What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 194 added, 98 removed, 169 unchanged (63% of the section changed)

16 unchanged sentences

(viii) Major catastrophes such as earthquakes, floods or other natural or human disasters and pandemics or infectious disease outbreaks, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies;

(ix) Legislative, regulatory or policy changes, including those relating, but not limited, to banking, securities, rent regulation and housing, financial accounting and reporting, environmental protection and insurance matters and the impact of such changes, as well as our ability to comply such changes in a timely manner

(ix) Legislative, regulatory or policy changes, including those relating, but not limited, to banking, securities, rent regulation and housing (including recent regulatory action in New York City to freeze rents on certain rent-regulated properties), financial accounting and reporting, environmental protection and insurance matters and the impact of such changes, as well as our ability to comply such changes in a timely manner

(x) Changes in the monetary and fiscal policies of the U.S.

16 unchanged sentences

Balance Sheet Analysis

Total assets decreased $38.4 million, or 1.9%, to $2.0 billion at March 31, 2026, from $2.1 billion at December 31, 2025.

The decrease in assets was primarily due to decreases in net loans of $31.8 million, cash and cash equivalents of $5.0 million, and other assets of $2.0 million.

Cash and cash equivalents decreased $5.0 million, or 6.1%, to $76.1 million at March 31, 2026 from $81.2 million at December 31, 2025.

The decrease in cash and cash equivalents partially funded a decrease of $50.0 million in borrowings.

Equity securities increased $879,000, or 3.3%, to $27.4 million at March 31, 2026 from $26.6 million at December 31, 2025.

The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the three months ended March 31, 2026, partially offset by market depreciation of $121,000 due to market interest rate volatility during the three months ended March 31, 2026.

Securities held-to-maturity decreased $150,000, or 0.8%, to $18.2 million at March 31, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities.

Loans, net of the allowance for credit losses, decreased $31.8 million, or 1.7%, to $1.8 billion at March 31, 2026 from $1.9 billion at December 31, 2025.

The decrease in loans consisted of decreases of $16.1 million in construction loans, $14.3 million in multi-family loans, $610,000 in commercial and industrial loans, $494,000 in mixed-use loans, $258,000 in non-residential loans, $34,000 in one-to-four family loans, and $21,000 in consumer loans.

The decrease in our construction loan portfolio was due to normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions.

During the three months ended March 31, 2026, we originated loans totaling $266.1 million, which includes commitments and funded loans, consisting primarily of $244.2 million in construction loans and $21.8 million in commercial and industrial loans.

Total assets increased $51.7 million, or 2.5%, to $2.1 billion at June 30, 2026, from $2.1 billion at December 31, 2025.

The increase in assets was primarily due to an increase in net loans of $59.4 million, partially offset by a decrease in cash and cash equivalents of $7.8 million.

Cash and cash equivalents decreased $7.8 million, or 9.6%, to $73.4 million at June 30, 2026 from $81.2 million at December 31, 2025.

The decrease in cash and cash equivalents partially funded the increase of $59.4 million in net loans.

Equity securities increased $757,000, or 2.8%, to $27.3 million at June 30, 2026 from $26.6 million at December 31, 2025.

The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the six months ended June 30, 2026, partially offset by market depreciation of $243,000 due to market interest rate volatility during the six months ended June 30, 2026.

Securities held-to-maturity decreased $564,000, or 3.1%, to $17.8 million at June 30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities.

Loans, net of the allowance for credit losses, increased $59.4 million, or 3.2%, to $1.9 billion at June 30, 2026 from $1.9 billion at December 31, 2025.

The increase in loans consisted of an increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in non-residential loans, $200,000 in mixed-use loans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $3,000 in commercial and industrial loans.

During the six months ended June 30, 2026, we originated loans totaling $653.2 million, which includes commitments and funded loans, consisting primarily of $606.7 million in construction loans, $25.1 million in commercial and industrial loans, $20.8 million in multi-family loans, and $675,000 in mixed-use loans.

The $606.7 million in construction loans had $262.7 million, or 43.3%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans.

The commercial and industrial loans had $18.9 million, or 86.7%, disbursed at loan closing.

The allowance for credit losses related to loans decreased to $4.6 million as of March 31, 2026, from $4.7 million as of December 31, 2025.

The decrease in the allowance for credit losses related to loans was due to charge-offs totaling $27,000 and a provision for credit losses reduction of $112,000 to the allowance for credit losses related to loans due to a decrease of $31.8 million in the loan portfolio.

The provision for credit losses reduction of $112,000 to the allowance for credit losses related to loans was offset by a provision for credit losses of $112,000 to the allowance for credit losses related to off-balance sheet commitments.

Premises and equipment decreased $199,000, or 0.8%, to $25.2 million at March 31, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets.

Federal Home Loan Bank stock was $410,000 and property held for investment was $1.3 million at both March 31, 2026 and December 31, 2025.

Bank owned life insurance (“BOLI”) increased $179,000, or 0.7%, to $26.6 million at March 31, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.

Accrued interest receivable decreased $152,000, or 1.2%, to $12.1 million at March 31, 2026 from $12.2 million at December 31, 2025 due to a decrease of $31.9 million in the loan portfolio.

Right of use assets — operating decreased $179,000, or 3.8%, to $4.5 million at March 31, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.

Other assets decreased $2.0 million, or 18.0%, to $9.0 million at March 31, 2026 from $11.0 million at December 31, 2025 due to decreases of $2.2 million in tax assets, partially offset by increases of $143,000 in prepaid expenses and $57,000 in suspense accounts.

