performing loans at June 30, 2026 included one construction loan for a catering hall that is 99% complete, with a balance of $10.9 million and a loan to value ratio of 45%. Based on the well-secured nature of the loan, there was no associated specific reserve at June 30, 2026. The Company has commenced legal action to foreclose on the property, which is ongoing. Non-performing loans also included two commercial real estate loans totaling $12.5 million that had previously been 60 days delinquent. We did not record any specific reserves or charge-offs for our nonaccrual loans. The Company’s allowance for credit losses was 0.40% of total loans and 9.29% of non-performing loans at June 30, 2026 compared to 0.39% of total loans and 19.29% of non-performing loans at December 31, 2025. The Bank has limited exposure to commercial real estate loans secured by office space. The Company did not record any charge-offs for the three and six months ended June 30, 2026 or 2025. Total Liabilities. Total liabilities decreased $31.0 million, or 4.1%, to $733.0 million as of June 30, 2026 from $764.0 million as of December 31, 2025 , primarily due to a $78.2 million decrease in deposits, offset by a $47.7 million increase in borrowings. Deposits. Deposits decreased $78.2 million, or 12.0%, to $574.2 million at June 30, 2026 from $652.4 million at December 31, 2025 . The decrease in deposits was due to an decrease in certificates of deposit of $91.4 million, or 18.5%, to $402.5 million as of June 30, 2026 from $493.9 million at December 31, 2025 , offset by an increase of $6.5 million, or 9.9%, in NOW accounts to $72.0 million as of June 30, 2026 from $65.5 million at December 31, 2025, an increase in savings accounts of $10.9 million, or 19.9%, to $65.4 million as of June 30, 2026 from $54.6 million at December 31, 2025 ; a increase in money market deposit accounts of $121,000, or 1.2%, to $10.4 million as of June 30, 2026 from $10.2 million at December 31, 2025 and a $2.3 million, or 8.2%, increase in noninterest bearing accounts to $30.5 million as of June 30, 2026 from $28.2 million at December 31, 2025 , The overall changes reflected the Company's efforts to increase core deposit accounts and to decrease certificate of deposits until loan demand and investment rates increase. At June 30, 2026 , municipal deposits totaled $41.3 million, which represented 7.2% of total deposits, and brokered deposits totaled $98.9 million, which represented 17.2% of deposits. At December 31, 2025 , municipal deposits totaled $45.1 million, which represented 6.9% of deposits, and brokered deposits totaled $109.7 million, which represented 16.8% of total deposits. At June 30, 2026 , uninsured deposits totaled $59.3 million, comprised of 303 account holders, which represented 8.7% of total deposits. Borrowings. Federal Home Loan Bank of New York borrowings increased $47.7 million, or 51.1%, to $141.0 million at June 30, 2026 from $93.3 million at December 31, 2025 . Long-term advances decreased $33.3 million, while short-term advances increased by $81.0 million. The weighted average rate of borrowings was 4.01% and 4.35% as of June 30, 2026 and December 31, 2025 , respectively. Total borrowing capacity at the Federal Home Loan Bank was $236.4 million at June 30, 2026 , of which $141.0 million has been advanced and $5.2 million was utilized as collateral for letters of credit issued to secure municipal deposits. The increase in borrowings was largely attributable to the outflow of deposits during the six months ended June 30, 2026 . 23 Table of Contents Total Equity. Stockholders’ equity increased $1.1 million to $142.0 million, primarily due to net income of $1.5 million and changes in accumulated other comprehensive income of $378,000 and stock-based compensation of $451,000, offset by stock repurchases of $1.3 million. At June 30, 2026 , the Company’s ratio of average stockholders’ equity-to-average total assets was 16.20%, compared to 15.13% at December 31, 2025 . Average Balance Sheets and Related Yields and Rates The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material. Three Months Ended June 30, 2026 2025 Average Balance Interest and Dividends Yield/ Cost Average Balance Interest and Dividends Yield/ Cost (Dollars in thousands) Assets: (unaudited) Cash and cash equivalents $ 9,862 $ 107 4.33 % $ 9,976 $ 106 4.26 % Loans 640,337 7,522 4.71 % 697,792 8,292 4.77 % Securities 140,737 1,859 5.28 % 141,141 1,946 5.52 % Other interest-earning assets 6,107 101 6.65 % 7,085 161 9.09 % Total interest-earning assets 797,043 9,589 4.82 % 855,994 10,505 4.92 % Non-interest-earning assets 63,828 