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Item 8. Financial Statements and Supplementary Data

2026-02-27 compared with 2025-02-28 · 299 added, 247 removed, 2088 unchanged (21% of the section changed)

36 unchanged sentences

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Fair value measurement of acquired loans in the Lakeland Bancorp, Inc.

As discussed in Note 2 to the consolidated financial statements, the Company completed its merger with Lakeland Bancorp, Inc.

on May 16, 2024.

The transaction was accounted for as a business combination using the acquisition method of accounting.

Accordingly, the assets acquired and liabilities assumed were measured at fair value at the date of acquisition, including acquired loans with a fair value of $7.91 billion.

The fair value of these acquired loans was based on a discounted cash flow methodology.

Monthly principal and interest cash flows, adjusted for prepayments, were discounted to present value using a discount rate based on the relative risk of the cash flows.

A qualitative adjustment for expected credit losses was also applied to these discounted cash flows to arrive at the calculated fair value of the loans.

We identified the fair value measurement of the acquired loans at the date of acquisition as a critical audit matter.

A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment of the fair value measurement due to significant measurement uncertainty.

Specifically, the

assessment of the fair value measurement encompassed the evaluation of the fair value methodology and the discount rate used in the discounted cash flow methodology.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s fair value measurement of the acquired loans at the date of acquisition, including controls related to (1) the development of the fair value methodology for acquired loans, and (2) the determination of the discount rate used in the fair value estimate.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

• evaluating the fair value methodology for compliance with U.S.

generally accepted accounting principles

• developing an independent assumption of the discount rates for these acquired loans using implied rating by vintage and coupon of the acquired loans and yields from market research, and

• developing an independent estimate of the fair value for these acquired loans using the independently developed assumption of the discount rates and additional assumptions from market research, and comparing the results to the Company's fair value estimate.

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Assessment of the allowance for credit losses on loans evaluated on a collective basis

3 unchanged sentences

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 curves using segment-specific loss given default risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each segment.

Using the historical relationship between the economic conditions and loan performance, management’s expectation of future loan performance is incorporated using an externally developed economic forecast that is applied over a period that has been determined to be reasonable and supportable.

Using the historical relationship between the economic conditions and loan performance, management’s expectation of future loan performance is

incorporated using an externally developed economic forecast that is applied over a period that has been determined to be reasonable and supportable.

After the reasonable and supportable forecast period, the Company reverts to the long-term average of selected economic factors on a straight-line basis over a reversion period.

26 unchanged sentences

We have not been able to determine the specific year that we began serving as the Company’s auditor;

however, we are aware that we have served as the Company’s auditor since at least 1997.

however, we are aware that we or our predecessor firms have served as the Company’s auditor since at least 1997.

New York, New York

28 unchanged sentences

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statements of Financial Condition

3 unchanged sentences

Cash and due from banks $ 211,484 $ 205,939

Short-term investments 25 14

Total cash and cash equivalents 205,939 180,255

Available for sale debt securities, at fair value 3,164,756 2,768,915

10 unchanged sentences

Accrued interest receivable 95,798 91,160

Goodwill and other intangible assets 819,230 457,942

Intangible assets 782,152 819,230

Bank-owned life insurance 414,371 405,893

4 unchanged sentences

Savings deposits 1,589,259 1,679,667

Certificates of deposit of $250 thousand or more 789,342 218,549

Certificates of deposit of $250,000 or more 929,989 789,342

Other time deposits 2,357,287 2,378,813

12 unchanged sentences

Treasury stock ( 91,294 ) ( 88,420 )

Unallocated common stock held by the Employee Stock Ownership Plan — ( 4,896 )

Common stock acquired by deferred compensation plans — ( 2,694 )

Deferred compensation plans — 2,694

Total stockholders’ equity 2,833,212 2,601,207

2 unchanged sentences

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statements of Income

24 unchanged sentences

Bank-owned life insurance 10,130 11,709 6,482

Net (loss) gain on securities transactions ( 2,986 ) 30 181

Net gain (loss) on securities transactions 843 ( 2,986 ) 30

Other income 8,485 4,542 7,318

19 unchanged sentences

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

6 unchanged sentences

Unrealized gains and losses on available for sale debt securities:

Net unrealized gains (losses) arising during the period 7,841 32,125 ( 186,361 )

Reclassification adjustment for losses (gains) included in net income 2,087 — ( 42 )

Net gains (losses) arising during the period 67,446 7,841 32,125

Reclassification adjustment for gains and losses included in net income ( 63 ) 2,087 —

Total 67,383 9,928 32,125

Unrealized (losses) on derivatives designated as cash flow hedges:

Net unrealized gains arising during the period 3,179 2,388 19,201

Reclassification adjustment for gains included in net income ( 9,557 ) ( 12,948 ) ( 3,297 )

Unrealized gains and losses on derivatives designated as cash flow hedges:

Net gains (losses) arising during the period 120 3,179 2,388

Reclassification adjustment for gains and losses included in net income ( 5,038 ) ( 9,557 ) ( 12,948 )

Total ( 4,918 ) ( 6,378 ) ( 10,560 )

Amortization related to post-retirement obligations ( 3,293 ) 2,210 2,365

Total other comprehensive income (loss), net of tax 5,760 23,930 ( 171,908 )

Total other comprehensive income, net of tax 59,172 5,760 23,930

Total comprehensive income $ 350,332 $ 121,285 $ 152,328

1 unchanged sentence

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023

8 unchanged sentences

— — ( 72,447 ) — — — — — ( 72,447 )

Cumulative effect of adopting Accounting Standards Update ("ASU") No.

2022-02, net of tax — — 433 — — — — — 433

Distributions from deferred comp plans — 152 — — — — 733 ( 733 ) 152

7 unchanged sentences

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023 (Continued)

7 unchanged sentences

Other comprehensive loss, net of tax — — — 5,760 — — — — 5,760

Cumulative effect of adopting Accounting Standards Update ("ASU") No.

2022-02, net of tax — — 433 — — — — — 433

Cash dividends paid ($ 0.96 per share)

3 unchanged sentences

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 1,323 ) — — — ( 1,323 )

Treasury shares issued due to acquisition 544 876,234 — — — — — — 876,778

Option exercises — — — — — — — — —

4 unchanged sentences

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023 (Continued)

1 unchanged sentence

COMPREHENSIVE INCOME (LOSS) TREASURY

COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL

STOCKHOLDERS’

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— — ( 125,907 ) — — ( 125,907 )

Distributions from deferred comp plans — 102 — — — — 2,694 ( 2,694 ) 102

Reclass of stock award shares — ( 40,728 ) — — 40,728 — — — —

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 2,874 ) ( 2,874 )

Shares issued due to acquisition 544 876,234 — — — — — — 876,778

Option exercises — — — — — —

Allocation of ESOP shares — 235 — — — 4,896 — — 5,131

Allocation of SAP shares — 10,437 — — — 10,437

3 unchanged sentences

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

7 unchanged sentences

Depreciation and amortization expense 51,317 41,499 11,695

Provision charge for credit losses 87,564 28,168 5,004

Deferred tax (benefit) expense ( 12,271 ) 2,725 2,220

Provision charge for credit losses on loans and securities 4,126 83,588 27,904

Provision (benefit) charge for credit losses on off-balance sheet credit exposures ( 545 ) 3,977 264

Deferred tax expense (benefit) 24,461 ( 12,271 ) 2,725

Amortization of operating lease right-of-use assets 14,195 13,088 10,495

5 unchanged sentences

Loans transferred to held for sale — 151,281 —

Proceeds from sales of loans originated for sale 62,416 22,895 20,521

Proceeds from sales of loans held for sale 208,943 62,416 22,895

ESOP expense — 2,601 3,086

2 unchanged sentences

Net gain on sale of loans ( 3,868 ) ( 1,758 ) ( 2,019 )

Net loss (gain) on securities transactions 2,986 ( 30 ) ( 181 )

Net loss (gain) on sale of premises and equipment — 154 ( 22 )

Net gain on sale of foreclosed assets ( 214 ) ( 2,854 ) ( 8,541 )

Net (gain) loss on securities transactions ( 843 ) 2,986 ( 30 )

Net (gain) loss on sale of premises and equipment ( 681 ) — 154

Net loss (gain) on sale of foreclosed assets 11 ( 214 ) ( 2,854 )

Net change in balance sheet:

Increase in accrued interest receivable ( 4,638 ) ( 4,953 ) ( 7,063 )

Decrease (increase) in other assets 23,214 25,085 ( 56,291 )

Increase (decrease) in other liabilities 17,315 ( 29,007 ) 60,544

(Increase) decrease in other assets ( 13,078 ) 23,214 25,085

(Decrease) increase in other liabilities ( 52,490 ) 17,315 ( 29,007 )