Total deposits increased $9.4 million, or 0.6%, to $1.6 billion at March 31, 2026 from $1.6 billion at December 31, 2025.

The increase in deposits was primarily due to increases in NOW/money market accounts of $50.0 million, or 16.5% and non-interest bearing deposits of $25.0 million, or 9.2%, partially offset by decreases in certificates of deposit of $57.1 million, or 6.3%, and savings account balances of $8.5 million, or 6.0%.

The decrease of $57.1 million in certificates of deposit consisted of decreases in brokered certificates of deposit of $40.6 million, or 11.0%, non-brokered listing services certificates of deposit of $5.4 million, or 6.2%, and retail certificates of deposit of $11.2 million, or 2.5%.

These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions.

The commercial and industrial loans had $19.0 million, or 75.7%, disbursed at loan closing as of June 30, 2026.

Multi-family loan originations decreased by $74.6 million, or 78.2%, to $20.8 million for the six months ended June 30, 2026 from $95.4 million for the six months ended June 30, 2025 due to changes related to rent and housing regulations in New York City and the uncertainty regarding interest rates.

The allowance for credit losses related to loans was $4.6 million at June 30, 2026 and December 31, 2025.

The allowance for credit losses related to loans had a provision for credit losses totaling $568,000 and charge-offs totaling $547,000.

The provision for credit losses totaling $568,000 was due to an increase in the loan portfolio and a slight increase in the remaining terms of the loan portfolio.

The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $204.2 million, or 30.0%, in off-balance sheet commitments from December 31, 2025 to June 30, 2026.

The allowance for credit losses for held-to-maturity securities increased $9,000, or 7.1%, to $135,000 at June 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond portfolio.

Premises and equipment decreased $356,000, or 1.4%, to $25.0 million at June 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets.

Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000 at June 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets.

Bank owned life insurance (“BOLI”) increased $364,000, or 1.4%, to $26.8 million at June 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.

Accrued interest receivable decreased $39,000, or 0.3%, to $12.2 million at June 30, 2026 from $12.2 million at December 31, 2025 due to a decrease in the yield in the loan portfolio.

Property held for investment was $1.3 million at both June 30, 2026 and December 31, 2025.

Right of use assets — operating decreased $360,000, or 7.7%, to $4.3 million at June 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.

Other assets increased $117,000, or 1.1%, to $11.1 million at June 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $725,000 in suspense accounts, partially offset by decreases of $528,000 in tax assets and $90,000 in prepaid expenses.

Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion at June 30, 2026 from $1.6 billion at December 31, 2025.

The decrease in deposits was primarily due to decreases in certificates of deposit of $190.8 million, or 21.2%, and savings account balances of $10.6 million, or 7.5%, partially offset by increases in NOW/money market accounts of $67.5 million, or 22.3% and non-interest bearing deposits of $53.5 million, or 19.7%.

The decrease of $190.8 million in certificates of deposit consisted of decreases of $129.0 million, or 34.9%, in brokered certificates of deposit, $38.3 million, or 56.6%, in non-brokered listing services certificates of deposit, and $23.4 million, or 5.3% in retail certificates of deposit.

The decrease in brokered certificates of deposit and non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates and to rely less on brokered deposits and non-brokered listing service deposits.

The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.

Advance payments by borrowers for taxes and insurance increased $572,000, or 24.3%, to $2.9 million at March 31, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.

Borrowings decreased $50.0 million, or 71.4%, to $20.0 million at March 31, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds.

Lease liability – operating decreased $163,000, or 3.4%, to $4.6 million at March 31, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

Accounts payable and accrued expenses decreased $2.8 million, or 15.9%, to $14.5 million at March 31, 2026 from $17.3 million at December 31, 2025 due primarily to decreases in accrued expense of $2.9 million and accrued interest expense of $438,000, partially offset by increases in suspense account – loan closings of $217,000, deferred compensation of $158,000, and accounts payable of $40,000.

The allowance for credit losses for off-balance sheet commitments increased $112,000, or 12.7%, to $991,000 at March 31, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $140.0 million, or 20.6%, in off-balance sheet commitments from December 31, 2025 to March 31, 2026.

Stockholders’ equity increased $4.6 million, or 1.3% to $356.3 million at March 31, 2026, from $351.7 million at December 31, 2025.

The increase in stockholders’ equity was due to net income of $10.0 million for the three months ended March 31, 2026, an increase of $178,000 in earned employee stock ownership plan shares coupled with a reduction of $130,000 in unearned employee stock ownership plan shares, the amortization expense of $547,000 relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, $37,000 in stock options exercised, and $8,000 in other comprehensive income.

These increases were offset by stock repurchases and excise taxes of $3.6 million and dividends declared of $2.7 million.

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

Advance payments by borrowers for taxes and insurance increased $210,000, or 8.9%, to $2.6 million at June 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.

Borrowings increased $120.0 million, or 171.4%, to $190.0 million at June 30, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds and lessen reliance on brokered deposits and non-brokered listing service deposits.

Lease liability – operating decreased $329,000, or 6.9%, to $4.5 million at June 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

Accounts payable and accrued expenses increased $980,000, or 6.0%, to $18.6 million at June 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $1.3 million, suspense account – loan closings of $322,000, deferred compensation of $291,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and accrued interest expense of $107,000, partially offset by a decrease in accrued expenses of $1.0 million.

Stockholders’ equity increased $10.9 million, or 3.1% to $362.6 million at June 30, 2026, from $351.7 million at December 31, 2025.