65,094 Total assets $ 860,871 $ 921,088 Liabilities and equity: NOW and money market accounts $ 81,501 $ 466 2.29 % $ 73,261 $ 447 2.44 % Savings accounts 60,620 386 2.55 % 48,751 249 2.05 % Certificates of deposit (1) 422,701 3,761 3.57 % 482,516 4,828 4.01 % Total interest-bearing deposits 564,822 4,613 3.28 % 604,528 5,524 3.67 % FHLB advances (1) 110,045 1,136 4.14 % 130,277 1,286 3.96 % Total interest-bearing liabilities 674,867 5,749 3.42 % 734,805 6,810 3.72 % Non-interest-bearing deposits 31,404 32,076 Other non-interest-bearing liabilities 12,634 15,894 Total liabilities 718,905 782,775 Total equity 141,966 138,313 Total liabilities and equity $ 860,871 $ 921,088 Net interest income $ 3,840 $ 3,695 Interest rate spread (2) 1.40 % 1.20 % Net interest margin (3) 1.94 % 1.74 % Average interest-earning assets to average interest-bearing liabilities 118.10 % 116.49 % (1) Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended June 30, 2026 and 2025 , the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was an increased expens e of $44,000 and a reduced expense of $186,000 respectively. (2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. 24 Table of Contents Six Months Ended June 30, 2026 2025 Average Balance Interest and Dividends Yield/ Cost Average Balance Interest and Dividends Yield/ Cost (Dollars in thousands) Assets: Cash and cash equivalents $ 10,584 $ 230 4.34 % $ 13,270 $ 371 5.58 % Loans 644,096 15,510 4.82 % 701,423 16,895 4.82 % Securities 146,787 4,123 5.62 % 143,199 3,779 5.28 % Other interest-earning assets 5,841 214 7.34 % 7,692 384 9.97 % Total interest-earning assets 807,308 20,077 4.97 % 865,584 21,429 4.95 % Non-interest-earning assets 65,807 61,323 Total assets $ 873,115 $ 926,907 Liabilities and equity: NOW and money market accounts $ 82,728 $ 1,009 2.46 % $ 76,313 $ 904 2.39 % Savings accounts 57,882 703 2.45 % 47,299 475 2.02 % Certificates of deposit (1) 440,920 7,892 3.61 % 483,380 9,908 4.13 % Total interest-bearing deposits 581,530 9,604 3.33 % 606,992 11,287 3.75 % FHLB advances (1) 103,589 2,207 4.30 % 144,120 2,854 3.99 % Total interest-bearing liabilities 685,119 11,811 3.48 % 751,112 14,141 3.80 % Non-interest-bearing deposits 29,917 32,425 Other non-interest-bearing liabilities 16,599 5,420 Total liabilities 731,635 788,957 Total equity 141,480 137,950 Total liabilities and equity $ 873,115 $ 926,907 Net interest income $ 8,266 $ 7,288 Interest rate spread (2) 1.49 % 1.15 % Net interest margin (3) 2.06 % 1.70 % Average interest-earning assets to average interest-bearing liabilities 117.83 % 115.24 % (1) Cash flow and fair value hedges are used to manage interest rate risk. During the six months ended June 30, 2026 and 2025 , the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was an increased expens e of $21,000 and a reduced expense of $363,000 respectively. (2) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. 25 Table of Contents Rate/Volume Analysis The following table sets forth the effects of changing rates and volumes on net interest income. 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 net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Compared to Compared to Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Increase (Decrease) Due to Increase (Decrease) Due to Volume Rate Net Volume Rate Net (In thousands) Interest income: (unaudited) Cash and cash equivalents $ (5 ) $ 6 $ 1 $ (67 ) $ (74 ) $ (141 ) Loans receivable (668 ) (102 ) (770 ) (1,385 ) — (1,385 ) Securities (5 ) (82 ) (87 ) 96 248 344 Other interest earning assets (20 ) (40 ) (60 ) (81 ) (89 ) (170 ) Total interest-earning assets (698 ) (218 ) (916 ) (1,437 ) 85 (1,352 ) Interest expense: NOW and money market accounts 154 (135 ) 19 77 28 105 Savings accounts 68 69 137 117 111 228 Certificates of deposit (566 ) (501 ) (1,067 ) (828 ) (1,188 ) (2,016 ) FHLB advances (479 ) 329 (150 ) (1,207 ) 560 (647 ) Total interest-bearing liabilities (822 ) (239 ) (1,061 ) (1,842 ) (488 ) (2,330 ) Net increase in net interest income $ 124 $ 21 $ 145 $ 405 $ 573 $ 978 Comparison of Operating Results for the Three Months Ended June 30, 2026 and June 30, 2025 General. Net income increased $523,000 to $748,000 for the three months ended June 30, 2026 compared to net income of $224,000 for the three months ended June 30, 2025. This increase was primarily due to an increase of $329,000 in non-interest income, a $145,000 increase in net interest income and a $201,000 decrease in non-interest expenses partially offset by a $152,000 increase in income taxes. Interest Income. Interest income decreased $916,000, or 8.7%, to $9.6 million for the three