What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2025-11-06 · 288 added, 516 removed, 948 unchanged (46% of the section changed)

3 unchanged sentences

Consolidated Statements of Financial Condition

September 30, 2025 (Unaudited) and December 31, 2024

March 31, 2026 (Unaudited) and December 31, 2025

(Dollars in Thousands)

September 30, 2025 December 31, 2024

Cash and due from banks $ 301,614 $ 205,939

March 31, 2026 December 31, 2025

Cash and cash equivalents $ 222,083 $ 211,484

Available for sale debt securities, at fair value 3,240,067 3,164,756

Held to maturity debt securities, (net of $ 19,000 allowance as of September 30, 2025 (unaudited) and $ 14,000 allowance as of December 31, 2024)

Held to maturity debt securities, (net of $ 15,000 allowance as of March 31, 2026 and $ 16,000 allowance as of December 31, 2025)

267,653 282,127

Equity securities, at fair value 19,893 19,875

Federal Home Loan Bank stock 119,551 112,767

Federal Home Loan Bank and other stock 132,510 115,687

Loans held for sale 7,516 14,710

22 unchanged sentences

Preferred stock, $ 0.01 par value, 50,000,000 shares authorized, none issued

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,621,757 shares outstanding as of September 30, 2025 and 130,489,493 outstanding as of December 31, 2024

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,311,796 shares outstanding as of March 31, 2026 and 130,619,949 outstanding as of December 31, 2025

Additional paid-in capital 1,847,737 1,844,949

Retained earnings 1,202,413 1,154,364

Accumulated other comprehensive (loss) income ( 87,243 ) ( 135,355 )

Accumulated other comprehensive loss ( 86,423 ) ( 76,183 )

Treasury stock ( 102,234 ) ( 91,294 )

5 unchanged sentences

Consolidated Statements of Income

Three and nine months ended September 30, 2025 and 2024 (Unaudited)

Three months ended March 31, 2026 and 2025 (Unaudited)

(Dollars in Thousands, except per share data)

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

Three months ended March 31,

Interest and dividend income:

2 unchanged sentences

Consumer loans 9,900 10,158

Available for sale debt securities, equity securities and Federal Home Loan Bank stock 33,578 25,974 94,666 58,698

Available for sale debt securities and Federal Home Loan Bank stock 33,282 29,644

Held to maturity debt securities 1,794 1,996

Due from banks, Federal funds sold and other short-term investments 764 2,425 2,227 5,466

Total interest income 326,281 322,522 947,935 734,192

Deposits, Federal funds sold and other short-term investments 686 675

Total interest and dividend income 315,066 305,346

Interest expense:

4 unchanged sentences

Net interest income 193,743 181,728

Provision charge for credit losses 7,044 9,299 4,794 78,684

Provision for credit losses ( 2,116 ) 638

Net interest income after provision for credit losses 195,859 181,090

4 unchanged sentences

Bank-owned life insurance 4,034 2,092

Net gain (loss) on securities transactions 67 2 153 ( 2,972 )

Net gain on securities transactions — 87

Other income 2,703 2,217

7 unchanged sentences

Advertising and promotion expense 938 1,060

Merger-related expenses — 15,567 — 36,684

Other operating expenses 13,972 16,423

11 unchanged sentences

Consolidated Statements of Comprehensive Income

Three and nine months ended September 30, 2025 and 2024 (Unaudited)

Three months ended March 31, 2026 and 2025 (Unaudited)

(Dollars in Thousands)

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

Three months ended March 31,

Net income $ 79,417 $ 64,028

Other comprehensive income, net of tax:

Other comprehensive income (loss), net of tax:

Unrealized gains and losses on available for sale debt securities:

Net unrealized gains arising during the period 19,948 53,122 55,880 54,726

Reclassification adjustment for (gains) losses on securities sales included in net income — — ( 63 ) 2,056

Net unrealized gains (losses) arising during the period ( 12,689 ) 26,786

Reclassification adjustment for gains included in net income — ( 62 )

Total ( 12,689 ) 26,724

Unrealized gains and losses on derivatives:

Net unrealized gains (losses) arising during the period 441 ( 3,395 ) ( 153 ) 810

Net unrealized gains arising during the period 2,533 106

Reclassification adjustment for gains included in net income ( 67 ) ( 1,391 )

1 unchanged sentence

Amortization related to post-retirement obligations ( 17 ) ( 330 )

Total other comprehensive income 16,527 46,915 48,112 48,066

Total other comprehensive income (loss) ( 10,240 ) 25,109

Total comprehensive income $ 69,177 $ 89,137

3 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

For the three and nine months ended September 30, 2025 (Unaudited)

Three months ended March 31, 2026 (Unaudited)

(Dollars in Thousands)

For the three months ended September 30, 2025

For the three months ended March 31, 2026

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE LOSS TREASURY STOCK TOTAL STOCKHOLDERS’ EQUITY

Balance as of June 30, 2025 $ 1,376 $ 1,839,314 $ 1,061,897 $ ( 103,770 ) $ ( 91,262 ) $ 2,707,555

