PROVIDENT FINANCIAL SERVICES INC 10-Q

Item 1. FINANCIAL STATEMENTS. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Financial Condition March 31, 2026 (Unaudited) and December 31, 2025 (Dollars in Thousands) March 31, 2026 December 31, 2025 ASSETS 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 $ 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 and other stock 132,510 115,687 Loans held for sale 7,516 14,710 Loans held for investment 19,647,702 19,504,061 Less allowance for credit losses 176,997 184,767 Net loans 19,478,221 19,334,004 Foreclosed assets, net 2,015 2,015 Banking premises and equipment, net 110,356 113,328 Accrued interest receivable 97,726 95,798 Intangible assets 773,585 782,152 Bank-owned life insurance 413,337 414,371 Other assets 444,244 445,113 Total assets $ 25,201,690 $ 24,980,710 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand deposits $ 14,286,558 $ 14,402,148 Savings deposits 1,624,122 1,589,259 Certificates of deposit of $250,000 or more 942,746 929,989 Other time deposits 2,246,876 2,357,287 Total deposits 19,100,302 19,278,683 Mortgage escrow deposits 48,310 40,253 Borrowed funds 2,482,979 2,111,955 Subordinated debentures 407,824 406,582 Other liabilities 299,406 310,025 Total liabilities 22,338,821 22,147,498 Stockholders’ Equity: 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 130,311,796 shares outstanding as of March 31, 2026 and 130,619,949 outstanding as of December 31, 2025 1,376 1,376 Additional paid-in capital 1,847,737 1,844,949 Retained earnings 1,202,413 1,154,364 Accumulated other comprehensive loss ( 86,423 ) ( 76,183 ) Treasury stock ( 102,234 ) ( 91,294 ) Total stockholders’ equity 2,862,869 2,833,212 Total liabilities and stockholders’ equity $ 25,201,690 $ 24,980,710 See accompanying notes to unaudited consolidated financial statements. 3 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Income Three months ended March 31, 2026 and 2025 (Unaudited) (Dollars in Thousands, except per share data) Three months ended March 31, 2026 2025 Interest and dividend income: Real estate secured loans $ 191,503 $ 187,054 Commercial loans 77,901 75,819 Consumer loans 9,900 10,158 Available for sale debt securities and Federal Home Loan Bank stock 33,282 29,644 Held to maturity debt securities 1,794 1,996 Deposits, Federal funds sold and other short-term investments 686 675 Total interest and dividend income 315,066 305,346 Interest expense: Deposits 91,936 97,420 Borrowed funds 21,011 17,778 Subordinated debt 8,376 8,420 Total interest expense 121,323 123,618 Net interest income 193,743 181,728 Provision for credit losses ( 2,116 ) 638 Net interest income after provision for credit losses 195,859 181,090 Non-interest income: Fees 10,464 9,655 Wealth management income 7,402 7,328 Insurance agency income 6,850 5,651 Bank-owned life insurance 4,034 2,092 Net gain on securities transactions — 87 Other income 2,703 2,217 Total non-interest income 31,453 27,030 Non-interest expense: Compensation and employee benefits 66,196 62,366 Net occupancy expense 14,985 13,927 Data processing expense 9,646 9,605 FDIC insurance 2,841 3,385 Amortization of intangibles 8,563 9,501 Advertising and promotion expense 938 1,060 Other operating expenses 13,972 16,423 Total non-interest expense 117,141 116,267 Income before income tax expense 110,171 91,853 Income tax expense 30,754 27,825 Net income $ 79,417 $ 64,028 Basic earnings per share $ 0.61 $ 0.49 Weighted average basic shares outstanding 130,511,676 130,325,393 Diluted earnings per share $ 0.61 $ 0.49 Weighted average diluted shares outstanding 130,588,635 130,380,475 See accompanying notes to unaudited consolidated financial statements. 4 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Comprehensive Income Three months ended March 31, 2026 and 2025 (Unaudited) (Dollars in Thousands) Three months ended March 31, 2026 2025 Net income $ 79,417 $ 64,028 Other comprehensive income (loss), net of tax: Unrealized gains and losses on available for sale debt securities: 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 arising during the period 2,533 106 Reclassification adjustment for gains included in net income ( 67 ) ( 1,391 ) Total 2,466 ( 1,285 ) Amortization related to post-retirement obligations ( 17 ) ( 330 ) Total other comprehensive income (loss) ( 10,240 ) 25,109 Total comprehensive income $ 69,177 $ 89,137 See accompanying notes to unaudited consolidated financial statements. 5 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Changes in Stockholders’ Equity Three months ended March 31, 2026 (Unaudited) (Dollars in Thousands) 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 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 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 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. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Changes in Stockholders’ Equity Three months ended March 31, 2025 (Unaudited) (Dollars in Thousands) 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 Net income — — 64,028 — — 64,028 Other comprehensive income net of tax — — — 25,109 — 25,109 Cash dividends paid — — ( 31,873 ) — ( 31,873 ) Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 1,847 ) ( 1,847 ) Allocation of SAP shares — 2,153 — — — 2,153 Allocation of Stock options — 17 — — — 17 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. 6 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows Three months ended March 31, 2026 and 2025 (Unaudited) (Dollars in Thousands) Three months ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 79,417 $ 64,028 Adjustments to reconcile net income to net cash provided by operating activities: 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 4,674 3,600 Amortization of operating lease right-of-use assets 3,671 3,544 Income on Bank-owned life insurance ( 4,034 ) ( 2,092 ) Net amortization of premiums and discounts on securities 3,729 4,272 Accretion of net deferred loan fees ( 2,019 ) ( 1,522 ) Amortization of premiums on purchased loans, net 78 62 Originations of loans held for sale ( 14,067 ) ( 15,683 ) Proceeds from sales of loans originated for sale 18,405 10,640 Allocation of stock award expense 2,737 2,153 Allocation of stock option expense — 17 Net gain on sale of loans ( 967 ) ( 368 ) Net (gain) loss on securities transactions — ( 87 ) Net gain on sale of premises and equipment ( 1,182 ) ( 624 ) Increase in accrued interest receivable ( 1,928 ) ( 616 ) (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 Cash flows from investing activities: Net (increase) in loans ( 139,811 ) ( 112,317 ) Purchases of loans — ( 321 ) Proceeds from maturities, calls and paydowns of held to maturity debt securities 15,180 14,113 Purchases of investment securities held to maturity ( 842 ) ( 700 ) Proceeds from sales of available for sale debt securities — 1,670 Proceeds from maturities, calls and paydowns of available for sale debt securities 101,343 150,843 Purchases of available for sale debt securities ( 190,450 ) ( 217,721 ) Proceeds from redemption of Federal Home Loan Bank stock 101,676 76,930 Purchases of Federal Home Loan Bank stock ( 118,499 ) ( 91,086 ) BOLI claim benefits received — 906 Proceeds from sales of premises and equipment 2,709 2,348 Purchases of premises and equipment ( 3,694 ) ( 1,142 ) Net cash (used in) investing activities ( 232,388 ) ( 176,477 ) Cash flows from financing activities: 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 ) 7 Three months ended March 31, 2026 2025 Stock options exercised 1,396 — Proceeds from long-term borrowings 50,000 — Payments on long-term borrowings ( 2,790 ) ( 254,600 ) 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 Cash and cash equivalents at beginning of period 209,057 205,869 Restricted cash at beginning of period 2,427 70 Total cash, cash equivalents and restricted cash at beginning of period 211,484 205,939 Cash and cash equivalents at end of period 222,083 234,076 Restricted cash at end of period — — Total cash, cash equivalents and restricted cash at end of period $ 222,083 $ 234,076 Cash paid during the period for: Interest on deposits and borrowings $ 106,824 $ 125,711 Income taxes $ 2,508 $ 1,029 Transfer of loans receivable to foreclosed assets $ — $ — See accompanying notes to unaudited consolidated financial statements. 