PROVIDENT FINANCIAL SERVICES INC 10-Q

Item 1. FINANCIAL STATEMENTS. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Financial Condition June 30, 2026 (Unaudited) and December 31, 2025 (Dollars in Thousands) June 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 228,293 $ 211,484 Available for sale debt securities, at fair value 3,286,456 3,164,756 Held to maturity debt securities, (net of $ 22,000 allowance as of June 30, 2026 (unaudited) and $ 16,000 allowance as of December 31, 2025) 266,224 282,127 Equity securities, at fair value 20,108 19,875 Federal Home Loan Bank stock 130,672 115,687 Loans held for sale 5,478 14,710 Loans held for investment 20,045,752 19,504,061 Less allowance for credit losses 184,656 184,767 Net loans 19,866,574 19,334,004 Foreclosed assets, net 963 2,015 Banking premises and equipment, net 112,197 113,328 Accrued interest receivable 98,118 95,798 Intangible assets 765,019 782,152 Bank-owned life insurance 415,256 414,371 Other assets 473,478 445,113 Total assets $ 25,663,358 $ 24,980,710 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Deposits: Demand deposits $ 14,518,916 $ 14,402,148 Savings deposits 1,582,750 1,589,259 Certificates of deposit of $250,000 or more 965,698 929,989 Other time deposits 2,477,805 2,357,287 Total deposits 19,545,169 19,278,683 Mortgage escrow deposits 47,779 40,253 Borrowed funds 2,407,532 2,111,955 Subordinated debentures 409,065 406,582 Other liabilities 346,828 310,025 Total liabilities 22,756,373 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 130,423,051 shares outstanding as of June 30, 2026 and 130,619,949 outstanding as of December 31, 2025 1,376 1,376 Additional paid-in capital 1,850,121 1,844,949 Retained earnings 1,250,204 1,154,364 Accumulated other comprehensive loss ( 91,933 ) ( 76,183 ) Treasury stock ( 102,783 ) ( 91,294 ) Total stockholders’ equity 2,906,985 2,833,212 Total liabilities and stockholders’ equity $ 25,663,358 $ 24,980,710 See accompanying notes to unaudited consolidated financial statements. 3 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Income Three and six months ended June 30, 2026 and 2025 (Unaudited) (Dollars in Thousands, except per share data) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Interest and dividend income: Real estate secured loans $ 195,381 $ 192,792 $ 386,884 $ 379,845 Commercial loans 82,757 78,854 160,658 154,673 Consumer loans 9,953 10,464 19,852 20,623 Available for sale debt securities, equity securities and Federal Home Loan Bank stock 35,975 31,444 69,258 61,088 Held to maturity debt securities 1,778 1,966 3,572 3,962 Due from banks, Federal funds sold and other short-term investments 751 788 1,437 1,463 Total interest and dividend income 326,595 316,308 641,661 621,654 Interest expense: Deposits 91,803 96,257 183,739 193,678 Borrowed funds 23,730 24,470 44,741 42,247 Subordinated debt 8,382 8,487 16,758 16,907 Total interest expense 123,915 129,214 245,238 252,832 Net interest income 202,680 187,094 396,423 368,822 Provision charge for credit losses 9,334 ( 2,888 ) 7,218 ( 2,250 ) Net interest income after provision for credit losses 193,346 189,982 389,205 371,072 Non-interest income: Fees 12,259 10,736 22,722 20,391 Wealth management income 7,517 6,948 14,920 14,275 Insurance agency income 5,446 4,942 12,296 10,593 Bank-owned life insurance 3,798 2,585 7,833 4,678 Net gain (loss) on securities transactions ( 309 ) — ( 309 ) 87 Gain on sale of SBA loans 945 647 1,690 1,310 Other income 2,317 1,217 4,275 2,771 Total non-interest income 31,973 27,075 63,427 54,105 Non-interest expense: Compensation and employee benefits 67,289 63,249 133,485 125,615 Net occupancy expense 12,464 13,011 27,449 26,938 Data processing expense 9,388 9,599 19,034 19,203 FDIC insurance 3,155 3,341 5,995 6,727 Amortization of intangibles 8,559 9,497 17,122 18,998 Advertising and promotion expense 1,513 1,429 2,451 2,489 Core system conversion expense 1,508 — 1,508 — Other operating expenses 15,382 14,488 29,355 30,911 Total non-interest expense 119,258 114,614 236,399 230,881 Income before income tax expense 106,061 102,443 216,233 194,296 Income tax expense 27,914 30,462 58,668 58,287 Net income $ 78,147 $ 71,981 $ 157,565 $ 136,009 Basic earnings per share $ 0.60 $ 0.55 $ 1.21 $ 1.04 Weighted average basic shares outstanding 130,330,787 130,484,287 130,421,508 130,405,490 Diluted earnings per share $ 0.60 $ 0.55 $ 1.21 $ 1.04 Weighted average diluted shares outstanding 130,388,396 130,500,143 130,488,792 130,440,958 See accompanying notes to unaudited consolidated financial statements. 4 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Comprehensive Income Three and six months ended June 30, 2026 and 2025 (Unaudited) (Dollars in Thousands) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Net income $ 78,147 $ 71,981 $ 157,565 $ 136,009 Other comprehensive income, net of tax: Unrealized gains and losses on available for sale debt securities: Net unrealized gains arising during the period ( 8,570 ) 9,145 ( 21,259 ) 35,931 Reclassification adjustment for losses (gains) on securities sales included in net income 581 — 581 ( 62 ) Total ( 7,989 ) 9,145 ( 20,678 ) 35,869 Unrealized gains and losses on derivatives: Net unrealized gains (losses) arising during the period 2,647 ( 699 ) 5,180 ( 594 ) Reclassification adjustment for gains included in net income ( 33 ) ( 1,641 ) ( 100 ) ( 3,031 ) Total 2,614 ( 2,340 ) 5,080 ( 3,625 ) Amortization related to post-retirement obligations ( 135 ) ( 329 ) ( 152 ) ( 659 ) Total other comprehensive (loss) income ( 5,510 ) 6,476 ( 15,750 ) 31,585 Total comprehensive income $ 72,637 $ 78,457 $ 141,815 $ 167,594 See accompanying notes to unaudited consolidated financial statements. 5 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Changes in Stockholders’ Equity For the three and six months ended June 30, 2026 (Unaudited) (Dollars in Thousands) For the three months ended June 30, 2026 COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE LOSS TREASURY STOCK TOTAL STOCKHOLDERS’ EQUITY Balance as of March 31, 2026 $ 1,376 $ 1,847,737 $ 1,202,413 $ ( 86,423 ) $ ( 102,234 ) $ 2,862,869 Net income — — 78,147 — — 78,147 Other comprehensive income, net of tax — — — ( 5,510 ) — ( 5,510 ) Cash dividends paid — — ( 30,356 ) — — ( 30,356 ) Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 549 ) ( 549 ) Allocation of SAP shares — 2,384 — — — 2,384 Balance as of June 30, 2026 $ 1,376 $ 1,850,121 $ 1,250,204 $ ( 91,933 ) $ ( 102,783 ) $ 2,906,985 For the six months ended June 30, 2026 COMMONSTOCK 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 — — 157,565 — — 157,565 Other comprehensive income, net of tax — — — ( 15,750 ) — ( 15,750 ) Cash dividends paid — — ( 61,725 ) — — ( 61,725 ) Purchases of treasury stock — — — — ( 10,255 ) ( 10,255 ) Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 2,687 ) ( 2,687 ) Stock option exercises — 57 — — 1,453 1,510 Allocation of SAP shares — 5,115 — — — 5,115 Balance as of June 30, 2026 $ 1,376 $ 1,850,121 $ 1,250,204 $ ( 91,933 ) $ ( 102,783 ) $ 2,906,985 See accompanying notes to unaudited consolidated financial statements. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Changes in Stockholders’ Equity For the three and six months ended June 30, 2025 (Unaudited) 6 (Dollars in Thousands) For the three months ended June 30, 2025 COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK TOTAL STOCKHOLDERS’ EQUITY Balance as of March 31, 2025 $ 1,376 $ 1,836,665 $ 1,021,266 $ ( 110,246 ) $ ( 90,267 ) $ 2,658,794 Net income — — 71,981 — — 71,981 Other comprehensive income, net of tax — — — 6,476 — 6,476 Cash dividends paid — — ( 31,350 ) — — ( 31,350 ) Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 995 ) ( 995 ) Allocation of SAP shares — 2,649 — — — 2,649 Allocation of stock options — — — — — — Balance as of June 30, 2025 $ 1,376 $ 1,839,314 $ 1,061,897 $ ( 103,770 ) $ ( 91,262 ) $ 2,707,555 For the six months ended June 30, 2025 COMMONSTOCK ADDITIONAL PAID-IN CAPITAL RETAINEDEARNINGS 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 — — 136,009 — — 136,009 Other comprehensive income, net of tax — — — 31,585 — 31,585 Cash dividends paid — — ( 63,223 ) — — ( 63,223 ) Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 2,842 ) ( 2,842 ) Allocation of SAP shares — 4,802 — — — 4,802 Allocation of stock options — 17 — — — 17 Balance as of June 30, 2025 $ 1,376 $ 1,839,314 $ 1,061,897 $ ( 103,770 ) $ ( 91,262 ) $ 2,707,555 See accompanying notes to unaudited consolidated financial statements. 7 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows Six months ended June 30, 2026 and 2025 (Unaudited) (Dollars in Thousands) Six months ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 157,565 $ 136,009 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 23,588 26,312 Provision for credit losses on loans and securities 4,931 ( 2,319 ) Provision charge for credit losses on off-balance sheet credit exposures 2,287 69 Deferred tax expense 3,653 7,153 Amortization of operating lease right-of-use assets 7,301 7,015 Income on Bank-owned life insurance ( 7,833 ) ( 4,678 ) Net amortization of premiums and discounts on securities 8,556 8,449 Accretion of net deferred loan fees ( 4,468 ) ( 3,012 ) Amortization of premiums on purchased loans, net 152 129 Originations of loans held for sale ( 24,879 ) ( 36,107 ) Proceeds from sales of loans held for sale 29,956 170,708 Allocation of stock award expense 5,121 4,802 Allocation of stock option expense — 17 Net gain on sale of loans ( 2,070 ) ( 1,760 ) Net loss (gain) on securities transactions 309 ( 87 ) Net gain on sale of premises and equipment ( 992 ) ( 624 ) Net (gain) loss on sale of foreclosed assets ( 117 ) 11 Increase in accrued interest receivable ( 2,320 ) ( 1,554 ) (Increase) decrease in other assets ( 34,047 ) 25,106 Increase (decrease) in other liabilities 36,803 ( 60,357 ) Net cash provided by operating activities 203,496 275,282 Cash flows from investing activities: Net increase in loans ( 535,289 ) ( 419,566 ) Purchases of loans — ( 321 ) Proceeds from sales of foreclosed assets 1,140 — Proceeds from maturities, calls and paydowns of held to maturity debt securities 25,608 29,424 Purchases of investment securities held to maturity ( 9,954 ) ( 10,928 ) Proceeds from sales of available for sale debt securities 23,866 1,670 Proceeds from maturities, calls and paydowns of available for sale debt securities 271,337 242,868 Purchases of available for sale debt securities ( 437,659 ) ( 430,010 ) Proceeds from redemption of Federal Home Loan Bank stock 198,972 185,663 Purchases of Federal Home Loan Bank stock ( 213,957 ) ( 199,917 ) BOLI claim benefits received 3,979 906 Proceeds from sales of premises and equipment 2,767 2,348 Purchases of premises and equipment ( 13,929 ) ( 5,348 ) Net cash (used in) investing activities ( 683,119 ) ( 603,211 ) Cash flows from financing activities: Net increase in deposits 266,486 84,711 Increase in mortgage escrow deposits 7,526 8,044 8 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows Six months ended June 30, 2026 and 2025 (Unaudited) (Dollars in Thousands) Six months ended June 30, 2026 2025 Cash dividends paid to stockholders ( 61,725 ) ( 63,223 ) Purchase of treasury stock ( 10,255 ) — Purchase of employee restricted shares to fund statutory tax withholding ( 2,687 ) ( 2,842 ) Stock options exercised 1,510 — Proceeds from long-term borrowings 50,000 504,500 Payments on long-term borrowings ( 102,790 ) ( 327,702 ) Net increase in short-term borrowings 348,367 177,427 Net cash provided by financing activities 496,432 380,915 Net increase in cash and cash equivalents 16,809 52,986 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 228,293 257,953 Restricted cash at end of period — 972 Total cash, cash equivalents and restricted cash at end of period $ 228,293 $ 258,925 Cash paid during the period for: Interest on deposits and borrowings $ 226,892 $ 248,338 Income taxes $ 25,463 $ 56,551 Transfer of loans receivable to foreclosed assets $ — $ — See accompanying notes to unaudited consolidated financial statements. 9 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 and six months ended June 30, 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 and six months ended June 30, 2026 and 2025 (dollars in thousands, except per share amounts): Three months ended June 30, 2026 2025 Net Income Weighted Average Common Shares Outstanding Per Share Amount Net Income Weighted Average Common Shares Outstanding Per Share Amount Net income $ 78,147 $ 71,981 Basic earnings per share: Income available to common stockholders $ 78,147 130,330,787 $ 0.60 $ 71,981 130,484,287 $ 0.55 Dilutive shares 57,609 15,856 Diluted earnings per share: Income available to common stockholders $ 78,147 130,388,396 $ 0.60 $ 71,981 130,500,143 $ 0.55 10 Six months ended June 30, 2026 2025 Net Income Weighted Average Common Shares Outstanding Per Share Amount Net Income Weighted Average Common Shares Outstanding Per Share Amount Net income $ 157,565 $ 136,009 Basic earnings per share: Income available to common stockholders $ 157,565 130,421,508 $ 1.21 $ 136,009 130,405,490 $ 1.04 Dilutive shares 67,284 35,468 Diluted earnings per share: Income available to common stockholders $ 157,565 130,488,792 $ 1.21 $ 136,009 130,440,958 $ 1.04 Anti-dilutive stock options and awards as of June 30, 2026 and 2025, totaling 1.4 million shares and 1.2 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 provision for credit losses on loans for the three and six months ended June 30, 2026 was primarily attributable to overall growth in the loan portfolio, combined with an increase 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, 2026. As of June 30, 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 June 30, 2026, the Company had $ 3.29 billion and $ 266.2 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. 