months ended June 30, 2026, compared to $10.5 million for the three months ended June 30, 2025. Interest income on cash and cash equivalents increased $1,000, or 0.9%, to $107,000 for the three months ended June 30, 2026 from $106,000 for the three months ended June 30, 2025 due to a seven basis point increase in the average yield from 4.26% for the three months ended June 30, 2025 to 4.33% for the three months ended June 30, 2026 resulting from a higher short-term interest rate environment. This was offset by a $114,000 decrease in the average balance to $9.9 million for the three months ended June 30, 2026 from $10.0 million for the three months ended June 30, 2025. Interest income on loans decreased $770,000, or 9.3%, to $7.5 million for the three months ended June 30, 2026 compared to $8.3 million for the three months ended June 30, 2025 due primarily to a $57.5 million decrease in the average balance to $640.3 million for the three months ended June 30, 2026 from $697.8 million for the three months ended June 30, 2025 and a six basis point decrease in the average yield from 4.77% for the three months ended June 30, 2025 to 4.71% for the three months ended June 30, 2026. Interest income on securities decreased $87,000, or 4.5%, to $1.9 million for the three months ended June 30, 2026, primarily due to a 24-basis point decrease in the average yield from 5.52% for the three months ended June 30, 2025, to 5.28% for the three months ended June 30, 2026. The decrease was also due to a $404,000 decrease in the average balance to $140.7 million for the three months ended June 30, 2026, from $141.1 million for the three months ended June 30, 2025. 26 Table of Contents Interest Expense. Interest expense decreased $1.1 million, or 15.6%, from $6.8 million for the three months ended June 30, 2025 to $5.7 million for the three months ended June 30, 2026, due to lower average balances of certificates of deposits and borrowings and decreased cost of certificates of deposits. During the three months ended June 30, 2026, the use of hedges increased the interest expense on the FHLB advances and brokered deposits by $37,000. At June 30, 2026, cash flow hedges used to manage interest rate risk had a notional value of $67.5 million, while fair value hedges totaled $30.0 million in notional value. Interest expense on interest-bearing deposits decreased $910,000, or 16.5%, to $4.6 million for the three months ended June 30, 2026 from $5.5 million for the three months ended June 30, 2025. The decrease was due to a 39 basis point decrease in the average cost of deposits to 3.28% for the three months ended June 30, 2026 from 3.67% for the three months ended June 30, 2025. The decrease in the average cost of deposits was due to the lower interest rate environment and a decrease in the rate paid on certificates of deposit offset by an increase in the rate paid on savings accounts. The rates on certificates of deposit decreased 44 basis points to 3.57% for the three months ended June 30, 2026 from 4.01% for the three months ended June 30, 2025 and the average balances of certificates of deposit decreased $59.8 million to $422.7 million for the three months ended June 30, 2026 from $482.5 million for the three months ended June 30, 2025. The average balance of NOW/money market accounts and savings accounts increased $8.2 million and $11.9 million for the three months ended June 30, 2026, respectively, compared to the three months ended June 30, 2025. Interest expense on FHLB advances decreased $151,000, or 11.7%, from $1.3 million for the three months ended June 30, 2025 to $1.1 million for the three months ended June 30, 2026. The decrease was primarily due to a decrease in the average balance of $20.2 million to $110.0 million for the three months ended June 30, 2026 from $130.3 million for the three months ended June 30, 2025. The decrease was offset by an increase in the average cost of borrowings of 18 basis points to 4.14% for the three months ended June 30, 2026 from 3.96% for the three months ended June 30, 2025 due to the new borrowings being shorter durations at higher rates. Net Interest Income. Net interest income increased $145,000, or 3.9%, to $3.8 million for the three months ended June 30, 2026 from $3.7 million for the three months ended June 30, 2025. The increase reflected a 20 basis point increase in our net interest rate spread to 1.40% for the three months ended June 30, 2026 from 1.20% for the three months ended June 30, 2025. Our net interest margin increased 20 basis points to 1.94% for the three months ended June 30, 2026 from 1.74% for the three months ended