What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-06 compared with 2025-11-05 · 82 added, 212 removed, 762 unchanged (28% of the section changed)

4 unchanged sentences

(Dollars in thousands except per share data)

September 30,

Cash and due from banks

5 unchanged sentences

Investment securities available for sale, at fair value

Investment securities held to maturity, net of allowance for credit losses of $ 0 at September 30, 2025 and December 31, 2024 (fair value of $ 7,405 at September 30, 2025 and $ 7,492 at December 31, 2024)

Investment securities held to maturity, net of allowance for credit losses of $ 0 at March 31, 2026 and December 31, 2025 (fair value of $ 7,362 at March 31, 2026 and $ 7,487 at December 31, 2025)

Total investment securities

6 unchanged sentences

Accrued interest receivable

11,504 11,257

Premises and equipment, net

3 unchanged sentences

Deferred tax asset

10,720 10,719

Other real estate owned (OREO)

17 unchanged sentences

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

325 shares outstanding at September 30, 2025 and December 31, 2024

325 shares outstanding at March 31, 2026 and December 31, 2025

Common stock, $ 0.10 par value;

authorized 15,000,000 shares;

12,372,075 shares and 12,313,489 shares at September 30, 2025 and December 31, 2024, respectively

12,515,472 shares and 12,425,768 shares at March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital

4 unchanged sentences

( 203 ) ( 200 )

Treasury stock, 784,522 shares and 484,522 shares at September 30, 2025 and December 31, 2024, respectively, at cost

Treasury stock, 784,522 shares at March 31, 2026 and December 31, 2025, at cost

( 13,789 ) ( 13,789 )

9 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

September 30,

Interest income:

Interest and fees on loans

$ 34,910 $ 30,161 $ 99,142 $ 86,976

Interest and dividends on investments

218 265 738 761

Interest on deposits with banks

1,381 1,696 5,499 4,050

Total interest income

36,509 32,122 105,379 91,787

Interest expense:

Interest on deposits

15,385 14,983 45,698 42,123

Interest on borrowings

960 2,416 5,039 6,575

Total interest expense

16,345 17,399 50,737 48,698

Net interest income

20,164 14,723 54,642 43,089

Provision for (recovery of) credit losses

364 ( 141 ) 1,938 546

Net interest income after provision for (recovery of) credit losses

19,800 14,864 52,704 42,543

Provision for credit losses

Net interest income after provision for credit losses

Non-interest income

Service fees on deposit accounts

305 321 925 1,059

Gain on sale of SBA loans

Other loan fees

188 217 510 619

Bank owned life insurance income

173 166 507 488

184 200 546 975

Total non-interest income

850 901 2,488 3,164

Non-interest expense

Compensation and benefits

3,318 3,178 9,873 9,466

Professional services

890 645 2,255 1,641

Occupancy and equipment

688 630 2,052 1,943

Data processing

429 348 1,274 978

FDIC insurance and other assessments

356 319 1,090 973

92 187 319 776

Other operating expense

1,391 1,058 3,520 3,358

Total non-interest expense

7,164 6,365 20,383 19,135

Income before income tax expense

13,486 9,400 34,809 26,572

Income tax expense

2,856 1,892 8,118 6,458

Net income attributable to Company

10,630 7,508 26,691 20,114

Preferred stock dividend

( 5 ) ( 5 ) ( 15 ) ( 16 )

Net income available to common shareholders

$ 10,625 $ 7,503 $ 26,676 $ 20,098

Earnings per common share

$ 0.90 $ 0.63 $ 2.26 $ 1.68

$ 0.89 $ 0.62 $ 2.23 $ 1.66

Weighted average common shares outstanding

11,773,473 11,959,546 11,816,577 11,960,173

11,958,108 12,153,393 11,989,947 12,134,828

See accompanying notes to the unaudited consolidated financial statements

4 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

September 30,

Net income attributable to the Company

$ 10,630 $ 7,508 $ 26,691 $ 20,114

Unrealized gain on investment securities

32 187 149 184

Tax impact on unrealized gain

( 8 ) ( 48 ) ( 39 ) ( 47 )

