What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2025-11-03 · 99 added, 211 removed, 370 unchanged (46% of the section changed)

12 unchanged sentences

At or For the

Three Months Ended

Nine Months Ended

September 30,

Per Share Data:

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Non-performing assets/Total assets

Non-performing loans/Total loans

Non-performing loans held for investment/Total loans held for investment

Allowance for credit losses/Total loans

Allowance for credit losses/Non-performing loans

Allowance for credit losses/Non-performing loans held for investment

(1) Non-performing loans are defined as all loans on non-accrual status.

(2) March 31, 2026 balance includes one non-performing available for sale security in the amount of $450 thousand.

Critical Accounting Policies

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The availability of funds changes daily.

At September 30, 2025, the Bank did not have any such borrowings outstanding through the AFX.

At December 31, 2024, the Bank had $50.0 million of such borrowings outstanding through the AFX, which is included in other short-term borrowings on the consolidated statements of financial condition.

At March 31, 2026 and December 31, 2025, the Bank did not have any such borrowings outstanding through the AFX.

The Bank utilizes repurchase agreements as part of its borrowing policy to add liquidity.

Repurchase agreements represent funds received from customers, generally on an overnight basis, which are collateralized by investment securities.

As of September 30, 2025 and December 31, 2024, the Bank did not have any repurchase agreements.

As of March 31, 2026 and December 31, 2025, the Bank did not have any repurchase agreements.

The Bank gathers deposits in direct competition with commercial banks, savings banks and brokerage firms, many among the largest in the nation.

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However, favorable performance of the equity or bond markets could adversely impact the Bank’s deposit flows.

Total deposits (including mortgage escrow deposits) increased $375.5 million during the nine months ended September 30, 2025, compared to an increase of $886.7 million during the nine months ended September 30, 2024.

The increase in deposits during the current period was primarily due to increases in non-interest-bearing checking accounts, money market accounts, CDs and interest bearing checking accounts, partially offset by a decline in savings accounts deposits.

Total deposits (including mortgage escrow deposits) decreased $242.2 million during the three months ended March 31, 2026, compared to a decrease of $70.2 million during the three months ended March 31, 2025.

The decrease in deposits during the current period was primarily due to decreases in non-interest-bearing checking accounts, interest bearing checking accounts, savings accounts and CDs, partially offset by an increase in money market accounts deposits.

In the event that the Bank should require funds beyond its ability or desire to generate them internally, additional sources of funds are available through a borrowing line at the FHLBNY, borrowing capacity at the AFX, lines of credit with unaffiliated correspondent banks, and various brokered deposit sources.

At September 30, 2025, the Bank had remaining borrowing capacity of $1.78 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements ( i.e.

At March 31, 2026, the Bank had remaining borrowing capacity of $1.65 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements ( i.e.

, 4.5% of the Bank’s outstanding FHLBNY borrowings).

The Bank also had access to the Federal Reserve Bank (“FRB”) Discount Window.

At September 30, 2025, an available line of credit totaling $351.6 million was in place at the FRB backed by investment securities with no advances drawn.

Additionally, at September 30, 2025, a line of credit totaling $3.32 billion was in place at the FRB secured by certain qualifying 1-4 family residential mortgage loans, construction loans and commercial real estate loans with no amounts drawn.

The Bank reduced its outstanding FHLBNY advances by $100.0 million during the nine months ended September 30, 2025, compared to a reduction of $805.0 million during the nine months ended September 30, 2024.

At March 31, 2026, an available line of credit totaling $339.0 million was in place at the FRB backed by investment securities with no advances drawn.

Additionally, at March 31, 2026, a line of credit totaling $3.65 billion was in place at the FRB secured by certain qualifying one-to-four family residential mortgage loans, construction loans and commercial real estate loans with no amounts drawn.

The Bank reduced its outstanding FHLBNY advances by $73.0 million during the three months ended March 31, 2026, compared to a reduction of $100.0 million during the three months ended March 31, 2025.

“FHLBNY Advances” for further information.

Subordinated debentures totaled $272.5 million at September 30, 2025 compared to $272.3 million at December 31, 2024.

Subordinated debentures totaled $231.1 million at March 31, 2026 compared to $272.5 million at December 31, 2025.

“Subordinated Debentures” to our Consolidated Financial Statements for further information.

During the nine months ended September 30, 2025 and 2024, business loan originations excluding new lines were $279.5 million and $236.1 million, respectively.

During the nine months ended September 30, 2025, and 2024, real estate loan originations excluding new lines (excluding owner-occupied commercial real estate) totaled $196.3 million and $147.2 million, respectively.

During the three months ended March 31, 2026 and 2025, business loan originations excluding new lines were $170.3 million and $42.6 million, respectively.

During the three months ended March 31, 2026, and 2025, real estate loan originations excluding new lines (excluding owner-occupied commercial real estate) totaled $50.1 million and $28.9 million, respectively.

