What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-11 compared with 2025-03-12 · 508 added, 280 removed, 1085 unchanged (42% of the section changed)

50 unchanged sentences

(Dollars in thousands except per share data)

December 31, December 31,

Cash and due from banks

$ 7,738 $ 4,624

Interest earning deposits with banks

149,125 216,903

Cash and cash equivalents

1 unchanged sentence

Investment securities available for sale, at fair value

Investment securities held to maturity, net of allowance for credit losses of $ 0 at

December 31, 2024 and 2023 (fair value of $ 7,492 at December 31, 2024 and $ 7,892 at December 31, 2023)

Investment securities held to maturity, net of allowance for credit losses of $ 0 at December 31, 2025 and 2024 (fair value of $ 7,487 at December 31, 2025 and $ 7,492 at December 31, 2024)

Total investment securities

13,523 14,760

Loans, net of unearned income

2,035,227 1,868,153

Allowance for credit losses

( 34,649 ) ( 32,573 )

2,000,578 1,835,580

Accrued interest receivable

2 unchanged sentences

Bank owned life insurance (BOLI)

35,320 29,070

Deferred tax asset

Other real estate owned (OREO)

Other assets 7,030 10,531

$ 2,249,436 $ 2,142,236

12 unchanged sentences

Accrued expenses and other liabilities

18,271 14,845

Total liabilities

1 unchanged sentence

Shareholders' Equity

Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B

non-cumulative convertible;

325 shares and 375 shares outstanding at December

31, 2024 and 2023, respectively

Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B non-cumulative convertible;

325 shares outstanding at December 31, 2025 and 2024, respectively

Common stock, $ 0.10 par value;

authorized 15,000,000 shares;

12,313,489 shares and 12,240,821 shares at December 31, 2024 and 2023,

12,425,768 shares and 12,313,489 shares at December 31, 2025 and 2024, respectively

Additional paid-in capital

139,268 137,784

Retained earnings

197,671 168,347

Accumulated other comprehensive loss

Treasury stock, 484,522 shares and 284,522 shares at December 31, 2024 and

2023, respectively, at cost

( 200 ) ( 337 )

Treasury stock, 784,522 shares and 484,522 shares at December 31, 2025 and 2024, respectively, at cost

( 13,789 ) ( 7,277 )

Total shareholders’ equity

324,518 300,073

Total liabilities and shareholders' equity

$ 2,249,436 $ 2,142,236

See accompanying notes to consolidated financial statements

4 unchanged sentences

(Dollars in thousands except per share data)

December 31, 2024 December 31, 2023

December 31, 2025

December 31, 2024

Interest income:

Interest and fees on loans

$ 135,189 $ 117,834

Interest and dividends on investments

1 unchanged sentence

Total interest income

142,677 125,113

Interest expense:

Interest on deposits

59,848 57,312

Interest on borrowings

Total interest expense

66,219 66,405

Net interest income

Provision for (recovery of) credit losses 728 ( 2,051 )

Net interest income after provision for (recovery of) credit losses 57,980 66,265

76,458 58,708

Provision for credit losses

Net interest income after provision for credit losses

73,974 57,980

Non-interest income

2 unchanged sentences

Bank owned life insurance income

Gain on sale of SBA loans 23 —

Net gain on OREO — 38

Other 1,387 1,194

Total non-interest income

1 unchanged sentence

Compensation and benefits

13,314 12,768

Professional services

2 unchanged sentences

FDIC insurance and other assessments

OREO expense 835 839

Other operating expense

Total non-interest expense

27,974 25,984

Income before income tax expense

49,407 36,297

Income tax expense

Net income attributable to Company

37,775 27,512

Preferred stock dividend

( 20 ) ( 20 )

Net income available to common shareholders

$ 37,755 $ 27,492

Earnings per common share

Basic $ 2.30 $ 2.38

Diluted $ 2.27 $ 2.35

$ 3.20 $ 2.30

$ 3.16 $ 2.27

Weighted average common shares outstanding

Basic 11,954,483 11,945,740

Diluted 12,139,451 12,137,052

$ 11,794,531 $ 11,954,483

$ 11,966,541 $ 12,139,451

See accompanying notes to consolidated financial statements

5 unchanged sentences

(Dollars in thousands)

Net income $ 27,512 $ 28,462

Net income attributable to the Company

$ 37,775 $ 27,512

Unrealized gains on investment securities, net of reclassification into income:

1 unchanged sentence

Tax impact on unrealized gain

( 48 ) ( 23 )

Total other comprehensive gain

Comprehensive income attributable to the Company

$ 37,912 $ 27,579

See accompanying notes to consolidated financial statements

4 unchanged sentences

(Dollars in thousands except share data)

Shares of Preferred Stock Outstanding Preferred

Stock Shares of Common Stock issued Common

Stock Additional Paid-In

Earnings Accumulated Other Comprehensive Income (Loss) Treasury

Preferred Stock

Comprehensive

Income (Loss)

Balance, December 31, 2023

Cumulative effect of adoption of ASU 2016-13 — — — — — ( 2,102 ) — — ( 2,102 )

Net income — — — — — 28,462 — — 28,462

375 $ 375 12,240,821 $ 1,224 $ 136,700 $ 149,437 $ ( 404 ) $ ( 3,015 ) $ 284,317

Net income attributable to Company

— — — — — 27,512 — — 27,512

Stock compensation issued/exercised

— — 65,791 7 699 — — — 706

Preferred stock shares conversion

( 50 ) ( 50 ) 6,877 — 49 — — — ( 1 )

Treasury stock purchase ( 200,000 shares)

— — — — — — — ( 4,262 ) ( 4,262 )

Other comprehensive gain

— — — — — — 67 — 67

Stock compensation expense

— — — — 336 — — — 336

Dividend on preferred stock ($ 60.00 per share)

3 unchanged sentences

Balance, December 31, 2024

Net income — — — — — 27,512 — — 27,512

325 $ 325 12,313,489 $ 1,231 $ 137,784 $ 168,347 $ ( 337 ) $ ( 7,277 ) $ 300,073

Net income attributable to Company

— — — — — 37,775 — — 37,775

Stock compensation issued/exercised

Preferred stock shares conversion ( 50 ) ( 50 ) 6,877 — 49 — — — ( 1 )

— — 112,279 12 1,191 — — — 1,203

Treasury stock purchase ( 300,000 shares)

— — — — — — — ( 6,483 ) ( 6,483 )

Excise tax payment on stock repurchase

— — — — — — — ( 29 ) ( 29 )

Other comprehensive gain

— — — — — — 137 — 137

Stock compensation expense

— — — — 293 — — — 293

Dividend on preferred stock ($ 60.00 per share)

3 unchanged sentences

Balance, December 31, 2025

325 $ 325 12,425,768 $ 1,243 $ 139,268 $ 197,671 $ ( 200 ) $ ( 13,789 ) $ 324,518

See accompanying notes to consolidated financial statements

5 unchanged sentences

Cash Flows from Operating Activities

Net income $ 27,512 $ 28,462

Net income attributable to Company

$ 37,775 $ 27,512

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

Depreciation and amortization

Provision for (recovery of) credit losses 728 ( 2,051 )

Provision for credit losses

Increase in value of bank-owned life insurance

( 740 ) ( 655 )

Gain on sale of SBA loans

1 unchanged sentence

Proceeds from sale of SBA loans originated for sale

Net gain on OREO — ( 38 )

OREO writeoff

Net accretion of purchase premiums and discounts on securities

( 43 ) ( 45 )

Stock based compensation

Decrease in deferred income tax 126 595

(Increase) decrease in deferred income tax

( 1,654 ) 126

Net changes in:

Decrease (increase) in accrued interest receivable and other assets 2,385 ( 4,955 )

Decrease in accrued interest receivable and other assets

Increase in accrued interest payable and other accrued liabilities

Net cash provided by operating activities

39,551 35,158

Cash Flows from Investing Activities

1 unchanged sentence

Repayments and maturities of investment securities held to maturity

Purchase of investment securities

Bank-owned life insurance additional purchase

Net increase in loans

(Purchases) sales of bank premises and equipment ( 119 ) 105

Proceeds from sale of OREO, net — 161

Proceeds from bank owned life insurance policy — 466

( 168,968 ) ( 80,731 )

Purchases of bank premises and equipment

( 595 ) ( 119 )