The increase in stockholders’ equity was due to net income of $19.7 million for the six months ended June 30, 2026, the amortization expense of $1.1 million relating to restricted stock and stock options granted

under the Company’s 2022 Equity Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $25,000 in other comprehensive income.

These increases were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $4.7 million.

Results of Operations for the Three Months Ended June 30, 2026 and 2025

Financial Highlights

Net income for the three months ended March 31, 2026 was $10.0 million compared to net income of $10.6 million for the three months ended March 31, 2025.

The decrease in net income of $615,000, or 5.8%, between periods was primarily due to a decrease of $439,000 in non-interest income, an increase of $260,000 in non-interest expense, a decrease of $130,000 in net interest income, and an increase of $23,000 in income tax expense, partially offset by no credit loss expense for the three months ended March 31, 2026 compared to a credit loss expense of $237,000 for the three months ended March 31, 2025.

Net income for the three months ended June 30, 2026 was $9.8 million compared to net income of $11.2 million for the three months ended June 30, 2025.

The decrease in net income of $1.4 million, or 12.3%, between periods was primarily due to a credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025, a decrease of $424,000 in net interest income, a decrease of $216,000 in non-interest income, and an increase of $110,000 in non-interest expense, partially offset by a decrease of $235,000 in income tax expense.

Net Interest Income

Net interest income was $24.1 million for the three months ended March 31, 2026, as compared to $24.3 million for the three months ended March 31, 2025.

Net interest income was $24.7 million for the three months ended June 30, 2026, as compared to $25.1 million for the three months ended June 30, 2025.

The decrease in net interest income of $424,000, or 1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities.

Total interest and dividend income decreased $2.2 million, or 5.9%, to $36.0 million for the three months ended March 31, 2026 from $38.2 million for the three months ended March 31, 2025.

The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets of 61 basis points from 8.05% for the three months ended March 31, 2025 to 7.44% for the three months ended March 31, 2026, partially offset by an increase in the average balance of interest-earning assets of $35.2 million, or 1.9%, to $1.9 billion for the three months ended March 31, 2026 from $1.9 billion for the three months ended March 31, 2025.

Interest expense decreased $2.1 million, or 15.1%, to $11.8 million for the three months ended March 31, 2026 from $13.9 million for the three months ended March 31, 2025.

The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 58 basis points from 4.05% for the three months ended March 31, 2025 to 3.47% for the three months ended March 31, 2026.

The decrease in interest expense was also due to a decrease in the

average balance of interest-bearing liabilities of $9.9 million, or 0.7%, to $1.4 billion for the three months ended March 31, 2026 from $1.4 billion for the three months ended March 31, 2025.

Our net interest margin decreased 12 basis points, or 2.4%, to 4.99% for the three months ended March 31, 2026 compared to 5.11% for the three months ended March 31, 2025.

Total interest and dividend income decreased $2.0 million, or 5.2%, to $36.1 million for the three months ended June 30, 2026 from $38.1 million for the three months ended June 30, 2025.

The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 60 basis points from 8.11% for the three months ended June 30, 2025 to 7.51% for the three months ended June 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $43.8 million, or 2.3%, to $1.9 billion for the three months ended June 30, 2026 from $1.9 billion for the three months ended June 30, 2025.

Interest expense decreased $1.6 million, or 12.0%, to $11.4 million for the three months ended June 30, 2026 from $13.0 million for the three months ended June 30, 2025.

The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 43 basis points from 3.88% for the three months ended June 30, 2025 to 3.45% for the three months ended June 30, 2026.

The decrease in interest expense was also due to a decrease in the average balance of interest-bearing liabilities of $16.0 million, or 1.2%, to $1.3 billion for the three months ended June 30, 2026 from $1.3 billion for the three months ended June 30, 2025.

Our net interest margin decreased 21 basis points, or 3.9%, to 5.14% for the three months ended June 30, 2026 compared to 5.35% for the three months ended June 30, 2025.

The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded no credit loss expense for the three months ended March 31, 2026 compared to a credit loss expense of $237,000 for the three months ended March 31, 2025.

The credit loss expense of $237,000 for the three months ended March 31, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

The credit loss expense for loans of $62,000 for the three months ended March 31, 2025 was primarily due to an increase in the multi-family loan portfolio.

The credit loss expense for off-balance sheet commitments of $175,000 for the three months ended March 31, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

With respect to the allowance for credit losses for loans, we charged-off $27,000 during the quarter ended March 31, 2026, as compared to charge-offs of $117,000 during the quarter ended March 31, 2025.

The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

We recorded no recoveries during the quarter ended March 31, 2026 compared to recoveries of $352,000 during the quarter ended March 31, 2025.

The recoveries of $352,000 during the quarter ended March 31, 2025 were comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.

The Company recorded credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025.

The credit loss expense of $860,000 for the three months ended June 30, 2026 was comprised of credit loss expense for loans of $680,000, credit loss expense for off-balance sheet commitments of $171,000, and credit loss expense for held-to-maturity securities of $9,000.

The credit loss expense for loans of $680,000 for the three months ended June 30, 2026 was primarily due to an increase in the loan portfolio and increased credit risk in commercial and industrial loans due to a $500,000 loan charge-off.

The credit loss expense for off-balance sheet commitments of $171,000 for the three months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments.

The credit loss expense for held-to-maturity securities of $9,000 for the three months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.

With respect to the allowance for credit losses for loans, we charged-off $520,000 during the quarter ended June 30, 2026, as compared to charge-offs of $485,000 during the quarter ended June 30, 2025.

The charge-offs during the quarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000 against various unpaid overdrafts in our demand deposit accounts.