June 30, 2025. Provision for Credit Losses. We recorded no provision for credit losses for the three months ended June 30, 2026 and June 30, 2025. The lack of a provision reflects a decrease in loans and the absence of any charge-offs. Further the increase in non-performing loans were loans that were impaired with adequate collateral and required no additional provisions. Non-Interest Income. Non-interest income increased $329,000, or 99.2%, to $661,000 for the three months ended June 30, 2026 from $332,000 for the three months ended June 30, 2025 due to a $300,000 collection on an insurance claim from a previous year fraud loss. Non-Interest Expense. For the three months ended June 30, 2026, non-interest expense decreased $200,000, or 5.2%, compared to the same period ended June 30, 2025. Salaries and employee benefits decreased $75,000, or 3.7%, due to lower headcount. FDIC insurance premiums decreased $18,000, or 16.9%, due to lower deposit balances in 2026. Data processing expense increased $13,000, or 4.3%, due to higher processing costs. Director fees decreased $44,000, or 25.9%, due to fewer members on the board. The increase in advertising expense of $23,000, or 140.6%, was due to increased promotions for branch locations and more promotions on deposit and loan products. Professional fees decreased $125,000, or 33.6%, due to lower legal costs in 2026. Income Tax Expense. Income tax expense increased $151,000 to an expense of $99,000 for the three months ended June 30, 2026 from a $53,000 benefit for the three months ended June 30, 2025. The increase was due to an increase of $674,000 in pre-tax income. 27 Table of Contents Comparison of Operating Results for the Six Months Ended June 30, 2026 and June 30, 2025 General. Net income increased $498,000 to $1.5 million for the six months ended June 30, 2026 from net income of $955,000 for the six months ended June 30, 2025. This increase was primarily due to an increase of $978,000 in net interest income and a decrease of $280,000 in non-interest expense, partially offset by a decrease of $239,000 in non-interest income, an increase of $130,000 in the provision for credit losses and an increase of $391,000 in income taxes. Interest Income. Interest income decreased $1.4 million, or 6.3%, to $20.1 million for the six months ended June 30, 2026 compared to $21.4 million for the six months ended June 30, 2025. Interest income on cash and cash equivalents decreased $141,000, or 38.0%, to $230,000 for the six months ended June 30, 2026 from $371,000 for the six months ended June 30, 2025 due to a $2.7 million decrease in the average balance to $10.6 million for the six months ended June 30, 2026 from $13.3 million for the six months ended June 30, 2025, reflecting a decrease in deposits and a reduction of borrowings. The decrease was also due to a 124 basis point decrease in the average yield from 5.58% for the six months ended June 30, 2025 to 4.34% for the six months ended June 30, 2026 resulting from the lower interest rate environment. Interest income on loans decreased $1.4 million, or 8.2%, to $15.5 million for the six months ended June 30, 2026 compared to $16.9 million for the six months ended June 30, 2025, due to a $57.3 million decrease in the average balance to $644.1 million for the six months ended June 30, 2026 from $701.4 million for the six months ended June 30, 2025. Interest income on securities increased $344,000, or 9.1%, to $4.1 million for the six months ended June 30, 2026, from $3.8 million for the six months ended June 30, 2025, primarily due to a 34 basis point increase in the average yield from 5.28% for the six months ended June 30, 2025, to 5.62% for the six months ended June 30, 2026. The increase was also due to a $3.6 million increase in the average balance to $146.8 million for the six months ended June 30, 2026, from $143.2 million for the six months ended June 30, 2025. Interest Expense. Interest expense decreased $2.3 million, or 16.5%, from $14.1 million for the six months ended June 30, 2025 to $11.8 million for the six months ended June 30, 2026, due to lower averages balances of certificates of deposits and borrowing and the lower costs of certificates of deposits. During the six months ended June 30, 2026, the use of hedges increased the interest expense on FHLB advances and brokered deposits by $21,000. At June 30, 2026, cash flow hedges used to manage interest rate risk had a notional value of $67.5 million, while fair value hedges totaled $30.0 million in notional value. Interest expense on interest-bearing deposits decreased $1.7 million, or 14.9%, to $9.6 million for the