Net income — — 71,720 — — 71,720

Other comprehensive income, net of tax — — — 16,527 — 16,527

Cash dividends paid — — ( 31,348 ) — — ( 31,348 )

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 25 ) ( 25 )

Allocation of Stock Award Plan ("SAP") shares — 2,606 — — — 2,606

Balance as of September 30, 2025 $ 1,376 $ 1,841,920 $ 1,102,269 $ ( 87,243 ) $ ( 91,287 ) $ 2,767,035

For the nine months ended September 30, 2025

COMMONSTOCK ADDITIONAL

CAPITAL RETAINED EARNINGS ACCUMULATED

COMPREHENSIVE

LOSS TREASURY

STOCK TOTAL STOCKHOLDERS’ EQUITY

Balance as of December 31, 2025 1,376 1,844,949 1,154,364 ( 76,183 ) ( 91,294 ) 2,833,212

Net income — — 79,417 — — 79,417

Other comprehensive income, net of tax — — — 48,112 — 48,112

Other comprehensive loss, net of tax — — — ( 10,240 ) — ( 10,240 )

Cash dividends paid — ( 31,368 ) — ( 31,368 )

Purchases of treasury stock — — — — ( 10,255 ) ( 10,255 )

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 2,138 ) ( 2,138 )

Stock option exercises — 57 — — 1,453 1,510

Allocation of SAP shares — 2,731 — — — 2,731

Allocation of Stock options — — — — — —

Balance as of September 30, 2025 $ 1,376 $ 1,841,920 $ 1,102,269 $ ( 87,243 ) $ ( 91,287 ) $ 2,767,035

Balance as of March 31, 2026 $ 1,376 $ 1,847,737 $ 1,202,413 $ ( 86,423 ) $ ( 102,234 ) $ 2,862,869

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

For the three and nine months ended September 30, 2024 (Unaudited)

Three months ended March 31, 2025 (Unaudited)

(Dollars in Thousands)

For the three months ended September 30, 2024

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK UNALLOCATED ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL STOCKHOLDERS’ EQUITY

Balance as of June 30, 2024 $ 1,376 $ 1,868,643 $ 957,979 $ ( 139,964 ) $ ( 129,115 ) $ ( 3,273 ) $ ( 2,398 ) $ 2,398 $ 2,555,646

Net loss — — 46,405 — — — — — 46,405

Other comprehensive income, net of tax — — — 46,915 — — — — 46,915

Cash dividends paid — — ( 31,387 ) — — — — — ( 31,387 )

Distributions from deferred comp plans — 39 — — — — 151 ( 151 ) 39

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 33 ) — — — ( 33 )

Allocation of ESOP shares — 30 — — — 812 — — 842

Allocation of SAP shares — 2,614 — — — — — — 2,614

Allocation of stock options — 17 — — — — — — 17

Balance as of September 30, 2024 $ 1,376 $ 1,871,343 $ 972,997 $ ( 93,049 ) $ ( 129,148 ) $ ( 2,461 ) $ ( 2,247 ) $ 2,247 $ 2,621,058

For the nine months ended September 30, 2024

COMMONSTOCK ADDITIONAL

PAID-IN CAPITAL RETAINEDEARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK UNALLOCATED

ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL

STOCKHOLDERS’ EQUITY

For the three months ended March 31, 2025

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK TOTAL STOCKHOLDERS’ EQUITY

Balance as of December 31, 2024 $ 1,376 $ 1,834,495 $ 989,111 $ ( 135,355 ) $ ( 88,420 ) $ 2,601,207

2 unchanged sentences

Cash dividends paid — — ( 31,873 ) — ( 31,873 )

Distributions from deferred comp plans — 102 — — — — 447 ( 447 ) 102

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 1,847 ) ( 1,847 )

Allocation of ESOP shares — ( 151 ) — — — 2,435 — — 2,284

Allocation of SAP shares — 2,153 — — — 2,153

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

Allocation of Stock options — 17 — — — 17

Balance as of September 30, 2024 $ 1,376 $ 1,871,343 $ 972,997 $ ( 93,049 ) $ ( 129,148 ) $ ( 2,461 ) $ ( 2,247 ) $ 2,247 $ 2,621,058

Balance as of March 31, 2025 $ 1,376 $ 1,836,665 $ 1,021,266 $ ( 110,246 ) $ ( 90,267 ) $ 2,658,794

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Nine months ended September 30, 2025 and 2024 (Unaudited)

Three months ended March 31, 2026 and 2025 (Unaudited)

(Dollars in Thousands)

Nine months ended September 30,

Three months ended March 31,

Cash flows from operating activities:

1 unchanged sentence

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangibles 39,379 28,225

Provision charge for credit losses on loans and securities 2,180 75,838

Depreciation and amortization expense 11,826 13,165

Provision for credit losses on loans and securities ( 4,651 ) 328

Provision charge for credit losses on off-balance sheet credit exposures 2,535 310

Deferred tax expense (benefit) 13,892 ( 1,020 )

Deferred tax expense 4,674 3,600

Amortization of operating lease right-of-use assets 3,671 3,544

4 unchanged sentences

Originations of loans held for sale ( 14,067 ) ( 15,683 )

Proceeds from sales of loans held for sale 186,079 31,222

ESOP expense — 2,284

Proceeds from sales of loans originated for sale 18,405 10,640

Allocation of stock award expense 2,737 2,153

3 unchanged sentences

Net gain on sale of premises and equipment ( 1,182 ) ( 624 )

Net loss (gain) on sale of foreclosed assets 11 ( 204 )

Increase in accrued interest receivable ( 1,928 ) ( 616 )

Decrease (increase) in other assets 26,515 ( 10,591 )

(Decrease) increase in other liabilities ( 53,936 ) 21,258

(Increase) decrease in other assets ( 2,953 ) 43,106

Decrease in other liabilities ( 10,619 ) ( 35,718 )

Net cash provided by operating activities 84,652 88,515

2 unchanged sentences

Purchases of loans — ( 321 )

Proceeds from sales of foreclosed assets 5,779 426

Proceeds from maturities, calls and paydowns of held to maturity debt securities 15,180 14,113

5 unchanged sentences

Purchases of Federal Home Loan Bank stock ( 118,499 ) ( 91,086 )

Cash received, net of cash consideration paid for acquisition — 194,548

BOLI claim benefits received — 906

1 unchanged sentence

Purchases of premises and equipment ( 3,694 ) ( 1,142 )

Net cash (used in) provided by investing activities ( 845,517 ) 800,492

Net cash (used in) investing activities ( 232,388 ) ( 176,477 )

Cash flows from financing activities:

PROVIDENT FINANCIAL SERVICES, INC.

AND SUBSIDIARY

Consolidated Statements of Cash Flows

Nine months ended September 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands)

Nine months ended September 30,

Net increase (decrease) in deposits 472,431 ( 539,253 )

Net decrease in deposits ( 178,381 ) ( 174,950 )

Increase in mortgage escrow deposits 8,057 9,014

Cash dividends paid to stockholders ( 31,368 ) ( 31,874 )

Purchase of treasury stock ( 10,255 ) —

Purchase of employee restricted shares to fund statutory tax withholding ( 2,138 ) ( 1,847 )

Proceeds from subordinated debentures — 221,181

Three months ended March 31,

Stock options exercised 1,396 —

Proceeds from long-term borrowings 50,000 —

Payments on long-term borrowings ( 2,790 ) ( 254,600 )

Net decrease in short-term borrowings ( 13,223 ) ( 565,813 )

Net cash provided by (used in) financing activities 567,876 ( 923,751 )

Net increase in short-term borrowings 323,814 570,356

Net cash provided by financing activities 158,335 116,099

Net increase in cash and cash equivalents 10,599 28,137

8 unchanged sentences

Income taxes $ 2,508 $ 1,029

Non-cash investing activities:

Initial recognition of operating lease right-of-use assets $ — $ 14,742

Initial recognition of operating lease liabilities $ — $ 14,742

Transfer of loans receivable to foreclosed assets $ — $ —

Acquisitions:

Non-cash assets acquired at fair value:

Investment securities $ — $ 1,632,106

Loans held for sale — 1,494

Loans held for investment — 7,889,138

Bank-owned life insurance — 160,646

Goodwill and other intangible assets — 400,773

Bank premises and equipment — 60,578

Other assets — 269,252

Total non-cash assets acquired at fair value $ — $ 10,413,987

Liabilities assumed

Deposits $ — $ 8,622,924

Borrowings — 785,927

Subordinated debentures — 180,198

Other Liabilities — 142,708

Total liabilities assumed $ — $ 9,731,757

Common stock issued for acquisitions $ — $ 876,778

See accompanying notes to unaudited consolidated financial statements.

10 unchanged sentences

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented.

The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results of operations that may be expected for all of 2025.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results of operations that may be expected for all of 2026.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S.

3 unchanged sentences

Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands, except per share amounts):

Three months ended September 30,

Income Weighted

Outstanding Per

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months ended March 31, 2026 and 2025 (dollars in thousands, except per share amounts):

Three months ended March 31,

Income Weighted

Outstanding Per

Net income $ 71,720 $ 46,405

Basic earnings per share:

Income available to common stockholders $ 71,720 130,506,517 $ 0.55 $ 46,405 129,941,845 $ 0.36

Dilutive shares 47,302 63,025

Diluted earnings per share:

Income available to common stockholders $ 71,720 130,553,819 $ 0.55 $ 46,405 130,004,870 $ 0.36

Nine months ended September 30,

Income Weighted

Outstanding Per

Income Weighted

Common Shares Outstanding Per

Net income $ 79,417 $ 64,028

4 unchanged sentences

Income available to common stockholders $ 79,417 130,588,635 $ 0.61 $ 64,028 130,380,475 $ 0.49

Anti-dilutive stock options and awards as of September 30, 2025 and 2024, totaling 1.0 million shares and 1.7 million shares, respectively, were excluded from the earnings per share calculations.

Anti-dilutive stock options and awards as of March 31, 2026 and 2025, totaling 671,193 shares and 1.4 million shares, respectively, were excluded from the earnings per share calculations.

Loans Receivable and Allowance for Credit Losses

1 unchanged sentence

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

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

The recapture of the provision for credit losses on loans for the three months ended March 31, 2026, was primarily attributable to a

reduction in specific reserves on individually evaluated loans.

See Notes 3 and 9 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans and off-balance sheet credit exposures.

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

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.

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.

Goodwill is analyzed for impairment at least once a year.

The Company prepares a qualitative assessment in determining whether goodwill may be impaired.

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

The factors considered in the assessment include macroeconomic conditions, industry and market conditions and overall financial performance of the Company, among others.

The Company completed its most recent annual goodwill impairment test as of July 1, 2025.

The Company performed a qualitative analysis of goodwill and concluded that no triggering events were identified and therefore a test for impairment between annual tests was not required.

Business Combinations

Lakeland Bancorp, Inc.

- Merger Agreement

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

("Lakeland").

Under the merger agreement, each share of Lakeland common stock was converted into the right to receive 0.8319 shares of the Company's common stock, a total of 54,356,954 shares converted, plus cash in lieu of fractional shares.

The total consideration paid for the acquisition of Lakeland was $ 876.8 million.

The acquisition was accounted for under the acquisition method of accounting.

Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax.

The excess of consideration paid over the estimated fair value of the net assets acquired totaled $ 180.4 million and was recorded as goodwill.

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

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

Additionally, an initial CECL provision for credit losses of

$ 60.1 million was recorded as part of the Lakeland merger, for the three and nine months ended September 30, 2024, respectively.

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the merger date, net of cash consideration paid (in thousands):

As of May 16, 2024

Assets acquired:

Cash and cash equivalents, net $ 194,548

Available for sale debt securities 1,585,993

Federal Home Loan Bank stock 46,113

Loans held for sale 1,494

Loans held for investment 7,906,326

Allowance for credit losses on PCD loans ( 17,188 )

Loans, net 7,889,138

Bank-owned life insurance 160,646

Banking premises and equipment 60,578

Accrued interest receivable 27,241

Goodwill 180,446

Other intangibles assets 209,915

Other assets 236,481

Total assets acquired $ 10,592,593

Liabilities assumed:

Deposits $ 8,622,924

Mortgage escrow deposits 5,532

Borrowed funds 785,927

Subordinated debentures 166,366

Other liabilities 135,066

Total liabilities assumed $ 9,715,815

Net assets acquired $ 876,778

The Company finalized its review of the acquired assets and liabilities as of December 31, 2024.

No adjustments to the recorded carrying values or goodwill were made as of and for the quarter ended September 30, 2025.

As of March 31, 2026, the Company performed a qualitative analysis of goodwill and concluded that no triggering events were identified and therefore a test for impairment between annual tests was not required.

Investment Securities

As of September 30, 2025, the Company had $ 3.14 billion and $ 292.1 million in available for sale debt securities and held to maturity debt securities, respectively.

As of March 31, 2026, the Company had $ 3.24 billion and $ 267.7 million in available for sale debt securities and held to maturity debt securities, respectively.

Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, changes in interest rates, regulatory actions, changes in the business environment or any changes in the competitive marketplace, could have an adverse effect on the Company’s investment portfolio.

Available for Sale Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Treasury obligations $ 274,883 106 ( 7,629 ) 267,360

13 unchanged sentences

$ 3,266,829 31,608 ( 133,681 ) 3,164,756

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $ 10.8 million and $ 9.7 million as of September 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The amortized cost and fair value of available for sale debt securities as of September 30, 2025, by contractual maturity, are shown below (in thousands).

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $ 11.4 million and $ 10.9 million as of March 31, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the Consolidated Statements of Financial Condition.

The amortized cost and fair value of available for sale debt securities as of March 31, 2026, by contractual maturity, are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

September 30, 2025

March 31, 2026

Due in one year or less $ 140,509 139,735

2 unchanged sentences

Due after ten years 66,705 61,085

Securities without a contractual maturity (1)

2,869,049 2,761,021

Investments which pay principal on a periodic basis totaling $ 2.73 billion at amortized cost and $ 2.63 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.

For the three months ended September 30, 2025 and September 30, 2024, no securities were sold from the available for sale debt securities portfolio, respectively.

For the nine months ended September 30, 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 the three and nine months ended September 30, 2025, proceeds from calls on securities from the available for sale debt portfolio totaled $ 4.0 million with gross gains of $ 67,000 and no losses recognized.

For the nine months ended September 30, 2024, proceeds from sales on available for sale debt securities portfolio totaled $ 568.4 million, with no gains and $ 3.0 million of

losses recognized.

For the three and nine months ended September 30, 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 number of available for sale debt securities in an unrealized loss position as of September 30, 2025 totaled 422 , compared with 646 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of September 30, 2025, was mainly due to lower current market interest rates compared to rates as of December 31, 2024.

All securities in an unrealized loss position were investment grade as of September 30, 2025.

$ 3,359,753 3,240,067

(1) Residential mortgage-backed securities, other asset-backed securities and government-agency obligations are not included in the maturity categories as actual maturities may differ from contractual maturities because the underlying loans may be called or prepaid without penalties.

For the three months ended March 31, 2026, no securities were sold or called from the available for sale debt securities portfolio.

For March 31, 2025, proceeds from sales on securities in the available for sale debt portfolio totaled $ 1.7 million with gross gains of $ 87,000 and no losses recognized, while calls from securities from the available for sale debt portfolio totaled $ 9.6 million with no gross 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 March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Less Than 12 months 12 Months or More Total

Unrealized Losses

Available-for-sale:

Treasury obligations $ — — 246,199 ( 7,629 ) 246,199 ( 7,629 )

Government-agency obligations — — 2,154 ( 7 ) 2,154 ( 7 )

Mortgage-backed securities 641,639 ( 4,860 ) 980,474 ( 116,923 ) 1,622,113 ( 121,783 )

Asset-backed securities 12,539 ( 98 ) 8,800 ( 204 ) 21,339 ( 302 )

State and municipal obligations 19,101 ( 442 ) 63,936 ( 7,740 ) 83,037 ( 8,182 )

Corporate obligations 11,768 ( 232 ) 18,635 ( 1,636 ) 30,403 ( 1,868 )

Total $ 685,047 ( 5,632 ) 1,320,198 ( 134,139 ) 2,005,245 ( 139,771 )

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 available for sale debt securities in an unrealized loss position as of March 31, 2026 totaled 471 , compared with 406 as of December 31, 2025.

The increase in the number of securities in an unrealized loss position as of March 31, 2026 was due to higher current market interest rates compared to rates as of December 31, 2025.

All securities in an unrealized loss position were investment grade as of March 31, 2026.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $ 19,000 and $ 14,000 , as of September 30, 2025 and December 31, 2024, respectively (in thousands):

September 30, 2025

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities excluding allowances for credit losses of $ 15,000 and $ 16,000 , as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Government-agency obligations $ 1,000 — ( 11 ) 989

7 unchanged sentences

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

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $ 2.3 million and $ 2.9 million as of September 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $ 2.5 million and $ 2.6 million as of March 31, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the Consolidated Statements of Financial Condition.

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

There were no sales of securities from the held to maturity debt securities portfolio for the three and nine months ended September 30, 2025 and 2024.

For the three and nine months ended September 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 910,000 and $ 11.0 million, respectively.

For the three and nine months ended September 30, 2025, there were no gross gains or gross losses related to these calls on securities.

For the three and nine months ended September 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 2.1 million and $ 4.6 million, respectively.

As to these calls on securities, for the three months ended September 30, 2024, there were no gross gains or gross losses, while for the nine months ended September 30, 2024, there were no gross gains, while gross losses totaled $ 1,200 .

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of September 30, 2025 by contractual maturity are shown below (in thousands).

There were no sales of securities from the held to maturity debt securities portfolio for the three months ended March 31, 2026 and 2025.

For the three months ended March 31, 2026, proceeds from calls of securities in the held to maturity debt securities portfolio totaled $ 2.8 million, with no gross gains and no gross losses.

For the three months ended March 31, 2025, proceeds from calls of securities in the held to maturity debt securities portfolio totaled $ 5.0 million with no gross gains and no gross losses.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of March 31, 2026 by contractual maturity are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

September 30, 2025

The amortized cost and fair value of held to maturity debt securities as of March 31, 2026 by contractual maturity, excluding allowances for credit losses of $ 15,000 as of March 31, 2026 are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

March 31, 2026

Due in one year or less $ 45,294 45,227

3 unchanged sentences

$ 267,668 259,875

The allowance for credit losses on held to maturity debt securities as of September 30, 2025 and December 31, 2024 was $ 19,000 and $ 14,000 , respectively, and are excluded from amortized cost in the table above.

The number of held to maturity debt securities in an unrealized loss position as of September 30, 2025 totaled 241 , compared with 512 as of December 31, 2024.

The decrease in the number of securities in an unrealized loss position as of September 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024.

The number of held to maturity debt securities in an unrealized loss position as of March 31, 2026 totaled 216 , compared with 221 as of December 31, 2025.

The decrease in the number of securities in an unrealized loss position as of March 31, 2026, was due to lower current market interest rates compared to rates as of December 31, 2025.

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

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government, are highly rated by major rating agencies and have a long history of no credit losses.

The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of September 30, 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").

The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of March 31, 2026, that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").

Credit Quality Indicators.

The following table provides the amortized cost of held to maturity debt securities by credit rating as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025

The following table provides the amortized cost of held to maturity debt securities by credit rating as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Total Portfolio AAA AA A BBB Not Rated Total

10 unchanged sentences

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities.

As of September 30, 2025, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 72 % rated AA, 8 % rated A, and less than 3 % either below an A rating or not rated by Moody’s 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.

As of March 31, 2026, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 72 % rated AA, 7 % rated A, and 4 % either below an A rating or not rated by Moody’s or Standard and Poor’s.

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 March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Less Than 12 months 12 Months or More Total

Unrealized Losses

Held-to-maturity:

Government-agency obligations $ — — 989 ( 11 ) 989 ( 11 )

State and municipal obligations 42,144 ( 177 ) 87,830 ( 7,670 ) 129,974 ( 7,847 )

Corporate obligations — — 934 ( 7 ) 934 ( 7 )

Total $ 42,144 ( 177 ) 89,753 ( 7,688 ) 131,897 ( 7,865 )

December 31, 2025

Less Than 12 months 12 Months or More Total

Unrealized Losses

Held-to-maturity:

Government-agency obligations $ — — 3,388 ( 22 ) 3,388 ( 22 )

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 ) 132,529 ( 7,080 ) 135,882 ( 7,081 )

Loans Receivable and Allowance for Credit Losses

Loans held for investment as of September 30, 2025 and December 31, 2024 are summarized as follows (in thousands):

September 30, 2025 December 31, 2024

Loans held for investment as of March 31, 2026 and December 31, 2025 are summarized as follows (in thousands):

March 31, 2026 December 31, 2025

Mortgage loans:

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Net deferred fees ( 12,805 ) ( 12,976 )

Total loans $ 19,286,067 18,659,370

Accrued interest on loans totaled $ 81.4 million and $ 78.5 million as of September 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Total loans held for investment $ 19,647,702 19,504,061

Accrued interest on loans totaled $ 83.8 million and $ 82.2 million as of March 31, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the Consolidated Statements of Financial Condition.

The following tables summarize the aging of loans held for investment by portfolio segment and class of loans (in thousands):

September 30, 2025

March 31, 2026

30-59 Days 60-89 Days Non-accrual Recorded

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Total gross loans $ 27,508 6,523 78,420 — 112,451 19,403,062 19,515,513 67,506

There were no non-accrual or past due loans held for sale as of September 30, 2025.

As of December 31, 2024, total non-accrual loans held for sale, which are not in the tables above, totaled $ 2.4 million.

Additionally, as of December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $ 4.8 million.

Included in loans held for investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial

condition of the borrowers.

The principal amounts of these non-accrual loans were $ 100.4 million and $ 72.1 million as of September 30, 2025 and December 31, 2024, respectively.

Included in non-accrual loans were $ 41.8 million and $ 24.6 million of loans which were less than 90 days past due as of September 30, 2025 and December 31, 2024, respectively.

There were no loans 90 days or greater past due and still accruing interest as of September 30, 2025 and December 31, 2024.

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2025 and 2024 was as follows (in thousands):

Three months ended September 30, Mortgage loans Commercial loans Consumer loans Total

Balance at beginning of period $ 131,447 51,228 5,196 187,871

Provision charge (benefit) to operations 3,251 1,257 ( 8 ) 4,500

Recoveries of loans previously charged-off 77 60 181 318

Loans charged-off ( 1,199 ) ( 4,368 ) ( 153 ) ( 5,720 )

Balance at end of period $ 133,576 48,177 5,216 186,969

Balance at beginning of period $ 135,312 48,003 5,016 188,331

Provision charge (benefit) to operations 855 8,973 ( 228 ) 9,600

Recoveries of loans previously charged-off 16 513 139 668

Loans charged-off ( 808 ) ( 6,495 ) ( 121 ) ( 7,424 )

Balance at end of period $ 135,375 50,994 4,806 191,175

Nine months ended September 30, Mortgage loans Commercial loans Consumer loans Total

The increase in non-performing loans as of March 31, 2026, compared to the trailing quarter, was primarily driven by the addition of four commercial loans on senior housing properties totaling $ 82.1 million that are the subject of related bankruptcy filings, partially offset by payoffs.

These loans have no prior charge-off history and required no specific reserve allocations in the first quarter of 2026 due to strong collateral values.

Appraisals received in 2026 reflect loan-to-value ratios for the collateral properties of 32.9 %, 51.7 %, 61.3 %, and 81.9 %.

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers.

The principal amounts of these non-accrual loans were $ 142.9 million and $ 78.4 million as of March 31, 2026 and December 31, 2025, respectively.

Included in non-accrual loans were $ 111.4 million and $ 49.5 million of loans which were less than 90 days past due as of March 31, 2026 and December 31, 2025, respectively.

There were no loans 90 days or greater past due and still accruing interest as of March 31, 2026 and December 31, 2025.

The activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2026 and 2025 was as follows (in thousands):

Three months ended March 31, Mortgage loans Commercial loans Consumer loans Total

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

4 unchanged sentences

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

Provision charge to operations 52,066 21,935 1,853 75,854

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

Provision (benefit) charge to operations ( 3,820 ) 4,175 ( 30 ) 325

Recoveries of loans previously charged-off 806 279 191 1,276

1 unchanged sentence

Balance at end of period $ 140,683 45,901 5,186 191,770

For the three and nine months ended September 30, 2025, the Company recorded a $ 4.5 million and a $ 2.2 million provision for credit losses on loans, respectively.

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

For the three and nine months ended September 30, 2025, net charge-offs totaled $ 5.4 million and $ 8.6 million, respectively.

The following table summarizes the Company's gross charge-offs recorded during the three months ended September 30, 2025 by year of origination (in thousands):

2025 2024 2023 2022 2021 Prior to 2021 Total Loans

Mortgage loans:

Commercial $ — — — — — 540 540

Multi-family — — 520 — — 139 659

Total mortgage loans — — 520 — — 679 1,199

Commercial loans — — — — — 4,368 4,368

Consumer loans (1)

2 25 8 — — 2 37

Total gross loans $ 2 25 529 — — 5,049 5,604

(1) During the three months ended September 30, 2025, charge-offs on consumer overdraft accounts totaled $ 116,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the nine months ended September 30, 2025 by year of origination (in thousands):

For the three months ended March 31, 2026, the Company recorded a $ 4.7 million recapture of provisions for credit losses on loans, compared to a $ 325,000 provision on loans for the same period in 2025.

The recapture of the provision for credit losses on loans was primarily due to a reduction in specific reserves on individually evaluated loans.

For the three months ended March 31, 2026, net charge-offs totaled $ 3.1 million.

The following table summarizes the Company's gross charge-offs recorded during the three months ended March 31, 2026 by year of origination (in thousands):

2026 2025 2024 2023 2022 Prior to 2022 Total Loans

7 unchanged sentences

Total gross loans $ 10 1,524 — 167 1,348 370 3,419

(1) During the nine months ended September 30, 2025, charge-offs on consumer overdraft accounts totaled $ 315,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the three months ended September 30, 2024 by year of origination (in thousands):

2024 2023 2022 2021 2020 Prior to 2020 Total Loans

Mortgage loans:

Commercial $ — — — — — 801 801

Residential — — 7 — — — 7

Total mortgage loans — — 7 — — 801 808

Commercial loans — 42 — 6,453 — — 6,495

Consumer loans (1)

7 — — 4 — 7 19

Total gross loans $ 7 42 7 6,457 — 808 7,321

(1) During the three months ended September 30, 2024, charge-offs on consumer overdraft accounts totaled $ 103,000 , which are not included in the table above.

The following table summarizes the Company's gross charge-offs recorded during the nine months ended September 30, 2024 by year of origination (in thousands):

(1) During the three months ended March 31, 2026, charge-offs on consumer overdraft accounts totaled $ 207,000 , which are not included in the table above.

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

2025 2024 2023 2022 2021 Prior to 2021 Total Loans

1 unchanged sentence

Commercial $ — — — 358 — 532 890

Residential — — 7 — — — 7

Total mortgage loans — — — 358 — 532 890

3 unchanged sentences

Total gross loans $ 12 10 12 2,491 65 558 3,148

(1) During the nine months ended September 30, 2024, charge-offs on consumer overdraft accounts totaled $ 240,000 , which are not included in the table above.

(1) During the three months ended March 31, 2025, charge-offs on consumer overdraft accounts totaled $ 115,000 , which are not included in the table above.

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

As of September 30, 2025, there were 28 loans totaling $ 85.4 million, compared to 26 loans totaling $ 55.4 million as of December 31, 2024, that were individually evaluated for impairment.

As of March 31, 2026, there were 27 loans totaling $ 128.4 million, compared to 28 loans totaling $ 63.3 million as of December 31, 2025, that were individually evaluated for impairment.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral.

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Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value and evaluated for charge offs.

The Company believes there have not been any significant time lapses since the receipt of the most recent appraisals.

The Company believes there have been no significant time lapses resulting from this process.

For loans deemed collateral-dependent as defined above, the fair value is based on the underlying collateral.

As of September 30, 2025 and December 31, 2024, the Company had collateral-dependent loans with fair values of $ 76.3 million and $ 11.0 million secured by commercial real estate, respectively.

As of March 31, 2026 and December 31, 2025, the Company had collateral-dependent loans with fair values of $ 124.0 million and $ 54.5 million secured by commercial real estate, respectively.

Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

4 unchanged sentences

Loan Classes Modification types

Commercial Term extension, interest rate reductions, payment delay, or combination thereof.

Commercial Term extension, interest rate modifications, payment delay, or combination thereof.

These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.

4 unchanged sentences

These modifications extend the term of the loan, which reduces the monthly payment requirement.

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025 (in thousands):

For the three months ended September 30, 2025

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Commercial loans $ — — 7,000 0.14 %

Total gross loans $ — — 7,000 0.04 %

For the nine months ended September 30, 2025

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Mortgage loans:

Commercial $ 2,984 — 11,945 0.20 %

Total mortgage loans 2,984 — 11,945 0.11 %

Commercial loans 1,302 — 7,603 0.17 %

Total gross loans $ 4,286 — 19,548 0.12 %

For the three months ended September 30, 2024

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Mortgage loans:

Commercial $ — 1,045 — 0.01 %

Multi-family — 1,297 — 0.04 %

Total mortgage loans — 2,342 — 0.02 %

Commercial loans — 5,743 962 0.14 %

Total gross loans $ — 8,085 962 0.05 %

For the nine months ended September 30, 2024

Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans

Mortgage loans:

Commercial $ — 1,045 — 0.01 %

Multi-family — 1,297 — 0.04 %

Total mortgage loans — 2,342 — 0.02 %

Commercial loans — 5,743 9,759 0.33 %

Total gross loans $ — 8,085 9,759 0.09 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2025 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 (in thousands):

For the three months ended March 31, 2026

Term Extension Interest Rate Change Interest Rate Change and Term Extension Change in Payment Type (1) Total of loan modifications % of Total Class of Loans and Leases

Mortgage loans:

3 unchanged sentences

Total gross loans $ 2,394 3,291 474 397 6,555 0.03 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2025 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 (in thousands):

For the three months ended March 31, 2025

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

Mortgage loans:

3 unchanged sentences

Total gross loans $ 4,128 — 1,630 5,758 0.03 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2024 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 (in thousands):

Weighted-Average Months of Term Extension Weighted-Average Rate Decrease

Mortgage loans:

Commercial 0 ( 0.31 ) %

Multi-family 0 5.00 %

Total mortgage loans 0 ( 0.31 ) %

1 unchanged sentence

Total gross loans 10 ( 0.23 ) %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2024 (in thousands):

Weighted Average Months of Term Extension Weighted Average Rate Change

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 (in thousands):

Weighted-Average Months of Term Extension Weighted-Average Rate Increase (Decrease)

Mortgage loans:

Commercial 3 0.75 %

Multi-family 0 5.00 %

Total mortgage loans 3 0.75 %

1 unchanged sentence

Total gross loans 14 0.08 %

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three and nine months ended September 30, 2025 and September 30, 2024, respectively.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended September 30, 2025 (in thousands):

There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three months ended March 31, 2026 and three months ended March 31, 2025, respectively.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended March 31, 2026 (in thousands):

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

1 unchanged sentence

Commercial $ 3,291 — — — — 3,291

Multi-family 281 — — 450 — 731

Total mortgage loans 3,291 — — — — 3,291

1 unchanged sentence

Total gross loans $ 6,555 — — — — 6,555

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended September 30, 2024 (in thousands):

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended March 31, 2025 (in thousands):

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

5 unchanged sentences

Total gross loans $ 12,341 313 — 89 1,555 14,298

Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as Purchase Credit Deteriorated ("PCD") loans.

As of September 30, 2025, the balance of PCD loans totaled $ 522.4 million with a related allowance for credit losses of $ 12.9 million.

Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as PCD loans.

As of March 31, 2026, the balance of PCD loans totaled $ 492.6 million with a related allowance for credit losses of $ 4.4 million.

The balance of PCD loans as of December 31, 2025 was $ 509.7 million with a related allowance for credit losses of $ 4.6 million.

In connection with the Lakeland merger, the Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following:

(1) non-accrual status;

(2) modifications for borrowers experiencing financial difficulty;

(3) risk ratings of watch, special mention, substandard or doubtful;

and (4) loans greater than 59 days past due.

At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics.

Additionally for PCD loans, an allowance for credit losses was calculated using management's best estimate of projected losses over the remaining life of the loans.

This represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective PCD loan pool, given the outlook and forecasts

inclusive of related fiscal and regulatory interventions.

The expected lifetime losses were calculated using historical losses observed at the Bank, Lakeland and peer banks.

A $ 17.2 million allowance for credit losses was recorded on PCD loans acquired from Lakeland.

The interest rate fair value adjustment related to PCD loans will be substantially recognized as interest income on a level yield or straight line method over the expected life of the loans.

The table below is a summary of the PCD loans that were acquired from Lakeland as of the closing date (in thousands):

Gross amortized cost basis as of May 16, 2024 $ 564,147

Charge-offs on PCD Loans at acquisition ( 4,364 )

Interest component of expected cash flows (accretable difference) ( 33,365 )

Allowance for credit losses on PCD loans ( 17,188 )

Net PCD loans $ 509,230

Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics.

6 unchanged sentences

Reports by the independent third-parties are presented to the Audit Committee of the Board of Directors.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of September 30, 2025 and December 31, 2024 (in thousands):

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of March 31, 2026 and December 31, 2025 (in thousands):