The charge-offs during the quarter ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

We recorded no recoveries during the quarter ended June 30, 2026 compared to recoveries of $82,000 during the quarter ended June 30, 2025.

The recoveries of $82,000 during the quarter ended June 30, 2025 comprised of recoveries from a previously charged-off unpaid overdraft on a demand deposit account.

Non-Interest Income

Non-interest income for the three months ended March 31, 2026 was $796,000 compared to non-interest income of $1.2 million for the three months ended March 31, 2025.

The decrease of $439,000, or 35.5%, in total non-interest income was primarily due to decreases of $421,000 in unrealized gain/(loss) on equity securities and $71,000 in other loan fees and service charges, partially offset by increases of $41,000 in miscellaneous other non-interest income and $12,000 in BOLI income.

The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $121,000 on equity securities during the quarter ended March 31, 2026 compared to an unrealized gain of $300,000 on equity securities during the quarter ended March 31, 2025.

The unrealized loss of $121,000 and unrealized gain of $300,000 on equity securities during the quarters ended March 31, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.

The decrease of $71,000 in other loan fees and service charges was due to a decrease of $143,000 in miscellaneous loan fees, partially offset by an increase of $72,000 in ATM/debit card/ACH fees.

The increase of $41,000 in miscellaneous other non-interest income was due to general accrual adjustments during the quarter.

Non-interest income for the three months ended June 30, 2026 was $642,000 compared to non-interest income of $858,000 for the three months ended June 30, 2025.

The decrease of $216,000, or 25.2%, in total non-interest income was primarily due to decreases of $173,000 in unrealized gain/(loss) on equity securities and $62,000 in other loan fees and service charges, partially offset by increases of $15,000 in BOLI income and $4,000 in miscellaneous other non-interest income.

The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $122,000 on equity securities during the quarter ended June 30, 2026 compared to an unrealized gain of $51,000 on equity securities during the quarter ended June 30, 2025.

The unrealized loss of $122,000 and unrealized gain of $51,000 on equity securities during the quarters ended June 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.

The decrease of $62,000 in other loan fees and service charges was due to decreases of $82,000 in loan service charges and fees, partially offset by an increase of $20,000 in ATM/debit card/ACH fees.

The increase of $15,000 in BOLI income was due to an increase in the yield on BOLI assets.

The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.

Non-Interest Expense

Non-interest expense increased $260,000, or 2.4%, to $10.9 million for the three months ended March 31, 2026 from $10.6 million for the three months ended March 31, 2025.

The increase resulted primarily from increases of $239,000 in salaries and employee benefits, $127,000 in occupancy expense, $61,000 in outside data processing expense, and $6,000 in equipment expense, partially offset by decreases of $84,000 in other operating expense, $59,000 in advertising expense, and $30,000 in real estate owned expense.

Salaries and employee benefits increased $239,000, or 4.0%, to $6.2 million for the three months ended March 31, 2026 from $5.9 million for the three months ended March 31, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses.

Occupancy expense increased $128,000, or 17.1%, to $874,000 for the three months ended March 31, 2026 from $747,000 for the three months ended March 31, 2025 primarily due to repairs and maintenance at various offices, increased utilities cost, and increased snow removal cost.

Outside data processing expense increased $61,000, or 8.2%, to $796,000 for the three months ended March 31, 2026 from $735,000 for the three months ended March 31, 2025 due to additional data processing services.

Equipment expense increased $6,000, or 2.6%, to $223,000 for the three months ended March 31, 2026 from $217,000 for the three months ended March 31, 2025 due to upgrades of equipment.

Other non-interest operating expense decreased $84,000, or 2.9%, to $2.8 million for the three months ended March 31, 2026 from $2.9 million for the three months ended March 31, 2025 due mainly to decreases of $105,000 in miscellaneous other non-interest expense, $24,000 in recruitment expense, $21,000 in office supplies, $16,000 in telephone expense, $12,000 in consulting fees, and $8,000 in audit and accounting expense.

These decreases were partially offset by increases of $31,000 in service contracts expense, $27,000 in legal fees, $21,000 in directors, officers and employees expense, $19,000 in directors compensation, and $6,000 in insurance expense.

The decrease of $105,000 in miscellaneous other non-interest expense was mainly due to decreases of $112,000 in regulatory fees, $19,000 in miscellaneous expenses, $12,000 in dues and subscriptions, $3,000 in public company expenses, and $3,000 in postage expenses, partially offset by increases of $23,000 in miscellaneous charge-offs, $12,000 in loan related expenses, and $10,000 in check and correspondence bank charges.

Regulatory fees decreased $112,000, or 13.2%, to $738,000 for the three months ended March 31, 2026 from $850,000 for the three months ended March 31, 2025 due to a reduction in the Bank’s risk profile between periods.

Advertising expense decreased $59,000, or 57.7%, to $43,000 for the three months ended March 31, 2026 from $102,000 for the three months ended March 31, 2025 due to a decrease in various marketing campaigns.

Real estate owned expense decreased $30,000 to none for the three months ended March 31, 2026 from $30,000 for the three months ended March 31, 2025 due to the sale in December 2025 of the sole real estate owned located in Pittsburgh, Pennsylvania.

We recorded income tax expense of $4.1 million for both three months ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026, we had approximately $248,000 in tax exempt income, compared to approximately $204,000 in tax exempt income for the three months ended March 31, 2025.

Our effective income tax rate was 29.2% for the three months ended March 31, 2026 compared to 27.8% for the three months ended March 31, 2025.

Non-interest expense increased $110,000, or 1.0%, to $10.6 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025.