six months ended June 30, 2026 from $11.3 million for the six months ended June 30, 2025. The decrease was due to a 42 basis point decrease in the average cost of deposits to 3.33% for the six months ended June 30, 2026 from 3.75% for the six months ended June 30, 2025. The decrease in the average cost of deposits was due to the lower interest rate environment and a decrease in the rate paid on certificates of deposit offset by an increase in the rate paid on transactional accounts. The rates on certificates of deposit decreased 52 basis points to 3.61% for the six months ended June 30, 2026 from 4.13% for the six months ended June 30, 2025 and the average balances of certificates of deposit decreased $42.5 million to $440.9 million for the six months ended June 30, 2026 from $483.4 million for the six months ended June 30, 2025. The average balance of NOW/money market accounts and savings accounts increased $6.4 million and $10.6 million for the six months ended June 30, 2026, respectively, compared to the six months ended June 30, 2025. Interest expense on FHLB advances decreased $647,000, or 22.7%, from $2.9 million for the six months ended June 30, 2025 to $2.2 million for the six months ended June 30, 2026. The decrease was primarily due to a decrease in the average balance of $40.5 million to $103.6 million for the six months ended June 30, 2026 from $144.1 million for the six months ended June 30, 2025. The decrease was offset by an increase in the average cost of borrowings of 31 basis points to 4.30% for the six months ended June 30, 2026 from 3.99% for the six months ended June 30, 2025 due to the new borrowings being shorter durations at higher rates. 28 Table of Contents Net Interest Income. Net interest income increased $978,000, or 13.4%, to $8.3 million for the six months ended June 30, 2026 from $7.3 million for the six months ended June 30, 2025. The increase reflected a 34 basis point increase in our net interest rate spread to 1.49% for the six months ended June 30, 2026 from 1.15% for the six months ended June 30, 2025. Our net interest margin increased 36 basis points to 2.06% for the six months ended June 30, 2026 from 1.70% for the six months ended June 30, 2025. Provision for Credit Losses. We recorded a $50,000 provision for credit losses for the six months ended June 30, 2026 compared to an $80,000 recovery for credit losses for the six months ended June 30, 2025 due to higher delinquent commercial loan balances, offset by a decrease in loans and the absence of any charge-offs. Non-Interest Income. Non-interest income decreased $239,000, or 19.6%, to $982,000 for the six months ended June 30, 2026 from $1.2 million for the six months ended June 30, 2025 due to a death benefit received related to a former employee last year of $564,000, offset by $300,000 collection on an insurance claim during 2026 related to a previous year fraud loss. Non-Interest Expense. For the six months ended June 30, 2026, non-interest expense decreased $280,000, or 3.6%, compared to the comparable June 30, 2025 period. Salaries and employee benefits decreased $103,000, or 2.5%, due to lower headcount. FDIC insurance premiums decreased $25,000, or 11.9%, due to lower deposit balances in 2026. Data processing expense decreased $32,000, or 5.1%, due to lower processing costs. Director fees decreased $65,000, or 19.7%, due to fewer members on the board. The decrease in advertising expense of $31,000, or 25.5%, was due to reduced promotions for branch locations and less promotions on deposit and loan products. Professional fees decreased $82,000, or 14.3%, due to lower legal costs in 2026 associated with a construction loan foreclosure in 2025. Occupancy and equipment increased $31,000, or 2.4%, due to higher snow removal costs in 2026. Income Tax Expense. Income tax expense increased $391,000 to an expense of $311,000 for the six months ended June 30, 2026 from an $81,000 benefit for the six months ended June 30, 2025. The increase was due to an increase of $1.4 million in pre-tax income. 