Net cash provided by operating activities 442,264 426,381 173,396

1 unchanged sentence

Net increase in loans ( 817,673 ) ( 193,990 ) ( 625,691 )

Purchases of loans ( 321 ) — ( 9,263 )

Proceeds from sales of loans held for investment — — 2,017

4 unchanged sentences

Proceeds from maturities calls and paydowns of securities available for sale 511,763 335,256 189,542

Purchases of securities available for sale ( 403,999 ) ( 40,089 ) ( 290,426 )

Purchases of available for sale debt securities ( 787,069 ) ( 403,999 ) ( 40,089 )

Proceeds from redemption of Federal Home Loan Bank stock 379,370 205,066 212,527

2 unchanged sentences

BOLI claim benefits received 906 8,995 3,873

Purchases of loans — ( 9,263 ) ( 6,971 )

Proceeds from sales of premises and equipment 2,348 — 105

Purchases of premises and equipment ( 11,539 ) ( 1,307 ) ( 7,488 )

Net cash provided by (used in) investing activities 507,674 ( 469,600 ) ( 647,564 )

Net cash (used in) provided by investing activities ( 1,052,334 ) 507,674 ( 469,600 )

Cash flows from financing activities:

Net decrease in deposits ( 291,625 ) ( 270,510 ) ( 670,988 )

Net increase (decrease) in deposits 654,870 ( 291,625 ) ( 270,510 )

(Decrease) increase in mortgage escrow deposits ( 1,994 ) ( 122 ) 1,133

7 unchanged sentences

Proceeds from subordinated debentures — 221,180 —

Net cash (used in) provided by financing activities ( 908,371 ) 289,951 ( 78,701 )

Net cash provided by (used in) financing activities 615,615 ( 908,371 ) 289,951

Net increase (decrease) in cash and cash equivalents 5,545 25,684 ( 6,253 )

8 unchanged sentences

Income taxes (1)

$ 102,650 $ 36,184 $ 46,461

Non cash investing activities:

19 unchanged sentences

Common stock issued for acquisitions $ — $ 876,779 $ —

(1) Income taxes paid during the 2025 period includes the net cost of the transferrable tax credits.

See accompanying notes to consolidated financial statements.

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5 unchanged sentences

Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.

The Company, through the Bank, provides a full range of banking services to individual and business customers through branch offices in New Jersey, Queens and Nassau Counties, New York and eastern Pennsylvania.

The Company, through the Bank, provides a full range of banking services to individual and business customers through branch offices in New Jersey, Orange, Queens and Nassau Counties, New York and eastern Pennsylvania.

The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes periodic examinations by those regulatory authorities.

38 unchanged sentences

The majority of the state and municipal and corporate obligations carry credit ratings from the rating

agencies as of December 31, 2024 that were no lower than an A rating and the Company had no securities rated BBB or worse

by Moody’s Ratings ("Moody's").

agencies as of December 31, 2025 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").

Premiums on securities are amortized into income using a method that approximates the interest method over the remaining period to the earliest call date or contractual maturity, adjusted for anticipated prepayments.

25 unchanged sentences

Allowance for Credit Losses on Loans

On January 1, 2020, the Company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments,” which replaced the incurred loss methodology with the CECL methodology.

The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio.

2 unchanged sentences

Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

The allowance for credit losses is a valuation account that reflects management’s evaluation of the current expected credit losses in the loan portfolio.

The Company maintains the allowance for credit losses through provisions for credit losses that are charged to income.

Charge-offs against the allowance for credit losses are taken on loans where management determines that the collection of loan principal and interest is unlikely.

Recoveries made on loans that have been charged-off are credited to the allowance for credit losses.

The calculation of the allowance for credit losses is a critical accounting policy of the Company.

Management estimates the allowance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and a reasonable and supportable forecast.

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.

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

9 unchanged sentences

The contractual term excludes expected extensions, renewals and modifications unless either of the following applies at the reporting date:

management has a reasonable expectation that a modification will be executed with an individual

management has a reasonable expectation that a modification will be executed with an individual borrower;

or when an extension or renewal option is included in the original contract and is not unconditionally cancellable by the Company.

1 unchanged sentence

The Company considers qualitative adjustments to credit loss estimates for information not already captured in the quantitative component of the loss estimation process.

Qualitative factors are based on portfolio concentration levels, model imprecision, changes in industry conditions, changes in the Company’s loan review process, changes in the Company’s loan policies and procedures, and economic forecast uncertainty.

Qualitative factors are based on portfolio concentration levels, model

imprecision, changes in industry conditions, changes in the Company’s loan review process, changes in the Company’s loan policies and procedures, and economic forecast uncertainty.

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.

1 unchanged sentence

The allowance estimation process resulted in a total provision on loans of $ 4.1 million for the year ended December 31, 2025, and an overall coverage ratio of 95 basis points.

Of the $ 83.6 million provision for the year, $ 60.1 million was recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations.

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.

If the Company used a more severe outlook, the provision would have risen by approximately $ 16.0 million, leading to an overall coverage ratio of approximately 112 basis points.

Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses.

3 unchanged sentences

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

• Commercial Loans – Commercial Owner-Occupied and Commercial Non-Owner Occupied

• Commercial Loans – Commercial Owner-Occupied and Commercial Non-Real Estate Secured

• Consumer Loans – First Lien Home Equity and Other Consumer

The allowance for credit losses on loans individually evaluated for impairment is based upon loans that have been identified through the Company’s normal loan monitoring process.

This process includes the review of delinquent and problem loans at the Company’s Delinquency, Credit, Credit Risk Management and Allowance Committees;

This process includes the review of delinquent and problem loans at the Company’s Credit, Credit Risk Management and Allowance Committees;

or which may be identified through the Company’s loan review process.

Generally, the Company only evaluates loans individually for impairment if the loan is non-accrual, non-homogeneous and the balance is greater than $1.0 million.

In instances where the loan is under $1.0 million, but part of a relationship over $1.0 million, all loans in the relationship would be evaluated individually for impairment.

For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the fair value of the collateral less any selling costs.

If the loan is not collateral dependent, the allowance for credit losses related to individually assessed loans is based on discounted expected cash flows using the loan’s initial effective interest rate.

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

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:

8 unchanged sentences

Any one or a combination of these events may adversely affect borrowers’ ability to repay the loans, resulting in increased delinquencies, credit losses and higher levels of provisions.

Management considers it important to maintain the ratio of the allowance for

credit losses to total loans at an acceptable level given current and forecasted economic conditions, interest rates and the composition of the portfolio.

Management considers it important to maintain the ratio of the allowance for credit losses to total loans at an acceptable level given current and forecasted economic conditions, interest rates and the composition of the portfolio.

The CECL approach to calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecast utilized.

Material changes to these and other relevant factors creates greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings.

Although management believes that the Company has established and maintained the allowance for credit losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating environment and economic forecast.

7 unchanged sentences

Although management uses the best information available, the level of the allowance for credit losses remains an estimate that is subject to significant judgment and short-term volatility.

See Note 5 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans.

Material changes to these and other relevant factors creates greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings.

For the year ended December 31, 2024, the increase in provision was primarily attributable to an initial CECL provision for credit losses on lo ans of $ 60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, combined with some economic forecast deterioration over the current twelve-month period within our CECL model, compared to last year.

Material changes to these and other relevant factors create greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings.

The decrease in the year-over-year provision for credit losses was primarily attributable to the prior year initial CECL provision for credit losses on loans of $ 60.1 million recorded as p art of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, combined with some economic forecast strengthening over the current twelve-month period within our CECL model, compared to last year.

Foreclosed Assets

17 unchanged sentences

Such estimates are subject to management’s judgment.

A valuation reserve is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature

and timing of these items.

A valuation reserve is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature and timing of these items.

The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes.

Trust assets consisting of securities and other property (other than cash on deposit held by the Bank in fiduciary or agency capacities for customers of the Bank’s wholly owned subsidiary, Beacon) are not included in the accompanying consolidated statements of financial condition because such properties are not assets of the Bank.

Trust assets consisting of securities and other property (other than cash on deposit held by the Bank in fiduciary or agency capacities for customers of the Bank’s wholly owned subsidiary, Beacon Trust Company ("Beacon Trust")) are not included in the accompanying consolidated statements of financial condition because such properties are not assets of the Bank.

Intangible Assets

1 unchanged sentence

Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired through purchase acquisitions.

In accordance with GAAP, goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates.

impairment between annual measurement dates.

As permitted by GAAP, the Company prepares a qualitative assessment in determining whether goodwill may be impaired.