The increase resulted primarily from increases of $291,000 in other operating expense, $166,000 in salaries and employee benefits, and $44,000 in occupancy expense, partially offset by decreases of $247,000 in real estate owned expense, $79,000 in advertising expense, $33,000 in outside data processing expense, and $32,000 in equipment expense.

Other non-interest operating expense increased $291,000, or 10.6%, to $3.0 million for the three months ended June 30, 2026 from $2.7 million for the three months ended June 30, 2025 due mainly to increases of $331,000 in miscellaneous other non-interest expense, $35,000 in consulting fees, $29,000 in service contracts expense, $28,000 in insurance expense, $16,000 in legal fees, $12,000 in directors, officers and employees expense, and $1,000 in directors compensation.

These were partially offset by decreases of $77,000 in regulatory fees, $32,000 in audit and accounting expense, $22,000 in telephone expense, $17,000 in recruitment expense, $7,000 in office supplies expense, and $6,000 in dues and subscription expense.

The increase of $331,000 in miscellaneous other non-interest expense was mainly due to increases of $314,000 in miscellaneous charge-offs, $49,000 in public company expense, and $12,000 in check and correspondence bank charges, partially offset by a decrease of $44,000 in miscellaneous other non-interest expense.

The increase of $314,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.

Salaries and employee benefits increased $166,000, or 2.9%, to $5.8 million for the three months ended June 30, 2026 from $5.7 million for the three months ended June 30, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses.

Occupancy expense increased $44,000, or 5.9%, to $787,000 for the three months ended June 30, 2026 from $743,000 for the three months ended June 30, 2025 primarily due to repairs and maintenance at various offices and increased utilities cost.

Real estate owned expense decreased $247,000 to none for the three months ended June 30, 2026 from $247,000 for the three months ended June 30, 2025 due to the sale of two real estate owned properties during 2025, with the Bronx real estate owned property sold in June 2025 and the Pittsburgh real estate owned property sold in December 2025.

The $247,000 real estate owned expense during the second quarter of 2025 comprised mainly of closing costs of $231,000 associated with the sale of the Bronx property and the operating expense of the Pittsburgh property.

Advertising expense decreased $79,000, or 64.2%, to $44,000 for the three months ended June 30, 2026 from $123,000 for the three months ended June 30, 2025 due to a decrease in various marketing campaigns.

Outside data processing expense decreased $33,000, or 4.4%, to $725,000 for the three months ended June 30, 2026 from $758,000 for the three months ended June 30, 2025 due to a reduction in one-time initial fees for new services.

Equipment expense decreased $32,000, or 12.6%, to $221,000 for the three months ended June 30, 2026 from $253,000 for the three months ended June 30, 2025 due to a reduction in the upgrades of equipment.

We recorded income tax expense of $4.0 million and $4.3 million for the three months ended June 30, 2026 and 2025, respectively.

For the three months ended June 30, 2026, we had approximately $252,000 in tax exempt income, compared to approximately $210,000 in tax exempt income for the three months ended June 30, 2025.

Our effective income tax rate was 29.1% for the three months ended June 30, 2026 compared to 27.6% for the three months ended June 30, 2025.

Results of Operations for the Six Months Ended June 30, 2026 and 2025

Financial Highlights

Net income for the six months ended June 30, 2026 was $19.7 million compared to net income of $21.7 million for the six months ended June 30, 2025.

The decrease in net income of $2.0 million, or 9.2%, between periods was primarily due to a decrease of $554,000 in net interest income, an increase of $623,000 in credit loss expense, a decrease of $655,000 in non-interest income, and an increase of $371,000 in non-interest expense, partially offset by a decrease of $213,000 in income tax expense.

Net Interest Income

Net interest income was $48.8 million for the six months ended June 30, 2026 as compared to $49.3 million for the six months ended June 30, 2025.

The decrease in net interest income of $555,000, or 1.1%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.

Total interest and dividend income decreased $4.2 million, or 5.5%, to $72.0 million for the six months ended June 30, 2026 from $76.2 million for the six months ended June 30, 2025.

The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 60 basis points from 8.08% for the six months ended June 30, 2025 to 7.48% for the six months ended June 30, 2026, partially offset by an increase in the average balance of interest earning assets of $39.5 million, or 2.1%, to $1.9 billion for the six months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025.

Interest expense decreased $3.7 million, or 13.6%, to $23.2 million for the six months ended June 30, 2026 from $26.9 million for the six months ended June 30, 2025.

The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 51 basis points from 3.97% for the six months ended June 30, 2025 to 3.46% for the six months ended June 30, 2026 and a decrease in average interest bearing liabilities of $13.0 million, or 1.0%, to $1.3 billion for the six months ended June 30, 2026 from $1.4 billion for the six months ended June 30, 2025.

Net interest margin decreased 17 basis points, or 3.2%, to 5.06% for the six months ended June 30, 2026 compared to 5.23% for the six months ended June 30, 2025.

The decrease in the net interest margin was due to a 75 basis points

decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded a credit loss expense of $860,000 for the six months ended June 30, 2026 compared to a credit loss expense of $237,000 for the six months ended June 30, 2025.

The credit loss expense of $860,000 for the six months ended June 30, 2026 was comprised of credit loss expense for loans of $568,000, credit loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of $9,000.

The credit loss expense of $237,000 for the six months ended June 30, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

The credit loss expense for loans of $568,000 for the six months ended June 30, 2026 was primarily due to an increase in the loan portfolio.

The credit loss expense for off-balance sheet commitments of $283,000 for the six months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments.

The credit loss expense for held-to-maturity securities of $9,000 for the six months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.