The Company and the Bank are subject to minimum regulatory capital requirements imposed by their primary federal regulators.

As a general matter, these capital requirements are based on the amount and composition of an institution’s assets.

At September 30, 2025, both the Company and the Bank were in compliance with all applicable regulatory capital requirements and the Bank was considered “well capitalized” for all regulatory purposes.

At March 31, 2026, both the Company and the Bank were in compliance with all applicable regulatory capital requirements and the Bank was considered “well capitalized” for all regulatory purposes.

The following table summarizes Company and Bank capital ratios calculated under the Basel III Capital Rules framework as of the period indicated:

Actual Ratios at September 30, 2025

Actual Ratios at March 31, 2026

To Be Categorized as

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(1) Only the Bank is subject to these requirements.

During the nine months ended September 30, 2025 and 2024, the Company did not repurchase any shares of its common stock.

As of September 30, 2025, 1,566,947 shares remained available for purchase under the authorized share repurchase programs.

During the three months ended March 31, 2026 and 2025, the Company did not repurchase any shares of its common stock.

As of March 31, 2026, 1,566,947 shares remained available for purchase under the authorized share repurchase programs.

See “Part II - Item 2.

Other Information - Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities” for additional information about repurchases of common stock.

The Company paid $5.5 million in cash dividends on its preferred stock during the nine months ended September 30, 2025, and 2024, respectively.

The Company paid $32.2 million and $28.5 million in cash dividends on its common stock during the nine months ended September 30, 2025, and 2024, respectively.

The Company paid $1.8 million in cash dividends on its preferred stock during the three months ended March 31, 2026 and 2025, respectively.

The Company paid $10.8 million and $10.7 million in cash dividends on its common stock during the three months ended March 31, 2026 and 2025, respectively.

Contractual Obligations

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Available lines of credit may not be drawn on or may expire prior to funding, in whole or in part, and amounts are not estimates of future cash flows.

As of September 30, 2025, the Bank had $155.7 million of firm loan commitments that were accepted by the borrowers.

As of March 31, 2026, the Bank had $118.2 million of firm loan commitments that were accepted by the borrowers.

Additionally, in connection with a loan securitization completed in December 2017, the Bank executed a reimbursement agreement with FHLMC that obligates the Company to reimburse FHLMC for any contractual principal and interest payments on defaulted loans, not to exceed 10% of the original principal amount of the loans comprising the aggregate balance of the loan pool at securitization.

The maximum exposure under this reimbursement obligation is $28.0 million.

The Bank has pledged $27.9 million of pass-through MBS issued by GSEs as collateral.

The Bank has pledged $27.9 million of pass-through MBS issued by U.S.

GSEs as collateral.

Concentrations of Lending Activities

Non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans have collectively represented the largest percentage of the Company’s loan portfolio, accounting for 61% and 65% of total loans held for investment as of September 30, 2025 and December 31, 2024, respectively.

Non-owner occupied commercial real estate loans represent 28% and 30% of total loans held for investment as of September 30, 2025 and December 31, 2024, respectively.

Multifamily residential and residential mixed-use loans made up 33% and 35% of total loans held for investment as of September 30, 2025 and December 31, 2024, respectively.

Non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans have collectively represented the largest percentage of the Company’s loan portfolio, accounting for 57% and 59% of total loans held for investment as of March 31, 2026 and December 31, 2025, respectively.

Non-owner occupied commercial real estate loans represented 27% of total loans held for investment as of March 31, 2026 and December 31, 2025.

Multifamily residential and residential mixed-use loans represented 31% and 32% of total loans held for investment as of March 31, 2026 and December 31, 2025, respectively.

The Company expects that non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans will continue to be a significant portion of the Company’s total loan portfolio.

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The following tables present the composition by property type and weighted average loan-to-value (“LTV”) of the Company’s non-owner occupied commercial real estate loans:

September 30, 2025

March 31, 2026

(Dollars in thousands)

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The following tables present the composition by property type and weighted average LTV of the Company’s multifamily residential and residential mixed-use loans:

September 30, 2025

March 31, 2026

(Dollars in thousands)

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(2) Composition based on revenue.

Additional information related to the granularity in the non-owner occupied commercial real estate and multifamily residential and residential mixed-use portfolios is presented in the tables below as of September 30, 2025 and December 31, 2024:

September 30, 2025

March 31, 2026

(Dollars in thousands)

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Monitoring and Collection of Delinquent Loans

Our management reviews delinquent loans on a monthly basis and reports to our Board of Directors or Committees of the Board of Directors at each regularly scheduled Board or Committee meeting regarding the status of all non-performing and otherwise delinquent loans in our loan portfolio.

Our loan servicing policies and procedures require that an automated late notice be sent to a delinquent borrower as soon as possible after a payment is ten days late in the case of business loans, multifamily residential and mixed use, non-owner-occupied commercial real estate loans, and ADC loans, or fifteen days late in connection with one-to-four family and consumer loans.