Total unrealized gain on investment securities

24 139 110 137

Unrealized (loss) gain on investment securities

Tax impact on unrealized loss (gain)

Total unrealized (loss) gain on investment securities

Comprehensive income attributable to the Company

$ 10,654 $ 7,647 $ 26,801 $ 20,251

See accompanying notes to the unaudited consolidated financial statements

3 unchanged sentences

(Dollars in thousands except share data)

Three and Nine months ended September 30, 2025

Three months ended March 31, 2026

Preferred Stock

3 unchanged sentences

Three Months Ended

Balance, June 30, 2025

325 $ 325 12,327,850 $ 1,233 $ 138,014 $ 180,141 $ ( 251 ) $ ( 7,306 ) $ 312,156

Net income attributable to the company

— — — — — 10,630 — — 10,630

Common stock options exercised

— — 44,225 4 546 — — — 550

Other comprehensive income

— — — — — — 24 — 24

Stock compensation expense

— — — — 47 — — — 47

Treasury stock purchase ( 300,000 shares)

— — — — — — — ( 6,483 ) ( 6,483 )

Dividend on preferred stock ($ 15.00 per share)

— — — — — ( 5 ) — — ( 5 )

Dividend on common stock ($ 0.18 per share)

— — — — — ( 2,082 ) — — ( 2,082 )

Balance, September 30, 2025

325 $ 325 12,372,075 $ 1,237 $ 138,607 $ 188,684 $ ( 227 ) $ ( 13,789 ) $ 314,837

Nine Months Ended

Balance, December 31, 2025

4 unchanged sentences

— — 89,704 9 1,241 — — — 1,250

Other comprehensive income

Other comprehensive loss

— — — — — — ( 3 ) — ( 3 )

1 unchanged sentence

— — — — 78 — — — 78

Treasury stock purchase ( 300,000 shares)

— — — — — — — ( 6,483 ) ( 6,483 )

Excise tax payment on stock repurchase

— — — — — — — ( 29 ) ( 29 )

Dividend on preferred stock ($ 15.00 per share)

2 unchanged sentences

— — — — — ( 2,119 ) — — ( 2,119 )

Balance, September 30, 2025

Balance, March 31, 2026

325 $ 325 12,515,472 $ 1,252 $ 140,587 $ 207,391 $ ( 203 ) $ ( 13,789 ) $ 335,563

4 unchanged sentences

(Dollars in thousands except share data)

Three and Nine months ended September 30, 2024

Three months ended March 31, 2025

Preferred Stock

3 unchanged sentences

Three Months Ended

Balance, June 30, 2024

325 $ 325 12,254,220 $ 1,225 $ 136,946 $ 157,725 $ ( 406 ) $ ( 3,015 ) $ 292,800

Net income attributable to the company

— — — — — 7,508 — — 7,508

Preferred stock shares conversion

— — 9,896 1 111 — — — 112

Treasury stock purchase ( 100,000 shares)

— — — — — — — ( 2,024 ) ( 2,024 )

Other comprehensive income

— — — — — — 139 — 139

Stock compensation expense

— — — — 73 — — — 73

Dividend on preferred stock ($ 15.00 per share)

— — — — — ( 5 ) — — ( 5 )

Dividend on common stock ($ 0.18 per share)

— — — — — ( 2,143 ) — — ( 2,143 )

Balance, September 30, 2024

325 $ 325 12,264,116 $ 1,226 $ 137,130 $ 163,085 $ ( 267 ) $ ( 5,039 ) $ 296,460

Nine Months Ended

Balance, December 31, 2024

2 unchanged sentences

— — — — — 7,778 — — 7,778

Preferred stock shares conversion

( 50 ) ( 50 ) 6,877 — 49 — — — ( 1 )

Common stock options exercised

— — 14,361 2 97 — — — 99

Treasury stock purchase ( 100,000 shares)

— — — — — — — ( 2,024 ) ( 2,024 )

Other comprehensive income

6 unchanged sentences

— — — — — ( 2,125 ) — — ( 2,125 )

Balance, September 30, 2024

Balance, March 31, 2025

325 $ 325 12,327,850 $ 1,233 $ 137,951 $ 173,995 $ ( 285 ) $ ( 7,277 ) $ 305,942

4 unchanged sentences

(Dollars in thousands)