The credit loss expense for loans of $62,000 for the six months ended June 30, 2025 was primarily due to an increase in the multi-family loan portfolio.

The credit loss expense for off-balance sheet commitments of $175,000 for the six months ended June 30, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

With respect to the allowance for credit losses for loans, we charged-off $547,000 during the six months ended June 30, 2026 as compared to charge-offs of $602,000 during the six months ended June 30, 2025.

The charge-offs during the six months ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $47,000 against various unpaid overdrafts in our demand deposit accounts.

The charge-offs during the six months ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

We recorded no recoveries during the six months ended June 30, 2026 compared to recoveries of $434,000 during the six months ended June 30, 2025.

The recoveries of $434,000 during the six months ended June 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off non-residential mortgage loan and $84,000 from previously charged-off unpaid overdrafts on demand deposit accounts.

Non-Interest Income

Non-interest income for the six months ended June 30, 2026 was $1.4 million compared to non-interest income of $2.1 million for the six months ended June 30, 2025.

The decrease of $655,000, or 31.3%, in total non-interest income was primarily due to decreases of $594,000 in unrealized gain/(loss) on equity securities and $133,000 in other loan fees and service charges, partially offset by increases of $45,000 in miscellaneous other non-interest income and $27,000 in BOLI income.

The decrease in unrealized gain on equity securities was due to an unrealized loss of $243,000 on equity securities during the six months ended June 30, 2026 compared to an unrealized gain of $351,000 on equity securities during the six months ended June 30, 2025.

Both the unrealized loss of $243,000 on equity securities during the 2026 period and the unrealized gain of $351,000 on equity securities during the 2025 period were due to market interest rate volatility during both periods.

The decrease of $133,000 in other loan fees and service charges was due to a decrease of $226,000 in other loan fees and loan servicing fees, partially offset by an increase of $92,000 in ATM/debit card/ACH fees.

The increase of $45,000 in miscellaneous other non-interest income was due to general accrual adjustments during the first quarter of 2026.

The increase in BOLI income of $27,000 was due to an increase in the yield on BOLI assets.

Non-Interest Expense

Non-interest expense increased $371,000, or 1.8%, to $21.5 million for the six months ended June 30, 2026 from $21.1 million for the six months ended June 30, 2025.

The increase resulted primarily from increases of $406,000 in salaries and employee benefits, $208,000 in other operating expense, $172,000 in occupancy expense, and $27,000 in

outside data processing expense, partially offset by decreases of $277,000 in real estate owned expense, $139,000 in advertising expense, and $26,000 in equipment expense.

Salaries and employee benefits increased $406,000, or 3.5%, to $12.0 million for the six months ended June 30, 2026 from $11.6 million for the six months ended June 30, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses.

Other non-interest expense increased $208,000, or 3.7%, to $5.8 million for the six months ended June 30, 2026 from $5.6 million for the six months ended June 30, 2025 due mainly to increases of $351,000 in miscellaneous other non-interest expense, $60,000 in service contract expense, $44,000 in legal fees, $34,000 on insurance expense, $32,000 in directors, officers, and employee expense, $23,000 in consultant fees, and $19,000 in directors compensation, partially offset by decreases of $189,000 in regulatory fees, $41,000 in recruitment expense, $40,000 in audit and accounting fees, $39,000 in telephone expense, $28,000 in office supplies expense, and $18,000 in dues and subscriptions expense.

The increase of $351,000 in miscellaneous other non-interest expense was mainly due to increases of $336,000 in miscellaneous charge-offs, $46,000 in public company expenses, and $22,000 in check and correspondence bank charges, partially offset by decreases of $51,000 in miscellaneous other non-interest expense and $3,000 in postage expense.

The increase of $336,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.

Occupancy expense increased $172,000, or 11.6%, to $1.7 million for the six months ended June 30, 2026 from $1.5 million for the six months ended June 30, 2025 primarily due to repairs and maintenance at various offices and increased utilities cost.

Outside data processing expense increased nominally by $27,000, or 1.8%, to $1.5 million for the six months ended June 30, 2026 from $1.5 million for the six months ended June 30, 2025.

Real estate owned expense decreased $277,000 to none for the six months ended June 30, 2026 from $277,000 for the six months ended June 30, 2025 due to the sale of two real estate owned properties during 2025, with the Bronx real estate owned property sold in June 2025 and the Pittsburgh real estate owned property sold in December 2025.

The $277,000 real estate owned expense during the second quarter of 2025 comprised mainly of closing costs of $231,000 associated with the sale of the Bronx property and the operating cost of the Pittsburgh property.

Advertising expense decreased $139,000, or 61.8%, to $86,000 for the six months ended June 30, 2026 from $225,000 for the six months ended June 30, 2025 due to a decrease in various marketing campaigns.

Equipment expense decreased $26,000, or 5.5%, to $444,000 for the six months ended June 30, 2026 from $470,000 for the six months ended June 30, 2025 due to a reduced need to purchase additional equipment for upgrading purposes.

We recorded income tax expense of $8.1 million and $8.3 million for the six months ended June 30, 2026 and 2025, respectively.

For the six months ended June 30, 2026, we had approximately $500,000 in tax exempt income, compared to approximately $415,000 in tax exempt income for the six months ended June 30, 2025.

Our effective income tax rates were 29.1% and 27.7% for the six months ended June 30, 2026 and 2025, respectively.

Average Balances and Yields

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Any adjustments necessary to present yields on a tax-equivalent basis are insignificant.