Thereafter, periodic letters are mailed and phone calls placed to the borrower until payment is received or the loan is transferred to workout.

When contact is made with the borrower at any time prior to foreclosure, we will attempt to obtain the full payment due or negotiate a repayment schedule with the borrower to avoid foreclosure.

All past due loans are reported beginning on the first day a payment is past due through a Past Due Loan Report, which is distributed to lenders and management for follow-up and awareness.

Consistent with customary grace periods, collection follow-up activities generally commence on or about the tenth day past due.

Thereafter, past due follow-up calls are conducted on a weekly basis, as appropriate.

Management reviews delinquent loans monthly and reports to the Board of Directors or appropriate Committees of the Board at each regularly scheduled meeting regarding the status of all non-performing and otherwise delinquent loans in the loan portfolio.

Our loan servicing policies and procedures require that a past due notice be sent to a delinquent borrower in accordance with the terms of the loan.

Loan documents generally provide that a payment is deemed late between one and fifteen days after the due date.

As a standard practice, notices are sent as soon as reasonably possible after a payment is deemed late, including ten days in the case of business loans, multifamily residential and mixed use loans, non-owner occupied commercial real estate loans, and acquisition, development, and construction (ADC) loans, and fifteen days in connection with one to four family residential and consumer loans.

Thereafter, periodic letters are sent, and telephone calls are placed to the borrower until payment is received or a formal demand is made and the loan is transferred to Workout.

When contact is made with the borrower prior to default or foreclosure, servicing will seek to obtain the full payment due.

Once transferred, Workout will attempt to negotiate a repayment plan or other resolution with the borrower to avoid foreclosure, where appropriate.

Accrual of interest is generally discontinued on a loan that meets any of the following three criteria:

(i) full payment of principal or interest is not expected;

(i) full payment of principal or interest is no longer expected;

(ii) principal or interest has been in default for a period of 90 days or more (unless the loan is both deemed to be well secured and in the process of collection);

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Non-accrual Loans

Within our held-for-investment loan portfolio, non-accrual loans totaled $72.1 million at September 30, 2025 and $49.5 million at December 31, 2024.

The following is a reconciliation of non-accrual loans as of the dates indicated:

September 30,

(Dollars in thousands)

Non-accrual loans:

Non-accrual loans held for investment:

Business loans

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Non-owner-occupied commercial real estate

Total non-accrual loans

Total non-accrual loans to total loans

Total non-performing assets to total assets

Total non-accrual loans held for investment

Non-accrual loans held for investment / total loans held for investment

Total non-accrual loans held for sale

Loan Restructurings

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As a result, OREO properties have generally not warranted subsequent independent appraisals.

There was no carrying value of OREO properties on our Consolidated Statement of Financial Condition at September 30, 2025 or December 31, 2024.

We did not recognize any provision for losses on OREO properties during the nine months ended September 30, 2025 or 2024.

There was no carrying value of OREO properties on our Consolidated Statement of Financial Condition at March 31, 2026 or December 31, 2025.

We did not recognize any provision for losses on OREO properties during the three months ended March 31, 2026 or 2025.

Past Due Loans

Loans Delinquent 30 to 59 Days

At September 30, 2025, there were $13.3 million of loans that were past due between 30 and 59 days, compared to $10.3 million at December 31, 2024.

At March 31, 2026, there were $72.4 million of loans that were past due between 30 and 59 days, compared to $28.8 million at December 31, 2025.

The 30 to 59-day delinquency levels fluctuate monthly and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.

Loans Delinquent 60 to 89 Days

At September 30, 2025, there were $27.8 million of loans that were past due between 60 and 89 days, compared to $31.3 million at December 31, 2024.

At March 31, 2026, there were $11.4 million of loans that were past due between 60 and 89 days, compared to $30.1 million at December 31, 2025.

The 60 to 89-day delinquency levels fluctuate monthly and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.

Accruing Loans 90 Days or More Past Due

There were no accruing loans 90 days or more past due at September 30, 2025 or at December 31, 2024.

There were no accruing loans 90 days or more past due at March 31, 2026 or at December 31, 2025.

Reserve for Unfunded Loan Commitments

The Bank maintains a reserve, recorded in other liabilities, associated with unfunded loan commitments accepted by the borrower.

The amount of our reserve was $2.3 million and $2.7 million at September 30, 2025 and December 31, 2024, respectively.

The amount of our reserve was $2.6 million and $2.2 million at March 31, 2026 and December 31, 2025, respectively.

This reserve is determined based upon the outstanding volume of unfunded loan commitments at each period end.

1 unchanged sentence

Allowance for Credit Losses

Provision for credit losses for the nine months ended September 30, 2025 and 2024 was $32.1 million and $22.4 million, respectively.