11 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 June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Fair value U.S. Treasury obligations $ 200,584 52 ( 6,401 ) 194,235 Government-agency obligations 28,324 581 ( 211 ) 28,694 Mortgage-backed securities 2,927,054 8,155 ( 130,178 ) 2,805,031 Asset-backed securities 35,165 454 ( 211 ) 35,408 State and municipal obligations 118,970 784 ( 7,370 ) 112,384 Corporate obligations 107,131 4,943 ( 1,370 ) 110,704 $ 3,417,228 14,969 ( 145,741 ) 3,286,456 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 $ 11.7 million and $ 10.9 million as of June 30, 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 June 30, 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. June 30, 2026 Amortized cost Fair value Due in one year or less $ 105,564 104,664 Due after one year through five years 123,518 118,109 Due after five years through ten years 131,955 133,665 Due after ten years 65,648 60,885 Securities without a contractual maturity (1) 2,990,543 2,869,133 $ 3,417,228 3,286,456 (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 and six months ended June 30, 2026, proceeds from sales on securities in the available for sale debt securities portfolio totaled $ 23.9 million, with no gross gains and $ 806,000 of losses recognized, while proceeds from calls on securities totaled $ 5.4 million with gross gains of $ 494,000 and no gross losses recognized. For the three months ended June 30, 2025, no securities were sold or called from the available for sale debt securities portfolio. For the six months ended June 30, 2025, proceeds from sales on securities from the available for sale debt portfolio totaled $ 1.7 million with gross gains of $ 87,000 and 12 no losses recognized, while proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 9.6 million with no gains and no losses recognized. The following table shows gross unrealized losses and estimated fair value of available for sale debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 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 $ — — 172,950 ( 6,401 ) 172,950 ( 6,401 ) Government-agency obligations 7,544 ( 204 ) 2,119 ( 7 ) 9,663 ( 211 ) Mortgage-backed securities 1,018,248 ( 11,787 ) 932,078 ( 118,391 ) 1,950,326 ( 130,178 ) Asset-backed securities 10,042 ( 44 ) 5,649 ( 167 ) 15,690 ( 211 ) State and municipal obligations 13,249 ( 191 ) 65,318 ( 7,179 ) 78,567 ( 7,370 ) Corporate obligations 21,735 ( 265 ) 19,140 ( 1,104 ) 40,875 ( 1,370 ) Total $ 1,070,818 ( 12,491 ) 1,197,254 ( 133,250 ) 2,268,072 ( 145,741 ) 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 June 30, 2026 totaled 540 , compared with 406 as of December 31, 2025. The increase in the number of securities in an unrealized loss position as of June 30, 2026, was mainly 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 June 30, 2026. 13 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 $ 22,000 and $ 16,000 , as of June 30, 2026 and December 31, 2025, respectively (in thousands): June 30, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Government-agency obligations $ 1,000 — ( 4 ) 996 State and municipal obligations 264,676 113 ( 7,072 ) 257,717 Corporate obligations 570 — ( 2 ) 568 $ 266,246 113 ( 7,078 ) 259,281 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 $ 2.7 million and $ 2.6 million as of June 30, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2026, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 1.6 million and $ 4.4 million, respectively. As to these calls on securities, for the three and six months ended June 30, 2026, there were gross gains of $ 3,000 and no gross losses related to these calls on securities. For the three and six months ended June 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 5.2 million and $ 10.1 million, respectively. As to these calls on securities, for the three months ended June 30, 2025, there were no gross gains or gross losses, while for the six months ended June 30, 2025, there were no gross gains, while gross losses totaled $ 1,200 . The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of June 30, 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 June 30, 2026 by contractual maturity, excluding allowances for credit losses of $ 22,000 as of June 30, 2026 are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer. June 30, 2026 Amortized cost Fair value Due in one year or less $ 48,979 48,937 Due after one year through five years 148,654 147,682 Due after five years through ten years 65,531 60,175 Due after ten years 3,082 2,487 $ 266,246 259,281 The number of held to maturity debt securities in an unrealized loss position as of June 30, 2026 totaled 185 , compared with 221 as of December 31, 2025. The decrease in the number of securities in an unrealized loss position as of June 30, 2026, was mainly due to a decline in the number of securities held in the held to maturity portfolio as of June 30, 2026, compared with December 31, 2025. 14 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 June 30, 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 June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Total Portfolio AAA AA A BBB Not Rated Total Government-agency obligations $ 1,000 — — — — 1,000 State and municipal obligations 43,936 187,330 16,913 — 16,497 264,676 Corporate obligations — 570 — — — 570 $ 44,936 187,900 16,913 — 16,497 266,246 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 June 30, 2026, the held to maturity debt securities portfolio was comprised of 17 % rated AAA, 71 % rated AA, 6 % rated A, and less than 6 % either below an A rating or not rated by Moody’s or Standard and Poor’s. The following table shows gross unrealized losses and estimated fair value of held to maturity debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 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 $ — — 996 ( 4 ) 996 ( 4 ) State and municipal obligations 31,337 ( 72 ) 82,586 ( 7,000 ) 113,923 ( 7,072 ) Corporate obligations — — 568 ( 2 ) 568 ( 2 ) Total $ 31,337 ( 72 ) 84,150 ( 7,006 ) 115,487 ( 7,078 ) 15 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 June 30, 2026 and December 31, 2025 are summarized as follows (in thousands): June 30, 2026 December 31, 2025 Mortgage loans: Commercial $ 7,502,579 7,398,792 Multi-family 3,806,823 3,667,337 Construction 638,933 662,112 Residential 1,938,704 1,974,324 Total mortgage loans 13,887,039 13,702,565 Commercial loans (1) 5,565,030 5,200,517 Consumer loans 607,373 612,431 Total gross loans 20,059,442 19,515,513 Premiums on purchased loans 1,663 1,524 Net deferred fees ( 15,353 ) ( 12,976 ) Total loans $ 20,045,752 19,504,061 (1) Commercial loans consist of owner-occupied real estate loans, commercial and industrial loans and mortgage warehouse lines. Accrued interest on loans totaled $ 83.7 million and $ 82.2 million as of June 30, 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): 16 June 30, 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 $ 2,301 — 21,338 — 23,639 7,478,940 7,502,579 21,338 Multi-family 1,570 — 266 — 1,836 3,804,987 3,806,823 266 Construction — — 2,854 — 2,854 636,079 638,933 2,854 Residential 6,393 5,929 7,834 — 20,156 1,918,548 1,938,704 7,834 Total mortgage loans 10,264 5,929 32,292 — 48,485 13,838,554 13,887,039 32,292 Commercial loans 1,474 828 103,383 — 105,685 5,459,345 5,565,030 94,903 Consumer loans 1,401 1,577 1,210 — 4,188 603,185 607,373 1,210 Total gross loans $ 13,139 8,334 136,885 — 158,358 19,901,084 20,059,442 128,405 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 Included in loans held for investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $ 136.9 million and $ 78.4 million as of June 30, 2026 and December 31, 2025, respectively. Included in non-accrual loans were $ 33.5 million and $ 49.5 million of loans which were less than 90 days past due as of June 30, 2026 and December 31, 