Redemptions of restricted stock

Purchases of restricted stock

( 15,904 ) ( 8,196 )

Net cash used in investing activities

( 173,074 ) ( 80,071 )

Cash Flows from Financing Activities

Cash dividends

( 8,451 ) ( 8,602 )

Proceeds from exercise of stock options

Treasury stock purchase

( 6,483 ) ( 4,262 )

Conversion of Series B preferred stock

Increase (decrease) in FHLBNY short-term borrowings 95,000 ( 53,150 )

(Decrease) increase in FHLBNY long-term borrowings ( 75,000 ) 95,000

Net decrease in noninterest-bearing deposits ( 48,152 ) ( 120,357 )

Excise tax payment on purchase of treasury stock

Repayment of sub debt

Increase in FHLBNY short-term borrowings

Decrease in FHLBNY long-term borrowings

( 20,000 ) ( 75,000 )

Net increase (decrease) in noninterest-bearing deposits

12,469 ( 48,152 )

Net increase in interest-bearing deposits

115,150 126,375

Net cash provided by financing activities

Increase (decrease) in cash and cash equivalents 41,151 ( 1,774 )

68,859 86,064

(Decrease) increase in cash and cash equivalents

( 64,664 ) 41,151

Cash and Cash Equivalents, January 1,

221,527 180,376

Cash and Cash Equivalents, December 31,

$ 156,863 $ 221,527

Supplemental Disclosure of Cash Flow Information:

Interest paid

Income taxes paid $ 4,542 $ 14,677

$ 69,612 $ 62,583

Federal income taxes paid

$ 7,600 $ 3,960

State taxes paid

Non-cash Investing and Financing Items

1 unchanged sentence

Accrued dividends payable

$ 2,093 $ 2,141

See accompanying notes to consolidated financial statements

40 unchanged sentences

Loans classified as held for investment are reported at their amortized cost, which is the outstanding principal balance, adjusted for any unearned income, unamortized deferred fees and costs, unamortized premiums and discounts and charge-offs.

Interest income on the loans is recognized as earned based on contractual interest rates

applied to daily principal amounts outstanding.

Interest income on the loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding.

Loan origination fees, direct loan origination costs, and loan premiums and discounts are deferred and accreted or amortized into net interest income using the constant effective yield method, over the contractual life of the loan.

96 unchanged sentences

Cash proceeds received from the settlement of the BOLI policies are generally tax-free and can be used to partially offset costs associated with employee compensation and benefit programs.

Interest Rate Risk :

The Company is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other borrowed and brokered funds, to make commercial, commercial mortgage, residential mortgage, and consumer loans, and to invest in overnight and term investment securities.

Inherent in such activities is interest rate risk that results from differences in the maturities and repricing characteristics of these assets and liabilities.

For this reason, management regularly monitors the level of interest rate risk and the potential impact on net income.

Bank Premises and Equipment :

7 unchanged sentences

Stock-based compensation expense is based on the grant date fair value, which is estimated using a Black-Scholes option pricing model.

The fair value of stock-based compensation used in determining compensation expense generally equals the fair market value of our common stock on the date of grant.

The fair value of restricted stock grants is equal to the fair market value of our common stock on the date of grant.

We generally recognize compensation expense on a straight-line basis over the award’s requisite service period based on the fair value of the award at grant date.

9 unchanged sentences

Account services include fees for event-driven services and fees for periodic account maintenance activities.

Our obligation for event-driven services is satisfied at the time of the event when the service is delivered, while our obligation

for maintenance services is satisfied over the course of each month.

Our obligation for event-driven services is satisfied at the time of the event when the service is delivered, while our obligation for maintenance services is satisfied over the course of each month.

Our obligation for overdraft services is satisfied at the time of the overdraft.

15 unchanged sentences

Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.

The Company did no t recognize any interest or penalties related to income tax during the years ended December 31, 2024 and 2023, respectively.

The Company does no t have an accrual for uncertain tax positions as of December 31, 2024 and 2023, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.

The Company did not recognize any interest or penalties related to income tax during the years ended December 31, 2025 and 2024 , respectively.

The Company does not have an accrual for uncertain tax positions as of December 31, 2025 and 2024 , as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.

All years after 2022 are open under the original federal statute of limitations.

18 unchanged sentences

(Dollars in thousands)

December 31, 2024 December 31, 2023

December 31, 2025

December 31, 2024

Total interest income

$ 142,677 $ 125,113

Total interest expense

66,219 66,405

Provision for credit losses

Net interest income after provision for credit losses

73,974 57,980

Total non-interest income

Total non-interest expense

27,974 25,984

Income before income tax expense

49,407 36,297

Income tax expense

Net income attributable to the Company

$ 37,775 $ 27,512

Reconciliation of profit or loss

1 unchanged sentence

Consolidated net income

$ 37,775 $ 27,512

Other Comprehensive Income :

7 unchanged sentences

Tax effect related to the unrealized gain

( 48 ) ( 23 )

Accumulated other comprehensive income

1 unchanged sentence

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.

Diluted earnings per common share considers common stock equivalents (when dilutive) outstanding during the period such as options outstanding and convertible preferred stock.

Diluted earnings per common share considers common stock equivalents (when dilutive) outstanding during the period such as options outstanding and convertible preferred stock using the treasury stock and if-converted methods.

To the extent that stock equivalents are anti-dilutive, they have been excluded from the earnings per share calculation.

3 unchanged sentences

Net income available to common shareholders

$ 37,755 $ 27,492

Basic weighted-average common shares outstanding

11,794,531 11,954,483

Basic earnings per common share

$ 3.20 $ 2.30

Diluted earnings per common share

Net income available to common shareholders

$ 37,755 $ 27,492

Dividend on Preferred Series B

Net income attributable to diluted common shares

$ 37,775 $ 27,512

Basic weighted-average common shares outstanding

11,794,531 11,954,483

Dilutive potential common shares

172,010 184,968

Total diluted weighted-average common shares outstanding

11,966,541 12,139,451

Diluted earnings per common share

$ 3.16 $ 2.27

For the years ended December 31, 2025 and 2024 , there were 251,409 and 283,441 weighted average option shares outstanding, respectively, that were not included in the computation of diluted EPS because these shares were anti-dilutive.

2 unchanged sentences

For the purposes of the statement of cash flows, changes in loans and deposits are shown on a net basis.

Recently Issued Accounting Pronouncements :

Accounting Pronouncements Adopted in 2025

2023 - 09, Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures:

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

During the year ended December 31, 2025, the Company adopted ASU 2023 - 09, Income Taxes (Topic 740 ):

"Improvements to Income Tax Disclosures".

2 unchanged sentences

Early adoption is permitted and should be applied either prospectively or retrospectively.

The Company does not expect the application of this guidance to have a material impact on

the Consolidated Financial Statements.

Accounting Pronouncements Adopted in 2024

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures:

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss.

The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

Adoption is required retrospectively to all prior periods presented in the financial statements.

The implementation of this guidance did not have a material impact on the Consolidated Financial Statements.

2 unchanged sentences

Management is responsible for assessing the credit risk of its correspondent banks.

At December 31, 2024 and 2023, the vast majority of the Company's cash

deposits with other banks were due from the Federal Reserve Bank of Philadelphia and the Federal Home Loan Bank of New York.

At December 31, 2025 and 2024 , the vast majority of the Company's cash deposits with other banks were due from the Federal Reserve Bank of Philadelphia and the Federal Home Loan Bank of New York.