Included in the provision for credit losses for the nine months ended September 30, 2025 was $2.1 million of provision related to one available-for-sale corporate security.

The remainder of the credit loss provision for the nine months ended September 30, 2025, was attributable to updates in the macroeconomic forecast, updated loss drivers, and charge-offs on loans in the owner-occupied and non-owner-occupied real estate segments.

The $22.4 million credit loss provision for the nine months ended September 30, 2024, was related to a combination of factors including, provisioning for growth and individually analyzed loans in the business loan portfolio as well as provisioning for the pooled multifamily loan portfolio.

For a further discussion of the allowance for credit losses and related activity during the nine months ended September 30, 2025 and 2024, please see Note 6 “Securities” and Note 7 “Loans Held for Investment, Net” to the condensed Consolidated Financial Statements.

Provision for credit losses for the three months ended March 31, 2026 and 2025 was $12.3 million and $9.6 million, respectively.

The $12.3 million credit loss provision for the three months ended March 31, 2026 was attributable to charge-offs and provisioning for individually analyzed loans.

The $9.6 million credit loss provision for the three months ended March 31, 2025 was primarily associated with provisioning for individually analyzed loans.

For a further discussion of the allowance for credit losses and related activity during the three months ended March 31, 2026 and 2025, please see Note 6 “Securities” and Note 7 “Loans Held for Investment, Net” to the condensed Consolidated Financial Statements.

The following table presents our allowance for credit losses allocated by loan type and the percent of loans in each category to total loans as of the dates indicated.

September 30, 2025

March 31, 2026

December 31, 2025

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The following table sets forth information about our allowance for credit losses at or for the dates indicated:

At or for the Nine Months Ended September 30,

At or for the Three Months Ended March 31,

(Dollars in thousands)

3 unchanged sentences

Allowance for credit losses to total loans at end of period

Non-performing loans to total loans at end of period

Non-performing loans held for investment to total loans held for investment at end of period

Allowance for credit losses to total non-performing loans at end of period

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(2) Total average loans represent gross loans (including loans held for sale), inclusive of deferred loan fees/costs and premiums/discounts.

Comparison of Financial Condition at September 30, 2025 and December 31, 2024

Assets totaled $14.54 billion at September 30, 2025, $185.7 million above their level at December 31, 2024, primarily due to increases of $431.5 million in cash and due from banks and $106.2 million in BOLI, partially offset by decreases of $151.6 million in the loan portfolio, $95.6 million in other assets, $42.3 million in total securities, $35.1 million in derivative assets and $22.6 million in loans held for sale.

Loan originations, excluding new lines, totaled $475.8 million for the nine-month period ended September 30, 2025.

Total investment securities decreased $42.3 million during the nine months ended September 30, 2025, to $1.29 billion at period end, primarily due to proceeds from principal payments, calls and maturities of $129.7 million and proceeds from the sale of available for sale securities of $38.8 million, offset by purchases of $106.4 million and a decrease in unrealized losses of $19.8 million.

There were no transfers to or from securities held-to-maturity during the nine months ended September 30, 2025.

BOLI increased $106.2 million during the nine months ended September 30, 2025, to $396.9 million, due to completion of the restructuring initiative that began in late 2024, as well as purchases of new BOLI assets.

Comparison of Financial Condition at March 31, 2026 and December 31, 2025

Assets totaled $15.00 billion at March 31, 2026, $342.1 million below their level at December 31, 2025, primarily due to decreases of $294.3 million in cash and due from banks, and $148.6 million in the loan portfolio, partially offset by increases of $69.2 million in total securities and $36.2 million in loans held for sale.

Loan originations, excluding new lines, totaled $220.4 million for the three-month period ended March 31, 2026.

Total investment securities increased $69.2 million during the three months ended March 31, 2026, to $1.49 billion at period end, primarily due to purchases of $121.3 million, offset by proceeds from principal payments, calls and maturities of $43.6 million, an increase in unrealized losses of $5.2 million and proceeds from the sale of available for sale securities of $4.0 million.

There were no transfers to or from securities held-to-maturity during the three months ended March 31, 2026.

BOLI increased $3.5 million during the three months ended March 31, 2026, to $404.7 million.

Liabilities .

Total liabilities increased $129.9 million during the nine months ended September 30, 2025, to $13.09 billion at period end, primarily due to an increase of $375.5 million in deposits (including mortgage escrow accounts), partially offset by decreases of $100.0 million in FHLBNY advances, $55.2 million in derivative cash collateral, $50.0 million in short-term borrowings, $30.7 million in derivative liabilities and $9.0 million in other liabilities.

Total liabilities decreased $363.3 million during the three months ended March 31, 2026, to $13.50 billion at period end, primarily due to decreases of $242.2 million in deposits (including mortgage escrow accounts), $73.0 million in FHLBNY advances and $41.4 million in subordinated debt.

Stockholders’ Equity .