Three Months Ended March 31,

Three Months Ended June 30,

Loans receivable

Federal Home Loan Bank stock

Other interest-earning assets

Total interest-earning assets

Allowance for credit losses

Non-interest-earning assets

Interest bearing demand

Savings and club accounts

Certificates of deposit

Interest-bearing deposits

Borrowed money

Interest-bearing liabilities

Non-interest-bearing demand

Other non-interest-bearing liabilities

Total liabilities

Total liabilities and equity

Net interest income/interest spread

Net interest margin

Net interest-earning assets

Average interest-earning assets to interest-bearing liabilities

Six Months Ended June 30,

Loans receivable

Federal Home Loan Bank stock

Interest-bearing deposits

Total interest-earning assets

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Federal Home Loan Bank stock

Other interest-earning assets

Interest expense:

Interest bearing demand deposit

Savings accounts

Certificates of deposits

Borrowed money

Net change in net interest income

Six Months Ended 6/30/2026

Six Months Ended 6/30/2025

Increase (Decrease)

(Dollars in thousands)

Interest income:

Loans receivable

Federal Home Loan Bank stock

Interest-bearing deposits

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Asset Quality

We had no non-performing assets at March 31, 2026 and at December 31, 2025.

During the three months ended March 31, 2026 and 2025, we did not collect any interest income from loans that were in non-accrual status.

We had no non-performing assets at June 30, 2026 and at December 31, 2025.

During the six months ended June 30, 2026 and 2025, we did not collect any interest income from loans that were in non-accrual status.

From time to time, as part of our loss mitigation strategy, we may modify loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction.

When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

There were no new loan modifications to borrowers experiencing financial difficulties during the three months ended March 31, 2026 or 2025.

At March 31, 2026 and December 31, 2025, we had no loans modified to borrowers experiencing financial difficulty.

During the three and six months ended June 30, 2026, three loans totaling $17.4 million were modified to one borrower experiencing financial difficulty whereby the weighted average contractual interest rates of the three loans were reduced to 5.63% from 8.75%.

There were no loans modified to borrowers experiencing financial difficulty during the year ended December 31, 2025.

The performance of the loans made to the borrower experiencing financial difficulty in which modifications were made is closely monitored to determine the effectiveness of modification efforts.

At June 30, 2026, the three loans were current.

The following table sets forth an analysis of the activity in the allowance for credit losses related to loans for the periods indicated:

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Non-performing loans

The Company’s allowance for credit losses related to loans totaled $4.6 million, or 0.25% of total loans as of March 31, 2026 compared to $4.7 million, or 0.25% of total loans as of December 31, 2025.

In addition, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $991,000 as of March 31, 2026 compared to $879,000 at December 31, 2025.

The allowance for credit losses related to held-to-maturity debt securities totaled $126,000 at both March 31, 2026 and December 31, 2025.

The allowance for credit losses related to loans decreased $139,000 to $4.6 million at March 31, 2026 from $4.7 million at December 31, 2025 due primarily to charge-offs totaling $27,000, and a provision for credit losses reduction of $112,000 due to a reduction in the loan portfolio.

The allowance for credit losses related to off-balance sheet commitments increased $112,000 to $991,000 at March 31, 2026 from $879,000 at December 31, 2025 due to a provision for credit losses of $112,000 due to an increase in outstanding commitments between periods.

The Company’s allowance for credit losses related to loans totaled $4.8 million, or 0.25% of total loans as of June 30, 2026 compared to $4.7 million, or 0.25% of total loans as of December 31, 2025.

In addition, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $1.2 million as of June 30, 2026 compared to $879,000 at December 31, 2025.

The allowance for credit losses related to held-to-maturity debt securities totaled $135,000 at June 30, 2026 compared to $126,000 at December 31, 2025.

The allowance for credit losses related to loans increased $21,000 to $4.8 million at June 30, 2026 from $4.7 million at December 31, 2025 due primarily to a provision for credit losses of $568,000 due to an increase in the loan portfolio, partially offset by charge-offs totaling $547,000.

The allowance for credit losses related to off-balance sheet commitments increased $284,000 to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due to a provision for credit losses of $284,000 due to an increase of $204.2 million, or 30.0%, in outstanding commitments between periods.

Liquidity and Capital Resources

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We also establish targets of 2.0% for the Cash Liquidity ratio, 5.0% for the On Balance Sheet Liquidity ratio, and 20.0% for the On Balance Sheet Liquidity & Borrowing Capacity ratio.

Our Cash Liquidity ratio, On Balance Sheet Liquidity ratio, and On Balance Sheet Liquidity & Borrowing Capacity ratio averaged 4.3%, 7.1%, and 59.6%, respectively, for the three months ended March 31, 2026 compared to 5.0%, 7.4%, and 59.9%, respectively, for the year ended December 31, 2025.

Our Cash Liquidity ratio, On Balance Sheet Liquidity ratio, and On Balance Sheet Liquidity & Borrowing Capacity ratio averaged 4.2%, 6.9%, and 55.6%, respectively, for the six months ended June 30, 2026 compared to 5.0%, 7.4%, and 59.9%, respectively, for the year ended December 31, 2025.

We adjust our liquidity levels to fund deposit outflows, pay real estate taxes on real estate loans, repay our borrowings, and fund loan commitments.

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To assess the adequacy of its liquidity, the Company compares time-series liquidity against Total Non-Contractual Deposits defined as total deposits less (1) brokered deposits outstanding, (2) other contractual funding outstanding, and (3) collateralized municipal deposits outstanding.

As of March 31, 2026, the Company’s ratios of Cash and Borrowing Capacity/Total Non-Contractual Deposits and Cash, Borrowing Capacity and Sourced Deposits Capacity/Total Non-Contractual Deposits were 73.4% and 121.2%, respectively.