For the Nine Months Ended

September 30,

For the Three Months Ended

Cash Flows from Operating Activities:

5 unchanged sentences

( 221 ) ( 165 )

Gain on sale of SBA loans

SBA loans originated for sale

Proceeds from sale of SBA loans originated for sale

Net accretion of purchase premiums and discounts on securities

4 unchanged sentences

( 1,429 ) 590

(Decrease) increase in accrued interest payable and other accrued liabilities

Increase (decrease) in accrued interest payable and other accrued liabilities

2,446 ( 2,002 )

Net cash provided by operating activities

25,113 26,643

Cash Flows from Investing Activities:

1 unchanged sentence

Repayments and maturities of investment securities held to maturity

Purchase of investment securities

Net increase in loans

2 unchanged sentences

( 69 ) ( 381 )

Bank owned life insurance additional purchase

Redemptions of restricted stock

6 unchanged sentences

( 2,124 ) ( 2,130 )

Treasury stock purchase

( 6,483 ) ( 2,024 )

Proceeds from exercise of stock options

Conversion of Series B preferred stock

Excise tax payment on purchase of treasury stock

Repayment of sub debt

Decrease in FHLBNY long-term borrowings

Net increase (decrease) in FHLBNY term borrowings

10,000 ( 40,000 )

Net (decrease) increase in FHLBNY short-term borrowings

Net (decrease) increase in noninterest-bearing deposits

( 32,401 ) 1,311

Net increase (decrease) in noninterest-bearing deposits

Net (decrease) increase in interest-bearing deposits

( 27,524 ) 34,320

Net increase in interest-bearing deposits

Net cash used in financing activities

( 50,799 ) ( 6,400 )

Net cash provided by financing activities

Net decrease in cash and cash equivalents

2 unchanged sentences

156,863 221,527

Cash and Cash Equivalents, September 30,

Cash and Cash Equivalents, March 31,

$ 110,874 $ 209,036

3 unchanged sentences

Income taxes paid

$ 7,932 $ 3,521

Non-cash Investing and Financing Items

20 unchanged sentences

The accompanying interim financial statements should be read in conjunction with the annual financial statements and notes thereto included in the Company’s Annual Report on Form 10 -K for the year ended December 31, 2025 .

The accompanying interim financial statements for the three and nine months ended September 30, 2025 and 2024 are unaudited.

The accompanying interim financial statements for the three months ended March 31, 2026 and 2025 are unaudited.

The balance sheet as of December 31, 2025 , was derived from the audited financial statements.

In the opinion of management, these financial statements include all normal and recurring adjustments necessary for a fair statement of the results for such interim periods.

Results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results for the full year or any other period.

Results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results for the full year or any other period.

Use of Estimates:

11 unchanged sentences

(Dollars in thousands)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Total interest income

3 unchanged sentences

Provision for credit losses

364 ( 141 ) 1,938 546

Net interest income after provision for credit losses

1 unchanged sentence

Total non-interest income

850 901 2,488 3,164

Total non-interest expense

7,164 6,365 20,383 19,135

Income before income tax expense

1 unchanged sentence

Income tax expense

2,856 1,892 8,118 6,458

Net income attributable to the Company

5 unchanged sentences

INVESTMENT SECURITIES

The following is a summary of the Company's investments in available for sale and held to maturity securities as of September 30, 2025 and December 31, 2024 .

The following is a summary of the Company's investments in available for sale and held to maturity securities as of March 31, 2026 and December 31, 2025 .

None of the securities shown below required an allowance for credit losses.

As of September 30, 2025

As of March 31, 2026

(Dollars in thousands)

17 unchanged sentences

$ 4,515 $ 10 $ 279 $ 4,246

Corporate debt obligations

Total available for sale

7 unchanged sentences

$ 8,777 $ — $ 1,290 $ 7,487

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of September 30, 2025 are as follows:

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of March 31, 2026 are as follows:

(Dollars in thousands)

8 unchanged sentences

Due within one year

$ 1,571 $ 1,556

Due after one year through five years

4 unchanged sentences

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

The Company did not sell any securities during the three and nine months ended September 30, 2025 and 2024 .