3 unchanged sentences

Core deposit premiums represent the intangible value of depositor relationships assumed in previous purchase acquisitions and are amortized on an accelerated basis over 8.8 years, while the core deposit premiums related to SB One and Lakeland are amortized over its estimated useful life of 10.0 years.

Customer relationship premiums represent the intangible value of customer relationships assumed in the purchase acquisitions of Beacon Trust Company, The MDE Group, Inc., Tirschwell & Loewy, Inc., and SB One Bank and are amortized on an accelerated basis over 12.0 years, 10.4 years, 10.0 years, and 13.0 years, respectively.

Customer relationship premiums represent the intangible value of customer relationships assumed in the purchase acquisitions of Beacon Trust, The MDE Group, Inc., Tirschwell & Loewy, Inc., and SB One Bank and are amortized on an accelerated basis over 12.0 years, 10.4 years, 10.0 years, and 13.0 years, respectively.

Mortgage servicing rights are recorded when purchased or when originated mortgage loans are sold, with servicing rights retained.

15 unchanged sentences

In 2025, the board of directors approved a matching contribution of 50 % of the first 8 % of eligible compensation contributed by participants in the Provident Bank 401(k) plan.

The Bank has an Employee Stock Ownership Plan (“ESOP”).

The funds borrowed by the ESOP from the Company to purchase the Company’s common stock are being repaid from the Bank’s contributions and dividends paid on unallocated ESOP shares over a period of up to 30 years.

The Company’s common stock not allocated to participants is recorded as a reduction of stockholders’ equity at cost.

Compensation expense for the ESOP is based on the average price of the Company’s stock during each quarter and the amount of shares allocated during the quarter.

The Bank made the final repayment on borrowed funds in December 2024 and a final allocation of shares will be made to participants.

The Bank has an Equity Plan designed to provide competitive compensation for demonstrated performance and to align the interests of participants directly to increases in shareholder value.

13 unchanged sentences

Effective November 1, 2023, the DDFP was terminated and final distributions were made on or about November 1, 2024.

As of December 31, 2024, there were no shares held by the DDFP.

The Bank maintained an Employee Stock Ownership Plan (“ESOP”).

Funds borrowed by the ESOP from the Company to purchase the Company’s common stock were repaid from the Bank’s contributions and dividends paid on unallocated ESOP shares over a period of up to 30 years.

The Company’s common stock not allocated to participants was recorded as a reduction of stockholders’ equity at cost.

Compensation expense for the ESOP was based on the average price of the Company’s stock during each quarter and the amount of shares allocated during the quarter.

The Bank made the final repayment on borrowed funds in December 2024 and a final allocation of shares to participants in May 2025.

Effective December 1, 2025, the ESOP was merged into the Bank’s 401(k) plan.

The Bank maintains a non-qualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the 401(k) Plan’s and the ESOP’s benefit formulas under tax law limits for tax-qualified plans.

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These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method.

Shares issued and shares reacquired during the period are weighted for the portion of the period that they were outstanding.

Shares issued and shares reacquired during the period are weighted for the portion of the period when they were outstanding.

Impact of Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2025

In November 2023, FASB issued ASU No.

2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures”.

The amendments in this ASU require public entities to disclose detailed information about a reportable segment’s expenses on both an annual and interim basis.

2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted.

The amendments in ASU No.

2023-07 should be applied retrospectively to all periods presented in the financial statements.

Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption.

The adoption of ASU No.

2023-07 did not have a significant impact on the Company's consolidated financial statements, other than enhanced disclosures.

Accounting Pronouncements Not Yet Adopted

In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740):

2 unchanged sentences

This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024, with early adoption in the interim period permitted.

The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

The adoption of ASU No.

2023-09 did not have a significant impact on the Company's consolidated financial statements, other than enhanced annual disclosures.

Accounting Pronouncements Not Yet Adopted

In November 2024, FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures".

1 unchanged sentence

This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, with early adoption in the interim period permitted.

The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

The Company is currently evaluating the impact and does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

(2) Business Combinations

2 unchanged sentences

On May 16, 2024, the Company completed its merger with Lakeland Bancorp, Inc.

("Lakeland"), which added $ 10.59 billion to total assets, $ 7.91 billion to total loans, $ 8.62 billion to total deposits and 68 full-service banking offices in

New Jersey and New York.

("Lakeland"), which added $ 10.59 billion to total assets, $ 7.91 billion to total loans, $ 8.62 billion to total deposits and 68 full-service banking offices in New Jersey and New York.

The Company closed 13 of the acquired Lakeland banking offices and nine legacy Bank branches in the third quarter of 2024 due to geographic overlap.

53 unchanged sentences

The loss rates were then applied to the principal balance to arrive at the projected credit losses for each period, which resulted in a credit fair value discount of $ 82.4 million.

Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans.

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

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

28 unchanged sentences

The fair value of the core deposit intangible was measured using a discounted cash flow approach by comparing the all-in cost of less rate sensitive deposits against an alternative funding source.

The discounted cash flow approach is used because there is no reliable market participant data to support a market approach nor is there an effective measure to utilize the cost approach.

To calculate the value of core deposits, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources by using an average of Federal Home Loan Bank of New York ("FHLBNY") advance rates and brokered CD rates as disclosed by market sources.

The discounted cash flow approach is used because there is

no reliable market participant data to support a market approach nor is there an effective measure to utilize the cost approach.

To calculate the value of core deposits, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources by using an average of FHLBNY advance rates and brokered CD rates as disclosed by market sources.

The projected cash flows were developed using projected deposit attrition rates.

25 unchanged sentences

Merger-Related Expenses

Merger-related expenses, which is a separate line in non-interest expense on the Consolidated Statements of Income, totaled $ 56.9 million, for the year ended December 31, 2024, compared with transaction costs of $ 4.1 million for the respective 2023 period.

While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $ 56.9 million for the respective 2024 period.

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 year ended December 31, 2024.

(3) Held to Maturity Debt Securities

4 unchanged sentences

$ 282,143 156 ( 7,081 ) 275,218

Treasury obligations $ 5,146 1 — 5,147

Government-agency obligations $ 9,999 — ( 292 ) 9,707

11 unchanged sentences

The Company generally purchases securities for long-term investment purposes, and differences between carrying and fair values may fluctuate during the investment period.

Held to maturity debt securities having a carrying value of $ 269.6 million and $ 317.6 million as of December 31, 2024 and 2023, respectively, were pledged to secure municipal deposits.

During 2024, the Company recognized no gross gains while losses totaled $ 1,200 related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 5.5 million.

The carrying value of held to maturity debt securities that were pledged to secure municipal deposits was $ 240.7 million and $ 269.6 million as of December 31, 2025 and 2024, respectively.

During 2025, the Company recognized gains of $ 27,000 and no losses related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 11.7 million.

There were no sales of securities from the held to maturity debt securities portfolio for the year ended December 31, 2025.

For 2023, the Company recognized gains of $ 45,000 and losses of $ 15,000 related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 11.6 million.

During 2024, the Company recognized no gains while losses totaled $ 1,200 related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 5.5 million.

There were no sales of securities from the held to maturity debt securities portfolio for the year ended December 31, 2024.

For the 2022 period, the Company recognized gains of $ 123,000 and no losses related to calls on certain securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 39.2 million.

During the 2023 period, the Company recognized gains of $ 45,000 and losses of $ 15,000 related to calls on securities in the held to maturity debt securities portfolio, with total proceeds from the calls totaling $ 11.6 million.

There were no sales of securities from the held to maturity debt securities portfolio for the year ended December 31, 2023.

The number of securities in an unrealized loss position as of December 31, 2024 totaled 512 , compared with 372 as of December 31, 2023.

The increase in the number of securities in an unrealized loss position as of December 31, 2024 was due to higher current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2023.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type.

12 unchanged sentences

December 31, 2025

Total Portfolio AAA AA A BBB Not Rated Total

Total Portfolio AAA AA A Not Rated Total

Government-agency obligations $ 3,400 — — — 3,400

3 unchanged sentences

December 31, 2024

Total Portfolio AAA AA A BBB Not Rated Total

Treasury obligations $ 5,146 — — — — 5,146

Total Portfolio AAA AA A Not Rated Total

Government-agency obligations $ 9,999 — — — 9,999

4 unchanged sentences

As of December 31, 2025, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 71 % rated AA, 8 % rated A, and less than 4 % either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s.

Securities not explicitly rated, such as U.S.

government issued mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.