As of June 30, 2026, the Company’s ratios of Cash and Borrowing Capacity/Total Non-Contractual Deposits and Cash, Borrowing Capacity and Sourced Deposits Capacity/Total Non-Contractual Deposits were 55.2% and 100.9%, respectively.

These figures demonstrate that the Company has sufficient liquidity resources to meet sudden and unexpected deposit outflow.

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Our primary investing activities are the origination of construction loans, commercial and industrial loans, multifamily loans, and to a lesser extent, mixed-use real estate loans and other loans.

For the three months ended March 31, 2026 and 2025, our loan originations totaled $266.1 million and $170.1 million, respectively.

Cash received from the maturities and pay-downs on securities totaled $155,000 and $128,000 for the three months ended March 31, 2026 and 2025, respectively.

We purchased $1.0 million in equity securities during the three months ended March 31, 2026 compared to purchases of $1.0 million in equity securities during the three months ended March 31, 2025.

For the six months ended June 30, 2026 and 2025, our loan originations totaled $653.2 million and $462.7 million, respectively.

Cash received from the maturities and pay-downs on securities totaled $1.0 million and $485,000 for the six months ended June 30, 2026 and 2025, respectively.

We purchased $1.0 million in equity securities and $470,000 in municipal securities during the six months ended June 30, 2026 compared to purchases of $3.0 million in equity securities and $270,000 in municipal securities during the six months ended June 30, 2025.

Liquidity management is both a daily and long-term function of business management.

If we require funds beyond our ability to generate them internally, borrowing agreements exist with the Federal Reserve Bank of New York (“FRBNY”) whereby the Bank pledged eligible loans under the Borrower-in-Custody program of the FRBNY allowing the Bank to borrow from the Discount Window at the FRBNY.

We had an available borrowing limit of $866.7 million and $768.8 million from the FRBNY at March 31, 2026 and December 31, 2025, respectively.

We had $20.0 million in FRBNY borrowings at March 31, 2026 compared to $70.0 million in FRBNY borrowings at December 31, 2025.

We had an available borrowing limit of $633.0 million and $768.8 million from the FRBNY at June 30, 2026 and December 31, 2025, respectively.

We had $190.0 million in FRBNY borrowings at June 30, 2026 compared to $70.0 million in FRBNY borrowings at December 31, 2025.

As a member of the Federal Home Loan Bank of New York (“FHLB-NY”), we are required to own capital stock in the FHLB-NY and are authorized to apply for advances on the security of such stock and certain of our mortgage loans and other assets (principally securities which are obligations of, or guaranteed by, the United States), provided certain standards related to credit-worthiness have been met.

In February 2026, we withdrew our pledged eligible loans from the FHLB-NY’s advance program and are in the process of pledging these eligible loans with the FRB-NY to increase our borrowing capacity with the FRB-NY.

Due to the withdrawal of pledged eligible loans from the FHLB-NY, we no longer have borrowing capacity at the FHLB-NY at March 31, 2026 compared to borrowing capacity at the FHLB-NY of $35.8 million at December 31, 2025.

We had no FHLB-NY advances at March 31, 2026 and December 31, 2025.

In February 2026, we withdrew our pledged eligible loans from the FHLB-NY’s advance program and are in the process of pledging these eligible loans with the FRBNY to increase our borrowing capacity with the FRBNY.

Due to the withdrawal of pledged eligible loans from the FHLB-NY, we no longer have borrowing capacity at the FHLB-NY at June 30, 2026 compared to borrowing capacity at the FHLB-NY of $35.8 million at December 31, 2025.

We had no FHLB-NY advances at June 30, 2026 and December 31, 2025.

In addition, we are party to a loan agreement with ACBB under which we can borrow up to $8.0 million in short-term borrowings.

There were no outstanding borrowings with ACBB at March 31, 2026 and December 31, 2025.

At March 31, 2026, we had unfunded commitments on construction and multi-family mortgage loans of $429.5 million, outstanding commitments to originate loans of $297.1 million, unfunded commitments under commercial and industrial loans lines of credit of $78.9 million, and unfunded standby letters of credit of $14.2 million.

At March 31, 2026, certificates of deposit scheduled to mature in less than one year totaled $796.2 million.

There were no outstanding borrowings with ACBB at June 30, 2026 and December 31, 2025.

At June 30, 2026, we had unfunded commitments on construction and multi-family mortgage loans of $507.4 million, outstanding commitments to originate loans of $292.2 million, unfunded commitments under commercial and industrial loans lines of credit of $70.2 million, and unfunded standby letters of credit of $14.2 million.

At June 30, 2026, certificates of deposit scheduled to mature in less than one year totaled $682.1 million.

Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case.

4 unchanged sentences

In addition to its operating expenses, the Company is responsible for paying any dividends declared to its stockholders and for the repurchase, if any, of its shares of common stock.

At March 31, 2026, the Company had liquid assets of $8.8 million and $3.1 million in loan participations originated by the Bank which are held by the Company.

At June 30, 2026, the Company had liquid assets of $6.2 million and $1.9 million in loan participations originated by the Bank which are held by the Company.

Off-Balance Sheet Arrangements

For the three months ended March 31, 2026, we did not engage in any off-balance sheet transactions reasonably likely to have a material adverse effect on our financial condition, results of operations or cash-flows.

For the three and six months ended June 30, 2026, we did not engage in any off-balance sheet transactions reasonably likely to have a material adverse effect on our financial condition, results of operations or cash-flows.

Impact of Inflation and Changing Prices

4 unchanged sentences

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