Stockholders’ equity increased $55.8 million during the nine months ended September 30, 2025, to $1.45 billion at period end, primarily due to net income of $78.8 million and other comprehensive income of $11.4 million, partially offset by common stock dividends of $32.8 million, and preferred stock dividends of $5.5 million.

Comparison of Operating Results for the Three Months Ended September 30, 2025 and 2024

Net income was $27.7 million during the three months ended September 30, 2025, compared to net income of $13.3 million for the three months ended September 30, 2024.

During the three months ended September 30, 2025, net interest income increased by $23.5 million, non-interest income increased by $4.6 million, income tax expense increased by $7.5 million, non-interest expense increased by $4.5 million, and the credit loss provision increased by $1.7 million, compared to the three months ended September 30, 2024.

The discussion of net interest income for the three months ended September 30, 2025 and 2024 should be read in conjunction with the following tables, which set forth certain information related to the Consolidated Statements of Operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.

Stockholders’ equity increased $21.2 million during the three months ended March 31, 2026, to $1.50 billion at period end, primarily due to net income of $34.6 million, partially offset by common stock dividends of $10.8 million, preferred stock dividends of $1.8 million and other comprehensive loss of $1.6 million.

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

Net income was $34.6 million during the three months ended March 31, 2026, compared to net income of $21.5 million for the three months ended March 31, 2025.

During the three months ended March 31, 2026, net interest income increased by $18.0 million, income tax expense increased by $6.7 million, non-interest expense decreased by $2.8 million, the credit loss provision increased by $2.7 million, and non-interest income increased by $1.7 million, compared to the three months ended March 31, 2025.

The discussion of net interest income for the three months ended March 31, 2026 and 2025 should be read in conjunction with the following tables, which set forth certain information related to the Consolidated Statements of Operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.

The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented.

2 unchanged sentences

The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment fees, and late charges that are considered adjustments to yields.

Net loan fees included in interest income were $946 thousand during the three months ended September 30, 2025, compared to net loan fees of $849 thousand during the three months ended September 30, 2024.

The increase in net loan fees was primarily due to increases in deferred fees and late fees on loans in 2025.

Net loan fees included in interest income were $1.5 million during the three months ended March 31, 2026, compared to $1.1 million during the three months ended March 31, 2025.

The increase in net loan fees was primarily due to increases in deferred fees and prepayment penalty on loans in 2026.

Analysis of Net Interest Income

Three Months Ended September 30,

Three Months Ended March 31,

(Dollars in thousands)

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Deposits (including non-interest-bearing checking accounts) (2)

(1) Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans.

(1) Business loans include C&I loans and owner-occupied commercial real estate loans.

(2) Includes mortgage escrow deposits.

2 unchanged sentences

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

(6) At September 30, 2025 and 2024, the loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged business loans, one-to-four family residential mortgage loans, multifamily residential mortgage loans and non-owner occupied commercial real estate loans.

(6) At March 31, 2026 and 2025, the loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged business loans, one-to-four family residential mortgage loans, multifamily residential mortgage loans and non-owner occupied commercial real estate loans.

Rate/Volume Analysis

Three Months Ended September 30, 2025

Compared to Three Months Ended September 30, 2024

Three Months Ended March 31, 2026

Compared to Three Months Ended March 31, 2025

Increase / (Decrease) Due to:

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Net change in net interest income

(1) Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans.

(2) Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale.

Net interest income.

Net interest income was $103.4 million during the three months ended September 30, 2025, an increase of $23.5 million from the three months ended September 30, 2024.

Average interest-earning assets were $13.64 billion for the three months ended September 30, 2025, an increase of $903.8 million from $12.73 billion for the three months ended September 30, 2024.

The net interest margin was 3.01% during the three months ended September 30, 2025, up from 2.50% during the three months ended September 30, 2024.

Interest Income.

Interest income was $175.5 million during the three months ended September 30, 2025, compared to $164.2 million during the three months ended September 30, 2024.

During the three months ended September 30, 2025, interest income increased $11.3 million from the three months ended September 30, 2024, primarily reflecting increases in interest income of $11.8 million in other short-term investments, $3.6 million on business loans, $3.6 million on securities and $1.1 million on one-to-four family residential and coop/condo apartment loans, partially offset by a decrease of $4.4 million on non-owner-occupied commercial real estate loans and a decrease of $4.1 million on multifamily residential and residential mixed-use loans.

The increased interest income on other short-term investments, which is comprised of cash and due from banks and restricted stock, was related to a $1.15 billion increase in the average balances, partially offset by an 88-basis point decrease in the yield of such investments in the period.

The increased interest income on business loans was due to a $347.5 million increase in the average balances, partially offset by a 37-basis point decrease in the yield of such loans in the period.

The increased interest income on securities was related to a 129-basis point increase in the yield, partially offset by a decrease of $153.3 million in the average balances of such securities in the period.