The following table shows gross unrealized losses and estimated fair value of held to maturity debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of December 31, 2025 and 2024 (in thousands):

December 31, 2025

Less Than 12 months 12 Months or More Total

Unrealized Losses

Held-to-maturity:

Government-agency obligations $ — — 3,378 22 3,378 22

Mortgage-backed securities — — — — — —

State and municipal obligations 3,353 1 127,012 7,044 130,365 7,045

Corporate obligations — — 2,129 14 2,129 14

Total $ 3,353 1 132,519 7,080 135,872 7,081

The number of securities in an unrealized loss position as of December 31, 2025 totaled 221 , compared with 512 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of December 31, 2025 was mainly due to lower current market interest rates compared to rates as of December 31, 2024.

(4) Available for Sale Debt Securities

15 unchanged sentences

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $ 10.9 million and $ 9.7 million as of December 31, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Available for sale debt securities having a carrying value of $ 863.9 million and $ 1.13 billion as of December 31, 2024 and 2023, respectively, were pledged as collateral for municipal deposits and repurchase agreements.

The carrying value of available for sale debt securities that were pledged as collateral for municipal deposits and repurchase agreements was $ 2.2 billion and $ 863.9 million as of December 31, 2025 and 2024, respectively.

The amortized cost and fair value of available for sale debt securities as of December 31, 2025, by contractual maturity, are shown below (in thousands).

6 unchanged sentences

Investments which pay principal on a periodic basis, which are primarily related to mortgage-backed securities, totaling $ 2.78 billion at amortized cost and $ 2.69 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During 2024, proceeds from sales on securities in the available for sale debt securities portfolio totaled $ 569.9 million with no gains and $ 3.0 million of losses recognized, of which $ 2.8 million was related to the sale of subordinated debt issued by Lakeland from its investment portfolio.

There were no sales of securities from the available for sale debt securities portfolio for the year ended December 31, 2023.

During 2024, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 780,000 with no gains and no losses recognized.

For 2023, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 2.3 million with no gains and no losses recognized.

During 2025, proceeds from sales on securities in the available for sale debt securities portfolio totaled $ 1.7 million with gross gains of $ 87,000 and no losses recognized.

For 2024, proceeds from sales of securities from the available for sale debt securities portfolio totaled $ 569.9 million with no gains and $ 3.0 million of losses recognized, of which $ 2.8 million was related to the sale of subordinated debt issued by Lakeland from its investment portfolio.

During 2025, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 23.9 million with gross gains of $ 729,000 and no losses recognized.

For 2024, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 780,000 with no gains and no losses recognized.

The following table shows gross unrealized losses and estimated fair value of available for sale debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of December 31, 2025 and 2024 (in thousands):

December 31, 2025

Less Than 12 months 12 Months or More Total

Unrealized Losses

Available-for-sale:

Treasury obligations $ — — 245,675 ( 7,946 ) 245,675 ( 7,946 )

Government-agency obligations 8,541 ( 31 ) — — 8,541 ( 31 )

Mortgage-backed securities 133,316 ( 4,119 ) 984,261 ( 112,334 ) 1,117,577 ( 116,453 )

Asset-backed securities 20,493 ( 129 ) 1,605 ( 138 ) 22,098 ( 267 )

State and municipal obligations 21,613 ( 665 ) 53,173 ( 6,758 ) 74,786 ( 7,423 )

Corporate obligations 8,994 ( 6 ) 18,742 ( 1,555 ) 27,736 ( 1,561 )

Total $ 192,957 ( 4,949 ) 1,303,456 ( 128,732 ) 1,496,412 ( 133,681 )

The number of securities in an unrealized loss position as of December 31, 2025 totaled 406 , compared with 646 as of December 31, 2024.

The increase in the number of securities in an unrealized loss position as of December 31, 2024 was primarily due to the addition of Lakeland securities, combined with higher current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2023.

The decrease in the number of securities in an unrealized loss position as of December 31, 2025 was mainly due to lower current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2024.

The Company concluded that no available for sale debt securities were impaired at December 31, 2025 based on consideration of several factors.

The Company noted that each issuer made all the contractually due payments when required.

There were no defaults on principal or interest payments, and no interest payments were deferred.

Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality.

Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.

(5) Loans Receivable and Allowance for Credit Losses

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Accrued interest on loans totaled $ 82.2 million and $ 78.5 million as of December 31, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

As of December 31, 2024, the Bank had aggregate loans and loan commitments of $ 98.8 million to its directors, or to its immediate family members and related interests.

As of December 31, 2025, the Bank had aggregate loans and loan commitments of $ 66.1 million to its directors and their related interests.

These loans and loan commitments were made on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with the general public and do not involve more than the normal risk of repayment or present other unfavorable features.

6 unchanged sentences

As of December 31, 2025

Days 90 days or more past due and

accruing Non-accrual Total

Days Non-accrual Recorded Investment > 90 days accruing Total

Past Due Current Total Loans

10 unchanged sentences

As of December 31, 2024

Days 90 days or more past due and

accruing Non-accrual Total

Days Non-accrual Recorded Investment > 90 days accruing Total

Past Due Current Total Loans

29 unchanged sentences

Balance at beginning of period $ 144,587 43,642 5,203 193,432

Initial allowance related to PCD loans 10,628 6,070 490 17,188

Provision charge for credit losses on loans 61,274 20,011 2,319 83,604

Provision (benefit) charge for credit losses on loans ( 11,196 ) 15,446 ( 125 ) 4,125

Recoveries of loans previously charged off 932 527 577 2,036

1 unchanged sentence

Balance at end of period $ 128,601 51,127 5,039 184,767

(1) The provision charge for credit losses on loans for the year ended December 31, 2024 includes a $ 2.8 million benefit to the allowance as a result of the $ 151.3 transfer from the commercial loans loans held for investment portfolio into the loans held for sale portfolio.

For the Year Ended December 31, 2024

Balance at beginning of period $ 73,407 31,475 2,318 107,200

Cumulative effect of adopting ASU 2022-02 ( 510 ) ( 43 ) ( 41 ) ( 594 )

Provision charge (benefit) for credit losses on loans 16,877 11,159 ( 136 ) 27,900

Initial allowance related to PCD loans 10,628 6,070 490 17,188

Provision charge for credit losses on loans 61,274 20,011 2319 83,604

Recoveries of loans previously charged off 86 2,621 556 3,263

1 unchanged sentence

Balance at end of period $ 144,587 43,642 5,203 193,432

For the year ended December 31, 2024, the Company recorded an $ 83.6 million provision for credit losses on loans, compared with a provision for credit losses of $ 27.9 million for the year ended December 31, 2023.

The increase in the year-over-year provision for credit losses was primarily attributable to an initial CECL provision for credit losses on loans of $ 60.1 million recorded as p art of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, combined with some economic forecast deterioration over the current twelve-month period within our CECL model, compared to last year.

(1) The provision charge for credit losses on loans for the year ended December 31, 2024 includes a $ 2.8 million benefit to the allowance as a result of the $ 151.3 million transfer from the commercial loans held for investment portfolio into the loans held for sale portfolio.

For the year ended December 31, 2025, the Company recorded a $ 4.1 million provision for credit losses on loans, compared with a provision for credit losses of $ 83.6 million for the year ended December 31, 2024.

The following table summarizes the Company's gross charge-offs recorded for the year ended December 31, 2025 by year of origination (in thousands):

2 unchanged sentences

Commercial $ — — — 358 441 3,586 4,385

Multi-family — — 520 — — 263 783

Construction — 534 — — — — 534

Residential — — — — — 20 20

16 unchanged sentences

(1) During the year ended December 31, 2024, charge-offs on consumer overdraft accounts totaled $ 398,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded for the year ended December 31, 2023 by year of origination (in thousands):

2023 2022 2021 2020 2019 Prior to 2019 Total Loans

Mortgage loans:

Commercial $ — — — — — 1,700 1,700

Residential — — — — — 24 24

Total mortgage loans — — — — — 1,724 1,724

Commercial loans — — — 5,000 — 3,363 8,363

Consumer loans (1)

24 — — — — 13 37

Total gross loans $ 24 — — 5,000 — 5,100 10,124

(1) During the year ended December 31, 2023, charge-offs on consumer overdraft accounts totaled $ 297,000 , which are not included in the table above.

The Company defines an impaired loan as a non-accrual, non-homogeneous loan greater than $ 1.0 million, or which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement.

27 unchanged sentences

This guidance was applied on a modified retrospective basis.

Upon adoption of this guidance, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty.

Upon adoption of this

guidance, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty.

Instead, these loan modifications are included in their respective pool and a projected loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses.