2025, respectively. There were no loans 90 days or greater past due and still accruing interest as of June 30, 2026 and December 31, 2025. Included in non-performing loans are four commercial loans on senior housing properties totaling $ 81.8 million that are the subject of related bankruptcy filings. These loans have no prior charge-off history and require no specific reserve allocations due to strong collateral values, which are supported by appraisals received in 2026 and, more recently, initial bids submitted through the ongoing bankruptcy sale process. The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands): 17 Three months ended June 30, Mortgage loans Commercial loans Consumer loans Total 2026 Balance at beginning of period $ 126,934 45,038 5,025 176,997 Provision charge (benefit) to operations 2,528 6,861 186 9,575 Recoveries of loans previously charged-off 27 64 160 251 Loans charged-off ( 486 ) ( 1,507 ) ( 174 ) ( 2,167 ) Balance at end of period $ 129,003 50,456 5,197 184,656 2025 Balance at beginning of period $ 140,683 45,901 5,186 191,770 Provision charge (benefit) to operations ( 8,233 ) 5,582 1 ( 2,650 ) Recoveries of loans previously charged-off 41 75 113 229 Loans charged-off ( 1,044 ) ( 330 ) ( 104 ) ( 1,478 ) Balance at end of period $ 131,447 51,228 5,196 187,871 Six months ended June 30, 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 1,277 3,389 259 4,925 Recoveries of loans previously charged-off 46 301 410 757 Loans charged-off ( 921 ) ( 4,361 ) ( 511 ) ( 5,793 ) Balance at end of period $ 129,003 50,456 5,197 184,656 2025 Balance at beginning of period $ 144,587 43,642 5,203 193,432 Provision charge to operations ( 12,054 ) 9,758 ( 29 ) ( 2,325 ) Initial allowance on credit loans related to PCD loans — — — — Recoveries of loans previously charged-off 847 354 304 1,505 Loans charged-off ( 1,933 ) ( 2,526 ) ( 282 ) ( 4,741 ) Balance at end of period $ 131,447 51,228 5,196 187,871 For the three and six months ended June 30, 2026, the Company recorded a $ 9.6 million and a $ 4.9 million provision for credit losses on loans, respectively. The provision for credit losses on loans for the three and six months ended June 30, 2026 was primarily attributable to overall growth in the loan portfolio, combined with an increase in specific reserves on individually evaluated loans. For the three and six months ended June 30, 2026, net charge-offs totaled $ 1.9 million and $ 5.0 million, respectively. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2026 by year of origination (in thousands): 18 2026 2025 2024 2023 2022 Prior to 2022 Total Loans Mortgage loans: Multi-family — — — — — 486 486 Total mortgage loans — — — — — 486 486 Commercial loans — 1,507 — — — — 1,507 Consumer loans (1) 2 — — 3 — 43 48 Total gross loans $ 2 1,507 — 3 — 530 2,042 (1) During the three months ended June 30, 2026, charge-offs on consumer overdraft accounts totaled $ 126,000 , which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 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 — — — 486 687 Total mortgage loans — 201 — — — 720 921 Commercial loans — 2,830 — 167 1,336 28 4,361 Consumer loans (1) 11 — — 15 — 151 178 Total gross loans $ 11 3,031 — 182 1,336 900 5,459 (1) During the six months ended June 30, 2026, charge-offs on consumer overdraft accounts totaled $ 333,000 , which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2025 by year of origination (in thousands): 2025 2024 2023 2022 2021 Prior to 2021 Total Loans Mortgage loans: Commercial $ — — — — — 977 977 Total mortgage loans — — — — — 1,044 1,044 Commercial loans — — 39 231 60 — 330 Consumer loans (1) 6 3 — — — 10 19 Total gross loans $ 6 3 39 231 60 1,054 1,393 (1) During the three months ended June 30, 2025, charge-offs on consumer overdraft accounts totaled $ 85,000 , which are not included in the table above. The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2025 by year of origination (in thousands): 19 2025 2024 2023 2022 2021 Prior to 2021 Total Loans Mortgage loans: Commercial $ — — — 358 — 1,508 1,866 Total mortgage loans — — — 358 — 1,575 1,933 Commercial loans — — 39 2,362 125 — 2,526 Consumer loans (1) 18 13 12 3 — 37 83 Total gross loans $ 18 13 51 2,723 126 1,611 4,542 (1) During the six months ended June 30, 2025, charge-offs on consumer overdraft accounts totaled $ 199,000 , 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 June 30, 2026, there were 53 loans totaling $ 122.7 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 not been any significant time lapses since the receipt of the most recent appraisals. For loans deemed collateral-dependent as defined above, the fair value is based on the underlying collateral. As of June 30, 2026 and December 31, 2025, the Company had collateral-dependent loans with fair values of $ 111.8 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: 20 Loan Classes Modification types Commercial Term extension, interest rate reductions, 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 tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 (in thousands): For the three months ended June 30, 2026 Term Extension Interest Rate Change Interest Rate Change and Term Extension Change in Payment Type Total of loan modifications % of Total Class of Loans Mortgage loans: Commercial $ 10,652 — 120 — 10,772 0.14 % Multi-family — — — — — — % Construction — — 6,639 — 6,639 1.04 % Total mortgage loans 10,652 — 6,759 — 17,410 0.13 % Commercial loans 5,233 — — — 5,233 0.09 % Total gross loans $ 15,885 — 6,759 — 22,644 0.11 % For the six months ended June 30, 2026 Term Extension Interest Rate Change Interest Rate Change and Term Extension Change in Payment Type Total of loan modifications % of Total Class of Loans Mortgage loans: Commercial $ 10,652 3,291 120 — 14,063 0.19 % Multi-family — — — — — — % Construction — — 6,639 — 6,639 1.04 % Total mortgage loans 10,652 3,291 6,759 — 20,701 0.15 % Commercial loans 7,627 — 474 397 8,498 0.15 % Total gross loans $ 18,279 3,291 7,233 397 29,199 0.15 % The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 (in thousands): 21 For the three months ended June 30, 2025 Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans Mortgage loans: Commercial $ — — 10,918 0.15 % Total mortgage loans — — 10,918 0.08 % Commercial loans 158 — — 0.003 % Total gross loans $ 158 — 10,918 0.06 % For the six months ended June 30, 2025 Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans Mortgage loans: Commercial $ 2,984 — 11,945 0.20 % Total mortgage loans 2,984 — 11,945 0.11 % Commercial loans 1,302 — 603 0.04 % Total gross loans $ 4,286 — 12,548 0.09 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2026 (in thousands): Weighted Average Months of Term Extension Weighted Average Rate Change Mortgage loans: Commercial 9 0.76 % Multi-family 0 — % Construction 1 1.82 % Total mortgage loans 7 0.97 % Commercial loans 3 — % Total gross loans 6 0.61 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2026 (in thousands): Weighted Average Months of Term Extension Weighted Average Rate Change Mortgage loans: Commercial 5 0.40 % Multi-family 0 — % Construction 1 1.82 % Total mortgage loans 4 0.60 % Commercial loans 10 ( 0.14 ) % Total gross loans 9 0.19 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2025 (in thousands): 22 Weighted Average Months of Term Extension Weighted Average Rate Change Mortgage loans: Commercial 33 0.13 % Total mortgage loans 33 0.13 % Commercial loans 20 — % Total gross loans 23 0.08 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2025 (in thousands): Weighted Average Months of Term Extension Weighted Average Rate Change Mortgage loans: Commercial 18 0.44 % Total mortgage loans 18 0.44 % Commercial loans 12 ( 0.20 ) % Total gross loans 15 0.08 % There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three and six months ended June 30, 2026 and June 30, 2025, respectively. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 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 $ 11,737 — — — — 11,737 Multi-family — — — — — — Construction 6,639 — — — — 6,639 Total mortgage loans 18,375 — — — — 18,375 Commercial loans 27,231 — — — — 27,231 Total gross loans $ 45,606 — — — — 45,606 The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended June 30, 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 $ 20,445 — — — — 20,445 Multi-family 736 — — — 85 821 Total mortgage loans 21,182 — — — 85 21,267 Commercial loans 2,058 — — — 158 2,216 Total gross loans $ 23,240 — — — 243 23,483 23 Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as Purchase Credit Deteriorated ("PCD") loans. As of June 30, 2026, the balance of PCD loans totaled $ 457.8 million with a related allowance for credit losses of $ 4.1 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. The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of June 30, 2026 and December 31, 2025 (in thousands): Gross Loans Held for Investment by Year of Origination as of June 30, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving loans to term loans Total Loans Commercial Mortgage Special mention $ — 7,014 — 16,464 32,744 102,981 — — 159,203 Substandard 3,773 5,773 — 46 5,347 59,482 1,409 — 75,830 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 3,773 12,787 — 16,510 38,091 162,463 1,409 — 235,033 Pass/Watch 548,797 908,852 440,130 756,653 1,300,001 3,156,272 148,085 8,756 7,267,546 Total Commercial Mortgage $ 552,570 921,639 440,130 773,163 1,338,092 3,318,735 149,494 8,756 7,502,579 Multi-family Special mention $ — — — 18,382 — — — — 18,382 Substandard — — — — — 3,071 — — 3,071 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — — 18,382 — 3,071 — — 21,453 Pass/Watch 311,320 728,336 318,142 515,846 572,387 1,324,526 13,325 1,488 3,785,370 Total Multi-Family $ 311,320 728,336 318,142 534,228 572,387 1,327,597 13,325 1,488 3,806,823 Construction Special mention $ 22,135 — — — — 1,084 — — 23,219 Substandard — — — — — 2,872 — — 2,872 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 22,135 — — — — 3,956 — — 26,091 Pass/Watch 41,269 216,745 209,100 54,049 77,945 13,734 — — 612,842 Total Construction $ 63,404 216,745 209,100 54,049 77,945 17,690 — — 638,933 Residential (1) 24 Gross Loans Held for Investment by Year of Origination as of June 30, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving loans to term loans Total Loans Special mention $ — — 1,174 953 1,009 2,266 — — 5,402 Substandard — — 162 2,877 680 3,578 — — 7,297 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — — 1,336 3,830 1,689 5,844 — — 12,699 Pass/Watch 44,050 150,337 118,661 291,598 354,030 967,329 — — 1,926,005 Total Residential $ 44,050 150,337 119,997 295,428 355,719 973,173 — — 1,938,704 Total Mortgage Special mention $ 22,135 7,014 1,174 35,799 33,753 106,331 — — 206,206 Substandard 3,773 5,773 162 2,923 6,027 69,003 1,409 — 89,070 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 25,908 12,787 1,336 38,722 39,780 175,334 1,409 — 295,276 Pass/Watch 945,436 2,004,270 1,086,033 1,618,146 2,304,363 5,461,861 161,410 10,244 13,591,763 Total Mortgage $ 971,344 2,017,057 1,087,369 1,656,868 2,344,143 5,637,195 162,819 10,244 13,887,039 Commercial Special mention $ 3,014 7,597 9,049 8,918 24,305 30,353 25,579 — 108,815 Substandard — 2,707 — 25,230 124,599 64,801 25,222 2,165 244,724 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 3,014 10,304 9,049 34,148 148,904 95,154 50,801 2,165 353,539 Pass/Watch 494,816 841,591 594,873 315,634 474,320 1,151,736 1,291,670 46,851 5,211,491 Total Commercial $ 497,830 851,895 603,922 349,782 623,224 1,246,890 1,342,471 49,016 5,565,030 Consumer (1) Special mention $ — 17 209 280 — — 1,386 142 2,034 Substandard — — — 32 74 106 627 133 972 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified — 17 209 312 74 106 2,013 275 3,006 Pass/Watch 12,892 24,901 21,046 28,461 43,925 109,225 344,430 19,487 604,367 Total Consumer $ 12,892 24,918 21,255 28,773 43,999 109,331 346,443 19,762 607,373 Total Loans Special mention $ 25,149 14,628 10,432 44,997 58,058 136,684 26,965 142 317,055 Substandard 3,773 8,480 162 28,185 130,700 133,910 27,258 2,298 334,766 Doubtful — — — — — — — — — Loss — — — — — — — — — Total criticized and classified 28,922 23,108 10,594 73,182 188,758 270,594 54,223 2,440 651,821 Pass/Watch 1,453,144 2,870,762 1,701,952 1,962,241 2,822,608 6,722,822 1,797,510 76,582 19,407,621 25 Gross Loans Held for Investment by Year of Origination as of June 30, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving loans to term loans Total Loans Total Gross Loans $ 1,482,066 2,893,870 1,712,546 2,035,423 3,011,366 6,993,416 1,851,733 79,022 20,059,442 (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 — — — — — — — — — 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 $ 917,773 336,732 852,632 1,449,216 951,729 2,724,348 157,466 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 — — — — — — — — — 26 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 — 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 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. 27 Note 4. Deposits Deposits as of June 30, 2026 and December 31, 2025 are summarized as follows (in thousands): June 30, 2026 December 31, 2025 Savings $ 1,582,750 1,589,259 Money market 4,044,648 3,693,285 Negotiable Order of Withdrawal ("NOW") (1) 6,665,950 6,994,610 Non-interest bearing 3,808,318 3,714,253 Certificates of deposit (2) 3,443,503 3,287,276 Total deposits $ 19,545,169 19,278,683 (1) Our insured cash sweep product totaled $ 1.05 billion and $ 1.08 billion as of June 30, 2026 and December 31, 2025, respectively, and are reported within NOW accounts. (2) Time deposits equal to or in excess of $250,000, were $ 965.7 million and $ 930.0 million as of June 30, 2026 and December 31, 2025, respectively. Additionally, reciprocal Certificate of Deposit Account Registry Service product totaled $ 2.5 million as of June 30, 2026 and December 31, 2025. Within total deposits, brokered deposits totaled $ 1.27 billion and $ 769.6 million as of June 30, 2026 and December 31, 2025, respectively. Note 5. Borrowed Funds Borrowed funds as of June 30, 2026 and December 31, 2025 are summarized as follows (in thousands): June 30, 2026 December 31, 2025 Securities sold under repurchase agreements $ 85,006 95,007 FHLBNY line of credit 734,000 275,000 FHLBNY advances 1,586,945 1,739,735 Purchase accounting adjustment ("PAA") on borrowed funds 1,581 2,213 Total borrowed funds $ 2,407,532 2,111,955 Total long-term borrowings totaled $ 451.6 million and $ 550.0 million as of June 30, 2026 and December 31, 2025, respectively, while total short-term borrowings totaled $ 1.96 billion and $ 1.56 billion as of June 30, 2026 and December 31, 2025. As of June 30, 2026, Federal Home Loan Bank of New York ("FHLBNY") advances were at fixed rates and mature between July 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 Bancorp, Inc. ("Lakeland") merger as of June 30, 2026 are as follows (in thousands): 2026 Due in one year or less $ 1,870,945 Due after one year through two years 350,000 Due after two years through three years — Due after three years through four years 100,000 Thereafter — PAA on borrowed funds 1,581 Total FHLBNY advances and overnight borrowings $ 2,322,526 Scheduled maturities of securities sold under repurchase agreements as of June 30, 2026 are as follows (in thousands): 28 2026 Due in one year or less $ 85,006 Total securities sold under repurchase agreements $ 85,006 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 June 30, 2026 and December 31, 2025, the fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit and FHLB advances, totaled $ 2.18 billion and $ 2.41 billion, respectively. Interest expense on borrowings for the three and six months ended June 30, 2026 amounted to $ 24.0 million and $ 45.4 million, respectively, while amortization expense related to purchase accounting adjustments for the three and six months ended June 30, 2026 amounted to a benefit of $ 316,000 and $ 632,000 , respectively. Interest expense on borrowings for the three and six months ended June 30, 2025 amounted to $ 24.8 million and $ 43.1 million, respectively, while amortization expense related to purchase accounting adjustments for the three and six months ended June 30, 2025 amounted to a benefit of $ 316,000 and $ 868,000 , 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. 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 costs for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2026 and 2025 includes the following components (in thousands): Three months ended June 30, Six months ended June 30, Pension benefits Other post-retirement benefits Pension benefits Other post-retirement benefits 2026 2025 2026 2025 2026 2025 2026 2025 Service cost $ — — 1 1 $ — — 2 2 Interest cost 298 299 171 148 596 598 342 296 Expected return on plan assets ( 900 ) ( 825 ) — — ( 1,800 ) ( 1,650 ) — — Amortization of the net loss (gain) — — ( 187 ) ( 459 ) — — ( 374 ) ( 918 ) Net periodic (decrease) in benefit cost $ ( 602 ) ( 526 ) ( 15 ) ( 310 ) $ ( 1,204 ) ( 1,052 ) ( 30 ) ( 620 ) 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 June 30, 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 and six months ended June 30, 2026 were calculated using the January 1, 2025 pension and other post-retirement benefits actuarial valuations. 29 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 June 30, 2026, $ 2.1 million was recorded in total contingent litigation reserves. The Company is currently under examination by the New Jersey Division of Taxation for tax years ended December 31, 2020 through 2023. The New Jersey Division of Taxation has provided the Company with a preliminary assessment of approximately $ 14 million in additional Corporate Business Tax ("CBT") for the tax years under examination plus interest and penalties of approximately $ 7 million and has requested certain information related to earlier tax years. The preliminary assessment is related to a tax position associated with CBT nexus and sourcing of receipts for the ratio used to determine the Company’s income subject to CBT in New Jersey. Management and its tax advisors continue to engage in discussions with the New Jersey Division of Taxation and believe the Company has a supportable position regarding its New Jersey nexus, and sourcing of income. Based on our assessment of the technical merits of its position and the facts and circumstances currently available, including our commitment to pursue all available avenues to support and defend its position, management has concluded that as of June 30, 2026, it is more likely than not that the Company’s position will be sustained at the conclusion of the examination or subsequently and therefore recognition of a liability for an uncertain tax position is not required as of the reporting date. As a result of factual and legal developments affecting the years subsequent to those under examination, the New Jersey CBT issues to which the preliminary assessment relates no longer existed after the period examined by the New Jersey Division of Taxation. The Company will continue to monitor developments and reassess its conclusion as the examination proceeds, and additional information becomes available. 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 that may default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors. For the three and six months ended June 30, 2026, the Company recorded a $ 248,000 recapture of provision and a $ 2.3 million provision for credit losses for off-balance sheet credit exposures, respectively. For the three and six months ended June 30, 2025, the Company recorded a $ 241,000 recapture of provision and a $ 69,000 provision for credit losses for off-balance sheet credit exposures, respectively. The allowance for credit losses for off-balance sheet credit exposures was $ 9.1 million as of June 30, 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. 30 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: 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 June 30, 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 by benchmarking to comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. 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 have 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 a loan related transaction 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. 31 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. The fair value of the Company's derivatives is determined by 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 June 30, 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 June 30, 2026 or December 31, 2025. The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of June 30, 2026 and December 31, 2025, by level within the fair value hierarchy (in thousands): 32 Fair Value Measurements at Reporting Date Using: June 30, 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 $ 194,235 194,235 — — Government-agency obligations 28,694 — 28,694 — Mortgage-backed securities 2,805,031 — 2,805,031 — Asset-backed securities 35,408 — 35,408 — State and municipal obligations 112,384 — 112,384 — Corporate obligations 110,704 — 110,704 — Total available for sale debt securities 3,286,456 194,235 3,092,221 — Equity securities 20,108 20,108 — — Derivative assets 116,674 — 116,674 — $ 3,423,238 214,343 3,208,895 — Derivative liabilities $ 111,598 — 111,598 — Measured on a non-recurring basis: Loans measured for impairment based on the fair value of the underlying collateral $ 111,845 — — 111,845 Foreclosed assets 963 — — 963 $ 112,808 — — 112,808 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 33 There were no transfers into or out of Level 3 during the three and six months ended June 30, 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 June 30, 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 by benchmarking 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 have 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 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. Federal Home Loan Bank of New York 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 (i.e., loans greater than $ 1.0 million) was based on recent external appraisals of collateral securing such loans, adjusted for the timing of anticipated cash flows, net of cost to sell. 