The increased interest income on one-to-four family residential and coop/condo apartment loans was related to a $99.7 million increase in the average balances, partially offset by a 5-basis point decrease in the yield of such loans in the period.

The decreased interest income on non-owner-occupied commercial real estate loans reflected a $230.2 million decrease in the average balance and a 17-basis point decrease in the yield of such loans in the period.

The decreased interest income on multifamily residential and residential mixed-use loans was related to a $310.4 million decrease in the average balance and a 6-basis point decrease in the yield of such loans in the period.

Interest Expense.

Interest expense was $72.1 million during the three months ended September 30, 2025, compared to $84.3 million during the three months ended September 30, 2024.

During the three months ended September 30, 2025, interest expense decreased $12.2 million, primarily reflecting a decrease in interest expense of $11.1 million on deposits, a decrease in interest expense of $738 thousand on derivative cash collateral, and a decrease in interest expense of $351 thousand on FHLBNY advances.

The decreased interest expense on deposits was primarily due to an 80-basis point decrease in rates paid on savings accounts and a $281.0 million decrease in average balances of such deposits, an 84-basis point decrease in rates paid on CDs and a $116.8 million decrease in the average balance of such deposits, and a 72-basis point decrease in rates paid on money market accounts, partially offset by a $588.0 million increase in average balances of such deposits in the period.

The decreased interest expense on derivative cash collateral was due to a $27.5 million decrease in the average balance and a 175-basis point decrease in the cost of such derivatives in the period.

Provision for Credit Losses.

We recorded a credit loss provision of $13.3 million and $11.6 million during the three months ended September 30, 2025 and 2024, respectively.

The $13.3 million credit loss provision for the three months ended September 30, 2025, was primarily attributable to charge-offs on loans in the owner occupied and non-owner occupied real estate segments.

The $11.6 million credit loss provision for the three months ended September 30, 2024, was primarily associated with increased provisioning for the Bank’s business loan portfolio.

Non-Interest Income.

Non-interest income totaled $12.2 million for the three months ended September 30, 2025, compared to $7.6 million for the same period in 2024.

The increase was primarily driven by a $2.4 million increase in BOLI income and a $1.9 million increase in other non-interest income.

Non-Interest Expense.

Non-interest expense totaled $62.2 million for the three months ended September 30, 2025, compared to $57.7 million for the same period in 2024.

The change was primarily driven by a $2.2 million increase in salaries and employee benefits.

Non-interest expense was 1.73% and 1.71% of average assets during the three months ended September 30, 2025 and 2024, respectively.

Income Tax Expense.

Income tax expense was $12.4 million during the three months ended September 30, 2025, compared to income tax expense of $4.9 million during the three months ended September 30, 2024.

The reported effective tax rate for the three months ended September 30, 2025 and 2024 was 31.0%, and 26.9%, respectively.

Comparison of Operating Results for the Nine Months Ended September 30, 2025 and 2024

Net income was $78.8 million during the nine months ended September 30, 2025, compared to net income of $49.5 million for the nine months ended September 30, 2024.

During the nine months ended September 30, 2025, net interest income increased by $68.8 million, non-interest income increased by $3.5 million, non-interest expense increased by $22.1 million, income tax expense increased by $11.1 million and the credit loss provision increased by $9.7 million, compared to the nine months ended September 30, 2024.

The discussion of net interest income for the nine months ended September 30, 2025 and 2024 should be read in conjunction with the following tables, which set forth certain information related to the Consolidated Statements of Operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.

The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented.

Average balances were derived from average daily balances.

No tax-equivalent adjustments have been made for interest income exempt from federal, state, and local taxation.

Net loan fees included in interest income were $3.2 million during the nine months ended September 30, 2025, compared to net loan fees of $545 thousand during the nine months ended September 30, 2024.

The increase in net loan fees was primarily due to increases in prepayment penalty fees and deferred fees on loans in 2025.

Analysis of Net Interest Income

Nine Months Ended September 30,

(Dollars in thousands)

Interest-earning assets:

Business loans (1) (3) (6)

One-to-four family residential and coop/condo apartment (3) (6)

Multifamily residential and residential mixed-use (3) (6)

Non-owner-occupied commercial real estate (3) (6)

Other loans (3)

Other short-term investments

Total interest-earning assets

Non-interest earning assets

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Interest-bearing checking (2)

Total interest-bearing deposits

FHLBNY advances

Subordinated debt, net

Other short-term borrowings

Total borrowings

Derivative cash collateral

Total interest-bearing liabilities

Non-interest-bearing checking (2)

Other non-interest-bearing liabilities

Total liabilities

Stockholders' equity

Total liabilities and stockholders' equity

Net interest income

Net interest rate spread (4)

Net interest-earning assets

Net interest margin (5)

Ratio of interest-earning assets to interest-bearing liabilities

Deposits (including non-interest-bearing checking accounts) (2)

(1) Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans.