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 loans and securities, have longer maturities than our liabilities, consisting primarily of deposits and borrowings. As a result, a principal part of our business strategy is to manage our exposure to changes in market interest rates. Accordingly, our board of directors has established an Asset/Liability Management Committee (the “ALCO”), which is comprised of three members of executive management and two independent directors, which oversees the asset/liability management processes and related procedures. The ALCO meets on at least a quarterly basis and reviews asset/liability strategies, liquidity, funding sources, interest rate risk measurement reports, capital levels and economic trends at both national and local levels. Our interest rate risk position is also monitored quarterly by the board of directors. We manage our interest rate risk to minimize the exposure of our earnings and capital to changes in market interest rates. We have implemented the following strategies to manage our interest rate risk: originating and purchasing loans with adjustable interest rates; promoting core deposit products; monitoring the length of our borrowings with the Federal Home Loan Bank and brokered deposits depending on the interest rate environment; maintaining all of our investments as available-for-sale; diversifying our loan portfolio; and strengthening our capital position. By following these strategies, we believe that we are better positioned to react to changes in market interest rates. 29 Table of Contents Net Portfolio Value Simulation. We analyze our sensitivity to changes in interest rates through a net portfolio value of equity (“NPV”) model. NPV represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities, adjusted for the value of off-balance sheet contracts. The NPV ratio represents the dollar amount of our NPV divided by the present value of our total assets for a given interest rate scenario. NPV attempts to quantify our economic value using a discounted cash flow methodology while the NPV ratio reflects that value as a form of capital ratio. We estimate what our NPV would be at a specific date. We then calculate what the NPV would be at the same date throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve. We currently calculate NPV under the assumptions that interest rates increase and decrease 100, 200, 300 and 400 basis points from current market rates. The following table presents the estimated changes in our net portfolio value that would result from changes in market interest rates as of June 30, 2026 . All estimated changes presented in the table are within the policy limits approved by the board of directors. NPV as Percent of Portfolio NPV Value of Assets (Dollars in thousands) Basis Point (“bp”) Change in Dollar Dollar Percent Interest Rates Amount Change Change NPV Ratio Change 400 bp $ 93,262 $ (46,240 ) (33.15 )% 11.68 % (27.60 )% 300 bp 104,626 (34,876 ) (25.00 ) 12.85 (20.38 ) 200 bp 115,775 (23,727 ) (17.01 ) 13.94 (13.61 ) 100 bp 127,634 (11,868 ) (8.51 ) 15.06 (6.65 ) — 139,502 — — 16.13 — (100) bp 151,194 11,692 8.38 17.14 6.23 (200) bp 161,401 21,899 15.70 17.96 11.29 (300) bp 169,858 30,356 21.76 18.57 15.11 (400) bp 178,005 38,503 27.60 19.15 18.71 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. The table above assumes that the composition of our interest-sensitive assets and liabilities existing at the date indicated remains constant uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the table provides 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 on our NPV and will differ from actual results. Net Interest Income Analysis. We also use income simulation to measure interest rate risk in our balance sheet at a given point in time by showing the effect on net interest income over specified time frames and using different interest rate shocks and ramps. The assumptions include management’s best assessment of the effect of changing interest rates on the prepayment speeds of certain assets and liabilities, projections for account balances in each of the product lines offered and the historical behavior of deposit rates and balances in relation to changes in interest rates. These assumptions are subject to change, and as a result, the model is not expected to precisely measure net interest income or precisely predict the impact of fluctuations in interest rates on net interest income. Actual results will differ from the simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in the balance sheet composition and market conditions. Assumptions are supported with quarterly back testing of the model to actual market rate shifts. 