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. 34 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. Subordinated Debentures The fair value of borrowed funds was estimated based on bid/ask prices from brokers for similar types of instruments 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 June 30, 2026 and December 31, 2025. Fair values are presented by level within the fair value hierarchy. 35 Fair Value Measurements as of June 30, 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 $ 228,293 228,293 228,293 — — Available for sale debt securities: U.S. Treasury obligations $ 194,235 194,235 194,235 — — Government-agency obligations 28,694 28,694 — 28,694 — Mortgage-backed securities 2,805,031 2,805,031 — 2,805,031 — Asset-backed securities 35,408 35,408 — 35,408 — State and municipal obligations 112,384 112,384 — 112,384 — Corporate obligations 110,704 110,704 — 110,704 — Total available for sale debt securities $ 3,286,456 3,286,456 194,235 3,092,221 — Held to maturity debt securities, net of allowance for credit losses: Government-agency obligations 1,000 996 — 996 — State and municipal obligations 264,654 257,717 — 257,717 — Corporate obligations 570 568 — 568 — Total held to maturity debt securities, net of allowance for credit losses $ 266,224 259,281 — 259,281 — FHLBNY stock 130,672 130,672 130,672 — — Equity securities 20,108 20,108 20,108 — — Loans, net of allowance for credit losses 19,866,574 19,818,268 — — 19,818,268 Derivative assets 116,674 116,674 — 116,674 — Financial liabilities: Deposits other than certificates of deposits $ 16,101,666 16,101,666 16,101,666 — — Certificates of deposit 3,443,503 3,442,820 — 3,442,820 — Total deposits $ 19,545,169 19,544,486 16,101,666 3,442,820 — Borrowings 2,407,532 2,407,165 — 2,407,165 — Subordinated debentures 409,065 437,180 — 437,180 — Derivative liabilities 111,598 111,598 — 111,598 — 36 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 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 — 37 Note 11. Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss), both gross and net of tax, for the three and six months ended June 30, 2026 and 2025 (in thousands): Three months ended June 30, 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 $ ( 11,894 ) 3,324 ( 8,570 ) 17,700 ( 8,555 ) 9,145 Reclassification adjustment for gains included in net income 806 ( 225 ) 581 — — — Total ( 11,088 ) 3,099 ( 7,989 ) 17,700 ( 8,555 ) 9,145 Unrealized gains and losses on derivatives (cash flow hedges): Net unrealized gains (losses) arising during the period 3,673 ( 1,026 ) 2,647 ( 976 ) 277 ( 699 ) Reclassification adjustment for (gains) included in net income ( 46 ) 13 ( 33 ) ( 2,289 ) 648 ( 1,641 ) Total 3,627 ( 1,013 ) 2,614 ( 3,265 ) 925 ( 2,340 ) Amortization related to post-retirement obligations ( 187 ) 52 ( 135 ) ( 459 ) 130 ( 329 ) Total other comprehensive income (loss) $ ( 7,648 ) 2,138 ( 5,510 ) 13,976 ( 7,500 ) 6,476 Six months ended June 30, 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 $ ( 29,506 ) 8,247 ( 21,259 ) 60,175 ( 24,244 ) 35,931 Reclassification adjustment for (gains) losses on securities sales included in net income 806 ( 225 ) 581 ( 87 ) 25 ( 62 ) Total ( 28,700 ) 8,022 ( 20,678 ) 60,088 ( 24,219 ) 35,869 Unrealized gains and losses on derivatives (cash flow hedges): Net unrealized (losses) gains arising during the period 7,189 ( 2,009 ) 5,180 ( 829 ) 235 ( 594 ) Reclassification adjustment for (gains) included in net income ( 139 ) 39 ( 100 ) ( 4,229 ) 1,198 ( 3,031 ) Total 7,050 ( 1,970 ) 5,080 ( 5,058 ) 1,433 ( 3,625 ) Amortization related to post-retirement obligations ( 211 ) 59 ( 152 ) ( 919 ) 260 ( 659 ) Total other comprehensive income (loss) $ ( 21,861 ) 6,111 ( 15,750 ) 54,111 ( 22,526 ) 31,585 38 The following tables present the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2026 and 2025 (in thousands): Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax for the three months ended June 30, 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 March 31, $ ( 89,867 ) 2,837 607 ( 86,423 ) ( 117,837 ) 5,817 1,774 ( 110,246 ) Current - period other comprehensive income (loss) ( 7,989 ) ( 135 ) 2,614 ( 5,510 ) 9,145 ( 329 ) ( 2,340 ) 6,476 Balance as of June 30, $ ( 97,856 ) 2,702 3,221 ( 91,933 ) ( 108,692 ) 5,488 ( 566 ) ( 103,770 ) Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax for the six months ended June 30, 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) ( 20,678 ) ( 152 ) 5,080 ( 15,750 ) 35,869 ( 659 ) ( 3,625 ) 31,585 Balance as of June 30, $ ( 97,856 ) 2,702 3,221 ( 91,933 ) ( 108,692 ) 5,488 ( 566 ) ( 103,770 ) 39 The following tables summarize the reclassifications from accumulated other comprehensive (loss) to the consolidated statements of income for the three and six months ended June 30, 2026 and 2025 (in thousands): Reclassifications From Accumulated Other Comprehensive Income ("AOCI") Amount reclassified from AOCI for the three months ended June 30, 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 $ ( 806 ) — Net gain (loss) on securities transactions 225 — Income tax expense $ ( 581 ) — Net of tax Cash flow hedges: Realized net gains (losses) on derivatives $ 46 2,289 Interest expense ( 13 ) ( 648 ) Income tax expense $ 33 1,641 Post-retirement obligations: Amortization of actuarial gains $ ( 187 ) ( 459 ) Compensation and employee benefits (1) 52 130 Income tax expense $ ( 135 ) ( 329 ) Net of tax Total reclassifications $ ( 683 ) 1,312 Net of tax Reclassifications From Accumulated Other Comprehensive Income Amount reclassified from AOCI for the six months ended June 30, Affected line item in the Consolidated Statement of Income 2026 2025 Details of AOCI: Available for sale debt securities: Realized net gains (losses) on the sale of securities available for sale $ ( 806 ) 87 Net gain (loss) on securities transactions 225 ( 25 ) Income tax expense $ ( 581 ) 62 Net of tax Cash flow hedges: Realized net gains (losses) on derivatives $ 139 4,229 Interest expense ( 39 ) 1,198 Income tax expense $ 100 5,427 Post-retirement obligations: Amortization of actuarial gains $ ( 211 ) ( 919 ) Compensation and employee benefits (1) 59 260 Income tax expense $ ( 152 ) ( 659 ) Net of tax Total reclassifications $ ( 633 ) 4,830 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. 