(2) Includes mortgage escrow deposits.

(3) Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale.

(4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

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

Rate/Volume Analysis

Nine Months Ended September 30, 2025

Compared to Nine Months Ended September 30, 2024

Increase / (Decrease) Due to:

Interest-earning assets:

Business loans (1) (2)

One-to-four family residential and coop/condo apartment

Multifamily residential and residential mixed-use

Non-owner-occupied commercial real estate

Other short-term investments

Total interest-earning assets

Interest-bearing liabilities:

Interest-bearing checking

FHLBNY advances

Subordinated debt, net

Other short-term borrowings

Derivative cash collateral

Total interest-bearing liabilities

Net change in net interest income

(1) Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans.

(2) Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale.

Net interest income.

Net interest income was $295.7 million during the nine months ended September 30, 2025, an increase of $68.8 million from the nine months ended September 30, 2024.

Average interest-earning assets were $13.27 billion for the nine months ended September 30, 2025, an increase of $476.7 million from $12.79 billion for the nine months ended September 30, 2024.

Net interest margin was 2.98% during the nine months ended September 30, 2025, up from 2.37% during the nine months ended September 30, 2024.

Net interest income was $112.3 million during the three months ended March 31, 2026, an increase of $18.0 million from the three months ended March 31, 2025.

Average interest-earning assets were $14.20 billion for the three months ended March 31, 2026, an increase of $1.2 billion from $12.96 billion for the three months ended March 31, 2025.

The net interest margin was 3.21% during the three months ended March 31, 2026, up from 2.95% during the three months ended March 31, 2025.

Interest Income.

Interest income was $505.0 million during the nine months ended September 30, 2025, compared to $484.7 million during the nine months ended September 30, 2024.

During the nine months ended September 30, 2025, interest income increased $20.3 million from the nine months ended September 30, 2024, primarily reflecting increases in interest income of $16.4 million on other short-term investments, $13.1 million on business loans, $10.5 million on securities, and $4.0 million on one-to-four family residential and coop/condo apartment loans, partially offset by decreases in interest income of $11.1 million on multifamily loans, $10.7 million on non-owner-occupied loans, and $1.7 million on ADC loans.

The increased interest income on other short-term investments (comprised of cash and due from banks and restricted stock) was related to a $623.2 million increase in the average balances, partially offset by a 113-basis point decrease in the yield of such investments in the period.

Interest income was $173.4 million during the three months ended March 31, 2026, compared to $161.9 million during the three months ended March 31, 2025.

During the three months ended March 31, 2026, interest income increased $11.5 million from the three months ended March 31, 2025, primarily reflecting increases in interest income of $10.7 million on other short-term investments, $7.4 million on business loans, $1.5 million on securities and $1.3 million on one-to-four family residential and coop/condo apartment loans, partially offset by a decrease in interest income of $4.6 million on multifamily residential and residential mixed-use loans and $3.8 million on non-owner-occupied commercial real estate loans.

The increased interest income on other short-term investments, which is comprised of cash and due from banks and restricted stock, was related to a $1.32 billion increase in the average balances, partially offset by a 71-basis point decrease in the yield of such investments in the period.

The increased interest income on business loans was due to a $526.5 million increase in the average balances, partially offset by a 16-basis point decrease in the yield of such loans in the period.

The increased interest income on securities was related to a 130-basis point increase in the yield, partially offset by a decrease of $178.3 million in the average balances of such securities in the period.

The increased interest income on securities was related to a $78.9 million in average balances and a 22-basis point increase in the yield of such securities in the period.

The increased interest income on one-to-four family residential and coop/condo apartment loans was related to a $79.8 million increase in the average balances and a 15-basis point increase in the yield of such loans in the period.

The decreased interest income on multifamily residential and residential mixed-use loans was related to a $244.5 million decrease in the average balance and a 9-basis point decrease in the yield of such loans in the period.

The decreased interest income on non-owner-occupied commercial real estate loans reflected a $189.8 million decrease in the average balance and a 13-basis point decrease in the yield of such loans in the period.

The decreased interest income on ADC loan income reflected a $20.4 million decrease in the average balance and a 33-basis point decrease in the yield of such loans in the period.

The decreased interest income on multifamily residential and residential mixed-use loans was related to a $433.0 million decrease in the average balance, partially offset by a 3-basis point increase in the yield of such loans in the period.

The decreased interest income on non-owner-occupied commercial real estate loans reflected a $303.8 million decrease in the average balance, partially offset by a 1-basis point increase in the yield of such loans in the period.

Interest Expense.

Interest expense was $209.2 million during the nine months ended September 30, 2025, compared to $257.7 million during the nine months ended September 30, 2024.

During the nine months ended September 30, 2025, interest expense decreased $48.5 million, primarily reflecting decreases in interest expense of $38.8 million on deposits, $10.8 million on FHLBNY advances and $2.3 million in interest expense on derivative cash collateral, partially offset by a $3.4 million increase in interest expense on subordinated debt.