30 Table of Contents As of June 30, 2026 , net interest income simulation results indicated that its exposure over one year to changing interest rates was within our guidelines. The following table presents the estimated impact of interest rate changes on our estimated net interest income over one year: Changes in Interest Rates Change in Net Interest Income Year One (basis points) (1) (% change from year one base) 400 (31.90 )% 300 (23.80 ) 200 (15.70 ) 100 (7.80 ) — — (100) 7.74 (200) 14.00 (300) 17.50 (400) 12.90 (1) The calculated change in net interest income assumes an instantaneous parallel shift of the yield curve. The preceding simulation does not represent a forecast of actual results and should not be relied upon as being indicative of expected operating results. These hypothetical estimates are based upon numerous assumptions, which are subject to change, including: the nature and timing of interest rate levels, including the yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment/replacement of asset and liability cash flows, and others. Also, as market conditions vary, prepayment/refinancing levels, the varying impact of interest rate changes on caps and floors embedded in adjustable-rate loans, early withdrawal of deposits, changes in product preferences, and other internal/external variables will likely deviate from those assumed. Liquidity and Capital Resources Liquidity. Liquidity describes our ability to meet 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 calls, maturities and sales of securities and sales of loans. We also borrow from the Federal Home Loan Bank of New York. At June 30, 2026 , we had the ability to borrow up to $236.4 million, of which $141.0 million was outstanding and $5.2 million was utilized as collateral for letters of credit issued to secure municipal deposits. At June 30, 2026 , we had $54.0 million in unsecured lines of credit with four correspondent banks with no outstanding balance. The board of directors is responsible for establishing and monitoring our liquidity targets and st rategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies. We believe that we had ample sources of liquidity to satisfy our short- and long-term liquidity needs as of June 30, 2026 . While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows, loan prepayments and loan and security sales are greatly influenced by market 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 period. At June 30, 2026 , cash and cash equivalents totaled $29.9 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $140.4 million at June 30, 2026 . 31 Table of Contents We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of June 30, 2026 totaled $337.8 million, or 56.2% of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and Federal Home Loan Bank of New York advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered. Capital Resources. We are subject to various regulatory capital requirements administered by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation. At June 30, 2026 , we exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines. As a result of the Economic Growth, Regulatory R elief, and Consumer Protection Act, as modified in April 2020, the federal banking agencies were required to develop a “Community Bank Leverage Ratio” (the ratio of a bank's Tier 1 “equity capital to average total consolidated assets) for financial institutions with less than $10 billion. A “qualifying community bank” with capital exceeding 9% will be considered compliant with all applicable regulatory capital and leverage requirements, including the capital requirements to be considered "well capitalized” under Prompt Corrective Action statutes. As of June 30, 2026 , the Bank reported as a qualifying community bank with a ratio of 16.39%. Inflation Substantially all of the Company's assets and liabilities relate to banking activities and are monetary. The consolidated financial statements and related financial data are presented in accordance with GAAP. GAAP currently requires the Company to measure the financial position and results of operations in terms of historical dollars, except for securities available for sale, impaired loans, and other real estate loans that are measured at fair value. Changes in the value of money due to inflation can cause purchasing power loss. Management's opinion is that movements in interest rates affect the financial condition and results of operations to a greater degree than changes in the rate of inflation. It should be noted that interest rates and inflation do affect each other but do not always move in correlation with each other. The Company's ability to match the interest sensitivity of its financial assets to the interest sensitivity of its liabilities in its asset/liability management may tend to minimize the effect of changes in interest rates on the Company's performance. Item 3. Quantitative and Qualitative Disclosures About Market Risk Information with respect to quantitative and qualitative disclosures about market risk can be found in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Management of Market Risk.”