8 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies A. Basis of Financial Statement Presentation The accompanying unaudited consolidated financial statements include the accounts of Provident Financial Services, Inc. (the "Company") and its wholly owned subsidiary, Provident Bank (the “Bank") and its wholly owned subsidiaries. In preparing the interim unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and the Consolidated Statements of Income for the periods presented. Actual results could differ from these estimates. The allowance for credit losses is a material estimate that is particularly susceptible to near-term change. 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 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. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Additionally, certain comparative balances on the interim unaudited consolidated financial statements have been reclassified to conform to the current year’s presentation. These unaudited consolidated financial statements should be read in conjunction with the December 31, 2025 Annual Report to Stockholders on Form 10-K. B. 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 months ended March 31, 2026 and 2025 (dollars in thousands, except per share amounts): Three months ended March 31, 2026 2025 Net Income Weighted Average Common Shares Outstanding Per Share Amount Net Income Weighted Average Common Shares Outstanding Per Share Amount Net income $ 79,417 $ 64,028 Basic earnings per share: Income available to common stockholders $ 79,417 130,511,676 $ 0.61 $ 64,028 130,325,393 $ 0.49 Dilutive shares 76,959 55,082 Diluted earnings per share: 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 March 31, 2026 and 2025, totaling 671,193 shares and 1.4 million shares, respectively, were excluded from the earnings per share calculations. C. Loans Receivable and Allowance for Credit Losses The impact of utilizing the current expected credit loss ("CECL") methodology 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 may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings. The recapture of the provision for credit losses on loans for the three months ended March 31, 2026, was primarily attributable to a 9 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. D. Goodwill 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. Goodwill is analyzed for impairment at least once a year. 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. 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. Note 2. Investment Securities 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 March 31, 2026 and December 31, 2025 (in thousands): March 31, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. Treasury obligations $ 274,883 106 ( 7,629 ) 267,360 Government-agency obligations 29,942 709 ( 7 ) 30,644 Mortgage-backed securities 2,798,914 12,922 ( 121,783 ) 2,690,053 Asset-backed securities 40,193 433 ( 302 ) 40,324 State and municipal obligations 119,072 802 ( 8,182 ) 111,692 Corporate obligations 96,749 5,113 ( 1,868 ) 99,994 $ 3,359,753 20,085 ( 139,771 ) 3,240,067 December 31, 2025 Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. Treasury obligations $ 274,500 190 ( 7,946 ) 266,744 Government-agency obligations 32,693 877 ( 31 ) 33,539 Mortgage-backed securities 2,705,346 23,454 ( 116,453 ) 2,612,347 Asset-backed securities 41,619 409 ( 267 ) 41,761 State and municipal obligations 119,173 1,249 ( 7,423 ) 112,999 Corporate obligations 93,498 5,429 ( 1,561 ) 97,366 $ 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 $ 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. 10 March 31, 2026 Amortized cost Fair value Due in one year or less $ 140,509 139,735 Due after one year through five years 166,889 160,626 Due after five years through ten years 116,601 117,600 Due after ten years 66,705 61,085 Securities without a contractual maturity (1) 2,869,049 2,761,021 $ 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 Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Available-for-sale: U.S. 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 Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Available-for-sale: U.S. 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. 11 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 $ 15,000 and $ 16,000 , as of March 31, 2026 and December 31, 2025 (in thousands): March 31, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Government-agency obligations $ 1,000 — ( 11 ) 989 State and municipal obligations 265,726 72 ( 7,847 ) 257,951 Corporate obligations 942 — ( 7 ) 935 $ 267,668 72 ( 7,865 ) 259,875 December 31, 2025 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Government-agency obligations $ 3,400 — ( 22 ) 3,378 State and municipal obligations 276,600 156 ( 7,045 ) 269,711 Corporate obligations 2,143 — ( 14 ) 2,129 $ 282,143 156 ( 7,081 ) 275,218 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 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. 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 Amortized cost Fair value Due in one year or less $ 45,294 45,227 Due after one year through five years 147,661 146,533 Due after five years through ten years 71,626 65,663 Due after ten years 3,087 2,452 $ 267,668 259,875 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. 12 Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types: • Government-agency obligations; • Mortgage-backed securities; • State and municipal obligations; and • Corporate obligations. All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. 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 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 March 31, 2026 and December 31, 2025 (in thousands): March 31, 2026 Total Portfolio AAA AA A BBB Not Rated Total Government-agency obligations $ 1,000 — — — — 1,000 State and municipal obligations 43,957 191,635 17,995 — 12,139 265,726 Corporate obligations — 572 370 — — 942 $ 44,957 192,207 18,365 — 12,139 267,668 December 31, 2025 Total Portfolio AAA AA A BBB Not Rated Total Government-agency obligations $ 3,400 — — — — 3,400 State and municipal obligations 44,930 199,977 20,896 — 10,797 276,600 Corporate obligations — 573 1,570 — — 2,143 $ 48,330 200,550 22,466 — 10,797 282,143 Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. 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. 13 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 Fair value Unrealized Losses Fair value Unrealized Losses Fair value 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 Fair value Unrealized Losses Fair value Unrealized Losses Fair value 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 ) Note 3. Loans Receivable and Allowance for Credit Losses 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: Commercial $ 7,423,652 7,398,792 Multi-family 3,724,236 3,667,337 Construction 640,929 662,112 Residential 1,960,861 1,974,324 Total mortgage loans 13,749,678 13,702,565 Commercial loans 5,301,113 5,200,517 Consumer loans 608,016 612,431 Total gross loans 19,658,807 19,515,513 Premiums on purchased loans 1,700 1,524 Net deferred fees ( 12,805 ) ( 12,976 ) 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): 14 March 31, 2026 30-59 Days 60-89 Days Non-accrual Recorded Investment > 90 days accruing Total Past Due Current Total Loans Receivable Non-accrual loans with no related allowance Mortgage loans: Commercial $ 2,665 — 21,977 — 24,642 7,399,010 7,423,652 21,977 Multi-family 694 — 275 — 969 3,723,267 3,724,236 275 Construction 6,639 — 3,278 — 9,917 631,012 640,929 3,278 Residential 5,123 6,893 8,669 — 20,685 1,940,176 1,960,861 8,669 Total mortgage loans 15,121 6,893 34,199 — 56,213 13,693,465 13,749,678 34,199 Commercial loans 10,359 2,520 107,398 — 120,277 5,180,836 5,301,113 105,222 Consumer loans 3,588 634 1,327 — 5,549 602,467 608,016 1,327 Total gross loans $ 29,068 10,047 142,924 — 182,039 19,476,768 19,658,807 140,748 December 31, 2025 30-59 Days 60-89 Days Non-accrual Recorded Investment > 90 days accruing Total Past Due Current Total Loans Receivable Non-accrual loans with no related allowance Mortgage loans: Commercial $ 15,652 — 26,856 — 42,508 7,356,284 7,398,792 22,506 Multi-family — 932 2,268 — 3,200 3,664,137 3,667,337 2,268 Construction — — 5,159 — 5,159 656,953 662,112 5,159 Residential 8,344 4,177 9,062 — 21,583 1,952,741 1,974,324 9,062 Total mortgage loans 23,996 5,109 43,345 — 72,450 13,630,115 13,702,565 38,995 Commercial loans 1,303 633 33,219 — 35,155 5,165,362 5,200,517 26,655 Consumer loans 2,209 781 1,856 — 4,846 607,585 612,431 1,856 Total gross loans $ 27,508 6,523 78,420 — 112,451 19,403,062 19,515,513 67,506 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): 15 Three months ended March 31, Mortgage loans Commercial loans Consumer loans Total 2026 Balance at beginning of period $ 128,601 51,127 5,039 184,767 Provision (benefit) charge to operations ( 1,252 ) ( 3,472 ) 74 ( 4,650 ) Recoveries of loans previously charged-off 20 237 249 506 Loans charged-off ( 435 ) ( 2,854 ) ( 337 ) ( 3,626 ) Balance at end of period $ 126,934 45,038 5,025 176,997 2025 Balance at beginning of period $ 144,587 43,642 5,203 193,432 Provision (benefit) charge to operations ( 3,820 ) 4,175 ( 30 ) 325 Recoveries of loans previously charged-off 806 279 191 1,276 Loans charged-off ( 890 ) ( 2,195 ) ( 178 ) ( 3,263 ) Balance at end of period $ 140,683 45,901 5,186 191,770 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 Mortgage loans: Commercial $ — — — — — 234 234 Multi-family — 201 — — — — 201 Total mortgage loans — 201 — — — 234 435 Commercial loans — 1,323 — 167 1,336 28 2,854 Consumer loans (1) 10 — — — 12 108 130 Total gross loans $ 10 1,524 — 167 1,348 370 3,419 (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. 16 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 Mortgage loans: Commercial $ — — — 358 — 532 890 Total mortgage loans — — — 358 — 532 890 Commercial loans — — — 2,130 65 — 2,195 Consumer loans (1) 12 10 12 3 — 26 63 Total gross loans $ 12 10 12 2,491 65 558 3,148 (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 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. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required. At each fiscal quarter end, if a loan is designated as collateral-dependent and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. 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 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 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. In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02: 17 Loan Classes Modification types 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. Residential Mortgage/ Home Equity Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term, as well as term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement. Direct Installment Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement. 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: Commercial $ — 3,291 — — 3,291 0.04 % Total mortgage loans — 3,291 — — 3,291 0.02 % Commercial loans 2,394 — 474 397 3,265 0.06 % Total gross loans $ 2,394 3,291 474 397 6,555 0.03 % 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: Commercial $ 2,984 — 1,027 4,011 0.05 % Total mortgage loans 2,984 — 1,027 4,011 0.03 % Commercial loans 1,144 — 603 1,747 0.04 % 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 March 31, 2026 (in thousands): Weighted-Average Months of Term Extension Weighted-Average Rate Decrease Mortgage loans: Commercial 0 ( 0.31 ) % Total mortgage loans 0 ( 0.31 ) % Commercial loans 14 ( 0.21 ) % Total gross loans 10 ( 0.23 ) % 18 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 % Total mortgage loans 3 0.75 % Commercial loans 20 ( 0.25 ) % Total gross loans 14 0.08 % 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 Mortgage loans: Commercial $ 3,291 — — — — 3,291 Total mortgage loans 3,291 — — — — 3,291 Commercial loans 3,265 — — — — 3,265 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 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 Mortgage loans: Commercial $ 9,847 — — — — 9,847 Multi-family 747 — — 89 402 1,238 Total mortgage loans 10,594 — — 89 402 11,085 Commercial loans 1,747 313 — — 1,153 3,213 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 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. Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also reviewed periodically through loan review examinations which are currently performed by independent third-parties. Reports by the independent third-parties are presented to the Audit Committee of the Board of Directors. 19 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): Gross Loans Held for Investment by Year of Origination as of March 31, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving loans to term loans Total Loans Commercial Mortgage Special mention $ — 7,014 — 1,541 31,738 92,019 3 — 132,315 Substandard — 5,773 — 51 5,351 65,523 748 — 77,446 Doubtful — — — — — — — — Loss — — — — — — — — — Total criticized and classified — 12,787 — 1,592 37,089 157,542 751 — 209,761 Pass/Watch 179,870 903,470 448,959 849,717 1,323,876 3,333,670 165,503 8,826 7,213,891 Total Commercial Mortgage $ 179,870 916,257 448,959 851,309 1,360,965 3,491,212 166,254 8,826 7,423,652 Multi-family Special mention $ — — — 2,138 2,965 — — — 5,103 Substandard — — — — — 39,447 — — 39,447 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — 2,138 2,965 39,447 — — 44,550 Pass/Watch 133,915 730,596 326,059 534,926 572,656 1,365,660 14,372 1,502 3,679,686 Total Multi-Family $ 133,915 730,596 326,059 537,064 575,621 1,405,107 14,372 1,502 3,724,236 Construction Special mention $ 15,496 — — — 6,639 1,089 — — 23,224 Substandard — — — — — 3,296 — — 3,296 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 15,496 — — — 6,639 4,385 — — 26,520 Pass/Watch 24,040 188,197 205,066 106,339 77,063 13,704 — — 614,409 Total Construction $ 39,536 188,197 205,066 106,339 83,702 18,089 — — 640,929 Residential (1) Special mention $ — — 645 835 1,267 3,799 — — 6,546 Substandard — — 1,086 3,350 860 2,476 — — 7,772 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 1,731 4,185 2,127 6,275 — — 14,318 Pass/Watch 18,849 153,988 121,200 296,746 359,584 996,176 — — 1,946,543 Total Residential $ 18,849 153,988 122,931 300,931 361,711 1,002,451 — — 1,960,861 Total Mortgage Special mention $ 15,496 7,014 645 4,514 42,609 96,907 3 — 167,188 Substandard — 5,773 1,086 3,401 6,211 110,742 748 — 127,961 Doubtful — — — — — — — — — Loss — — — — — — — — — 20 Gross Loans Held for Investment by Year of Origination as of March 31, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving loans to term loans Total Loans Total criticized and classified 15,496 12,787 1,731 7,915 48,820 207,649 751 — 295,149 Pass/Watch 356,674 1,976,251 1,101,284 1,787,728 2,333,179 5,709,210 179,875 10,328 13,454,529 Total Mortgage $ 372,170 1,989,038 1,103,015 1,795,643 2,381,999 5,916,859 180,626 10,328 13,749,678 Commercial Special mention $ 2,014 1,292 418 8,657 22,003 55,856 14,879 1,823 106,942 Substandard 8,095 3,475 6,147 30,994 114,682 70,249 28,214 1,443 263,299 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 10,109 4,767 6,565 39,651 136,685 126,105 43,093 3,266 370,241 Pass/Watch 235,975 836,045 594,147 250,870 522,240 1,180,464 1,260,924 50,207 4,930,872 Total Commercial $ 246,084 840,812 600,712 290,521 658,925 1,306,569 1,304,017 53,473 5,301,113 Consumer (1) Special mention $ — — — — 83 57 289 262 691 Substandard — — 73 — 124 130 806 1 1,134 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 73 — 207 187 1,095 263 1,825 Pass/Watch 12,341 27,894 24,286 30,952 42,508 110,305 340,358 17,547 606,191 Total Consumer $ 12,341 27,894 24,359 30,952 42,715 110,492 341,453 17,810 608,016 Total Loans Special mention $ 17,510 8,306 1,063 13,171 64,695 152,820 15,171 2,085 274,821 Substandard 8,095 9,248 7,306 34,395 121,017 181,121 29,768 1,444 392,394 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 25,605 17,554 8,369 47,566 185,712 333,941 44,939 3,529 667,215 Pass/Watch 604,990 2,840,190 1,719,717 2,069,550 2,897,927 6,999,979 1,781,157 78,082 18,991,592 Total Gross Loans $ 630,595 2,857,744 1,728,086 2,117,116 3,083,639 7,333,920 1,826,096 81,611 19,658,807 (1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan. Gross Loans Held for Investment by Year of Origination as of December 31, 2025 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Revolving loans to term loans Total Loans Commercial Mortgage Special mention $ 6,013 — 1,549 39,287 47,805 33,971 503 — 129,128 Substandard 9,869 — 57 471 15,875 60,111 748 — 87,131 Doubtful — — — — — — — — — Loss — — — — — — — — — 21 Gross Loans Held for Investment by Year of Origination as of December 31, 2025 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Revolving loans to term loans Total Loans Total criticized and classified 15,882 — 1,606 39,758 63,680 94,082 1,251 — 216,259 Pass/Watch 901,891 336,732 851,026 1,409,458 888,049 2,630,266 156,215 8,896 7,182,533 Total Commercial Mortgage $ 917,773 336,732 1,449,216 951,729 2,724,348 2,184,041 157,466 8,896 7,398,792 Multi-family Special mention $ — — — 2,946 — — — — 2,946 Substandard — — — — — 41,593 — — 41,593 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — 2,946 — 41,593 — — 44,539 Pass/Watch 744,514 316,398 522,511 622,238 350,499 1,049,876 15,250 1,512 3,622,798 Total Multi-Family $ 744,514 316,398 522,511 625,184 350,499 1,091,469 15,250 1,512 3,667,337 Construction Special mention $ — — 14,497 6,639 — — — — 21,136 Substandard — — — — 5,177 — — — 5,177 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 14,497 6,639 5,177 — — — 26,313 Pass/Watch 150,350 206,323 162,757 101,335 15,034 — — — 635,799 Total Construction $ 150,350 206,323 177,254 107,974 20,211 — — — 662,112 Residential (1) Special mention $ — — 946 582 264 1,845 — — 3,637 Substandard — 1,746 2,263 1,410 1,024 1,795 — — 8,238 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — 1,746 3,209 1,992 1,288 3,640 — — 11,875 Pass/Watch 145,286 124,273 303,120 365,323 287,067 737,380 — — 1,962,449 Total Residential $ 145,286 126,019 306,329 367,315 288,355 741,020 — — 1,974,324 Total Mortgage Special mention $ 6,013 — 16,992 49,454 48,069 35,816 503 — 156,847 Substandard 9,869 1,746 2,320 1,881 22,076 103,499 748 — 142,139 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 15,882 1,746 19,312 51,335 70,145 139,315 1,251 — 298,986 Pass/Watch 1,942,041 983,726 1,839,414 2,498,354 1,540,649 4,417,522 171,465 10,408 13,403,579 Total Mortgage $ 1,957,923 985,472 1,858,726 2,549,689 1,610,794 4,556,837 172,716 10,408 13,702,565 22 Gross Loans Held for Investment by Year of Origination as of December 31, 2025 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Revolving loans to term loans Total Loans Commercial Special mention $ 1,005 423 17,930 63,499 26,067 34,829 20,217 1,916 165,886 Substandard 2,381 10,661 10,205 57,554 29,348 35,213 36,631 1,487 183,480 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 3,386 11,084 28,135 121,053 55,415 70,042 56,848 3,403 349,366 Pass/Watch 934,987 628,374 305,811 526,728 304,459 971,734 1,121,228 57,830 4,851,151 Total Commercial $ 938,373 639,458 333,946 647,781 359,874 1,041,776 1,178,076 61,233 5,200,517 Consumer (1) Special mention $ — — 20 — — 7 806 23 856 Substandard — 125 81 219 — 310 828 46 1,609 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — 125 101 219 — 317 1,634 69 2,465 Pass/Watch 31,702 26,282 32,156 45,444 31,271 87,759 338,858 16,494 609,966 Total Consumer $ 31,702 26,407 32,257 45,663 31,271 88,076 340,492 16,563 612,431 Total Loans Special mention $ 7,018 423 34,942 112,953 74,136 70,652 21,526 1,939 323,589 Substandard 12,250 12,532 12,606 59,654 51,424 139,022 38,207 1,533 327,228 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 19,268 12,955 47,548 172,607 125,560 209,674 59,733 3,472 650,817 Pass/Watch 2,908,730 1,638,382 2,177,381 3,070,526 1,876,379 5,477,015 1,631,551 84,732 18,864,696 Total Gross Loans $ 2,927,998 1,651,337 2,224,929 3,243,133 2,001,939 5,686,689 1,691,284 88,204 19,515,513 (1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan. 23 Note 4. Deposits Deposits as of March 31, 2026 and December 31, 2025 are summarized as follows (in thousands): March 31, 2026 December 31, 2025 Savings deposits $ 1,624,122 1,589,259 Money market accounts 3,846,653 3,693,285 NOW accounts (1) 6,723,369 6,994,610 Non-interest bearing deposits 3,716,536 3,714,253 Certificates of deposit (2) 3,189,622 3,287,276 Total deposits $ 19,100,302 19,278,683 (1) The Bank's cash sweep product totaled $ 1.09 billion and $ 1.08 billion as of March 31, 2026 and December 31, 2025, respectively, and are reported within NOW accounts. (2) Time deposits equal to or in excess of $250,000, were $ 942.7 million and $ 930.0 million as of March 31, 2026 and December 31, 2025, respectively. Additionally, the Bank's reciprocal Certificate of Deposit Account Registry Service product totaled $ 2.5 million as of March 31, 2026 and December 31, 2025. Within total deposits, brokered deposits totaled $ 644.2 million and $ 769.6 million as of March 31, 2026 and December 31, 2025, respectively. Note 5. Borrowed Funds Borrowed funds as of March 31, 2026 and December 31, 2025 are summarized as follows (in thousands): March 31, 2026 December 31, 2025 Securities sold under repurchase agreements $ 95,137 95,007 FHLBNY line of credit 249,000 275,000 FHLBNY advances 2,136,945 1,739,735 Purchase accounting adjustment ("PAA") on borrowed funds 1,897 2,213 Total borrowed funds $ 2,482,979 2,111,955 Total long-term borrowings totaled $ 550.0 million as of March 31, 2026 and December 31, 2025, respectively, while total short-term borrowings totaled $ 1.93 billion and $ 1.56 billion for the same periods. As of March 31, 2026, FHLBNY advances were at fixed rates and mature between April 2026 and January 2031, and as of December 31, 2025, FHLBNY advances were at fixed rates with maturities between January 2026 and August 2030. These advances are secured by loans receivable under a blanket collateral agreement. Scheduled maturities of FHLBNY advances and lines of credit, including purchase accounting adjustments resulting from the Lakeland acquisition as of March 31, 2026 are as follows (in thousands): 2026 Due in one year or less $ 1,835,945 Due after one year through two years 350,000 Due after two years through three years — Due after three years through four years 200,000 Thereafter — PAA on borrowed funds 1,897 Total FHLBNY advances and overnight borrowings $ 2,387,842 Scheduled maturities of securities sold under repurchase agreements as of March 31, 2026 are as follows (in thousands): 24 2026 Due in one year or less $ 95,137 Total securities sold under repurchase agreements $ 95,137 The following tables set forth certain information as to borrowed funds for the periods ended March 31, 2026 and December 31, 2025 (in thousands): Maximum balance Average balance Weighted average interest rate March 31, 2026 Securities sold under repurchase agreements $ 95,137 93,072 2.51 % FHLBNY overnight borrowings 689,000 277,745 3.90 FHLBNY advances 2,136,945 1,811,800 4.05 December 31, 2025 Securities sold under repurchase agreements $ 117,946 105,343 2.37 % FHLBNY overnight borrowings 704,000 292,090 4.55 FHLBNY advances 2,368,897 1,617,909 3.99 Securities sold under repurchase agreements include arrangements with deposit customers of the Bank to sweep funds into short-term borrowings. The Bank uses available for sale debt securities to pledge as collateral for the repurchase agreements. As of March 31, 2026 and December 31, 2025, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLB advances, totaled $ 2.25 billion and $ 2.41 billion, respectively. Interest expense on borrowings for the three months ended March 31, 2026 and 2025, amounted to $ 21.3 million and $ 18.3 million, respectively, while amortization expense related to purchase accounting adjustments for the three months ended March 31, 2026 and 2025 amounted to a benefit of $ 316,000 and $ 552,000 , respectively. Note 6. Components of Net Periodic Benefit Cost The Bank has a noncontributory defined benefit pension plan covering its full-time employees who had attained age 21 with at least one year of service as of April 1, 2003. The pension plan was frozen on April 1, 2003. All participants in the Plan are 100 % vested. The pension plan’s assets are invested in investment funds and group annuity contracts currently managed by the Principal Financial Group and Allmerica Financial. In addition to pension benefits, certain health care and life insurance benefits are currently made available to certain of the Bank’s retired employees. The costs of such benefits are accrued based on actuarial assumptions from the date of hire to the date the employee is fully eligible to receive the benefits. Effective January 1, 2003, eligibility for retiree health care benefits was frozen as to new entrants, and benefits were eliminated for employees with less than ten years of service as of December 31, 2002. Effective January 1, 2007, eligibility for retiree life insurance benefits was frozen as to new entrants and retiree life insurance benefits were eliminated for employees with less than ten years of service as of December 31, 2006. Net periodic (benefit) increase cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2026 and 2025, includes the following components (in thousands): Three months ended March 31, Pension benefits Other post-retirement benefits 2026 2025 2026 2025 Service cost $ — — 1 1 Interest cost 298 299 171 148 Expected return on plan assets ( 900 ) ( 825 ) — — Amortization of the net loss (gain) — — ( 187 ) ( 459 ) Net periodic (decrease) increase in benefit cost $ ( 602 ) ( 526 ) ( 15 ) ( 310 ) 25 In its consolidated financial statements for the year ended December 31, 2025, the Company previously disclosed that it does not expect to contribute to the pension plan in 2026. As of March 31, 2026, no contributions have been made to the pension plan. The changes in net periodic benefit cost for pension benefits and other post-retirement benefits for the three months ended March 31, 2026 were calculated using the January 1, 2025 pension and other post-retirement benefits actuarial valuations. Note 7. Impact of Recent Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In November 2024, FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures". This ASU requires disaggregated information about certain income statement line items in a tabular format in the notes to the financial statements. 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 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. Note 8. Contingencies The Company is involved in various legal actions and claims arising in the normal course of its business. 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 of March 31, 2026, $ 2.1 million was recorded in total contingent litigation reserves. Note 9. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Management analyzes the Company's exposure to credit losses for both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. 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 three months ended March 31, 2026, the Company recorded a $ 2.5 million provision for credit losses on off-balance sheet credit exposures. For the three months ended March 31, 2025, the Company recorded a $ 310,000 provision for credit losses for off-balance sheet credit exposures. The allowance for credit losses for off-balance sheet credit exposures was $ 9.4 million as of March 31, 2026 and $ 6.8 million as of December 31, 2025, and is included in other liabilities on the Consolidated Statements of Financial Condition. Note 10. Fair Value Measurements The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. Where quoted market values in an active market are not readily available, management utilizes various valuation techniques to estimate fair value. Fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. However, in many instances fair value estimates may not be substantiated by comparison to independent markets and may not be realized in an immediate sale of the financial instrument. 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 three levels of the fair value hierarchy are as follows: 26 Level 1: Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The valuation techniques are based upon the unpaid principal balance only, and exclude any accrued interest or dividends at the measurement date. Interest income and expense and dividend income are recorded within the Consolidated Statements of Income depending on the nature of the instrument using the effective interest method based on acquired discount or premium. Assets and Liabilities Measured at Fair Value on a Recurring Basis The valuation techniques described below were used to measure fair value of financial instruments in the table below on a recurring basis as of March 31, 2026 and December 31, 2025. Available for Sale Debt Securities, at Fair Value For available for sale debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third-party data service providers or dealer market participants with whom the Company has historically transacted both purchases and sales of securities. 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 to benchmark 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. As management is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, management compares the prices received from the pricing service to a secondary pricing source. Additionally, management compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in an adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy. Equity Securities, at Fair Value The Company holds equity securities that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. Derivatives The Company records all derivatives on the statements of financial condition at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company has interest rate derivatives resulting from a service provided to certain qualified borrowers in loan-related transactions which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. As such, all changes in fair value of these derivatives are recognized directly in earnings. The Company also uses interest rate swaps as part of its interest rate risk management strategy. 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. 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. 27 The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs. Assets Measured at Fair Value on a Non-Recurring Basis The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of March 31, 2026 and December 31, 2025. Collateral-Dependent Impaired Loans For loans measured for impairment based on the fair value of the underlying collateral, fair value was estimated using a market approach. The Company measures the fair value of collateral underlying impaired loans primarily through obtaining independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case-by-case basis, to comparable assets based on the appraisers’ market knowledge and experience, as well as adjustments for estimated costs to sell between 5 % and 10 %. Management classifies these loans as Level 3 within the fair value hierarchy. Foreclosed Assets Assets acquired through foreclosure or deed in lieu of foreclosure are carried at fair value, less estimated selling costs, which range between 5 % and 10 %. Fair value is generally based on independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments, on an individual case basis, to comparable assets based on the appraisers’ market knowledge and experience, and are classified as Level 3. When an asset is acquired, the excess of the loan balance over fair value less estimated selling costs is charged to the allowance for credit losses. 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. 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. There were no changes to the valuation techniques for fair value measurements as of March 31, 2026 or December 31, 2025. 28 The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values as of March 31, 2026 and December 31, 2025, by level within the fair value hierarchy (in thousands): Fair Value Measurements at Reporting Date Using: March 31, 2026 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured on a recurring basis: Available for sale debt securities: U.S. Treasury obligations $ 267,360 267,360 — — Government-agency obligations 30,644 — 30,644 — Mortgage-backed securities 2,690,053 — 2,690,053 — Asset-backed securities 40,324 — 40,324 — State and municipal obligations 111,692 — 111,692 — Corporate obligations 99,994 — 99,994 — Total available for sale debt securities 3,240,067 267,360 2,972,707 — Equity securities 19,893 19,893 — — Derivative assets 105,653 — 105,653 — $ 3,365,613 287,253 3,078,360 — Derivative liabilities $ 104,613 — 104,613 — Measured on a non-recurring basis: Loans measured for impairment based on the fair value of the underlying collateral $ 123,965 — — 123,965 Foreclosed assets 2,015 — — 2,015 $ 125,980 — — 125,980 Fair Value Measurements at Reporting Date Using: December 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured on a recurring basis: Available for sale debt securities: U.S. Treasury obligations $ 266,744 266,744 — — Government-agency obligations 33,539 — 33,539 — Mortgage-backed securities 2,612,347 — 2,612,347 — Asset-backed securities 41,761 — 41,761 — State and municipal obligations 112,999 — 112,999 — Corporate obligations 97,366 — 97,366 — Total available for sale debt securities 3,164,756 266,744 2,898,012 — Equity Securities 19,875 19,875 — — Derivative assets 105,734 — 105,734 — $ 3,290,365 286,619 3,003,746 — Derivative liabilities $ 108,102 — 108,102 — Measured on a non-recurring basis: Loans measured for impairment based on the fair value of the underlying collateral $ 54,506 — — 54,506 Foreclosed assets 2,015 — — 2,015 $ 56,521 — — 56,521 29 There were no transfers into or out of Level 3 during the three months ended March 31, 2026. Other Fair Value Disclosures The Company is required to disclose the estimated fair value of financial instruments, both assets and liabilities on- and off- the balance sheet, for which it is practicable to estimate fair value. The following is a description of valuation methodologies used for those assets and liabilities. Cash and Cash Equivalents For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value. As of March 31, 2026 there was no cash collateral pledged to secure loan level swaps and risk participation agreements. As of December 31, 2025 $ 2.4 million was included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps and risk participation agreements. Held to Maturity Debt Securities For held to maturity debt securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third party data service providers or dealer market participants with whom the Company has historically transacted both purchases and sales of securities. 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 to benchmark to comparable securities. Management evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. As management is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, management compares the prices received from the pricing service to a secondary pricing source. Additionally, management compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has generally not resulted in adjustment in the prices obtained from the pricing service. The Company also holds debt instruments issued by the U.S. government and U.S. government-sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 within the fair value hierarchy. FHLBNY Stock The carrying value of FHLBNY stock is its cost. The fair value of FHLBNY stock is based on redemption at par value. The Company classifies the estimated fair value as Level 1 within the fair value hierarchy. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial mortgage, residential mortgage, commercial, construction and consumer. Each loan category is further segmented into fixed and adjustable-rate interest terms and into performing and non-performing categories. The fair value of performing loans was estimated using a combination of techniques, including a discounted cash flow model that utilizes a discount rate that reflects the Company’s current pricing for loans with similar characteristics and remaining maturity, adjusted by an amount for estimated credit losses inherent in the portfolio at the balance sheet date (i.e. exit pricing). The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Company classifies the estimated fair value of its loan portfolio as Level 3. The fair value for significant non-performing loans was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows. The Company classifies the estimated fair value of its non-performing loan portfolio as Level 3. Deposits The fair value of deposits with no stated maturity, such as non-interest bearing demand deposits and savings deposits, was equal to the amount payable on demand and classified as Level 1. The estimated fair value of certificates of deposit was based on the discounted value of contractual cash flows. The discount rate was estimated using the Company’s current rates offered for deposits with similar remaining maturities. The Company classifies the estimated fair value of its certificates of deposit portfolio as Level 2. 30 Borrowed Funds The fair value of borrowed funds was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include goodwill and other intangibles, deferred tax assets and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following tables present the Company’s financial instruments at their carrying and fair values as of March 31, 2026 and December 31, 2025. Fair values are presented by level within the fair value hierarchy. 31 Fair Value Measurements as of March 31, 2026 Using: (Dollars in thousands) Carrying value Fair value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 222,083 222,083 222,083 — — Available for sale debt securities: U.S. Treasury obligations 267,360 267,360 267,360 — — Government-agency obligations 30,644 30,644 — 30,644 — Mortgage-backed securities 2,690,053 2,690,053 — 2,690,053 — Asset-backed securities 40,324 40,324 — 40,324 — State and municipal obligations 111,692 111,692 — 111,692 — Corporate obligations 99,994 99,994 — 99,994 — Total available for sale debt securities $ 3,240,067 3,240,067 267,360 2,972,707 — Held to maturity debt securities, net of allowance for credit losses: Government-agency obligations 1,000 989 — 989 — State and municipal obligations 265,711 257,951 — 257,951 — Corporate obligations 942 935 — 935 — Total held to maturity debt securities, net of allowance for credit losses $ 267,653 259,875 — 259,875 — FHLBNY and other stock 132,510 132,510 132,510 — — Equity Securities 19,893 19,893 19,893 — — Loans, net of allowance for credit losses 19,478,221 19,540,183 — — 19,540,183 Derivative assets 105,653 105,653 — 105,653 — Financial liabilities: Deposits other than certificates of deposits $ 15,910,680 15,910,680 15,910,680 — — Certificates of deposit 3,189,622 3,188,905 — 3,188,905 — Total deposits $ 19,100,302 19,099,585 15,910,680 3,188,905 — Borrowings 2,482,979 2,484,578 — 2,484,578 — Subordinated debentures 407,824 426,483 — 426,483 — Derivative liabilities 104,613 104,613 — 104,613 — 32 Fair Value Measurements as of December 31, 2025 Using: (Dollars in thousands) Carrying value Fair value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 211,484 211,484 211,484 — — Available for sale debt securities: U.S. Treasury obligations 266,744 266,744 266,744 — — Government-agency obligations 33,539 33,539 — 33,539 — Mortgage-backed securities 2,612,347 2,612,347 — 2,612,347 — Asset-backed securities 41,761 41,761 — 41,761 — State and municipal obligations 112,999 112,999 — 112,999 — Corporate obligations 97,366 97,366 — 97,366 — Total available for sale debt securities $ 3,164,756 3,164,756 266,744 2,898,012 — Held to maturity debt securities: Government-agency obligations $ 3,400 3,378 — 3,378 — State and municipal obligations 276,585 269,711 — 269,711 — Corporate obligations 2,142 2,129 — 2,129 — Total held to maturity debt securities $ 282,127 275,218 — 275,218 — FHLBNY and other stock 115,687 115,687 115,687 — — Equity Securities 19,875 19,875 19,875 — — Loans, net of allowance for credit losses 19,334,004 19,421,891 — — 19,421,891 Derivative assets 105,734 105,734 — 105,734 — Financial liabilities: Deposits other than certificates of deposits $ 15,991,407 15,991,407 15,991,407 — — Certificates of deposit 3,287,276 3,288,485 — 3,288,485 — Total deposits $ 19,278,683 19,279,892 15,991,407 3,288,485 — Borrowings 2,111,955 2,116,467 — 2,116,467 — Subordinated debentures 406,582 433,450 — 433,450 — Derivative liabilities 108,102 108,102 — 108,102 — 33 Note 11. Other Comprehensive (Loss) Income The following table presents the components of other comprehensive (loss), both gross and net of tax, for the three months ended March 31, 2026 and 2025 (in thousands): Three months ended March 31, 2026 2025 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Components of Other Comprehensive Income: Unrealized gains and losses on available for sale debt securities: Net unrealized gains (losses) arising during the period $ ( 17,611 ) 4,922 ( 12,689 ) 42,388 ( 15,602 ) 26,786 Reclassification adjustment for gains included in net income — — — ( 87 ) 25 ( 62 ) Total ( 17,611 ) 4,922 ( 12,689 ) 42,301 ( 15,577 ) 26,724 Unrealized gains and losses on derivatives (cash flow hedges): Net unrealized gains arising during the period 3,516 ( 983 ) 2,533 147 ( 42 ) 105 Reclassification adjustment for (gains) included in net income ( 93 ) 26 ( 67 ) ( 1,940 ) 550 ( 1,390 ) Total 3,423 ( 957 ) 2,466 ( 1,793 ) 508 ( 1,285 ) Amortization related to post-retirement obligations ( 24 ) 7 ( 17 ) ( 460 ) 130 ( 330 ) Total other comprehensive gain (loss) $ ( 14,212 ) 3,972 ( 10,240 ) 40,048 ( 14,939 ) 25,109 The following tables present the changes in the components of accumulated other comprehensive (loss), net of tax, for the three months ended March 31, 2026 and 2025 (in thousands): Changes in Accumulated Other Comprehensive (Loss) by Component, net of tax for the three months ended March 31, 2026 2025 Unrealized Losses on Available for Sale Debt Securities Post- Retirement Obligations Unrealized Gains on Derivatives (cash flow hedges) Accumulated Other Comprehensive (Loss) Unrealized Losses on Available for Sale Debt Securities Post- Retirement Obligations Unrealized Gains on Derivatives (cash flow hedges) Accumulated Other Comprehensive (Loss) Balance as of December 31, $ ( 77,178 ) 2,854 ( 1,859 ) ( 76,183 ) ( 144,561 ) 6,147 3,059 ( 135,355 ) Current - period other comprehensive income (loss) ( 12,689 ) ( 17 ) 2,466 ( 10,240 ) 26,724 ( 330 ) ( 1,285 ) 25,109 Balance as of March 31, $ ( 89,867 ) 2,837 607 ( 86,423 ) ( 117,837 ) 5,817 1,774 ( 110,246 ) 34 The following tables summarize the reclassifications from accumulated other comprehensive income (loss) to the Consolidated Statements of Income for the three months ended March 31, 2026 and 2025 (in thousands): Reclassifications From Accumulated Other Comprehensive Income ("AOCI") Amount reclassified from AOCI for the three months ended March 31, Affected line item in the Consolidated Statement of Income 2026 2025 Details of AOCI: Available for sale debt securities: Realized net gains on the sale of securities available for sale $ — 87 Net gain on securities transactions — ( 25 ) Income tax expense $ — 62 Net of tax Cash flow hedges: Realized net gains (losses) on derivatives $ 93 1,940 Interest expense ( 26 ) ( 550 ) Income tax expense $ 67 1,390 Post-retirement obligations: Amortization of actuarial gains $ ( 24 ) ( 460 ) Compensation and employee benefits (1) 7 130 Income tax expense $ ( 17 ) ( 330 ) Net of tax Total reclassifications $ 50 1,122 Net of tax (1) This item is included in the computation of net periodic benefit cost. See Note 6. Components of Net Periodic Benefit Cost. 35 Note 12. Derivative and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through the management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. Non-designated Hedges. Derivatives not designated in qualifying hedging relationships are not speculative and result from a service the Company provides to certain qualified commercial borrowers in loan-related transactions which, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company may execute interest rate swaps with qualified commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. The interest rate swap agreement which the Company executes with the commercial borrower is collateralized by the borrower's commercial real estate financed by the Company. As the Company has not elected to apply hedge accounting and these interest rate swaps do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of March 31, 2026 and December 31, 2025, the Company had 428 and 438 loan-related interest rate swaps with aggregate notional amounts of $ 3.89 billion and $ 4.00 billion, respectively. The Company periodically enters into risk participation agreements ("RPAs"), with the Company functioning as either the lead institution, or as a participant when another company is the lead institution on a commercial loan. These RPAs are entered into to manage the credit exposure on interest rate contracts associated with these loan participation agreements. 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 but as of March 31, 2026, it was not required to post collateral against the potential risk of default by the borrower under these agreements. For March 31, 2026 and December 31, 2025, the Company had 6 and 10 credit derivatives with aggregate notional amounts of $ 88.3 million and $ 98.6 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. As of March 31, 2026 and December 31, 2025, the asset and liability positions of these fair value credit derivatives were insignificant. Cash Flow Hedges of Interest Rate Risk. The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable payment amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Changes in the fair value of derivatives designated and that qualify as cash flow hedges of interest rate risk are recorded in accumulated other comprehensive (loss) income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2026 and 2025, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings. 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 $ 409,000 will be reclassified as a reduction to interest expense. As of March 31, 2026, the Company had 8 outstanding interest rate derivatives with an aggregate notional amount of $ 675.0 million that were each designated as a cash flow hedge of interest rate risk, compared to 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, as of December 31, 2025. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by or received from the counterparty with net liability or asset positions, respectively, in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the swap or repurchase agreement should the Company be in default. The total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty. The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition as of March 31, 2026 and December 31, 2025 (in thousands). 36 Fair Values of Derivative Instruments as of March 31, 2026 Asset Derivatives Liability Derivatives Notional Amount Consolidated Statements of Financial Condition Fair value (1) Notional Amount Consolidated Statements of Financial Condition Fair value (1) Derivatives not designated as a hedging instrument: Interest rate products $ 1,944,208 Other assets $ 103,989 1,944,208 Other liabilities 104,217 Credit contracts 33,314 Other assets 6 55,003 Other liabilities Total derivatives not designated as a hedging instrument 103,995 104,217 Derivatives designated as a hedging instrument: Interest rate products 450,000 Other assets 1,262 225,000 Other liabilities 781 Total gross derivative amounts recognized on the balance sheet 105,257 104,998 Netting Adjustments 1,262 — Gross amounts offset on the balance sheet — — Net derivative amounts presented on the balance sheet $ 103,995 104,998 Gross amounts not offset on the balance sheet: Financial instruments - institutional counterparties $ 4,798 4,798 Cash collateral - institutional counterparties 95,081 — Net derivatives not offset $ 4,116 100,200 37 Fair Values of Derivative Instruments as of December 31, 2025 Asset Derivatives Liability Derivatives Notional Amount Consolidated Statements of Financial Condition Fair value (1) Notional Amount Consolidated Statements of Financial Condition Fair value (1) Derivatives not designated as a hedging instrument: Interest rate products $ 2,000,609 Other assets $ 105,251 $ 2,000,609 Other liabilities 105,453 Credit contracts 33,385 Other assets 9 65,167 Other liabilities — Total derivatives not designated as a hedging instrument 105,260 105,453 Derivatives designated as a hedging instrument: Interest rate products — Other assets — 575 Other liabilities 2,670 Total gross derivative amounts recognized on the balance sheet 105,260 108,123 Netting Adjustments — 1,678 Gross amounts offset on the balance sheet — — Net derivative amounts presented on the balance sheet $ 105,260 106,445 Gross amounts not offset on the balance sheet: Financial instruments - institutional counterparties $ 7,814 7,814 Cash collateral - institutional counterparties 89,000 — Net derivatives not offset $ 8,446 98,631 (1) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended March 31, 2026 and December 31, 2025. The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three months ended March 31, 2026 and 2025 (in thousands). Gain (loss) recognized in income on derivatives for the three months ended Consolidated Statements of Income March 31, 2026 March 31, 2025 Derivatives not designated as a hedging instrument: Interest rate products Other income $ ( 22 ) ( 86 ) Credit contracts Other income ( 3 ) ( 1 ) Total derivatives not designated as hedging instruments $ ( 25 ) ( 87 ) Derivatives designated as a hedging instrument: Interest rate products Interest expense $ ( 93 ) ( 1,940 ) Total derivatives designated as a hedging instruments $ ( 93 ) ( 1,940 ) 38 The Company has agreements with certain of its dealer counterparties which contain a provision that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be deemed in default on its derivative obligations. 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 March 31, 2026, the Company had six dealer counterparties and the Company was in a net asset position with respect to all of its counterparties. Note 13. Revenue Recognition The Company generates revenue from several business channels. The guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) does not apply to revenue associated with financial instruments, including interest income on loans and investments, which comprise the majority of the Company's revenue. For the three months ended March 31, 2026, the out-of-scope revenue related to financial instruments was 90.9 % of the Company's total revenue, compared to 91.9 % for the three months ended March 31, 2025, respectively. Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income. These revenue streams are generally classified into three categories: wealth management revenue, insurance agency income and banking service charges and other fees. The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2026 and 2025 (in thousands): Three months ended March 31, 2026 2025 Non-interest income In-scope of Topic 606: Wealth management fees $ 7,402 7,328 Insurance agency income 6,850 5,651 Banking service charges and other fees: Service charges on deposit accounts 5,203 4,743 Debit card and ATM fees 1,153 1,148 Total banking service charges and other fees 6,356 5,891 Total in-scope non-interest income 20,608 18,870 Total out-of-scope non-interest income 10,845 8,160 Total non-interest income $ 31,453 27,030 Wealth management fee income represents fees earned from customers as consideration for asset management, investment advisory and trust services. 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 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. Fees are received from the customer on a monthly basis. 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. 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. Insurance agency income, consisting of commissions and fees, is generally recognized as of the effective date of the insurance policy. Commission revenues related to installment billings are recognized on the invoice date. Subsequent commission adjustments are recognized upon the receipt of notification from insurance companies concerning matters necessitating such adjustments. Profit-sharing contingent commissions are recognized when determinable, which is generally when such commissions are received from insurance companies, or when the Company receives formal notification of the amount of such payments. Service charges on deposit accounts include account analysis fees and other deposit-related fees. These fees are generally transaction-based, or time-based services. The Company's performance obligation for these services is generally satisfied, and revenue recognized, at the time the transaction is completed, or the service rendered. Fees for these services are generally received from the customer either at the time of transaction, or monthly. Debit card and ATM fees are generally transaction- 39 based. Debit card revenue is primarily comprised of interchange fees earned when a customer's Company card is processed through a card payment network. ATM fees are largely generated when a Company cardholder uses a non-Company ATM, or a non-Company cardholder uses a Company ATM. The Company's performance obligation for these services is satisfied when the service is rendered. Payment is generally received at the time of transaction or monthly. Out-of-scope non-interest income primarily consists of Bank-owned life insurance and net fees on loan level interest rate swaps, along with gains and losses on the sale of loans and foreclosed real estate, loan prepayment fees and loan servicing fees. None of these revenue streams are subject to the requirements of Topic 606. 40 Note 14. Leases The following table represents the Consolidated Statements of Financial Condition classification of the Company’s right-of use assets and lease liabilities as of March 31, 2026 and December 31, 2025 (in thousands): Classification March 31, 2026 December 31, 2025 Lease Right-of-Use Assets: Operating lease right-of-use assets Other assets $ 57,688 57,941 Lease Liabilities: Operating lease liabilities Other liabilities $ 61,015 61,125 The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied. All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate properties for branches and administrative offices with terms extending through 2046. As of March 31, 2026, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 6.6 years and 3.36 %, respectively. The following tables represent lease costs and other lease information for the Company's operating leases. The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands): Three months ended March 31, 2026 Three months ended March 31, 2025 Lease Costs Operating lease cost $ 3,671 3,544 Variable lease cost 1,189 1,107 Total Lease Cost $ 4,860 4,651 Cash paid for amounts included in the measurement of lease liabilities: Three months ended March 31, 2026 Three months ended March 31, 2025 Operating cash flows from operating leases $ 3,255 3,493 41 Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2026, were as follows (in thousands): Operating Leases Years ended: Remainder of 2026 $ 9,841 2027 12,071 2028 10,568 2029 9,284 2030 8,228 Thereafter 18,434 Total future minimum lease payments 68,426 Amounts representing interest 7,411 Present value of net future minimum lease payments $ 61,015 Note 15. Segment Reporting We conduct our operations through a single business segment. Substantially all of our interest and fees on loans and long-lived assets relate to our operations. Pursuant to FASB ASC 280, Segment Reporting, operating segments represent components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker in determining how to allocate resources and in assessing performance. The chief operating decision maker uses a variety of measures to assess the performance of the business as a whole, depending on the nature of the activity. The Company generates revenue from several business channels. Those streams are organized by the types of partners we work with to reach our customers, with success principally measured based on interest and fees on loans, loan receivables, active accounts and other sales metrics. Detailed profitability information of the nature that could be used to allocate resources and assess the performance and operations for each sales platform individually, however, is not used by our chief operating decision maker. Expense activities, including funding costs, credit losses and operating expenses, are not measured for each platform but instead are managed for the Company as a whole. The following table represents segment information for the three months ended March 31, 2026 and 2025 (in thousands): Three months ended March 31, 2026 2025 Interest income on loans $ 279,304 273,031 Interest income on cash and debt securities 35,762 32,315 Total interest income 315,066 305,346 Total interest expense 121,323 123,618 Net interest income 193,743 181,728 Provision for credit losses ( 2,116 ) 638 Net interest income after provision 195,859 181,090 Non-interest income: Wealth management income 7,402 7,328 Insurance Agency Income 6,850 5,651 Other non-interest income (1) 17,201 14,051 Total non-interest income 31,453 27,030 Non-interest expense: Compensation and employee benefits 66,196 62,366 Net occupancy expense 14,985 13,927 Data processing expense 9,646 9,605 Other non-interest expense (2) 26,314 30,369 Total non-interest expense 117,141 116,267 Income tax expense 30,754 27,825 Net income $ 79,417 $ 64,028 42 (1) Other non-interest income items include fees and commissions, BOLI and other miscellaneous income. (2) Other non-interest expense items include merger-related expenses in the prior year, amortization of intangibles and other miscellaneous expenses. Our segment assets represent our total assets as presented on the Consolidated Statements of Financial Position. Note 16. Subsequent Events The Company has evaluated subsequent events from the date of the Consolidated Financial Statements, and accompanying Notes thereto, through the date of issuance, and determined that there were no other significant events identified requiring recognition or disclosure.