Investment Securities

The following is a summary of the Company's investments in available for sale and held to maturity securities as of December 31, 2025 and 2024 :

As of December 31, 2024 Amortized

losses Fair value Credit Losses

As of December 31, 2025

(Dollars in thousands)

1 unchanged sentence

Residential mortgage-backed securities

$ 4,515 $ 10 $ 279 $ 4,246 $ —

Corporate debt obligations

500 — — 500 —

Total available for sale

$ 5,015 $ 10 $ 279 $ 4,746 $ —

Held to maturity:

States and political subdivisions

$ 4,024 $ — $ 345 $ 3,679 $ —

Residential mortgage-backed securities

4,753 — 945 3,808 —

Total held to maturity

As of December 31, 2023 Amortized

losses Fair value Credit Losses

$ 8,777 $ — $ 1,290 $ 7,487 $ —

As of December 31, 2024

(Dollars in thousands)

1 unchanged sentence

Residential mortgage-backed securities

$ 6,005 $ 2 $ 456 $ 5,551 $ —

Total available for sale

$ 6,005 $ 2 $ 456 $ 5,551 $ —

Held to maturity:

States and political subdivisions

$ 3,953 $ 3 $ 515 $ 3,441 $ —

Residential mortgage-backed securities

5,256 — 1,205 4,051 —

Total held to maturity

$ 9,209 $ 3 $ 1,720 $ 7,492 $ —

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of December 31, 2025 , are as follows:

6 unchanged sentences

Total available for sale

$ 5,015 $ 4,746

Held to maturity:

4 unchanged sentences

Total held to maturity

$ 8,777 $ 7,487

Expected maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without any penalty.

1 unchanged sentence

The following tables show the gross unrealized losses and fair value of the Company's available for sale securities which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and December 31, 2024 .

As of December 31, 2024 Less Than 12 Months 12 Months or Greater Total

Description of Securities Fair

Value Unrealized

As of December 31, 2025

Less Than 12 Months

12 Months or Greater

Description of Securities

(Dollars in thousands)

1 unchanged sentence

Residential mortgage-backed securities

$ 46 $ — $ 3,816 $ 279 $ 3,862 $ 279

Total available for sale

As of December 31, 2023 Less Than 12 Months 12 Months or Greater Total

Description of Securities Fair

Value Unrealized

$ 46 $ — $ 3,816 $ 279 $ 3,862 $ 279

As of December 31, 2024

Less Than 12 Months

12 Months or Greater

Description of Securities

(Dollars in thousands)

1 unchanged sentence

Residential mortgage-backed securities

$ 80 $ 1 $ 4,973 $ 455 $ 5,053 $ 456

Total available for sale

$ 80 $ 1 $ 4,973 $ 455 $ 5,053 $ 456

The Company’s unrealized loss for the available for sale securities is comprised of 2 securities in the less than 12 months loss position and 12 securities in the 12 months or greater loss position at December 31, 2025 .

15 unchanged sentences

The portfolios of loans receivable at December 31, 2025 , and December 31, 2024 , consist of the following, by portfolio segment:

December 31, 2024 December 31, 2023

December 31, 2025

December 31, 2024

(Dollars in thousands)

Commercial and Industrial

Construction 149,346 157,556

$ 38,672 $ 35,381

212,307 149,346

Real Estate Mortgage:

Commercial – Owner Occupied

182,529 160,441

Commercial – Non-owner Occupied

478,295 371,298

Residential – 1 to 4 Family

451,463 447,880

Residential - 1 to 4 Family Investment

494,228 524,167

Residential – Multifamily

Consumer 4,884 5,509

173,611 174,756

Total Loan receivable

2,035,227 1,868,153

Allowance for credit losses on loans

( 34,649 ) ( 32,573 )

Total loan receivable, net of allowance for credit losses on loans

$ 2,000,578 $ 1,835,580

An age analysis of past due loans by class at December 31, 2025 and December 31, 2024 as follows:

December 31, 2025

Days Total Past

Due Current Total

(Dollars in thousands)

Commercial and Industrial

Construction — — 1,091 1,091 148,255 149,346

$ — $ — $ 688 $ 688 $ 37,984 $ 38,672

— — 1,091 1,091 211,216 212,307

Real Estate Mortgage:

Commercial – Owner Occupied

— — 400 400 182,129 182,529

Commercial – Non-owner Occupied

— 1,122 3,668 4,790 473,505 478,295

Residential – 1 to 4 Family

— 1,434 2,965 4,399 447,064 451,463

Residential - 1 to 4 Family Investment

— 896 1,840 2,736 491,492 494,228

Residential – Multifamily

Consumer 34 — — 34 4,850 4,884

Total Loans $ 257 $ 816 $ 12,152 $ 13,225 $ 1,854,928 $ 1,868,153

— — — — 173,611 173,611

— 32 141 173 3,949 4,122

$ — $ 3,484 $ 10,793 $ 14,277 $ 2,020,950 $ 2,035,227

December 31, 2024

Days Total Past

Due Current Total Loans

(Dollars in thousands)

Commercial and Industrial

Construction — — 1,091 1,091 156,465 157,556

$ — $ — $ 684 $ 684 $ 34,697 $ 35,381

— — 1,091 1,091 148,255 149,346

Real Estate Mortgage:

Commercial – Owner Occupied

— — 400 400 160,041 160,441

Commercial – Non-owner Occupied

— — 5,485 5,485 365,813 371,298

Residential – 1 to 4 Family

223 362 2,883 3,468 444,412 447,880

Residential - 1 to 4 Family Investment

— 454 1,609 2,063 522,104 524,167

Residential – Multifamily

Consumer 66 — — 66 5,443 5,509

Total Loans $ 124 $ 3,782 $ 7,238 $ 11,144 $ 1,776,196 $ 1,787,340

— — — — 174,756 174,756

34 — — 34 4,850 4,884

$ 257 $ 816 $ 12,152 $ 13,225 $ 1,854,928 $ 1,868,153

The following table provides the amortized cost of loans on nonaccrual status:

December 31, 2025

(amounts in thousands) Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Total Nonperforming

Loans Past Due

(amounts in thousands)

Still Accruing

Nonperforming

Commercial and Industrial

Construction 1,091 — 1,091 — 1,091

$ — $ 688 $ 688 $ — $ 688

1,091 — 1,091 — 1,091

Commercial - Owner Occupied

400 — 400 — 400

Commercial - Non-owner Occupied

1,109 2,559 3,668 — 3,668

Residential - 1 to 4 Family

2,965 — 2,965 — 2,965

Residential - 1 to 4 Family Investment

1,840 — 1,840 — 1,840

Residential - Multifamily

Consumer — — — — —

Total $ 6,537 $ 5,236 $ 11,773 $ 379 $ 12,152

141 — 141 — 141

$ 7,546 $ 3,247 $ 10,793 $ — $ 10,793

December 31, 2024

(amounts in thousands) Nonaccrual with no ACL Nonaccrual with ACL Total Nonaccrual Loans Past Due Over 90 Days Still Accruing Total Nonperforming

Loans Past Due

(amounts in thousands)

Still Accruing

Nonperforming

Commercial and Industrial

Construction 1,091 — 1,091 — 1,091

$ — $ 684 $ 684 $ — $ 684

1,091 — 1,091 — 1,091

Commercial - Owner Occupied

400 — 400 — 400

Commercial - Non-owner Occupied

1,389 3,806 5,195 290 5,485

Residential - 1 to 4 Family

2,048 746 2,794 89 2,883

Residential - 1 to 4 Family Investment

1,609 — 1,609 — 1,609

Residential - Multifamily

Consumer — — — — —

Total $ 6,403 $ 835 $ 7,238 $ — $ 7,238

$ 6,537 $ 5,236 $ 11,773 $ 379 $ 12,152

Allowance For Credit Losses (ACL)

2 unchanged sentences

Twelve Months Ended December 31, 2025

As of December 31, 2024 Real Estate Mortgage

(Dollars in thousands) Commercial and Industrial Construction Commercial Owner Occupied Commercial Non-owner Occupied Residential 1 to 4 Family Residential 1 to 4 Family Investment Residential Multifamily Consumer Total

As of December 31, 2025

Real Estate Mortgage

1 to 4 Family

(Dollars in thousands)

and Industrial

1 to 4 Family

December 31, 2024

Charge-offs — — — — — — — ( 21 ) ( 21 )

Recoveries 28 — 1 — — — — 74 103

$ 1,097 $ 3,037 $ 1,871 $ 6,300 $ 9,166 $ 8,832 $ 2,203 $ 67 $ 32,573

— — — ( 202 ) ( 250 ) — — — ( 452 )

5 — — — — — — — 5

Provisions (benefits)

( 94 ) 995 368 3,563 ( 711 ) ( 1,231 ) ( 358 ) ( 9 ) 2,523

Ending Balance December 31, 2025

The increase in allowance for credit losses for residential multifamily is primarily due to an increase in the loan balance during the year, as well as an increase in the qualitative factor due to the increased volume of the portfolio.

The decrease in construction is due to a decrease in the loan balance during the year, as well as a decrease in the qualitative factor due to the decrease in volume, as well as a decrease in the vintage loss factor due to amortization of prior year losses.

The decrease in commercial non-owner occupied is due to a decrease in the qualitative factor due to a reduction in the problem loan balance, and a decrease in the vintage loss factor due to the amortization of prior year losses.

$ 1,008 $ 4,032 $ 2,239 $ 9,661 $ 8,205 $ 7,601 $ 1,845 $ 58 $ 34,649

The increase in allowance for credit losses for construction is primarily due to an increase in the loan balance during the year, partially offset by a decrease in the vintage loss factor due to amortization of prior year losses.

The increase in the commercial owner occupied is primarily due to an increase in the loan balance during the year, as well as an increase in the qualitative factor due to an increase in the problem loan balance.

The increase in the commercial non-owner occupied is primarily due to an increase in the loan balance during the year, which increased qualitative concentration levels.

The decrease in residential 1 to 4 family is due to a decrease in the qualitative factor due to a decrease in the concentration level of the portfolio.

The decrease in residential 1 to 4 family investment is primarily due to a decrease in the loan balance, as well as a decrease in the qualitative loss factor due to a decease in the concentration level of the portfolio.

Twelve Months Ended December 31, 2024

As of December 31, 2023 Real Estate Mortgage

As of December 31, 2024

Real Estate Mortgage

1 to 4 Family

(Dollars in thousands)

and Industrial

1 to 4 Family

December 31, 2023

Impact of adoption ASC 326 168 1,899 ( 171 ) ( 951 ) 1,782 ( 794 ) ( 128 ) 53 1,858

Charge-offs — — — — — — — — —

Recoveries 15 — 3 — — — — — 18

Provisions 353 ( 1,133 ) ( 335 ) ( 1,650 ) 1,203 196 ( 170 ) ( 54 ) ( 1,590 )

$ 926 $ 3,347 $ 1,795 $ 7,108 $ 9,061 $ 8,783 $ 1,049 $ 62 $ 32,131

— — — — — — — ( 21 ) ( 21 )

28 — 1 — — — — 74 103

143 ( 310 ) 75 ( 808 ) 105 49 1,154 ( 48 ) 360

Ending Balance December 31, 2024

The increase in allowance for credit losses for construction is due to an increase in the vintage loss rate upon the implementation of CECL, partially offset by a decrease in loan balance during the year.

The increase in the allowance for credit losses for residential 1 to 4 family is due to an increase in the vintage loss rate upon the implementation of CECL, as well as an increase in loan balance during the year.

The decrease in allowance for credit losses for residential 1 to 4 family investment, and residential multifamily is due to lower vintage loss rates upon the implementation of CECL, partially offset by increases in loan balances during the year.

The decrease in allowance for credit losses for commercial non-owner occupied is due to lower vintage loss rates upon the implementation of CECL, a decrease in loan balance, and a decrease in loss rates due to a decrease in non-performing loans.

$ 1,097 $ 3,037 $ 1,871 $ 6,300 $ 9,166 $ 8,832 $ 2,203 $ 67 $ 32,573

Collateral-Dependent Loans

The following table presents the collateral-dependent loans by portfolio segment and collateral type at December 31, 2025 :

(amounts in thousands) Real Estate Business Assets Other

(amounts in thousands)

Business Assets

Commercial and Industrial

Construction 1,091 — —

$ 688 $ — $ —

Commercial - Owner Occupied

3 unchanged sentences

Residential - Multifamily

Consumer — — —

Total $ 11,773 $ — $ —

$ 10,793 $ — $ —

Credit Quality Indicators :

26 unchanged sentences

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2025 and 2024 .

(Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans at Amortized Cost Basis

(Dollars in thousands)

Term Loans Amortized Cost Basis by Origination Year

Revolving Loans at

As of December 31, 2025

2024 2023 2022 2021 2020 Prior Total

Amortized Cost Basis

Commercial and Industrial

Pass $ 1,351 $ 4,231 $ 654 $ 6 $ 658 $ 6,213 $ 21,584 $ 34,697

OAEM — — — — — — — —

Substandard — — 407 — — — 277 684

Doubtful — — — — — — — —

$ 4,990 $ 879 $ 3,313 $ 305 $ 2 $ 5,778 $ 22,717 $ 37,984

— — — — — — — —

— — — 411 — — 277 688

— — — — — — — —

$ 4,990 $ 879 $ 3,313 $ 716 $ 2 $ 5,778 $ 22,994 $ 38,672

Current period gross charge-offs

Pass $ — $ 315 $ 1,800 $ — $ 193 $ — $ 145,947 $ 148,255

OAEM — — — — — — — —

Substandard — — — — — 1,091 — 1,091

Doubtful — — — — — — — —

$ — $ — $ — $ — $ — $ — $ — $ —

$ 1,001 $ 325 $ 307 $ 1,396 $ — $ 193 $ 207,994 $ 211,216

— — — — — — — —

— — — — — 1,091 — 1,091

— — — — — — — —

$ 1,001 $ 325 $ 307 $ 1,396 $ — $ 1,284 $ 207,994 $ 212,307

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Commercial – Owner Occupied

Pass $ 21,893 $ 33,293 $ 34,831 $ 11,942 $ 6,705 $ 48,946 $ 2,431 $ 160,041

OAEM — — — — — — — —

Substandard — — — — — 400 — 400

Doubtful — — — — — — — —

$ 32,560 $ 23,259 $ 32,471 $ 34,016 $ 11,545 $ 46,025 $ 2,253 $ 182,129

— — — — — — — —

— — — — — 400 — 400

— — — — — — — —

$ 32,560 $ 23,259 $ 32,471 $ 34,016 $ 11,545 $ 46,425 $ 2,253 $ 182,529

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Commercial – Non-owner Occupied

Pass $ 38,697 $ 15,635 $ 75,261 $ 31,460 $ 23,780 $ 153,027 $ 16,494 $ 354,354

OAEM — — — — — 11,459 — 11,459

Substandard — — — — 249 4,946 290 5,485

Doubtful — — — — — — — —

$ 109,092 $ 50,669 $ 14,659 $ 102,688 $ 29,279 $ 150,007 $ 4,794 $ 461,188

— — — — — 2,176 — 2,176

— — — 370 — 14,561 — 14,931

— — — — — — — —

$ 109,092 $ 50,669 $ 14,659 $ 103,058 $ 29,279 $ 166,744 $ 4,794 $ 478,295

Current period gross charge-offs

$ — $ — $ — $ — $ — $ 202 $ — $ 202

Residential – 1 to 4 Family

Performing $ 48,704 $ 53,018 $ 108,691 $ 56,027 $ 29,580 $ 145,467 $ 3,510 $ 444,997

$ 59,089 $ 43,287 $ 47,018 $ 95,574 $ 49,503 $ 148,408 $ 5,619 $ 448,498

Nonperforming

— — 841 733 — 1,391 — 2,965

$ 59,089 $ 43,287 $ 47,859 $ 96,307 $ 49,503 $ 149,799 $ 5,619 $ 451,463

Current period gross charge-offs

$ — $ — $ 47 $ — $ — $ 203 $ — $ 250

Residential – 1 to 4 Family Investment

Performing $ 58,772 $ 79,266 $ 127,600 $ 103,343 $ 44,301 $ 109,276 $ — $ 522,558

$ 39,340 $ 52,575 $ 70,258 $ 114,208 $ 90,734 $ 125,273 $ — $ 492,388

Nonperforming

— — 985 525 — 330 — 1,840

$ 39,340 $ 52,575 $ 71,243 $ 114,733 $ 90,734 $ 125,603 $ — $ 494,228

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Residential – Multifamily

Pass $ 6,770 $ 4,942 $ 92,918 $ 25,410 $ 9,150 $ 35,566 $ — $ 174,756

OAEM — — — — — — — $ —

Substandard — — — — — — — $ —

Doubtful — — — — — — — —

$ 27,456 $ 13,952 $ 4,812 $ 63,789 $ 31,067 $ 32,535 $ — $ 173,611

— — — — — — — —

$ 27,456 $ 13,952 $ 4,812 $ 63,789 $ 31,067 $ 32,535 $ — $ 173,611

Current period gross charge-offs

Performing $ 246 $ — $ — $ — $ — $ 4,627 $ 11 $ 4,884

$ — $ — $ — $ — $ — $ — $ — $ —

$ — $ 226 $ — $ — $ — $ 3,746 $ 9 $ 3,981

Nonperforming

— — — — — 141 — 141

$ — $ 226 $ — $ — $ — $ 3,887 $ 9 $ 4,122

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Total Loan Receivable

(Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans at Amortized Cost Basis

$ 273,528 $ 185,172 $ 174,664 $ 414,015 $ 212,130 $ 532,055 $ 243,663 $ 2,035,227

(Dollars in thousands)

Term Loans Amortized Cost Basis by Origination Year

Revolving Loans at

As of December 31, 2024

2023 2022 2021 2020 2019 Prior Total

Amortized Cost Basis

Commercial and Industrial

Pass $ 4,724 $ 1,269 $ 87 $ 759 $ 598 $ 7,154 $ 20,148 $ 34,739

OAEM — — — — — — — —

Substandard — 435 — — — — 277 712

Doubtful — — — — — — — —

$ 1,351 $ 4,231 $ 654 $ 6 $ 658 $ 6,213 $ 21,584 $ 34,697

— — — — — — — —

— — 407 — — — 277 684

— — — — — — — —

$ 1,351 $ 4,231 $ 1,061 $ 6 $ 658 $ 6,213 $ 21,861 $ 35,381

Current period gross charge-offs

Pass $ 323 $ 3,335 $ 4,499 $ 195 $ — $ — $ 148,113 $ 156,465

OAEM — — — — — — — —

Substandard — — — — — 1,091 — 1,091

Doubtful — — — — — — — —

$ — $ — $ — $ — $ — $ — $ — $ —

$ — $ 315 $ 1,800 $ — $ 193 $ — $ 145,947 $ 148,255

— — — — — — — —

— — — — — 1,091 — 1,091

— — — — — — — —

$ — $ 315 $ 1,800 $ — $ 193 $ 1,091 $ 145,947 $ 149,346

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Commercial – Owner Occupied

Pass $ 19,842 $ 36,030 $ 21,536 $ 7,104 $ 8,346 $ 45,249 $ 2,518 $ 140,625

OAEM — — — — — — — —

Substandard — — — — — 1,117 — 1,117

Doubtful — — — — — — — —

$ 21,893 $ 33,293 $ 34,831 $ 11,942 $ 6,705 $ 48,946 $ 2,431 $ 160,041

— — — — — — — —

— — — — — 400 — 400

— — — — — — — —

$ 21,893 $ 33,293 $ 34,831 $ 11,942 $ 6,705 $ 49,346 $ 2,431 $ 160,441

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Commercial – Non-owner Occupied

Pass $ 19,123 $ 93,805 $ 37,002 $ 33,316 $ 54,484 $ 112,471 $ 1,180 $ 351,381

OAEM — — — — — 15,421 — 15,421

Substandard — — — 250 2,586 271 — 3,107

Doubtful — — — — — — — —

$ 38,697 $ 15,635 $ 75,261 $ 31,460 $ 23,780 $ 153,027 $ 16,494 $ 354,354

— — — — — 11,459 — 11,459

— — — — 249 4,946 290 5,485

— — — — — — — —

$ 38,697 $ 15,635 $ 75,261 $ 31,460 $ 24,029 $ 169,432 $ 16,784 $ 371,298

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Residential – 1 to 4 Family

Performing $ 58,358 $ 117,044 $ 61,580 $ 33,037 $ 25,623 $ 148,124 $ 4,705 $ 448,471

$ 48,704 $ 53,018 $ 108,691 $ 56,027 $ 29,580 $ 145,467 $ 3,510 $ 444,997

Nonperforming

— 644 375 — 602 1,262 — 2,883

$ 48,704 $ 53,662 $ 109,066 $ 56,027 $ 30,182 $ 146,729 $ 3,510 $ 447,880

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Residential – 1 to 4 Family Investment

Performing $ 87,734 $ 138,884 $ 116,487 $ 50,119 $ 54,576 $ 76,367 $ — $ 524,167

$ 58,772 $ 79,266 $ 127,600 $ 103,343 $ 44,301 $ 109,276 $ — $ 522,558

Nonperforming

— 995 614 — — — — 1,609

$ 58,772 $ 80,261 $ 128,214 $ 103,343 $ 44,301 $ 109,276 $ — $ 524,167

Current period gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Residential – Multifamily

Pass $ 2,292 $ 23,030 $ 27,006 $ 12,159 $ 9,989 $ 28,848 $ — $ 103,324

OAEM — — — — — — — $ —

Substandard — — — — — — — $ —

Doubtful — — — — — — — —

$ 6,770 $ 4,942 $ 92,918 $ 25,410 $ 9,150 $ 35,566 $ — $ 174,756

— — — — — — — —

$ 6,770 $ 4,942 $ 92,918 $ 25,410 $ 9,150 $ 35,566 $ — $ 174,756

Current period gross charge-offs

Performing $ — $ — $ — $ — $ — $ 5,493 $ 16 $ 5,509

$ — $ — $ — $ — $ — $ — $ — $ —

$ 246 $ — $ — $ — $ — $ 4,627 $ 11 $ 4,884

Nonperforming

— — — — — — — —

$ 246 $ — $ — $ — $ — $ 4,627 $ 11 $ 4,884

Current period gross charge-offs

$ — $ — $ — $ — $ — $ 21 $ — $ 21

Total Loan Receivable

$ 176,434 $ 192,338 $ 443,151 $ 228,189 $ 115,219 $ 522,571 $ 190,251 $ 1,868,153

Modifications to Borrowers Experiencing Financial Difficulty

7 unchanged sentences

Balance, beginning of year

repayments ( 510 )

( 307 ) ( 510 )

Balance, end of year

Pledged Loans:

At December 31, 2024 and 2023, approximately $ 740.5 million and $ 1.3 billion, respectively, of unpaid principal balance of loans were pledged to the FHLBNY on borrowings (Note 7).

At December 31, 2025 and 2024 , approximately $ 611.8 million and $ 740.5 million, respectively, of unpaid principal balance of loans were pledged to the FHLBNY on borrowings (Note 7 ).

This pledge consists of a blanket lien on residential mortgages and certain qualifying commercial real estate loans.

At December 31, 2024, approximately $ 361.0 million of unpaid principal balance of loans were pledged to the FRB on borrowings.

There were no loans pledged as of December 31, 2023.

At December 31, 2025 there were $ 391.3 million and approximately $ 361.0 million of unpaid principal balance of loans pledged to the FRB on borrowings.

Concentrations of Credit :

Most of the Company's lending activity occurs within the areas of southern New Jersey and southeastern Pennsylvania, as well as other markets.

Most of the Company's lending activity occurs within the areas of southern New Jersey, southeastern Pennsylvania, and New York, New York, as well as other markets.

We maintain discipline in our lending with a focus on portfolio diversification.

1 unchanged sentence

Our loan portfolio consists of residential, commercial real estate loans, construction loans, commercial and industry loans as well as consumer loans.

Other real estate owned (OREO) at December 31, 2024 and 2023 was $ 1.6 million.

The real estate owned at December 31, 2024, consisted of two properties.

During the year ended December 31, 2024, the Company did not dispose of any OREO properties, compared to $ 161.0 thousand of OREO sold during the year ended December 31, 2023, recognizing a gain of $ 38.0 thousand.

The Company did no t write-down any OREO property during 2024 or 2023.

Other real estate owned (OREO) at December 31, 2025 and 2024 was $ 2.9 million, compared to $ 1.6 million at December 31, 2024.

The real estate owned at December 31, 2025 , consisted of three properties.

During the years ended December 31, 2025 , the Company did not dispose of any OREO properties.

The Company wrote down $ 147.3 thousand OREO property during 2025 , compared to $ 0 during 2024 .

Operating expenses related to OREO, net of related income, for 2025 and 2024 , were $ 649.0 thousand and $ 835.0 thousand, respectively.