2 unchanged sentences

Year Ended December 31, 2025

Term Extension Interest Rate Change Interest Rate Change and Term Extension Total % of Total Class of Loans and Leases

Mortgage loans:

Commercial $ 3,949 — 11,945 15,894 0.21 %

Total mortgage loans 3,949 — 11,945 15,894 0.12

Commercial loans 13,501 748 9,654 23,903 0.46

Total gross loans $ 17,450 748 21,599 39,797 0.20 %

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024 (in thousands):

Year Ended December 31, 2024

Term Extension Interest Rate Change Interest Rate Change and Term Extension Change in Payment Type (1)

6 unchanged sentences

Total gross loans $ — 14,111 11,538 2,852 28,501 0.15 %

(1) The change in payment type reflects a change from monthly principal and interest payments to interest only monthly payments.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2023 (in thousands):

7 unchanged sentences

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2025 (in thousands):

Weighted Average Months of Term Reduction Weighted Average Rate Increase

Weighted Average Months of Term Reduction Weighted Average Rate Increase (Decrease)

Mortgage loans:

Commercial 15 0.35 %

Total mortgage loans 15 0.35

Commercial loans 6 ( 0.16 )

Total gross loans 8 ( 0.05 ) %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Increase

Mortgage loans:

Commercial 2 2.40 %

Multi-family 0 5.00

9 unchanged sentences

Total gross loans 9 0.61 %

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the years ended December 31, 2024 and December 31, 2023, respectively.

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the years ended December 31, 2025, December 31, 2024 and December 31, 2023 , respectively.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2025 (in thousands):

2 unchanged sentences

Commercial $ 15,894 — — — — 15,894

Total mortgage loans 15,894 — — — — 15,894

Commercial loans 23,744 — — — 158 23,903

Total gross loans $ 39,639 — — — 158 39,797

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2024 (in thousands):

Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total

Mortgage loans:

Commercial $ 5,924 — — — — 5,924

Multi-family 481 94 — 320 402 1,297

210 unchanged sentences

Total deposits $ 19,278,683 $ 18,623,813

(1) The Bank's insured cash sweep product totaled $ 1.16 billion and $ 520.2 million as of December 31, 2024 and December 31, 2023, respectively, and are reported within NOW accounts.

(1) The Bank's insured cash sweep product totaled $ 1.08 billion and $ 1.16 billion as of December 31, 2025 and December 31, 2024, respectively, and are reported within NOW accounts.

(2) Time deposits equal to or in excess of $250,000 were $ 930.0 million and $ 789.0 million as of December 31, 2025 and December 31, 2024, respectively.

20 unchanged sentences

1,739,735 1,518,497

FRBNY BTFP borrowing — 450,000

Purchase accounting adjustment ("PAA") on borrowed funds 3,714 36

Purchase accounting adjustment on borrowed funds 2,213 3,714

Total borrowed funds $ 2,111,955 2,020,435

Total long-term borrowings totaled $ 550.0 million and $ 513.9 million as of December 31, 2025 and December 31, 2024, respectively, while total short-term borrowings totaled $ 1.56 billion and $ 1.51 billion for the same periods.

As of December 31, 2024, FHLBNY advances were at fixed rates and mature between January 2025 and September 2027, and as of December 31, 2023, FHLBNY advances were at fixed rates and mature between January 2024 and September 2027.

As of December 31, 2025, FHLBNY advances were at fixed rates and mature between January 2026 and August 2030, and as of December 31, 2024, FHLBNY advances were at fixed rates and mature between January 2025 and September 2027.

These advances are secured by loans receivable under a blanket collateral agreement.

In March 2023, the Company established a facility under the Bank Term Funding Program ("BTFP" or "Program") with the Federal Reserve Bank of New York ("FRBNY").

The Company elected to participate in the BTFP due to significant cost savings compared to other wholesale funding sources.

The funding was used to pay off existing wholesale borrowings.

The ability to prepay at any time without penalty also enhanced our ability to manage our interest rate risk position.

The balance was fully paid off in November of 2024.

Scheduled maturities of FHLBNY advances, FRBNY BTFP borrowings and lines of credit, including purchase accounting adjustments resulting from the Lakeland acquisition as of December 31, 2024 are as follows (in thousands):

Scheduled maturities of FHLBNY advances, FRBNY Bank Term Funding Program ("BTFP") borrowings and lines of credit, including purchase accounting adjustments resulting from the Lakeland acquisition as of December 31, 2025 are as follows (in thousands):

Due in one year or less $ 1,464,735

14 unchanged sentences

FHLBNY advances 2,368,897 1,617,909 3.99

FRBNY BTFP Borrowing 550,000 472,077 4.78

Securities sold under repurchase agreements $ 117,323 102,043 2.03 %

4 unchanged sentences

The Bank uses available for sale debt securities to pledge as collateral for the repurchase agreements.

As of December 31, 2024 and December 31, 2023, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLB advances, totaled $ 1.12 billion and $ 924.6 million, respectively.

Additionally, as of December 31, 2024, there was no par value of securities pledged to secure BTFP, since the plan was fully paid off in November of 2024, compared to a par value of securities pledged to secure BTFP of $ 589.1 million as of December 31, 2023.

Interest expense on borrowings for the years ended December 31, 2024, 2023 and 2022 amounted to $ 74.9 million, $ 56.0 million and $ 9.5 million, respectively, while amortization expense related to purchase accounting for the years ended December 31, 2024, 2023 and 2022 amounted to a benefit of $ 1.4 million, $ 105,000 and $ 188,000 , respectively.

As of December 31, 2025 and December 31, 2024, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLB advances, totaled $ 2.41 billion and $ 1.12 billion, respectively.

Interest expense on borrowings for the years ended December 31, 2025, 2024 and 2023 amounted to $ 80.3 million, $ 74.9 million and $ 56.0 million, respectively, while amortization expense related to purchase accounting for the years ended December 31, 2025, 2024 and 2023 amounted to a benefit of $ 1.5 million, $ 1.4 million and $ 105,000 , respectively.

(10) Subordinated Debentures

12 unchanged sentences

The debt is included in Tier 2 capital for the Company.

Lakeland Bancorp Capital Trust II, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established in June 2003, issued $ 20.0 million of variable rate capital trust pass-through

securities to investors.

In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust II is not included in our consolidated financial statements.

1 unchanged sentence

Lakeland Bancorp Capital Trust IV, a non-consolidated subsidiary of the Company acquired as part of the Lakeland acquisition and a Delaware statutory business trust established in May 2007, issued $ 20.0 million of variable rate capital trust pass-through securities to investors.

In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust IV is not included in our consolidated financial statements.

In accordance with FASB ASC 810, Consolidation, Lakeland Bancorp Capital Trust IV is

not included in our consolidated financial statements.

On August 3, 2015, Lakeland acquired and extinguished $ 10.0 million of Lakeland Bancorp Capital Trust IV debentures.

34 unchanged sentences

For the years ended December 31, 2025 and 2024, the Company, in the measurement of its pension plan and post-retirement obligations updated its mortality assumptions to the PRI 2012 mortality table with the fully generational projection scale MP 2021 issued by The Society of Actuaries ("SOA") in October 2021.

The prepaid pension benefits of $ 33.3 million and the unfunded post-retirement healthcare and life insurance benefits of $ 11.1 million as of December 31, 2024 are included in Other assets and Other liabilities, respectively, in the Consolidated Statements of Financial Condition.

The prepaid pension benefits of $ 37.7 million

and the unfunded post-retirement healthcare and life insurance benefits of $ 13.3 million as of December 31, 2025 are included in Other assets and Other liabilities, respectively, in the Consolidated Statements of Financial Condition.

The components of accumulated other comprehensive loss (income) related to the pension plan and other post-retirement benefits, on a pre-tax basis, as of December 31, 2025 and 2024 are summarized in the following table (in thousands):

85 unchanged sentences

Salary Savings 401(k) and Trust Plan, both of which cover substantially all employees of the Bank.

For 2024, 2023 and 2022, the Bank matched 25 % of the first 6 % contributed by the participants.

For 2025, the Bank matched 50 % of the first 8 % contributed by the participants, while for 2024 and 2023, the Bank matched 25 % of the first 6 % contributed by the participants.

The contribution percentage is determined by the board of directors in its sole discretion.

5 unchanged sentences

As of December 31, 2025 and 2024, $ 1.5 million and $ 1.6 million, respectively, were recorded in Other liabilities on the Consolidated Statements of Financial Condition for this supplemental retirement plan.

In connection with this supplemental retirement plan, an increase of $ 57,000 , net of tax, was recorded in other comprehensive income (loss) for 2024, while there was no change recorded in other comprehensive income (loss) for 2023, while an increase of $ 283,000 , net of tax, was recorded for 2022.

In connection with this supplemental retirement plan, a decrease of $ 26,000 , net of tax, was recorded in other comprehensive income (loss) for 2025, while there was a $ 57,000 increase recorded in other comprehensive income (loss) for both the 2024 and 2023 periods, respectively.