40 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 June 30, 2026 and December 31, 2025, the Company had 418 and 438 loan related interest rate swaps with aggregate notional amounts of $ 3.88 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 June 30, 2026, it was not required to post collateral against the potential risk of default by the borrower under these agreements. For June 30, 2026 and December 31, 2025, the Company had 8 and 10 credit derivatives, respectively, with aggregate notional amounts of $ 112.8 million and $ 98.6 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements. As of June 30, 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 its 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 and six months ended June 30, 2026 and 2025, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits. 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 $ 2.1 million will be reclassified as a reduction to interest expense. As of June 30, 2026, the Company had eight 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 seven outstanding interest rate derivatives with an aggregate notional amount of $ 575.0 million, as of December 31, 2025. The Company is a 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. 41 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 June 30, 2026 and December 31, 2025 (in thousands). Fair Values of Derivative Instruments as of June 30, 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 $ 1,939,076 Other assets $ 111,385 $ 1,939,076 Other liabilities $ 111,568 Credit contracts 43,243 Other assets 11 69,591 Other liabilities ( 19 ) Total derivatives not designated as a hedging instrument 111,396 111,549 Derivatives designated as a hedging instrument: Interest rate products 550,000 Other assets 4,325 125,000 Other liabilities 260 Total gross derivative amounts recognized on the balance sheet 115,721 111,809 Netting Adjustments 4,325 — Gross amounts offset on the balance sheet — — Net derivative amounts presented on the balance sheet $ 111,396 $ 111,809 Gross amounts not offset on the balance sheet: Financial instruments - institutional counterparties $ 1,812 $ 1,812 Cash collateral - institutional counterparties 105,617 — Net derivatives not offset $ 3,967 $ 109,997 42 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 — 575,000 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 June 30, 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 and six months ended June 30, 2026 and 2025 (in thousands). Gain (loss) recognized in income on derivatives for the three months ended Consolidated Statements of Income June 30, 2026 June 30, 2025 Derivatives not designated as a hedging instrument: Interest rate products Other income $ 44 ( 24 ) Credit contracts Other income (loss) 135 ( 118 ) Total $ 179 ( 142 ) Derivatives designated as a hedging instrument: Interest rate products Interest expense $ ( 46 ) ( 2,289 ) Total $ ( 46 ) ( 2,289 ) 43 Gain (loss) recognized in income on derivatives for the six months ended Consolidated Statements of Income June 30, 2026 June 30, 2025 Derivatives not designated as a hedging instrument: Interest rate products Other income (loss) $ 22 ( 111 ) Credit contracts Other income (loss) 132 ( 118 ) Total $ 154 ( 229 ) Derivatives designated as a hedging instrument: Interest rate products Interest expense $ ( 138 ) ( 4,229 ) Total $ ( 138 ) ( 4,229 ) 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 June 30, 2026, the Company had six dealer counterparties, of which, 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 both the three and six months ended June 30, 2026, the out-of-scope revenue related to financial instruments was 91.1 % and 91.0 % of the Company's total revenue, compared to 92.1 % and 92.0 % for the three and six months ended June 30, 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 and six months ended June 30, 2026 and 2025 (in thousands): Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Non-interest income In-scope of Topic 606: Wealth management fees $ 7,517 6,948 14,920 14,275 Insurance agency income 5,446 4,942 12,296 10,593 Banking service charges and other fees: Service charges on deposit accounts 5,439 5,104 10,642 9,847 Debit card and ATM fees 1,244 1,283 2,397 2,431 Total banking service charges and other fees 6,683 6,387 13,039 12,278 Total in-scope non-interest income 19,646 18,277 40,255 37,146 Total out-of-scope non-interest income 12,327 8,798 23,172 16,959 Total non-interest income $ 31,973 27,075 63,427 54,105 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 44 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-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. 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 June 30, 2026 and December 31, 2025 (in thousands): Classification June 30, 2026 December 31, 2025 Lease Right-of-Use Assets: Operating lease right-of-use assets Other assets $ 59,340 57,941 Lease Liabilities: Operating lease liabilities Other liabilities $ 62,821 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 June 30, 2026, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 6.8 years and 3.47 %, 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): 45 Three months ended June 30, 2026 Three months ended June 30, 2025 Lease Costs Operating lease cost $ 3,631 3,471 Variable lease cost 1,037 934 Total lease cost $ 4,668 4,405 Six months ended June 30, 2026 Six months ended June 30, 2025 Lease Costs Operating lease cost $ 7,301 7,015 Variable lease cost 2,226 2,041 Total lease cost $ 9,527 9,056 Cash paid for amounts included in the measurement of lease liabilities: Six months ended June 30, 2026 Six months ended June 30, 2025 Operating cash flows from operating leases $ 6,530 6,866 Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2026, were as follows (in thousands): Operating leases Twelve months ended: Remainder of 2025 $ 6,626 2026 12,421 2027 11,188 2028 9,914 2029 8,868 Thereafter 22,073 Total future minimum lease payments 71,090 Amounts representing interest 8,269 Present value of net future minimum lease payments $ 62,821 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 Company's Chief Operating Decision Maker ("CODM") is the President and Chief Executive Officer. The CODM 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 and six months ended June 30, 2026 and 2025 (in thousands): 46 Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Interest income on loans $ 288,091 282,110 $ 567,394 555,141 Interest income on cash and debt securities 38,504 34,198 74,267 66,513 Total interest income 326,595 316,308 641,661 621,654 Total interest expense 123,915 129,214 245,238 252,832 Net interest income 202,680 187,094 396,423 368,822 Provision for credit losses 9,334 ( 2,888 ) 7,218 ( 2,250 ) Net interest income after provision 193,346 189,982 389,205 371,072 Non-interest income: Wealth management income 7,517 6,948 14,920 14,275 Insurance Agency Income 5,446 4,942 12,296 10,593 Other non-interest income (1) 19,010 15,185 36,211 29,237 Total non-interest income 31,973 27,075 63,427 54,105 Non-interest expense: Compensation and employee benefits 67,289 63,249 133,485 125,615 Net occupancy expense 12,464 13,011 27,449 26,938 Data processing expense 9,388 9,599 19,034 19,203 Other non-interest expense (2) 30,117 28,755 56,431 59,125 Total non-interest expense 119,258 114,614 236,399 230,881 Income tax expense 27,914 30,462 58,668 58,287 Net income $ 78,147 71,981 $ 157,565 136,009 (1) Other non-interest income items include fees and commissions, bank owned life insurance ("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 any additional 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.