The decreased interest expense on deposits was primarily due to a 94-basis point decrease in rates paid on savings accounts and a $363.5 million decrease in average balances of such deposits.

There was a $371.3 million decrease in the average balance of CDs and a 93-basis point decrease in the cost of such deposits in the period.

There was a 65-basis point decrease in rates paid on money market accounts, partially offset by a $661.3 million increase in average balances of such deposits.

There was a $305.1 million increase in the average balance of interest-bearing checking accounts and a 40-basis point increase in the rates paid on such deposits partially offset the overall decline.

The decreased interest expense on FHLBNY advances was due to a $255.5 million decrease in the average balance and an 82-basis point decrease in the cost of FHLBNY advances in the period.

The decreased interest expense on derivative cash collateral was due to a $40.0 million decrease in the average balance and a 101-basis point decrease in the cost of such derivatives in the period.

The increased interest expense on subordinated debt was due to a $47.6 million increase in the average balance and a 71-basis point increase in the cost of such debt in the period.

Interest expense was $61.1 million during the three months ended March 31, 2026, compared to $67.7 million during the three months ended March 31, 2025.

During the three months ended March 31, 2026, interest expense decreased $6.5 million, primarily reflecting a decrease in interest expense of $5.7 million on deposits.

The decreased interest expense on deposits was primarily due to a 58-basis point decrease in rates paid on savings accounts and a $228.0 million decrease in average balances of such deposits, a 31-basis point decrease in rates paid on CDs, partially offset by a $132.1 million increase in the average balance of such deposits, and a 66-basis point decrease in rates paid on money market accounts, partially offset by a $685.0 million increase in average balances of such deposits in the period.

Provision for Credit Losses.

We recorded a credit loss provision of $32.1 million during the nine months ended September 30, 2025, compared to a credit loss provision of $22.4 million for the nine months ended September 30, 2024.

The $32.1 million credit loss provision for the nine months ended September 30, 2025, was attributable to updates in the macroeconomic forecast, updated loss driver models, and charge-offs on loans in the owner occupied and non-owner occupied real estate segments.

The $22.4 million credit loss provision for the nine months ended September 30, 2024 was primarily associated with increased provisioning for the Bank’s business and multifamily loan portfolios.

We recorded a credit loss provision of $12.3 million and $9.6 million during the three months ended March 31, 2026 and 2025, respectively.

The $12.3 million credit loss provision for the three months ended March 31, 2026, was primarily attributable to charge-offs and provisioning for individually analyzed loans.

The $9.6 million credit loss provision for the three months ended March 31, 2025, was primarily associated with provisioning for individually analyzed loans.

Non-Interest Income.

Non-interest income was $33.4 million during the nine months ended September 30, 2025, compared to $29.9 million during the nine months ended September 30, 2024.

The increase was primarily driven by a $5.6 million increase in BOLI income, a $2.6 million increase in other non-interest income, a $1.7 million increase in service charges and other fees income and a $1.4 million increase in the fair value change in equity securities and loans held for sale, partially offset by a $7.8 million reduction in gains on sale of Bank’s premises.

Non-interest income totaled $11.3 million for the three months ended March 31, 2026, compared to $9.6 million for the same period in 2025.

The increase was primarily driven by a $1.1 million increase in service charges and other fees and a $565 thousand increase in BOLI income.

Non-Interest Expense.

Non-interest expense was $188.0 million during the nine months ended September 30, 2025, compared to $165.9 million during the nine months ended September 30, 2024.

The increase in non-interest expense was primarily due to a $9.9 million increase in salaries and employee benefits and a $7.2 million increase due to the pension settlement loss recorded during the first quarter of 2025.

Non-interest expense was 1.78% and 1.63% of average assets during the nine months ended September 30, 2025 and 2024, respectively.

Non-interest expense totaled $62.8 million for the three months ended March 31, 2026, compared to $65.5 million for the same period in 2025.

The decrease was primarily attributable to a $7.2 million pension settlement loss recorded during the three months ended March 31, 2025, with no comparable expense in the current‑year period, partially offset by an increase of $3.9 million of salaries and employee benefits.

Non-interest expense was 1.68% and 1.90% of average assets during the three months ended March 31, 2026 and 2025, respectively.

Income Tax Expense.

Income tax expense was $30.1 million during the nine months ended September 30, 2025, compared to income tax expense of $19.0 million during the nine months ended September 30, 2024.

The reported effective tax rate for the nine months ended September 30, 2025 and 2024 was 27.7%, and 27.8%, respectively.

Income tax expense was $13.9 million during the three months ended March 31, 2026, compared to income tax expense of $7.3 million during the three months ended March 31, 2025.

The reported effective tax rate for the three months ended March 31, 2026 and 2025 was 28.7%, and 25.3%, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis