What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-06 compared with 2025-08-07 · 168 added, 167 removed, 300 unchanged (53% of the section changed)

4 unchanged sentences

Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S.

Government, tariffs, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government.

government, tariffs, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of the current federal government shutdown.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made.

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Prior period information is not revised, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date.

In accordance with ASC 805, during

2024 the Company recorded a measurement period adjustment and decreased goodwill by $10.5 million to $180.4 million, related to finalizing the valuation.

While there were no merger-related expenses with Lakeland for the 2025 period, these costs totaled $18.9 million and $21.1 million for the three and six months ended June 30, 2024.

In accordance with ASC 805, during 2024 the Company recorded a measurement period adjustment and decreased goodwill by $10.5 million to $180.4 million, related to finalizing the valuation.

While there were no merger-related expenses with Lakeland for the 2025 period, these costs totaled $15.6 million and $36.7 million for the three and nine months ended September 30, 2024.

Merger-related expense is a separate line in non-interest expense on the Consolidated Statements of Income.

Additionally, an initial CECL provision for credit losses of $60.1 million was recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively.

Additionally, an initial CECL provision for credit losses of $60.1 million was recorded as part of the Lakeland merger, for the nine months ended September 30, 2024.

Critical Accounting Policies

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Historical credit loss experience for both the Company and peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate (“PDR”) curves through the use of segment-specific loss given default (“LGD”) risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment, primarily due to the nature of the underlying collateral.

These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry.

deviate from that of the wider industry.

The historical PDR curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.

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One of the most significant judgments involved in estimating the Company’s allowance for credit losses on loans relates to the macroeconomic forecasts used to estimate expected credit losses over the forecast period.

As of June 30, 2025, the model incorporated Moody’s baseline economic forecast, as adjusted for qualitative factors, as well as an extensive review of classified loans and loans that were classified as impaired with a specific reserve assigned to those loans.

The allowance estimation process resulted in a total benefit to the provision of $2.7 million and $2.3 million for the three and six months ended June 30, 2025, and an overall coverage ratio of 98 basis points.

As of September 30, 2025, the model incorporated Moody’s baseline economic forecast, as adjusted for qualitative factors, as well as an extensive review of classified loans and loans that were classified as impaired with a specific reserve assigned to those loans.

The allowance estimation process resulted in a provision of $4.5 million and $2.2 million for the three and nine months ended September 30, 2025, and an overall coverage ratio of 97 basis points.

Management believes the allowance for credit losses accurately represents the estimated inherent losses, factoring in the qualitative adjustment and other assumptions, including the selection of the baseline forecast within the model.

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The segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.

As of June 30, 2025, the portfolio and class segments for the Company’s loan portfolio were:

As of September 30, 2025, the portfolio and class segments for the Company’s loan portfolio were:

• Mortgage Loans – Residential, Commercial Real Estate, Multi-Family and Construction

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Loans acquired that have experienced more-than-insignificant deterioration in credit quality since their origination are considered PCD loans.

The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following:

The Company evaluates acquired loans for deterioration in credit quality based on any of, but not

limited to, the following:

(1) non-accrual status;

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Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods, and to the extent actual losses are higher than management estimates, additional provision for credit losses on loans could be required and could adversely affect our earnings or financial position in future periods.

In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for credit losses as an

integral part of their examination process.

In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for credit losses as an integral part of their examination process.

Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination.

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Recent Legislation

On July 4, 2025, subsequent to the end of the Company’s second fiscal quarter, the One Big Beautiful Bill ("OBBB") was enacted into law.

On July 4, 2025, the One Big Beautiful Bill ("OBBB") was enacted into law.

The legislation includes a number of significant tax-related provisions, including changes affecting corporate tax incentives, international tax provisions, and various business credits and deductions.

Pursuant to ASC 740, Income Taxes, the Company will recognize the effects of the OBBB in the third fiscal quarter of 2025, the period in which the legislation was enacted.

The Company is currently evaluating the potential impact of the OBBB on its financial statements and, based on its preliminary assessment, does not currently expect the legislation to have a material impact.

COMPARISON OF FINANCIAL CONDITION AS OF JUNE 30, 2025 AND DECEMBER 31, 2024

Total assets as of June 30, 2025 were $24.55 billion, a $495.5 million increase from December 31, 2024.

The Company evaluated the potential impact of the OBBB on its financial statements and, based on its assessment, the legislation does not have a material impact on its financial statements.

COMPARISON OF FINANCIAL CONDITION AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024

Total assets as of September 30, 2025 were $24.83 billion, a $780.9 million increase from December 31, 2024.

The increase in total assets was primarily due to a $626.7 million increase in loans held for investment and a $344.3 million increase in total investments, partially offset by a $148.1 million decrease in loans held for sale, and decreases in intangibles and other assets.

The Company’s loans held for investment portfolio totaled $19.10 billion as of June 30, 2025 and $18.66 billion as of December 31, 2024.

The Company’s loans held for investment portfolio totaled $19.29 billion as of September 30, 2025 and $18.66 billion as of December 31, 2024.

The loan portfolio consisted of the following:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Mortgage loans:

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(1) Commercial loans consist of owner-occupied real estate and commercial & industrial loans.

During the three months ended June 30, 2025, the loans held for investment portfolio had net increases of $182.7 million of commercial loans, $63.4 million of mortgage warehouse lines, $59.3 million of multi-family loans and $18.3 million of commercial mortgage loans, partially offset by net decreases of $9.0 million of residential mortgage loans, $4.4 million of construction loans and $3.7 million of consumer loans.

Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.4% of the loan portfolio as of June 30, 2025, compared to 85.9% as of December 31, 2024.

During the three months ended September 30, 2025, the loans held for investment portfolio had net increases of $149.0 million of commercial loans, $52.0 million of mortgage warehouse lines, $17.2 million of multi-family loans and $4.8 million of commercial mortgage loans, partially offset by net decreases of $32.0 million of construction loans, $7.9 million of residential mortgage loans and $2.2 million of consumer loans.

Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.6% of the loan portfolio as of September 30, 2025, compared to 85.9% as of December 31, 2024.

The Bank’s lending activities, though concentrated in the communities surrounding its offices, extend predominantly throughout New Jersey, eastern Pennsylvania and Orange, Nassau and Queens Counties, New York.

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These loans are particularly sensitive to economic conditions.

As of June 30, 2025, our portfolio of commercial real estate loans, including multi-family and construction loans, totaled $11.58 billion, or 60.6% of total gross loans.

As of September 30, 2025, our portfolio of commercial real estate loans, including multi-family and construction loans, totaled $11.57 billion, or 60.0% of total gross loans.

The Company believes the CRE loans it originates are appropriately collateralized under its credit standards.

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As a result, the performance of these loans is generally impacted by fluctuations in collateral values, the ability of the borrower to obtain permanent financing, and, in the case of loans to residential builders/developers, volatility in consumer demand.

The table below summarizes the concentrations of CRE loans on a gross basis, not including any purchase accounting adjustments, based on the collateral securing the loans, as of June 30, 2025 (in thousands):

Amount Percentage of Total

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Industrial 2,260,331 19.3

Office 908,080 7.7

Mixed 911,205 7.8

Office 798,909 6.8

Special use property 634,434 5.4

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Both the appraisal process and the appraisal review process can be less reliable in establishing accurate collateral values during and following periods of economic weakness due to the lack of comparable sales and the limited availability of financing to support an active market of potential purchasers.

The table below summarizes the Company’s commercial real estate portfolio, including multi-family and construction loans on a gross basis, not including any purchase accounting adjustments as of June 30, 2025, as segregated by the geographic region in which the property is located (dollars in thousands):

The table below summarizes the Company’s commercial real estate portfolio, including multi-family and construction loans on a gross basis, not including any purchase accounting adjustments as of September 30, 2025, as segregated by the geographic region in which the property is located (dollars in thousands):

Amount Percentage of Total

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The Company participates in loans originated by other banks, including participations designated as Shared National Credits (“SNCs”).

The Company’s gross commitments and outstanding balances as a participant in SNCs were $174.8 million and $84.5 million, respectively, as of June 30, 2025, compared to $168.4 million and $86.8 million, respectively, as of December 31, 2024.

The following table sets forth information regarding the Company’s non-performing assets as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025 December 31, 2024

The Company’s gross commitments and outstanding balances as a participant in SNCs were $171.3 million and $88.4 million, respectively, as of September 30, 2025, compared to $168.4 million and $86.8 million, respectively, as of December 31, 2024.

The following table sets forth information regarding the Company’s non-performing assets as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Mortgage loans:

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Commercial loans (1)

32,483 24,243

Consumer loans 1,388 1,656

2 unchanged sentences

Total non-performing assets $ 102,424 81,534

The following table sets forth information regarding the Company’s 60-89 day delinquent loans as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025 December 31, 2024

(1) Includes $2.4 million of total non-accrual loans held for sale as of December 31, 2024.

The following table sets forth information regarding the Company’s 60-89 day delinquent loans as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Mortgage loans:

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Total 60-89 day delinquent loans $ 13,062 12,236

As of June 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.98% of total loans, compared to 1.04% and 1.00% as of December 31, 2024 and June 30, 2024, respectively.

The Company recorded benefits to the provisions for credit losses on loans of $2.7 million and $2.3 million for the three and six months ended June 30, 2025, compared with provisions of $66.1 million and $66.3 million for the three and six months ended June 30, 2024, respectively.

For the three and six months ended June 30, 2025, the Company had net charge-offs of $1.2 million and $3.2 million, respectively, compared to net charge-offs of $1.3 million and $2.3 million, respectively, for the same periods in 2024.

The allowance for credit losses decreased $5.6 million to $187.9 million as of June 30, 2025 from $193.4 million as of December 31, 2024.

The benefit to the provision for credit losses on loans for the three and six months ended June 30, 2025 was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans.

The provision for credit losses on loans for the three and six months ended June 30, 2024 was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger.

Total non-performing loans were $107.2 million, or 0.56% of total loans as of June 30, 2025, compared to $72.1 million, or 0.39% of total loans as of December 31, 2024.

The $35.1 million increase in non-performing loans consisted of a $21.9 million increase in non-performing commercial mortgage loans, a $6.3 million increase in non-performing commercial loans, a $5.7 million increase in non-performing construction loans and a $2.7 million increase in non-performing residential mortgage loans, partially offset by a $1.4 million decrease in non-performing multi-family loans and a $109,000 decrease in non-performing consumer loans.

As of June 30, 2025 and December 31, 2024, the Company held foreclosed assets of $1.0 million and $9.5 million, respectively.

During the six months ended June 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price.

1) Includes $2.4 million of 60-89 day delinquent loans held for sale as of December 31, 2024.

As of September 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.97% of total loans, compared to 1.04% and 1.02% as of December 31, 2024 and September 30, 2024, respectively.

The Company recorded a provision for credit losses on loans of $4.5 million and $2.2 million for the three and nine months ended September 30, 2025, respectively, compared with provisions of $9.6 million and $75.9 million for the three and nine months ended September 30, 2024, respectively.

For the three and nine months ended September 30, 2025, the Company had net charge-offs of $5.4 million and $8.6 million, respectively, compared to net charge-offs of $6.8 million and $9.1 million, respectively, for the same periods in 2024.

The allowance for credit losses decreased $6.5 million to $187.0 million as of September 30, 2025 from $193.4 million as of December 31, 2024.

The decrease in the allowance for credit losses on loans as of September 30, 2025 compared to December 31, 2024 was due to net charge-offs of $8.7 million, partially offset by a $2.2 million provision for credit losses on loans.

Total non-performing loans were $100.4 million, or 0.52% of total loans as of September 30, 2025, compared to $72.1 million, or 0.39% of total loans as of December 31, 2024.

The $28.3 million increase in non-performing loans consisted of an $18.2 million increase in non-performing commercial mortgage loans, an $8.2 million increase in non-performing commercial loans, a $6.0 million increase in non-performing construction loans and a $3.3 million increase in non-performing residential mortgage loans, partially offset by a $7.1 million decrease in non-performing multi-family loans and a $268,000 decrease in non-performing consumer loans.

As of September 30, 2025 and December 31, 2024, the Company held foreclosed assets of $2.0 million and $9.5 million, respectively.

During the nine months ended September 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price.

The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million.

Foreclosed assets as of June 30, 2025 were comprised of one commercial property.

Total non-performing assets as of June 30, 2025 increased $26.6 million to $108.1 million, or 0.44% of total assets, from $81.5 million, or 0.34% of total assets as of December 31, 2024.

Total investment securities were $3.47 billion as of June 30, 2025, a $246.5 million increase from December 31, 2024.

During the three and nine months ended September 30, 2025, there was one addition to foreclosed assets with an aggregate carrying value of $1.0 million.

Foreclosed assets as of September 30,

2025 were comprised of two commercial properties.

Total non-performing assets as of September 30, 2025 increased $20.9 million to $102.4 million, or 0.41% of total assets, from $81.5 million, or 0.34% of total assets as of December 31, 2024.

Total investment securities were $3.57 billion as of September 30, 2025, a $344.3 million increase from December 31, 2024.

This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits increased $84.7 million during the six months ended June 30, 2025, to $18.71 billion.

Total time deposits increased $99.3 million to $3.27 billion as of June 30, 2025, while total savings and demand deposit accounts decreased $14.6 million to $15.44 billion as of June 30, 2025.

Total deposits increased $472.4 million during the nine months ended September 30, 2025, to $19.10 billion.

Total time deposits increased $196.2 million to $3.36 billion as of September 30, 2025, while total savings and demand deposit accounts increased $276.2 million to $15.73 billion as of September 30, 2025.

The increase in time deposits consisted of a $204.3 million increase in brokered time deposits, partially offset by an $7.9 million decrease in retail time deposits.

The decrease in savings and demand deposits was largely attributable to a $50.7 million decrease in savings deposits and a $36.8 million decrease in non-interest bearing demand deposits, partially offset by a $52.2 million increase in money market deposits and a $20.7 million increase in interest bearing demand deposits.

The increase in savings and demand deposits was largely attributable to a $101.7 million decrease in savings deposits and a $37.2 million decrease in non-interest bearing demand deposits, partially offset by a $144.5 million increase in money market deposits and a $270.6 million increase in interest bearing demand deposits.

The Company uses brokered deposits as an alternative source of wholesale funding to cover funding gaps created by asset growth.

Within total deposits, brokered deposits totaled $763.2 million and $255.0 million as of June 30, 2025 and December 31, 2024, respectively.

Our total estimated uninsured and uncollateralized deposits as of June 30, 2025, were $4.52 billion.

Borrowed funds increased $354.2 million during the six months ended June 30, 2025, to $2.37 billion.

Borrowed funds represented 9.7% of total assets as of June 30, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders’ equity increased $106.3 million during the six months ended June 30, 2025, to $2.71 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders.

For the three and six months ended June 30, 2025, common stock repurchases totaled 55,826 shares at an average cost of $17.83 per share and 156,570 shares at an average cost of $18.07 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation.

As of June 30, 2025, approximately 816,000 shares remained eligible for repurchase under the current stock repurchase authorization.

Book value per share and tangible book value per share(1) as of June 30, 2025 were $20.73 and $14.60, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.

Within total deposits, brokered deposits totaled $805.9 million and $255.0 million as of September 30, 2025 and December 31, 2024, respectively.

Our total estimated uninsured and uncollateralized deposits as of September 30, 2025, were $4.81 billion.

Borrowed funds increased $188.9 million during the nine months ended September 30, 2025, to $2.21 billion.

Borrowed funds represented 8.9% of total assets as of September 30, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders’ equity increased $165.8 million during the nine months ended September 30, 2025, to $2.77 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders.

For the three and nine months ended September 30, 2025, common stock repurchases totaled 55,826 shares at an average cost of $17.83 per share and 156,570 shares at an average cost of $18.07 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation.

As of September 30, 2025, approximately 816,000 shares remained eligible for repurchase under the current stock repurchase authorization.

Liquidity and Capital Resources.

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Changes in interest rates, local economic conditions and the competitive marketplace can influence loan prepayments, prepayments on mortgage-backed securities and deposit flows.

For the six months ended June 30, 2025 and 2024, loan repayments totaled $3.79 billion and $2.09 billion, respectively.

The Company continues to monitor and focus on depositor behavior and borrowing capacity with FHLBNY and FRBNY, with current borrowing capacity of $4.32 billion and $3.19 billion, respectively, as of June 30, 2025.

Our estimated uninsured and uncollateralized deposits as of June 30, 2025 totaled $4.52 billion, or 24.2% of deposits.

Our total estimated uninsured deposits, including collateralized deposits as of June 30, 2025, were $9.80 billion.

Within time deposits, approximately $683.5 million, or 20.9% was uninsured as of March 31, 2025.

For the nine months ended September 30, 2025 and 2024, loan repayments totaled $6.31 billion and $2.09 billion, respectively.

The Company continues to monitor and focus on depositor behavior and borrowing capacity with FHLBNY and FRBNY, with current borrowing capacity of $4.52 billion and $3.02 billion, respectively, as of September 30, 2025.

Our estimated uninsured and uncollateralized deposits as of September 30, 2025 totaled $4.81 billion, or 25.2% of deposits.

Our total estimated uninsured deposits, including collateralized deposits as of September 30, 2025, were $10.28 billion.

Within time deposits, approximately $691.6 million, or 20.6% was uninsured as of September 30, 2025.

Commercial real estate loans, multi-family loans, commercial loans, one- to four-family residential loans and consumer loans are the primary investments of the Company.

Purchasing securities for the investment portfolio is a secondary use of funds and the investment portfolio is structured to complement and facilitate the Company’s lending activities and ensure adequate

Loan originations and purchases totaled $1.18 billion for the six months ended June 30, 2025, compared to $553.0 million for the same period in 2024.

Purchases for the investment portfolio totaled $440.9 million for the six months ended June 30, 2025, compared to $422.4 million for the year ended December 31, 2024.

As of June 30, 2025, the Bank had outstanding loan commitments to borrowers of $3.74 billion, including undisbursed home equity lines and personal credit lines of $667.4 million.

Total deposits increased $84.7 million during the six months ended June 30, 2025, to $18.71 billion.

Loan originations and purchases totaled $2.04 billion for the nine months ended September 30, 2025, compared to $1.12 billion for the same period in 2024.

Purchases for the investment portfolio totaled $647.1 million for the nine months ended September 30, 2025, compared to $422.4 million for the year ended December 31, 2024.

As of September 30, 2025, the Bank had outstanding loan commitments to borrowers of $3.82 billion, including undisbursed home equity lines and personal credit lines of $681.9 million.

Total deposits increased $472.4 million during the nine months ended September 30, 2025, to $19.10 billion.

Deposit activity is affected by changes in interest rates, competitive pricing and product offerings in the marketplace, local economic conditions, customer confidence and other factors such as stock market volatility.

Certificate of deposit accounts that are scheduled to mature within one year totaled $3.09 billion as of June 30, 2025.

Certificate of deposit accounts that are scheduled to mature within one year totaled $3.25 billion as of September 30, 2025.

Based on its current pricing strategy and customer retention experience, the Bank expects to retain a significant share of these accounts.

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The rule limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” of 2.5% in addition to the amount necessary to meet its minimum risk-based capital requirements.

As of June 30, 2025, the Bank and the Company exceeded all current minimum regulatory capital requirements as follows:

June 30, 2025

As of September 30, 2025, the Bank and the Company exceeded all current minimum regulatory capital requirements as follows:

September 30, 2025

Required Required with Capital Conservation Buffer Actual

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(2) For a period of three years following completion of the merger, the Bank will be required to maintain a Tier 1 capital to total assets leverage ratio of at least 8.5% and a total capital to risk-based assets ratio of at least 11.25%.

COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

The Company reported net income of $72.0 million, or $0.55 per basic and diluted share for the three months ended June 30, 2025, compared to $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025 and

a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024.

For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024.

While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $79.0 million and $81.2 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively.

The following tables sets forth certain information for the three and six months ended June 30, 2025.

For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities is expressed both in dollars and rates.

COMPARISON OF OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

The Company reported net income of $71.7 million, or $0.55 per basic and diluted share for the three months ended September 30, 2025, compared to $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025 and net income of $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, net income totaled $207.7 million, or $1.59 per basic and diluted share, compared to $67.0 million, or $0.65 per basic and diluted share, for the nine months ended September 30, 2024.

While there were no transaction costs related to our merger with Lakeland Bancorp, Inc.

(“Lakeland”) during 2025, for the three and nine months ended September 30, 2024, these costs totaled $15.6 million and $96.8 million, respectively, including an initial Current Expected Credit Loss ("CECL") provision for credit losses of $60.1 million recorded as part of the Lakeland merger.

The following tables sets forth certain information for the three and nine months ended September 30, 2025.

For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the

interest expense on average interest-bearing liabilities is expressed both in dollars and rates.

No tax equivalent adjustments were made.

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For the three months ended

June 30, 2025 June 30, 2024

September 30, 2025 September 30, 2024

Average Balance Interest Average

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Deposits $ 79,471 $ 764 3.82 % 179,313 2,425 5.38 %

Federal funds sold and other short-term investments — — — — — —

Available for sale debt securities 3,070,080 30,952 4.03 2,644,262 24,608 3.71

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(3) Annualized net interest income divided by average interest-earning assets.

For the six months ended

June 30, 2025 June 30, 2024

For the nine months ended

September 30, 2025 September 30, 2024

Average Balance Interest Average

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Deposits $ 78,434 $ 2,227 4.21 % 39,280 5,466 5.38 %

Federal funds sold and other short-term investments — — — % — — — %

Available for sale debt securities 2,952,923 87,530 3.95 2,189,671 52,277 3.18

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Net Interest Income .

Net interest income increased $45.6 million to $187.1 million for the three months ended June 30, 2025, from $141.5 million for same period in 2024.

Net interest income increased $133.6 million to $368.8 million for the six months ended June 30, 2025, from $235.2 million for same period in 2024.

The increase in net interest income for the three months ended June 30, 2025, was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans, partially offset by a decrease in average lower-costing deposits and an increase in average borrowings.

The increase in net interest income for the six months ended June 30, 2025 was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

The net interest margin increased 15 basis points to 3.36% for the quarter ended June 30, 2025, compared to 3.21% for the quarter ended June 30, 2024.

The weighted average yield on interest-earning assets increased one basis point to 5.68% for the quarter ended June 30, 2025, compared to 5.67% for the quarter ended June 30, 2024, while the weighted average cost of interest-bearing liabilities decreased 15 basis points for the quarter ended June 30, 2025, to 2.94%, compared to 3.09% for the quarter ended June 30, 2024.

The average cost of interest-bearing deposits for the quarter ended June 30, 2025, was 2.62%, compared to 2.84% for the same period last year.

Average non-interest-bearing demand deposits totaled $3.70 billion for the quarter ended June 30, 2025, compared to $2.87 billion for the quarter ended June 30, 2024.

The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared with 2.24% for the quarter ended June 30, 2024.

The average cost of borrowed funds for the quarter ended June 30, 2025, was 3.94%, compared to 3.83% for the same period last year.

For the six months ended June 30, 2025, the net interest margin increased 27 basis points to 3.35%, compared to 3.08% for the six months ended June 30, 2024.

The weighted average yield on interest-earning assets increased 22 basis points to 5.65% for the six months ended June 30, 2025, compared to 5.43% for the six months ended June 30, 2024, while the weighted average cost of interest-bearing liabilities decreased five basis points to 2.92% for the six months ended June 30, 2025, compared to 2.97% for the same period last year.

The average cost of interest-bearing deposits decreased 11 basis points to 2.63% for the six months ended June 30, 2025, compared to 2.74% for the same period last year.

Average non-interest-bearing demand deposits totaled $3.71 billion for the six months ended June 30, 2025, compared with $2.47 billion for the six months ended June 30, 2024.

The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the six months ended June 30, 2025, compared with 2.19% for the six months ended June 30, 2024.

The average cost of borrowings for the six months ended June 30, 2025, was 3.86%, compared to 3.75% for the same period last year.

Interest income on loans secured by real estate increased $36.5 million to $192.8 million for the three months ended June 30, 2025, from $156.3 million for the three months ended June 30, 2024.

Commercial loan interest income increased $20.3 million to $78.9 million for the three months ended June 30, 2025, from $58.5 million for the three months ended June 30, 2024.

Consumer loan interest income increased $2.1 million to $10.5 million for the three months ended June 30, 2025, from $8.4 million for the three months ended June 30, 2024.

For the three months ended June 30, 2025, the average balance of total loans increased $4.18 billion to $18.83 billion, compared to the same period in 2024.

The average yield on total loans for the three months ended June 30, 2025, decreased 4 basis points to 6.01%, from 6.05% for the same period in 2024.

Interest income on loans secured by real estate increased $116.1 million to $379.8 million for the six months ended June 30, 2025, from $263.8 million for the six months ended June 30, 2024.

Commercial loan interest income increased $60.0 million to $154.7 million for the six months ended June 30, 2025, from $94.6 million for the six months ended June 30, 2024.

Consumer loan interest income increased $7.7 million to $20.6 million for the six months ended June 30, 2025, from $12.9 million for the six months ended June 30, 2024.

For the six months ended June 30, 2025, the average balance of total loans increased $6.05 billion to $18.71 billion, compared with $12.66 billion for the same period in 2024.

The average yield on total loans for the six months ended June 30, 2025, increased 15 basis points to 5.98%, from 5.83% for the same period in 2024.

Interest income on held to maturity debt securities totaled $2.0 million for the three months ended June 30, 2025, compared to $2.4 million the same period last year.

Average held to maturity debt securities decreased $37.0 million to $315.2 million for the three months ended June 30, 2025, from $352.2 million for the same period last year.

Interest income on held to maturity debt securities decreased $663,000 to $4.0 million for the six months ended June 30, 2025, compared to the same period in 2024.

Average held to maturity debt securities decreased $37.1 million to $317.6 million for the six months ended June 30, 2025, from $354.7 million for the same period last year.

Interest income on available for sale debt securities increased $11.7 million to $29.3 million for the three months ended June 30, 2025, from $17.6 million for the three months ended June 30, 2024.

The average balance of available for sale debt securities increased $713.6 million to $2.96 billion for the three months ended June 30, 2025, compared to the same period in 2024.

Interest income on available for sale debt securities increased $29.3 million to $56.9 million for the six months ended

June 30, 2025, from $27.7 million for the same period last year.

The average balance of available for sale debt securities increased $933.8 million to $2.89 billion for the six months ended June 30, 2025.

Dividend income on FHLBNY stock decreased $609,000 to $2.1 million for the three months ended June 30, 2025, from $2.75 million for the three months ended June 30, 2024.

The average balance of FHLBNY stock increased $44.6 million to $133.4 million for the three months ended June 30, 2025, compared to the same period in 2024.

Dividend income on FHLBNY stock increased $28.4 million to $61.1 million for the six months ended June 30, 2025, from $32.7 million for the same period last year.

The average balance of FHLBNY stock increased $39.6 million to $120.9 million for the six months ended June 30, 2025.

The average yield on total securities increased to 3.80% for the three months ended June 30, 2025, compared with 3.07% for the same period in 2024.

For the six months ended June 30, 2025, the average yield on total securities increased to 3.75%, compared with 2.78% for the same period in 2024.

Interest expense on deposit accounts increased $15.2 million to $96.3 million for the three months ended June 30, 2025, compared with $81.1 million for the three months ended June 30, 2024.

For the six months ended June 30, 2025, interest expense on deposit accounts increased $60.1 million to $193.7 million, from $133.6 million for the same period last year.

The average cost of interest-bearing deposits improved to 2.62% and 2.63% for the three and six months ended June 30, 2025, respectively, from 2.84% and 2.74% for the three and six months ended June 30, 2024, respectively.

The average balance of interest-bearing core deposits, which consist of total savings and demand deposits, for the three months ended June 30, 2025, increased $2.13 billion to $11.52 billion.

For the six months ended June 30, 2025, average interest-bearing core deposits increased $3.43 billion, to $11.65 billion, from $8.22 billion for the same period in 2024.

Average time deposit account balances increased $1.11 billion to $3.20 billion for the three months ended June 30, 2025, from $2.09 billion for the three months ended June 30, 2024.

For the six months ended June 30, 2025, average time deposit account balances increased $1.62 billion to $3.20 billion, from $1.58 billion for the same period in 2024.

Interest expense on borrowed funds increased $3.9 million to $24.5 million for the three months ended June 30, 2025, from $20.6 million for the three months ended June 30, 2024.

For the six months ended June 30, 2025, interest expense on borrowed funds increased $4.3 million to $42.2 million, from $37.9 million for the six months ended June 30, 2024.

The average cost of borrowings increased to 3.94% for the three months ended June 30, 2025, from 3.83% for the three months ended June 30, 2024.

The average cost of borrowings increased to 3.86% for the six months ended June 30, 2025, from 3.75% for the same period last year.

Average borrowings increased $332.2 million to $2.49 billion for the three months ended June 30, 2025, from $2.16 billion for the three months ended June 30, 2024.

For the six months ended June 30, 2025, average borrowings increased $156.2 million to $2.21 billion, compared to $2.05 billion for the six months ended June 30, 2024.

Net interest income increased $10.6 million to $194.3 million for the three months ended September 30, 2025, from $183.7 million for same period in 2024.

Net interest income increased $144.3 million to $563.2 million for the nine months ended September 30, 2025, from $418.9 million for same period in 2024.

The increase in net interest income was primarily due to favorable repricing of deposits, combined with originations of loans at favorable market rates, partially offset by an increase in borrowings.

The increase in net interest income for the nine months ended September 30, 2025 was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

The net interest margin increased 12 basis points to 3.43% for the quarter ended September 30, 2025, compared to 3.31% for the quarter ended September 30, 2024.

The weighted average yield on interest-earning assets decreased eight basis points to 5.76% for the quarter ended September 30, 2025, compared to 5.84% for the quarter ended September 30, 2024, while the weighted average cost of interest-bearing liabilities decreased 23 basis points for the quarter ended September 30, 2025, to 2.96%, compared to 3.19% for the quarter ended September 30, 2024.

The average cost of interest-bearing deposits for the quarter ended September 30, 2025, was 2.67%, compared to 2.96% for the same period last year.

Average non-interest-bearing demand deposits totaled $3.73 billion for the quarter ended September 30, 2025, compared to $3.74 billion for the quarter ended September 30, 2024.

The average cost of total deposits, including non-interest-bearing deposits, was 2.14% for the quarter ended September 30, 2025, compared with 2.36% for the quarter ended September 30, 2024.

The average cost of borrowed funds for the quarter ended September 30, 2025, was 3.96%, compared to 3.73% for the same period last year.

For the nine months ended September 30, 2025, the net interest margin increased 20 basis points to 3.38%, compared to 3.18% for the nine months ended September 30, 2024.

The weighted average yield on interest-earning assets increased eight basis points to 5.69% for the nine months ended September 30, 2025, compared to 5.61% for the nine months ended September 30, 2024, while the weighted average cost of interest-bearing liabilities decreased 13 basis points to 2.93% for the nine months ended September 30, 2025, compared to 3.06% for the same period last year.

The average cost of interest-bearing deposits decreased 20 basis points to 2.64% for the nine months ended September 30, 2025, compared to 2.84% for the same period last year.

Average non-interest-bearing demand deposits totaled $3.72 billion for the nine months ended September 30, 2025, compared with $2.90 billion for the nine months ended September 30, 2024.

The average cost of total deposits, including non-interest-bearing deposits, was 2.12% for the nine months ended September 30, 2025, compared with 2.27% for the nine months ended September 30, 2024.

The average cost of borrowings for the nine months ended September 30, 2025, was 3.89%, compared to 3.73% for the same period last year.

Interest income on loans secured by real estate decreased $605,000 to $197.3 million for the three months ended September 30, 2025, from $197.9 million for the three months ended September 30, 2024.

Commercial loan interest income increased $760,000 to $81.9 million for the three months ended September 30, 2025, from $81.2 million for the three months ended September 30, 2024.

Consumer loan interest income decreased $2.1 million to $10.8 million for the three months ended September 30, 2025, from $12.9 million for the three months ended September 30, 2024.

For the three months ended September 30, 2025, the average balance of total loans increased $374.8 million to $18.91 billion, compared to the same period in 2024.

The average yield on total loans for the three months ended September 30, 2025, decreased 12 basis points to 6.09%, from 6.21% for the same period in 2024.

Interest income on loans secured by real estate increased $115.5 million to $577.1 million for the nine months ended September 30, 2025, from $461.6 million for the nine months ended September 30, 2024.

Commercial loan interest income increased $60.8 million to $236.6 million for the nine months ended September 30, 2025, from $175.8 million for the nine months ended September 30, 2024.

Consumer loan interest income increased $5.7 million to $31.5 million for the nine months ended September 30, 2025, from $25.8 million for the nine months ended September 30, 2024.

For the nine months ended September 30, 2025, the average balance of total loans increased $4.15 billion to $18.78 billion, compared with $14.63 billion for the same period in 2024.

The average yield on total loans for the nine months ended September 30, 2025, increased three basis points to 6.02%, from 5.99% for the same period in 2024.

Interest income on held to maturity debt securities totaled $1.9 million for the three months ended September 30, 2025, compared to $2.1 million for the same period last year.

Average held to maturity debt securities decreased $42.7 million to $299.5 million for the three months ended September 30, 2025, from $342.2 million for the same period last year.

Interest income on held to maturity debt securities decreased $902,000 to $5.9 million for the nine months ended September 30, 2025, compared to the same period in 2024.

Average held to maturity debt securities decreased $39.0 million to $311.5 million for the nine months ended September 30, 2025, from $350.5 million for the same period last year.

Interest income on available for sale debt securities increased $6.1 million to $31.0 million for the three months ended September 30, 2025, from $24.9 million for the three months ended September 30, 2024.

The average balance of available for sale debt securities increased $425.8 million to $3.07 billion for the three months ended September 30, 2025, compared to the

same period in 2024.

Interest income on available for sale debt securities increased $35.3 million to $87.5 million for the nine months ended September 30, 2025, from $52.3 million for the same period last year.

The average balance of available for sale debt securities increased $763.3 million to $2.95 billion for the nine months ended September 30, 2025.

Dividend income on FHLBNY stock increased $1.4 million to $2.5 million for the three months ended September 30, 2025, from $1.1 million for the three months ended September 30, 2024.

The average balance of FHLBNY stock increased $24.9 million to $116.8 million for the three months ended September 30, 2025, compared to the same period in 2024.

Dividend income on FHLBNY stock increased $36.0 million to $94.7 million for the nine months ended September 30, 2025, from $58.7 million for the same period last year.

The average balance of FHLBNY stock increased $34.7 million to $119.5 million for the nine months ended September 30, 2025.

The average yield on total securities increased to 3.89% for the three months ended September 30, 2025, compared with 3.58% for the same period in 2024.

For the nine months ended September 30, 2025, the average yield on total securities increased to 3.81%, compared with 3.10% for the same period in 2024.

Interest expense on deposit accounts decreased $7.9 million to $102.1 million for the three months ended September 30, 2025, compared with $110.0 million for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, interest expense on deposit accounts increased $52.2 million to $295.8 million, from $243.6 million for the same period last year.

The average cost of interest-bearing deposits improved to 2.67% and 2.64% for the three and nine months ended September 30, 2025, respectively, from 2.96% and 2.84% for the three and nine months ended September 30, 2024, respectively.

The average balance of interest-bearing core deposits, which consist of total savings and demand deposits, for the three months ended September 30, 2025, increased $222.8 million to $11.88 billion.

For the nine months ended September 30, 2025, average interest-bearing core deposits increased $2.35 billion, to $11.73 billion, from $9.38 billion for the same period in 2024.

Average time deposit account balances increased $174.6 million to $3.29 billion for the three months ended September 30, 2025, from $3.11 billion for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, average time deposit account balances increased $1.14 billion to $3.23 billion, from $2.09 billion for the same period in 2024.

Interest expense on borrowed funds increased $1.4 million to $21.3 million for the three months ended September 30, 2025, from $19.9 million for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, interest expense on borrowed funds increased $5.7 million to $63.6 million, from $57.9 million for the nine months ended September 30, 2024.

The average cost of borrowings increased to 3.96% for the three months ended September 30, 2025, from 3.73% for the three months ended September 30, 2024.

The average cost of borrowings increased to 3.89% for the nine months ended September 30, 2025, from 3.73% for the same period last year.

Average borrowings increased $11.0 million to $2.14 billion for the three months ended September 30, 2025, from $2.13 billion for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, average borrowings increased $107.4 million to $2.18 billion, compared to $2.07 billion for the nine months ended September 30, 2024.

Provision for Credit Losses.

3 unchanged sentences

Management assesses the adequacy of the allowance for credit losses on a quarterly basis and makes provisions for credit losses as necessary.

The Company recorded benefits to the provisions for credit losses on loans of $2.7 million and $2.3 million for the three and six months ended June 30, 2025, respectively, compared with provisions of $66.1 million and $66.3 million for the three and six months ended June 30, 2024, respectively.

The benefits to the provision for credit losses on loans for the three and six months ended June 30, 2025, was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans.

The Company recorded provisions for credit losses on loans of $4.5 million and $2.2 million for the three and nine months ended September 30, 2025, respectively, compared with provisions of $9.6 million and $75.9 million for the three and nine months ended September 30, 2024, respectively.

The provision for credit losses on loans for the three and nine months ended September 30, 2025 was primarily attributable to overall growth in the loan portfolio, combined with a weakened economic forecast compared to the prior periods.

The provision for credit losses on loans for the nine months ended September 30, 2024 was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger.

Non-Interest Income.

Non-interest income totaled $27.1 million for the quarter ended June 30, 2025, an increase of $4.8 million, compared to the same period in 2024.

Net gain on securities transactions increased $3.0 million for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio.

Fee income increased $2.0 million to $10.7 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger.

Additionally, other income increased $895,000 to $1.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to increases in gains on the sale of SBA loans, while insurance agency income increased $454,000 to $4.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, largely due to an increase in

business activity.

Partially offsetting these increases to non-interest income, wealth management fees decreased $821,000 to $6.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $738,000 to $2.6 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized.

For the six months ended June 30, 2025, non-interest income totaled $54.1 million, an increase of $11.0 million compared to the same period in 2024.

Fee income increased $5.8 million to $20.4 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger.

Net gains on securities transactions increased $3.1 million for the six months ended June 30, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger.

Other income increased $2.3 million to $4.1 million for the six months ended June 30, 2025, compared to $1.8 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans.

Additionally, insurance agency income increased $1.3 million to $10.6 million for the six months ended June 30, 2025, compared to $9.3 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity.

Partially offsetting these increases in non-interest income, wealth management income decreased $982,000 to $14.3 million for the six months ended June 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $462,000 to $4.7 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations.

Non-interest income totaled $27.4 million for the quarter ended September 30, 2025, an increase of $564,000, compared to the same period in 2024.

Fee income increased $1.5 million to $11.3 million for the three months ended September 30, 2025, compared to the prior year quarter, primarily due to increases in loan prepayment fee income and deposit fee income.

Additionally, other income increased $675,000 to $2.2 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, primarily due to increases in gains on the sale of SBA loans, combined with a recovery of a prior-year charge-off.

Within other non-interest income, gains on the sale of SBA loans totaled $512,000 for the

three months ended September 30, 2025.

Insurance agency income increased $221,000 to $3.9 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, largely due to an increase in business activity.

Partially offsetting these increases to non-interest income, BOLI income decreased $1.6 million to $2.7 million for the three months ended September 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized, while wealth management fees decreased $271,000 to $7.3 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, mainly due to a decrease in the average market value of assets under management during the period.

For the nine months ended September 30, 2025, non-interest income totaled $81.5 million, an increase of $11.6 million compared to the same period in 2024.

Fee income increased $7.3 million to $31.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, loan prepayment fee income and debit and credit card related fee income.

Net gains on securities transactions increased $3.1 million for the nine months ended September 30, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger.

Other income increased $3.0 million to $6.2 million for the nine months ended September 30, 2025, compared to $3.2 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans, an increase in profit on fixed asset sales and a recovery of a prior-year charge-off.

Within other non-interest income, gains on the sale of SBA loans totaled $1.8 million for the nine months ended September 30, 2025.

Additionally, insurance agency income increased $1.5 million to $14.4 million for the nine months ended September 30, 2025, compared to $12.9 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity.

Partially offsetting these increases in non-interest income, BOLI income decreased $2.1 million to $7.3 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations, while wealth management income decreased $1.3 million to $21.6 million for the nine months ended September 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period.

Non-Interest Expense .