3 unchanged sentences

Balance at beginning of period

$ 1,562 $ 1,550

Real estate acquired in settlement of loans

3 unchanged sentences

Balance at end of period

$ 2,862 $ 1,562

Deposits at December 31, 2025 and 2024 , consisted of the following:

1 unchanged sentence

Noninterest-bearing demand

NOWs 60,499 63,017

$ 196,506 $ 184,037

109,861 60,499

Money market deposits

745,918 615,444

Savings deposits

44,551 55,912

Time deposits over $250,000

104,033 136,360

Other time deposits

381,659 368,092

Brokered time deposits

176,141 210,706

Total deposits

Scheduled maturities of certificates of deposit at December 31, 2024 are as follows:

Years Ending December 31, (Dollars in thousands)

$ 1,758,669 $ 1,631,050

Total $ 715,158

Scheduled maturities of certificates of deposit at December 31, 2025 are as follows:

Years Ending December 31,

(Dollars in thousands)

The following table is a summary of interest expense on deposits by category:

(Dollars in thousands)

NOWs $ 618 $ 1,377

Money market deposits

32,970 27,812

Savings deposits

Time deposits

20,784 19,099

Brokered time deposits

Total $ 57,312 $ 41,259

$ 59,848 $ 57,312

An analysis of borrowings at December 31, 2025 and 2024 is as follows:

Maturity Date or Range Amount Weighted

Rate Amount Weighted

Maturity Date or Range

(Dollars in thousands)

Borrowed funds:

Federal Home Loan Bank advances Less than one year $ 125,000 4.83 % $ 30,000 5.61 %

Federal Home Loan Bank advances

Less than one year

$ 130,000 4.17 % $ 125,000 4.83 %

One to three years

Total $ 145,000 $ 125,000

Subordinated debentures, capital trusts November 2035 $ 5,155 6.44 % $ 5,155 7.30 %

— 0.00 % 20,000 4.67 %

$ 130,000 $ 145,000

Subordinated debentures, capital trusts

November 2035

$ 5,155 5.80 % $ 5,155 6.44 %

November 2035

5,155 5.80 % 5,155 6.44 %

September 2037

Total $ 13,403 $ 13,403

Subordinated debentures notes, net July 15, 2030 $ 29,897 6.50 % $ 29,708 6.50 %

3,093 5.48 % 3,093 6.12 %

$ 13,403 $ 13,403

Subordinated debentures notes, net

July 15, 2030

$ — 0.00 % $ 29,897 6.50 %

At December 31, 2025 , the Company had a $ 611.8 million line of credit from the FHLBNY, of which $ 130.0 million, as detailed above, was outstanding, $ 75.0 million was a letter of credit to secure public deposits, and $ 406.8 million was unused.

16 unchanged sentences

The debentures are the sole asset of the Trust.

The terms of the

junior subordinated debentures are the same as the terms of the capital securities.

The terms of the junior subordinated debentures are the same as the terms of the capital securities.

The Company has also fully and unconditionally guaranteed the obligations of the Trust under the capital securities.

20 unchanged sentences

Any redemption of the Notes will be subject to prior regulatory approval to the extent required.

There were approximately $ 948,000 in costs associated with the issuance of this debt, of which $ 102.7 thousand is unamortized as of December 31, 2024.

There were approximately $ 948,000 in costs associated with the issuance of this debt.

On July 15, 2025, the Company fully redeemed the 6.5 % Fixed to Floating Rate Notes (the “Subordinated Debt”) at a redemption price of 100 % of the principal amount thereof, or $ 30 million, including the interest accrued on such principal amount up to the redemption date.

After the redemption, the outstanding principal balance on the Subordinated Debt has been reduced to zero .

Premises and Equipment

1 unchanged sentence

(Dollars in thousands)

Land $ 1,044 $ 1,044

$ 1,044 $ 1,044

Building and improvements

1 unchanged sentence

Total premises and equipment

12,979 12,384

accumulated depreciation and amortization

( 7,473 ) ( 7,068 )

Premises and equipment, net

$ 5,506 $ 5,316

Depreciation and amortization expense was $ 435,000 and $ 382,000 in 2025 and 2024 , respectively.

We lease three retail branches, a loan office, and a parcel of land for a retail branch location.

These leases generally have remaining terms of 10 years or less except the land lease, which has a remaining lease term of eighty-two years .

These leases generally have remaining terms of 10 years or less except the land lease, which has a remaining lease term of eighty years.

Some of the leases may include options to renew the leases.

4 unchanged sentences

The weighted average remaining lease term was 46.7 years and weighted average discount rate was 7.23 % at December 31, 2025 , respectively.

Our operating lease expense is included in occupancy expenses within non-interest expense in our consolidated statements of income.

Our operating lease expense is included in occupancy expenses within non-interest expense, and our sublease income is included in other non-interest income, in our consolidated statements of income.

Total operating lease expense consists of operating lease cost, which is recognized on a straight-line basis over the lease term, and variable lease cost, which is recognized based on actual amounts incurred.

2 unchanged sentences

(Dollars in thousands)

Lease Cost $ 409 $ 405

Sublease income

( 225 ) ( 219 )

Net lease cost

3 unchanged sentences

Lease liabilities

Cash paid for amounts included in the measurement of lease liabilities was $ 353.6 thousand and $ 348.8 thousand during the years ended December 31, 2025 and 2024, respectively.

The following table presents future undiscounted cash flows on our operating leases:

Years Ended December 31, (Dollars in thousands)

Thereafter 25,712

Years Ended December 31,

(Dollars in thousands)

Total undiscounted lease payments

7 unchanged sentences

Treasury Stock :

During the year ended December 31, 2024, the Company repurchased 200,000 shares of its outstanding common stock for $ 4.3 million at an average price of $ 21.28 per share.

No treasury stock was repurchased during the year ended December 31, 2023.

During the years ended December 31, 2025 and 2024, the Company repurchased 300,000 shares and 200,000 shares of its outstanding common stock for $ 6.5 million and $ 4.3 million at an average price of $ 21.58 and $ 21.28 per share, respectively.

Stock Options :

6 unchanged sentences

At December 31, 2025 , there were 426,500 shares remaining for future option grants, and 207 shares remaining for future restricted stock awards under the plan.

During the year ended December 31, 2024, options to purchase 20,000 shares of commons stock at $ 19.03 per share were awarded and will expire no later than ten years following the grant date.

The options granted vest over a five-year service period, with 20 % of the awards vesting on each anniversary of the date of grant.

The fair value of the options granted, as computed using the Black-Sholes option-pricing model, was determined to be $ 4.34 per option based upon the following underlying assumptions:

a risk-free interest rate, expected option life, expected stock price volatility, and dividend yield of 3.82 %, 6.5 years, 29.29 %, and 3.78 %, respectively.

The risk-free interest rate was based on the U.S.

Treasury yield at the option grant date for securities with a term matching the expected life of the options granted.

The expected life was calculated using the "simplified" method provided for under Staff Accounting Bulletin No.

Expected volatility was calculated based upon the actual price history of the Company's common stock up until the date of the option grants.

The dividend yield was calculated using the previous four quarter payment history.

During the year ended December 31, 2025 , 48,275 restricted stock awards of commons stock were awarded, and had a grant date price of $ 20.80 , which was the ending stock price for the Company on the date of the grant.

The restricted stock awards granted vest over a five -year service period, with 20 % of the awards vesting on each anniversary of the date of grant.

The Company did not grant any options during the year ended December 31, 2025.

Compensation expense for stock options was $ 335.8 thousand, and $ 397.8 thousand at December 31, 2024 and 2023, respectively.

Compensation expense for stock options and restricted stock awards was $ 292.8 thousand, and $ 335.8 thousand at December 31, 2025 and 2024 , respectively.

A summary of stock options at December 31, 2025 was as follows:

December 31, 2025

Weighted Average

Stock Options:

Shares Weighted Average Exercise Price

Exercise Price

Outstanding at beginning of period

Granted 20,000 $ 19.03

Exercised ( 63,769 ) $ 11.06

Forfeited ( 23,750 ) $ 21.66

613,826 $ 16.33

( 110,578 ) $ 10.87

( 4,392 ) $ 19.35

Outstanding at end of period

498,856 $ 17.51

Exercisable at end of period

437,842 $ 17.02

The total amount of compensation cost remaining to be recognized relating to unvested employees and directors option grants as of December 31, 2025 was $ 0.3 million.

The weighted-average period over which the expense is expected to be recognized is 2.7 years.

At December 31, 2024, the intrinsic value of options exercisable and all options outstanding was approximately $ 2.1 million and $ 2.6 million, respectively.

The aggregate intrinsic value of options exercised in 2024 was $ 675.1 thousand.

The total amount of compensation cost remaining to be recognized relating to unvested option grants as of December 31, 2023 was $ 0.9 million.

The weighted-average period over which the expense is expected to be recognized was 3.4 years.

The weighted-average period over which the expense is expected to be recognized is 1.0 year.

At December 31, 2025 , the intrinsic value of options exercisable and all options outstanding was approximately $ 3.5 million and $ 3.8 million, respectively.

The aggregate intrinsic value of options exercised in 2025 was $ 1.3 million.

The aggregate intrinsic value of options exercised in 2024 was $ 675.1 thousand.

2 unchanged sentences

The table below presents the status of the restricted stock units at December 31, 2025 , and the changes during the year ended December 31, 2025 .

Restricted Stock Units Weighted Average Grant-Date Fair Value

Weighted Average

Outstanding and unvested at December 31, 2024

Vested ( 1,701 ) 20.01

( 1,305 ) 18.41

Outstanding and unvested at December 31, 2025

The Company recognized $ 74,209 and $ 34,005 compensation costs of the restricted shares during year 2025 and 2024 .

The total amount of restricted stock expense remaining to be recognized is $ 38.0 thousand at December 31, 2024.

The total amount of restricted stock expense remaining to be recognized is $ 0.8 million at December 31, 2025 .

Preferred Stock :

6 unchanged sentences

The conversion rate was set using a conversion price for the common stock of $ 10.64 , which was approximately 20 % over the closing price of the Common Stock on October 10, 2013, the day the Series B Preferred Stock was priced.

During 2024, preferred stockholders converted 50 shares of preferred shares into 6,877 shares of common stock, respectively.

During 2025 , there were no conversions of preferred stock.

During 2024 , preferred stockholders converted 50 shares of preferred shares into 6,877 shares of common stock, respectively.

5 unchanged sentences

Current tax expense:

Federal $ 7,265 $ 6,886

State 1,394 2,336

Deferred tax expense/(benefit) 126 6

$ 10,499 $ 7,265

Deferred tax (benefit)/expense

( 1,654 ) 126

Income tax expense

$ 11,632 $ 8,785

The components of the net deferred tax asset at December 31, 2025 and 2024 were as follows:

2 unchanged sentences

Allowance for credit losses

$ 8,535 $ 7,197

Supplemental Executive Retirement Plan ("SERP")

5 unchanged sentences

Lease liability

PPP Deferred Loan Fees — 1

Other 269 210

14,810 13,278

Valuation allowance

( 29 ) ( 130 )

Total gross deferred tax assets

14,781 13,148

Deferred tax liabilities:

Depreciation ( 58 ) ( 71 )

Partnership income

Right of use asset

( 2,387 ) ( 2,212 )

Deferred loan costs

( 1,675 ) ( 1,711 )

Total gross deferred tax liabilities

( 4,062 ) ( 4,035 )

Net deferred tax asset

$ 10,719 $ 9,113

A reconciliation of the Company’s effective income tax rate with the statutory federal rate for 2025 and 2024 is as follows:

Effective Tax Rate

(Dollars in thousands)

At Federal statutory rate

$ 10,375 21.00 % $ 7,622 21.00 %

Adjustments resulting from:

State income taxes, net of Federal tax benefit

1,515 3.07 % 1,776 4.89 %

Tax exempt income

BOLI ( 138 ) ( 155 )

( 20 ) ( 0.04 )% ( 20 ) ( 0.05 )%

( 155 ) ( 0.31 )% ( 138 ) ( 0.38 )%

Stock compensation

( 53 ) ( 0.11 )% ( 26 ) ( 0.07 )%

Nondeductible expenses

2 0.00 % 2 0.00 %

Nondeductible executive compensation

Other ( 463 ) ( 146 )

42 ( 0.09 )% 32 ( 0.09 )%

( 74 ) 0.15 % ( 463 ) ( 1.28 )%

$ 11,632 23.54 % $ 8,785 24.20 %

Management has evaluated the Company’s tax positions and concluded that the Company has taken no uncertain tax positions that require adjustments to the financial statements.

2 unchanged sentences

The Company recorded income tax expense of 11.6 million on income before taxes of $ 49.4 million on for the year ended December 31, 2025 , resulting in an effective tax rate of 23.5 %, compared to income tax expense of $ 8.8 million on income before taxes of $ 36.3 million for the same period of 2024 , resulting in an effective tax rate of 24.2 %.

The Company pays the majority of its state taxes to the state of New Jersey.

Retirement Plans

5 unchanged sentences

Benefit obligation, January 1

$ 6,397 $ 6,439

Service cost/(benefit)

( 183 ) ( 146 )

Interest cost

Benefits paid

( 239 ) ( 239 )

Accrued liability at December 31

$ 6,314 $ 6,397

The net SERP pension cost for 2025 and benefit for 2024 was calculated as follows:

(Dollars in thousands)

Service cost $ ( 146 ) $ 27

$ ( 183 ) $ ( 146 )

Interest cost

27 unchanged sentences

The Company and Bank's regulatory capital as of December 31, 2025 and 2024 , is presented in the following table.

As of December 31, 2024 Actual For Capital Adequacy Purpose*

Company Amount Ratio Amount Ratio

As of December 31, 2025

For Capital Adequacy Purpose*

(Dollars in thousands except ratios)

Total risk-based capital

$ 358,387 21.76 % $ 131,788 8.00 %

Tier 1 risk-based capital

337,795 20.51 % 98,841 6.00 %

Tier 1 leverage

337,795 15.69 % 86,090 4.00 %

Tier 1 common equity

324,392 19.69 % 74,131 4.50 %

Community Bank Leverage Ratio

As of December 31, 2023 Actual For Capital Adequacy Purpose*

Company Amount Ratio Amount Ratio

335,985 15.61 % 193,666 9.00 %

As of December 31, 2024

For Capital Adequacy Purpose*

(Dollars in thousands except ratios)

Total risk-based capital

$ 362,000 24.44 % $ 118,478 8.00 %

Tier 1 risk-based capital

313,488 21.17 % 88,859 6.00 %

Tier 1 leverage

313,488 15.00 % 83,604 4.00 %

Tier 1 common equity

300,085 20.26 % 66,644 4.50 %

Community Bank Leverage Ratio

342,282 16.38 % 188,072 9.00 %

* Combination of both community bank leverage approach and the regular rule of capital adequacy.

22 unchanged sentences

At December 31, 2025 and December 31, 2024 , the allowance for credit losses of unfunded lending commitments was $ 0.8 million and $ 0.9 million, respectively.

A provision expense for unfunded lending commitments of $ 0.4 million was recognized during the year ended December 31, 2024, while there was $ 0.5 million provision recovery recognized during the year ended December 31, 2023.

A provision recovery for unfunded lending commitments of $ 0.1 million was recognized during the year ended December 31, 2025 , while there was $ 0.4 million provision expense recognized during the year ended December 31, 2024 .

The Company also has entered into an employment contract with the President of the Company, which provides for continued payment of certain employment salary and benefits prior to the expiration date of the agreement and in the event of a change in control, as defined.

10 unchanged sentences

Any change in the Federal government’s enforcement position, could cause us to immediately cease providing banking services to the cannabis industry.

At December 31, 2024 and 2023, deposit balances from cannabis customers were approximately $ 151.9 million and $ 96.7 million, or 9.3 % and 6.2 % of total deposits, respectively, with three customers accounting for 59.4 % and 60.6 % of the total at December 31, 2024 and 2023.

At December 31, 2025 and 2024 , deposit balances from cannabis customers were approximately $ 61.9 million and $ 151.9 million, or 3.5 % and 9.3 % of total deposits, respectively, with two customers accounting for 30.7 % and 59.4 % of the total at December 31, 2025 and 2024 .

At December 31, 2025 and 2024 , there were cannabis-related loans in the amounts of $ 47.0 million and $ 43.4 million, respectively.

14 unchanged sentences

Parke Bank Matter

On May 20, 2014, Parke Bank (the "Bank") loaned Voorhees Diner Corporation ("VDC") the original principal sum of $ 1,000,000.00 for purposes of tenant fit out, and operation, of the Voorhees Diner situated at 320 Route 73, Voorhees, New Jersey 08043.

On May 20, 2014, Parke Bank (the "Bank") loaned Voorhees Diner Corporation ("VDC") the original principal sum of $ 1.0 million for purposes of tenant fit out, and operation, of the Voorhees Diner situated at 320 Route 73, Voorhees, New Jersey 08043.

VDC leased the Diner property under that certain Lease with Mori Restaurant LLC ("Mori") dated May 20, 2014.

In connection with the loan from the Bank and as security therefor, VDC pledged its leasehold interest to the Bank.

On March 6, 2015, the loan was modified, and the principal amount of the loan was increased to $ 1,400,000.00 .

On March 6, 2015, the loan was modified, and the principal amount of the loan was increased to $ 1.4 million.

On January 8, 2020, the Bank declared VDC in default of its loan obligations.

5 unchanged sentences

As to all of Mori Restaurant’s claims, the Bank defendants’ primary, but not exclusive, defense in this matter is that, pursuant to that certain Fee Owner Consent executed by and between Mori Restaurant and the Bank, in November 2014, the lease between VDC and Mori Restaurant was terminated as a matter of law and neither the Bank nor 320 Route 73 LLC have liability to Mori Restaurant under the lease or otherwise.

The Bank believes this suit is without merit, denies any and all liability and intends to vigorously defend against this matter.

In August 2024, Parke Bank filed an amended complaint asserting claims against Mori for breach of the Assignment of Leases and default under the mortgage loan documents.

Mori sought summary judgement on, among other things, its claims for possession of the diner and against the Bank's affirmative claims.

The court determined that the Lease remained binding on 320 Route 73 LLC and that 320 Route 73 LLC was liable to Mori for rent under the Lease during its period of possession.

The court also ruled that Mori was entitled to repossess the diner.

The court did not determine damages and reserved all damages issues for trial, which is scheduled for early 2026.

In November 2025, Mori repossessed the diner.

The Bank denies liability beyond the court's rulings to date and will continue to vigorously defend this matter.

In the normal course of business, there are outstanding various contingent liabilities such as claims and legal action, which are not reflected in the financial statements.

In the opinion of management, no material losses are anticipated as a result of these actions or claims.

Other than the foregoing, neither the Company nor the Bank are involved in any other pending legal proceedings, other than routine legal matters occurring in the ordinary course of business, which in the aggregate involve amounts which are believed by management to be immaterial to the consolidated financial condition or results of operations of the Company.

34 unchanged sentences

The table below presents the balances of assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024 .

F inancial Assets

Level 1 Level 2 Level 3 Total

Financial Assets

(Dollars in thousands)

1 unchanged sentence

As of December 31, 2025

Corporate debt obligations

$ — $ 500 $ — $ 500

Residential mortgage-backed securities

Total $ — $ 5,551 $ — $ 5,551

— 4,246 — 4,246

$ — $ 4,746 $ — $ 4,746

As of December 31, 2024

Residential mortgage-backed securities

Total $ — $ 7,095 $ — $ 7,095

$ — $ 5,551 $ — $ 5,551

For the year ended December 31, 2025 , there were no transfers between the levels within the fair value hierarchy.

2 unchanged sentences

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Financial Assets Level 1 Level 2 Level 3 Total

Financial Assets

(Dollars in thousands)

1 unchanged sentence

Collateral dependent loans

OREO $ — $ — $ 1,562 $ 1,562

$ — $ — $ 2,672 $ 2,672

$ — $ — $ 2,862 $ 2,862

As of December 31, 2024

Collateral dependent loans

OREO $ — $ — $ 1,550 $ 1,550

$ — $ — $ 5,189 $ 5,189

$ — $ — $ 1,562 $ 1,562

All collateral dependent individually evaluated loans have an independent third -party full appraisal to determine the NRV based on the fair value of the underlying collateral, less cost to sell (a range of 5 % to 10 %) and other costs, such as unpaid real estate taxes, that have been identified.

6 unchanged sentences

The following table summarizes the carrying amounts and fair values for financial instruments at December 31, 2025 and December 31, 2024 :

December 31, 2024 Carrying Amount Fair Value

Total Level 1 Level 2 Level 3

December 31, 2025

(Dollars in thousands)

1 unchanged sentence

Cash and cash equivalents

$ 156,863 $ 156,863 $ 156,863 $ — $ —

Investment securities AFS

4,746 4,746 — 4,746 —

Investment securities HTM

8,777 7,487 — 7,487 —

Restricted stock

Loans, net 1,835,580 1,834,007 — 1,822,203 11,804

8,085 8,085 — — 8,085

2,000,578 2,020,810 — 2,010,017 10,793

Accrued interest receivable

11,257 11,257 — 11,257 —

Financial Liabilities:

Non-time deposits

$ 1,096,836 $ 1,096,836 $ 1,096,836 $ — $ —

Time deposits

Borrowings 188,300 189,621 — 189,621 —

661,833 662,947 — 662,947 —

143,403 145,748 — 145,748 —

Accrued interest payable

December 31, 2023 Carrying Amount Fair Value

Total Level 1 Level 2 Level 3

4,575 4,575 — 4,575 —

December 31, 2024

(Dollars in thousands)

1 unchanged sentence

Cash and cash equivalents

$ 221,527 $ 221,527 $ 221,527 $ — $ —

Investment securities AFS

5,551 5,551 — 5,551 —

Investment securities HTM

9,209 7,492 — 7,492 —

Restricted stock

Loans, net 1,755,209 1,727,842 — 1,718,866 8,976

8,619 8,619 — — 8,619

1,835,580 1,834,007 — 1,822,203 11,804

Accrued interest receivable

9,659 9,659 — 9,659 —

Financial Liabilities:

Non-time deposits

$ 915,892 $ 915,892 $ 915,892 $ — $ —

Time deposits

Borrowings 168,111 172,985 — 172,985 —

715,158 716,904 — 716,904 —

188,300 189,621 — 189,621 —

Accrued interest payable

7,968 7,968 — 7,968 —

Parent Company Only Financial Statements

Condensed financial information of the parent company only is presented in the following two tables:

Balance Sheets December 31,

Balance Sheets

(Dollars in thousands)

Cash $ 4,147 $ 4,111

$ 3,896 $ 4,147

Investments in subsidiaries

Total assets $ 346,495 $ 330,575

336,188 342,348

$ 340,084 $ 346,495

Liabilities and Equity:

Subordinated debentures

$ 13,403 $ 43,300

Other liabilities

Equity 300,073 284,317

324,518 300,073

Total liabilities and equity

Statements of Income Years ended December 31,

$ 340,084 $ 346,495

Statements of Income

Years ended December 31,

(Dollars in thousands)

Dividends from bank subsidiary

Total income 15,389 11,772

$ 46,601 $ 15,389

46,601 15,389

Interest on subordinated debentures

Salary 160 160

$ 1,958 $ 3,080

Other expenses

Total expenses

Net Income 12,031 8,446

44,365 12,031

Equity in undistributed income of subsidiaries

Net income 27,512 28,462

( 6,590 ) 15,481

37,775 27,512

Preferred stock dividend and discount accretion

( 20 ) ( 20 )

Net income available to common shareholders

$ 37,755 $ 27,492

Total comprehensive income

$ 37,912 $ 27,579

Statements of Cash Flows

2 unchanged sentences

Cash Flows from Operating Activities

Net income $ 27,512 $ 28,462

$ 37,775 $ 27,512

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

Equity in undistributed earnings of subsidiaries

6,590 ( 15,481 )

Repayment of subordinate debt

Amortization of subordinate debt issuance costs

(Decrease) increase in accrued interest payable and other accrued

liabilities ( 27 ) 12

Decrease in accrued interest payable and other accrued liabilities

( 959 ) ( 27 )

Net cash provided by operating activities

13,509 12,194

Cash Flows from Financing Activities

Purchase of treasury stock

( 6,483 ) ( 4,262 )

Excise tax payment on stock repurchase

Proceeds from exercise of stock options

Payment of dividend on preferred stock and common stock

( 8,451 ) ( 8,602 )

Net cash used in financing activities

Increase in cash and cash equivalents 36 52

( 13,760 ) ( 12,158 )

(Decrease) increase in cash and cash equivalents

Cash and Cash Equivalents, January 1,

Cash and Cash Equivalents, December 31,

$ 3,896 $ 4,147

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data