Retirement Plan for the Board of Directors of Provident Bank

1 unchanged sentence

The maximum payment under this plan to a board member, who terminates service on or after the age of 72 with at least ten years of service on the board, is forty quarterly payments of $ 2,500 .

The Bank may suspend payments under this plan if it does not meet Federal Deposit Insurance Corporation or New Jersey Department of Banking and Insurance minimum capital requirements.

The Bank may suspend payments under this plan if it does not meet FDIC or NJDOBI minimum capital requirements.

The Bank may terminate this plan at any time although such termination may not reduce or eliminate any benefit previously accrued to a board member without his or her consent.

The plan was amended in December 2005 to terminate benefits under this plan for any directors who had less than ten years of service on the board of directors of the Bank as of December 31, 2006.

The plan was amended in

December 2005 to terminate benefits under this plan for any directors who had less than ten years of service on the board of directors of the Bank as of December 31, 2006.

The plan further provides that, in the event of a change in control (as defined in the plan), the undistributed balance of a director’s accrued benefit will be distributed to him or her within 60 days of the change in control.

1 unchanged sentence

As of December 31, 2025 and 2024, $ 753,000 and $ 776,000 , respectively, were recorded in other liabilities on the Consolidated Statements of Financial Condition for this retirement plan.

A minimal increase of $ 500 , net of tax, was recorded in other comprehensive income for 2024, while there was a decrease of $ 7,000 , net of tax, recorded in other comprehensive income for 2023 and an increase of $ 11,000 recorded in 2022, respectively, in connection with this plan.

Minimal increases of $ 782 and $ 500 , net of tax, was recorded in other comprehensive income for 2025 and 2024, respectively, while there was a decrease of $ 7,000 recorded in 2023, respectively, in connection with this plan.

Employee Stock Ownership Plan

The ESOP is a tax-qualified plan designed to invest primarily in the Company’s common stock that provides employees with the opportunity to receive a funded retirement benefit from the Bank, based primarily on the value of the Company’s common stock.

The ESOP was a tax-qualified plan designed to invest primarily in the Company’s common stock that provided employees with the opportunity to receive a funded retirement benefit from the Bank, based primarily on the value of the Company’s common stock.

The ESOP purchased 4,769,464 shares of the Company’s common stock at an average price of $ 17.09 per share with the proceeds of a loan from the Company to the ESOP.

As of December 31, 2024, there was no outstanding loan principal, as the Bank made the final repayment on borrowed funds in December 2024.

A final allocation of shares will be made to participants in May.

For the years ending December 31, 2024 and 2023, 286,564 shares and 311,946 shares from the ESOP were released, respectively.

As of December 31, 2024, there were no remaining unallocated ESOP shares held in suspense, as final repayment was made in December.

ESOP compensation expense for the years ended December 31, 2024, 2023 and 2022 was $ 2.6 million, $ 3.1 million and $ 4.1 million, respectively.

As of December 31, 2025, there was no outstanding loan principal, as the Bank made the final repayment on borrowed funds in December 2024 and a final allocation of shares was made to participants in May 2025.

As of December 31, 2025, there were no remaining unallocated ESOP shares held in suspense and no ESOP compensation expense, as final repayment was made in December 2024.

For the year ending December 31, 2024, 286,564 shares from the ESOP were released.

ESOP compensation expense for the years ended December 31, 2024 and 2023 was $ 2.6 million and $ 3.1 million, respectively.

Non-Qualified Supplemental Defined Contribution Plan (“the Supplemental Employee Stock Ownership Plan”)

14 unchanged sentences

Shares previously awarded under prior equity incentive plans that are subsequently forfeited or expire may also be issued under this new plan.

Restricted Stock Awards

As a general rule, restricted stock grants are held in escrow for the benefit of the award recipient until vested.

Awards outstanding generally vest in three annual installments, commencing one year from the date of the award.

Additionally, certain

awards are three-year performance-vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets.

Additionally, certain awards are three-year performance-vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets.

Expense attributable to stock awards amounted to $ 7.9 million, $ 8.4 million and $ 7.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.

A summary status of the granted but unvested stock awards as of December 31, and changes during the year, is presented below:

A summary status of the granted but unvested stock award as of December 31, 2025 and changes during the year, is presented below:

Restricted Stock Awards

2 unchanged sentences

Granted 10,209 371,219 179,398

Exercised ( 288,675 ) ( 153,931 ) ( 142,793 )

Forfeited ( 7,993 ) ( 29,977 ) ( 16,043 )

Vested ( 63,307 ) ( 68,330 ) ( 219,323 )

Outstanding at the end of year 165,852 452,311 265,000

As of December 31, 2024, unrecognized compensation cost relating to unvested restricted stock totaled $ 8.8 million.

As of December 31, 2025, unrecognized compensation cost relating to unvested restricted stock awards totaled $ 7.9 million.

This amount will be recognized over a remaining weighted average period of 1.6 years.

Performance-Based Restricted Stock

Performance-based restricted stock awards generally vest after a three years performance period, with the total share quantity dependent on the Company meeting certain target performance conditions ranging from 0 % to 150 %.

The fair value of performance-based restricted stock awards used to determine compensation expense for the Return on Average Tangible Equity/Total Shareholder Return ("ROATE/TSR") modifier is calculated using the Monte-Carlo simulation model for total stockholder return awards.

A summary status of the performance-based restricted award as of December 31, 2025 and changes during the year, is presented below:

Performance-Based Restricted Stock

2025 2024 2023

Outstanding at beginning of year 1,010,527 788,092 778,692

Granted 479,127 530,141 247,655

Exercised ( 215,958 ) ( 274,376 ) ( 185,968 )

Forfeited ( 99,441 ) ( 33,330 ) ( 52,287 )

Outstanding at the end of year (1)

1,174,255 1,010,527 788,092

(1) If the performance-based stock was to achieve the max target performance of 150 %, the total number of shares would increase by 63,332 for 2025.

Restricted Stock Units ("RSUs")

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Dividend equivalents, per the terms of the agreements, are accumulated and paid to the grantee on the quarterly dividend date, or forfeited if the applicable performance or service conditions are not met.

As part of the Lakeland acquisition, 302,805 shares were acquired on May 16, 2024.

During the year, 3,414 shares vested and 2,843 shares were forfeited.

Outstanding shares at the end of the year totaled 296,548 , with unrecognized compensation cost relating to unvested RSUs totaling $ 3.2 million.

Expense attributable to stock units amounted to $ 2.4 million and $ 1.1 million for the years ended December 31, 2025 and 2024, respectively.

We did not have RSUs on our books in 2023.

A summary status of the granted but unvested stock units as of December 31, 2025 and changes during the year, is presented below:

Restricted Stock Units

2025 2024 2023

Outstanding at beginning of year 295,810 — —

Granted 238,302 302,805 —

Exercised ( 69,839 ) ( 3,414 ) —

Forfeited ( 35,844 ) ( 3,581 ) —

Outstanding at the end of year 428,429 295,810 —

As of December 31, 2025, unrecognized compensation cost relating to unvested restricted stock units totaled $ 4.1 million.

This amount will be recognized over a remaining weighted average period of 1.6 years.

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The total fair value of options vesting during 2025, 2024 and 2023 was $ 66,000 , $ 133,000 and $ 198,000 , respectively.

Compensation expense of approximately $ 11,000 and $ 77,000 is projected for 2025 and 2026 respectively, on stock options outstanding as of December 31, 2024.

After March 2025, there are no unvested stock options expensed.

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The expected option term is a function of the option life and the vesting period.

There were no options granted during 2024 or 2023.

There were no options granted during 2025.

(12) Income Taxes

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Total income tax expense $ 116,997 34,090 47,381

The Company recorded a deferred tax (benefit) expense of ($ 5.0 ) million, $ 11.1 million and ($ 68.2 ) million during 2024, 2023 and 2022, respectively, related to the unrealized gains (losses) on available for sale debt securities, which is reported in accumulated other comprehensive income (loss), net of tax.

The Company recorded a deferred tax expense (benefit) of $ 37.3 million, ($ 5.0 ) million and $ 11.1 million during 2025, 2024 and 2023, respectively, related to the unrealized gains (losses) on available for sale debt securities, which is reported in accumulated other comprehensive income (loss), net of tax.

The Company recorded a deferred tax (benefit) expense of ($ 2.5 ) million, ($ 2.0 ) million and ($ 3.9 ) million in 2025, 2024 and 2023, respectively, related to the unrealized gains (losses) on cash flow hedge advances, which is reported in accumulated other comprehensive income (losses), net of tax.

Also, the Company recorded a deferred tax expense (benefit) of $ 1.1 million, $ 884,000 and $( 517,000 ) in 2024, 2023 and 2022, respectively,

related to the amortization of post-retirement benefit obligations, which is reported in accumulated other comprehensive income (loss), net of tax.

A reconciliation between the amount of reported total income tax expense and the amount computed by multiplying the applicable statutory income tax rate is as follows (in thousands):

Also, the Company recorded a deferred tax (benefit) expense of ($ 1.1 ) million, $ 1.1 million and $ 884,000 in 2025, 2024 and 2023, respectively, related to the amortization of post-retirement benefit obligations, which is reported in accumulated other comprehensive income (loss), net of tax.

A reconciliation between the amount of reported total income tax expense and the amount computed by multiplying the applicable statutory income tax rate is as follows for the year ended December 31, 2025 (in thousands):

Years ended December 31,

2024 2023 2022

Tax expense at statutory rates $ 85,713 21.00 %

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Rate Change — —

Tax-exempt interest income, net ( 2,760 ) ( 0.68 )

Bank-owned life insurance ( 2,127 ) ( 0.52 )

Renewable energy tax credits, net ( 3,380 ) ( 0.83 )

Other, net 2,398 0.59

Total income tax expense $ 116,997 28.66 %

(1) State and local income taxes in New Jersey comprise the majority of the domestic state and local income taxes, net of federal effect category.

Additionally, a reconciliation between the amount of reported total income tax expense and the amount computed by multiplying the applicable statutory income tax rate is as follows for the years ended December 31, 2024 and 2023 (in thousands):

Tax expense at statutory rates $ 31,419 36,932

Increase (decrease) in taxes resulting from:

State tax, net of Federal income tax benefit 11,027 11,313

Rate Change ( 7,008 ) —

Tax-exempt interest income ( 2,861 ) ( 2,514 )

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SERP 1,146 1,991

Accrued Bonus 5,569 —

Stock-based compensation 3,143 3,694

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Federal NOL 15,855 1,389

Capital Loss Carryforward 600 —

Unrealized losses on available for sale debt securities 28,531 66,646

Net unrealized loss on hedging activities 625 —

Lease liability 17,086 18,489

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Investment securities, principally due to accretion of discounts 101 71

Purchase accounting adjustments — 371

Intangibles 2,479 2,151

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Net deferred tax asset $ 165,436 223,625

The components of income taxes paid (net of refunds) disaggregated by federal and state as of December 31, 2025 are as follows (in thousands):

Years ended December 31,

US federal (1)

US state and local:

New Jersey 26,845

New York State 5,221

New York City 3,037

Total $ 102,650

(1) The US federal amount of income taxes paid during the 2025 includes the net cost of the transferrable tax credits.

Retained earnings as of December 31, 2025 includes approximately $ 51.8 million for which no provision for income tax has been made.

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As of December 31, 2025, the Company had an unrecognized tax liability of $ 14.7 million with respect to this reserve.

As a result of the Beacon acquisition in 2011 and the Lakeland acquisition in 2024, the Company acquired federal net operating loss carryforwards.

There are approximately $ 6.6 million of NOL carryforwards available to offset future taxable income as of December 31, 2024.

If not utilized, $ 653,000 of carryforward will expire in 2031, but the balance can be carried forward indefinitely subject to an 80 % limitation on utilization.

The federal NOLs are subject to annual Code Section 382 limitation in the amount of approximately $ 197,000 .

As a result of Lakeland acquisition, the Company acquired federal net operation loss carryforwards.

There were approximately $ 74.9 million of NOL carryforwards available to offset future taxable income as of December 31, 2025.

The federal NOLs are subject to annual Code Section 382 limitation in the amount of approximately $ 30 million.

The balance can be carried forward indefinitely, subject to 80 % taxable income limit on utilization.

The Company has a state NOL carryforward of $ 126.3 million as a result of the Lakeland acquisition.

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Management has determined that it is more likely than not that it will realize the net deferred tax asset based upon the nature and timing of the items listed above.

In order to fully realize the net deferred tax asset, the Company will need to generate future taxable income.

Management has projected that the Company will generate sufficient taxable income to utilize the net deferred tax asset;

In order to fully realize the net deferred tax asset;

however, there can be no assurance that such levels of taxable income will be generated.

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The Company did not have any liabilities for uncertain tax positions as of December 31, 2025 and 2024.

The Company and its subsidiaries file a consolidated U.S.

Federal income tax return.

For tax periods prior to December 31, 2018, New Jersey tax law does not and has not allowed for a taxpayer to file a tax return on a combined or consolidated basis with another member of the affiliated group where there is common ownership .

The Company and its subsidiaries is required to file a combined New Jersey state income tax return on apportioned and allocated income.

Also, the Company and its subsidiaries file a combined tax income tax return in New York State, New York City, and will file a Connecticut income tax return based upon apportioned and allocated income.

Also, the Company and its subsidiaries file a combined tax income tax return in New York State, New York City.

The Company, through its bank subsidiary, files a Pennsylvania Mutual Thrift Institution Tax return.

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The Company's New Jersey State tax returns are open for examination from 2020.

Currently, the company’s income tax return for periods ended 12/31/2020-12/31/2023 are under audit form New Jersey Division of Taxation.

The company’s income tax returns for period ended 12/31/2022-12/31/2024 are under examination from New Your State tax authorities.

As of December 31, 2025, there were no material adjustments proposed by the relevant authorities.

On July 4, 2025, One Big Beautiful Bill Act ("OBBBA") was signed into law.

The OBBBA includes significant changes to U.S.

tax law, including making permanent certain provisions originally enacted under the Tax Cuts and Jobs Act, such as 100% bonus depreciation, the immediate expensing of domestic research and development costs, and the limitation on the deductibility of business interest expense.

There were no material effects of the Act impacting the consolidated financial statements.

(13) Commitments and Concentrations of Credit Risk

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the Bank is therefore subject to risk of loss.

The Bank believes that its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks.

The Bank believes that its lending policies and procedures adequately minimize the potential exposure to such risks

and that adequate provisions for loan losses are provided for all known and inherent risks.

Collateral and/or guarantees are required for virtually all loans.

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Liabilities for loss contingencies arising from such litigation and claims are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.

As a result of a pending claim, a $ 1.4 million charge was recorded in the fourth quarter of 2024 for estimated contingent litigation reserves, which increased the Company's total contingent litigation reserves to $ 2.0 million as of December 31, 2024.

As of December 31, 2025, $ 2.1 million was recorded in total contingent litigation reserves.

(15) Regulatory Capital Requirements

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Under the prompt corrective action provisions discussed above, a bank holding company parent of an undercapitalized subsidiary bank would be directed to guarantee, within limitations, the capital restoration plan that is required of such an undercapitalized bank.

If the undercapitalized bank fails to file an acceptable capital restoration plan or fails to implement an accepted plan, the FRB may prohibit the bank holding company parent of the undercapitalized bank from paying any dividend or making any other form of capital distribution without the prior approval of the FRB.

If the undercapitalized bank fails to file an acceptable capital restoration plan or fails to implement an accepted plan, the FRB may prohibit the bank holding

company parent of the undercapitalized bank from paying any dividend or making any other form of capital distribution without the prior approval of the FRB.

The following table shows the Company’s actual capital amounts and ratios as of December 31, 2025 and 2024, compared to the FRB minimum capital adequacy requirements and the FRB requirements for classification as a well-capitalized institution (dollars in thousands).

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For purposes of estimating the allowance for credit losses for off-balance sheet credit exposures, the exposure at default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors, resulting in a proportionate amount of expected credit losses.

For the years ended December 31, 2024, 2023 and 2022, the Company recorded a $ 4.0 million provision, a $ 264,000 provision and a $ 3.4 million negative provision for credit losses for off-balance sheet credit exposures, respectively.

For the years ended December 31, 2025, 2024 and 2023, the Company recorded a $ 545,000 provision release, a $ 4.0 million provision and a $ 264,000 provision for credit losses for off-balance sheet credit exposures, respectively.

The allowance for credit losses for off-balance sheet credit exposures was $ 6.8 million and $ 7.4 million as of December 31, 2025 and 2024, respectively, and are included in Other liabilities on the Consolidated Statements of Financial Condition.

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GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1

measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of fair value hierarchy are as follows:

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Prices obtained from these sources include market quotations and matrix pricing.

Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities by

benchmarking to comparable securities.

Matrix pricing, a Level 2 input, is a mathematical technique used principally to value certain securities by benchmarking to comparable securities.

The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows.

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Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.

These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.

These derivatives were used to hedge the variable cash outflows associated with FHLBNY

borrowings and brokered demand deposits.

The change in the fair value of these derivatives is recorded in accumulated other comprehensive income (loss), and is subsequently reclassified into earnings in the period that the forecasted transactions affect earnings.

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A reserve for foreclosed assets may be established to provide for possible write-downs and selling costs that occur subsequent to foreclosure.

Foreclosed assets are carried net of the

related reserve.

Foreclosed assets are carried net of the related reserve.

Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned, are recorded as incurred.

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Treasury obligations $ 330,598 330,598 — —

Agency obligations 27,498 — 27,498 —

Government-agency obligations 107,235 — 107,235 —

Mortgage-backed securities 2,062,159 — 2,062,159 —

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For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value.

As of December 31, 2024 and December 31, 2023, $ 70,000 was included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps and risk participation agreements.

As of December 31, 2025 and December 31, 2024, $ 2.4 million and $ 70,000 respectively, were included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps and risk participation agreements.

Held to Maturity Debt Securities

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Held to maturity debt securities:

US Treasury obligations $ 5,146 5,146 5,146 — —

Government-agency obligations 9,999 9,707 — 9,707 —

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Due from subsidiary—SAP 50,916 61,836

ESOP loan — 6,411

Other assets 22,724 13,382

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Income before income tax expense 67,004 81,253 58,660

Income tax expense — 247 —

Income tax (benefit) expense ( 11,287 ) — 247

Income before undistributed net income of subsidiary 78,291 81,253 58,413

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Unrealized losses on available for sale debt securities:

Net (losses) gains arising during the period $ 11,216 ( 3,375 ) 7,841 43,250 ( 11,125 ) 32,125 ( 254,591 ) 68,230 ( 186,361 )

Reclassification adjustment for gains included in net income 2,986 ( 899 ) 2,087 — — — ( 58 ) 16 ( 42 )

Net gains (losses) arising during the period $ 104,795 ( 37,349 ) 67,446 11,216 ( 3,375 ) 7,841 43,250 ( 11,125 ) 32,125

Reclassification adjustment for gains and losses included in net income ( 87 ) 24 ( 63 ) 2,986 ( 899 ) 2,087 — — —

Total 104,708 ( 37,325 ) 67,383 14,202 ( 4,274 ) 9,928 43,250 ( 11,125 ) 32,125

Unrealized gains (losses) on derivatives designated as cash flow hedges:

Net (losses) gains arising during the period 4,547 ( 1,368 ) 3,179 3,288 ( 900 ) 2,388 26,231 ( 7,030 ) 19,201

Reclassification adjustment for gains included in net income ( 13,670 ) 4,113 ( 9,557 ) ( 17,713 ) 4,765 ( 12,948 ) ( 4,504 ) 1,207 ( 3,297 )

Net gains (losses) arising during the period 167 ( 47 ) 120 4,547 ( 1,368 ) 3,179 3,288 ( 900 ) 2,388

Reclassification adjustment for gains and losses included in net income ( 6,993 ) 1,955 ( 5,038 ) ( 13,670 ) 4,113 ( 9,557 ) ( 17,713 ) 4,765 ( 12,948 )

Total ( 6,826 ) 1,908 ( 4,918 ) ( 9,123 ) 2,745 ( 6,378 ) ( 14,425 ) 3,865 ( 10,560 )

Amortization related to post-retirement obligations ( 4,571 ) 1,278 ( 3,293 ) 3,162 ( 952 ) 2,210 3,249 ( 884 ) 2,365

Total other comprehensive (loss) income $ 8,241 ( 2,481 ) 5,760 32,074 ( 8,144 ) 23,930 ( 234,848 ) 62,940 ( 171,908 )

Total other comprehensive income (loss) $ 93,311 ( 34,139 ) 59,172 8,241 ( 2,481 ) 5,760 32,074 ( 8,144 ) 23,930

The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2025 and 2024 (in thousands):

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Post-Retirement

Obligations Unrealized Gains on Derivatives (cash flow hedges) Accumulated

Obligations Unrealized (Losses) on Derivatives (cash flow hedges) Accumulated

Comprehensive

Income (Loss) Unrealized

Gains (Losses) on

Available for Sale Debt Securities

Post-Retirement

Obligations Unrealized Gains (Losses) on Derivatives (cash flow hedges) Accumulated

Obligations Unrealized (Losses) on Derivatives (cash flow hedges) Accumulated

Comprehensive

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( 1,955 ) 4,113 4,765 Income tax expense

( 9,557 ) ( 12,948 ) ( 3,297 )

5,038 ( 9,557 ) ( 12,948 ) Net of tax

Post-retirement obligations:

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Under the RPAs, the Company will either receive or make a payment in the event the borrower defaults on the related interest rate contract.

The Company has minimum collateral posting thresholds with certain of its risk participation counterparties, and has posted collateral of $ 70,000 against the potential risk of default by the borrower under these agreements.

As of December 31, 2024 and 2023 the Company had 9 and 12 credit derivatives with aggregate notional amounts of $ 79.2 million and $ 142.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements.

As of December 31, 2024, the asset and liability positions of these fair value credit derivatives were insignificant, compared to $ 17,000 and $ 8,000 , respectively, as of December 31, 2023 .

The Company was not required to post collateral against the potential risk of default by the borrower under these agreements.

As of December 31, 2025 and 2024, the Company had 10 and 9 credit derivatives with aggregate notional amounts of $ 98.6 million and $ 79.2 million, respectively, in interest rate swaps as part of these loan participation arrangements.

As of December 31, 2025 and December 31, 2024, the asset and liability positions of these fair value credit derivatives were insignificant.

Cash Flow Hedges of Interest Rate Risk.

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Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s borrowings or demand deposits.

During the next twelve months, the Company estimates that $ 4.6 million will be reclassified as a reduction to interest expense.

During the next twelve months, the Company estimates that $ 1.4 million will be reclassified as an increase to interest expense.

As of December 31, 2025, the Company had 7 outstanding interest rate derivatives with an aggregate notional amount of $ 575.0 million that was designated as a cash flow hedge of interest rate risk.

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Total gross derivative amounts recognized on the balance sheet 105,260 108,123

Netting Adjustments — 1,678

Gross amounts offset on the balance sheet — —

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Derivatives not designated as hedging instruments:

Interest rate products Other income $ 435 133 722

Credit contracts Other income 30 ( 7 ) ( 49 )

Interest rate products Other (loss) income $ ( 54 ) 435 133

Credit contracts Other (loss) income ( 124 ) 30 ( 7 )

Total derivatives not designated as hedging instruments $ ( 178 ) 465 126

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(Gain) Loss recognized in Expense on derivatives

Interest rate products Interest (income) expense $ ( 13,670 ) ( 17,713 ) ( 4,504 )

Interest rate products Interest expense $ ( 6,993 ) ( 13,670 ) ( 17,713 )

Total derivatives designated as a hedging instruments $ ( 6,993 ) ( 13,670 ) ( 17,713 )

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In addition, the Company has agreements with certain of its dealer counterparties which contain a provision that if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

As of December 31, 2024, the Company had five dealer counterparties and the Company was in a net asset position with respect to all of its counterparties.

As of December 31, 2025, the Company had six dealer counterparties, of which the Company was in a net asset position with respect to five of its counterparties.

(22) Revenue Recognition

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The Company’s performance obligation is generally satisfied monthly and the resulting fees are recognized monthly.

The fee is generally based upon the average market value of the assets under management ("AUM") for the month and the applicable fee rate.

The fee is generally based upon the average market value of the assets under management for the month and the applicable fee rate.

The monthly accrual of wealth management fees is recorded in other assets on the Company's Consolidated Statements of Financial Condition.

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The Company does not earn performance-based incentives.

To a lesser extent, optional services such as tax return preparation and estate settlement are also available to existing customers.

To a lesser extent, optional services such as tax return preparation and estate settlement were available to existing customers.

The Company’s performance obligation for these transaction-based services is generally satisfied, and related revenue recognized, at either a point in time when the service is completed, or in the case of estate settlement, over a relatively short period of time, as each service component is completed.

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Operating cash flows from operating leases $ 13,508 12,818

During the year ended December 31, 2024, the Company added 39 new lease obligations related to the Lakeland merger.

The Company recorded a $ 14.7 million right-of-use asset and lease liability for these lease obligations.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2025 were as follows (in thousands):

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(1) Other non-interest income items includes fees and commissions, BOLI and other miscellaneous income.

(2) Other non-interest expense items includes merger-related expenses, amortization of intangibles and other miscellaneous expenses.

(2) Other non-interest expense items includes merger-related expenses, amortization of intangibles & other misc.

Our segment assets represent our total assets as presented on the Consolidated Statements of Financial Position.

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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-K

Item 8. Financial Statements and Supplementary Data