For the three months ended June 30, 2025, non-interest expense totaled $114.6 million, a decrease of $780,000, compared to the three months ended June 30, 2024.

Merger-related expenses decreased $18.9 million for the three months ended June 30, 2025, compared to the same period in 2024.

Partially offsetting the decrease in merger-related expenses, compensation and benefits expense increased $8.4 million to $63.2 million for the three months ended June 30, 2025, compared to $54.9 million for the same period in 2024, primarily attributable to the addition of Lakeland personnel.

Other operating expenses increased $3.2 million to $14.5 million for the three months ended June 30, 2025, compared to $11.3 million for the same period in 2024, primarily due to the addition of Lakeland.

Amortization of intangibles increased $3.0 million to $9.5 million for the three months ended June 30, 2025, compared to $6.5 million for the same period in 2024, largely due to core deposit intangible amortization related to Lakeland.

Net occupancy expense increased $1.9 million to $13.0 million for three months ended June 30, 2025, compared to $11.1 million for the same period in 2024, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland.

Data processing expenses increased $1.2 million to $9.6 million for three months ended June 30, 2025, compared to $8.4 million for the same period in 2024, primarily due to the addition of Lakeland.

Non-interest expense totaled $230.9 million for the six months ended June 30, 2025, an increase of $43.7 million, compared to $187.2 million for the six months ended June 30, 2024.

Compensation and benefits expense increased $30.7 million to $125.6 million for the six months ended June 30, 2025, compared to $94.9 million for the six months ended June 30, 2024, primarily attributable to the addition of Lakeland personnel.

Amortization of intangibles increased $11.8 million to $19.0 million for the six months ended June 30, 2025, compared to $7.2 million for the six months ended June 30, 2024, largely due to core deposit intangible amortization related to Lakeland.

Other operating expenses increased $9.3 million to $30.9 million for the three months ended June 30, 2025, compared to $21.6 million for the same period in 2024, primarily due to a $2.7 million write-down on a foreclosed property, combined with the addition of Lakeland.

Net occupancy expense increased $7.3 million to $26.9 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland.

Data processing expense increased $4.0 million to $19.2 million for the six months ended June 30, 2025, compared to $15.2 million for the six months ended June 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $1.4 million to $6.7 million for the six months ended June 30, 2025, primarily due to the addition of Lakeland.

Partially offsetting these increases to non-interest expense, merger-related expenses decreased $21.1 million for the six months ended June 30, 2025.

For the three months ended September 30, 2025, non-interest expense totaled $113.1 million, a decrease of $22.9 million, compared to the three months ended September 30, 2024.

Merger-related expenses decreased $15.6 million for the three months ended September 30, 2025, compared to the same period in 2024.

Amortization of intangibles decreased $2.7 million to $9.5 million for the three months ended September 30, 2025, compared to $12.2 million for the same period in 2024, largely due to a decrease in the core deposit intangible amortization related to the Lakeland merger in the current year.

Additionally, other operating expenses decreased $2.3 million to $13.5 million for the three months ended September 30, 2025, compared to $15.8 million for the same period in 2024, primarily due to a prior year write-down on a foreclosed property, combined with decreases in legal and professional service expenses.

Data processing expenses decreased $1.4 million to $9.1 million for three months ended September 30, 2025, compared to $10.5 million for the same period in 2024, primarily due to core processing system expenses in the prior year related to the addition of Lakeland.

Non-interest expense totaled $344.0 million for the nine months ended September 30, 2025, an increase of $20.7 million, compared to $323.2 million for the nine months ended September 30, 2024.

Compensation and benefits expense increased $30.4 million to $188.8 million for the nine months ended September 30, 2025, compared to $158.4 million for the nine months ended September 30, 2024, primarily attributable to the addition of Lakeland personnel.

Amortization of intangibles increased $9.1 million to $28.5 million for the nine months ended September 30, 2025, compared to $19.4 million for the nine months ended September 30, 2024, largely due to core deposit intangible amortization related to Lakeland.

Net occupancy expense increased $7.3 million to $39.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland.

Other operating expenses increased $7.0 million to $44.4 million for the three months ended September 30, 2025, compared to $37.4 million for the same period in 2024, primarily due to a $2.7 million write-down on a foreclosed property, combined with additional expenses due to the addition of Lakeland.

Data processing expense increased $2.6 million to $28.3 million for the nine months ended September 30, 2025, compared to $25.7 million for the nine months ended September 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $591,000 to $10.1 million for the nine months ended September 30, 2025, primarily due to the addition of Lakeland.

Partially offsetting these increases to non-interest expense, merger-related expenses decreased $36.7 million for the nine months ended September 30, 2025.

Income Tax Expense .

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared with an income tax benefit of $9.8 million for the three months ended June 30, 2024.

The increase in tax expense for the three months ended June 30, 2025, compared with the same period last year was largely due to an increase in taxable income in the quarter.

The prior year income tax benefit was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the prior year quarter as a result of additional expenses from the Lakeland merger.

For the six months ended June 30, 2025, the Company's income tax expense was $58.3 million with an effective tax rate of 30.0%, compared with income tax expense of $1.1 million for the six months ended June 30, 2024.

The increase in tax expense for the six months ended June 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

The prior year income tax expense was favorably impacted by the Lakeland merger.

For the three months ended September 30, 2025, the Company's income tax expense was $29.9 million with an effective tax rate of 29.4%, compared with $18.9 million with an effective tax rate of 28.9% for the three months ended September 30, 2024.

The increase in tax expense and the effective tax rate for the three months ended September 30, 2025, compared with the same period last year was largely due to an increase in pre-taxable income in the quarter.

For the nine months ended September 30, 2025, the Company's income tax expense was $88.2 million with an effective tax rate of 29.8%, compared with income tax expense of $19.9 million for the nine months ended September 30, 2024.

The increase in tax expense for the nine months ended September 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

Additionally, prior year pre-taxable income was negatively impacted by the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations from the Lakeland merger.

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What changed 10-Q

Item 2. Management’s Discussion and Analysis