The following tables show the gross unrealized losses and fair value of the Company's available for sale investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024 :

As of September 30, 2025

The Company did not sell any securities during the three months ended March 31, 2026 and 2025 .

As of March 31, 2026

Less Than 12 Months

23 unchanged sentences

Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income, net of applicable taxes.

The Company’s unrealized loss for the debt securities classified as available for sale is comprised of 2 securities in the less than 12 months loss position and 14 securities in the 12 months or greater loss position at September 30, 2025 .

The Company’s unrealized loss for the debt securities classified as available for sale 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 March 31, 2026 .

These securities are mortgage-backed securities that had unrealized losses issued or guaranteed by the US government or US government sponsored entities.

5 unchanged sentences

Based on the credit ratings of our held-to-maturity securities and our historical experience including no losses, we have determined that an allowance for credit loss on the held-to-maturity portfolio is not required.

Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at September 30, 2025 .

LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

At September 30, 2025 and December 31, 2024 , the Company had $ 1.96 billion and $ 1.87 billion, respectively, in loans receivable outstanding.

Outstanding balances include $ 0.1 million and $ 1.8 million at September 30, 2025 and December 31, 2024 , respectively, for net deferred loan costs, and unamortized discounts.

The portfolio segments of loans receivable at September 30, 2025 and December 31, 2024 , consist of the following:

September 30, 2025

At March 31, 2026 and December 31, 2025 , the Company had $ 2.04 billion and $ 2.04 billion, respectively, in loans receivable outstanding.

Outstanding balances include $ 0.05 million and $ 0.03 million at March 31, 2026 and December 31, 2025 , respectively, for net deferred loan costs, and unamortized discounts.

The portfolio segments of loans receivable at March 31, 2026 and December 31, 2025 , consist of the following:

March 31, 2026

December 31, 2025

20 unchanged sentences

$ 2,008,375 $ 2,000,578

An age analysis of past due loans by class at September 30, 2025 and December 31, 2024 is as follows:

September 30, 2025

An age analysis of past due loans by class at March 31, 2026 and December 31, 2025 is as follows:

March 31, 2026

(Dollars in Thousands)

34 unchanged sentences

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

September 30, 2025

March 31, 2026

Loans Past Due

15 unchanged sentences

141 — 141 — 141

$ 5,608 $ 3,798 $ 9,406 $ — $ 9,406

December 31, 2025

16 unchanged sentences

141 — 141 — 141

$ 7,546 $ 3,247 $ 10,793 $ — $ 10,793

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

2 unchanged sentences

The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

At September 30, 2025 and December 31, 2024 , the allowance for credit losses on off-balance sheet credit exposures was $ 1.5 million and $ 864.0 thousand, respectively, on exposures totaling $ 254.8 million and $ 172.2 million, respectively.

The provision for credit losses on off balance sheet exposures during the three and nine months ended September 30, 2025 and 2024 were $ 232.5 thousand and $ 439.0 thousand, and $ 615.8 thousand and $ 397.0 thousand, respectively.

At March 31, 2026 and December 31, 2025 , the allowance for credit losses on off-balance sheet credit exposures was $ 762.3 thousand and $ 829.1 thousand, respectively, on exposures totaling $ 198.0 million and $ 189.8 million, respectively.

During the three months ended March 31, 2026 and 2025 , we recorded a recovery for credit losses of $ 66.8 thousand, and a provision for credit losses on off balance sheet exposures of $ 73.3 thousand, respectively.

Allowance for Credit Losses (ACL)

The following tables present the information regarding the allowance for credit losses for the three and nine months ended September 30, 2025 and 2024 :

The following tables present the information regarding the allowance for credit losses for the three months ended March 31, 2026 and 2025 :

Real Estate Mortgage

3 unchanged sentences

(Dollars in thousands)

Three months ended September 30, 2025

June 30, 2025

$ 991 $ 3,122 $ 2,038 $ 8,560 $ 8,371 $ 8,493 $ 2,141 $ 54 $ 33,770

— — — — — — — — —

2 — — — — — — — 2

Provisions (benefits)

( 4 ) 1,159 ( 117 ) 381 ( 78 ) ( 965 ) ( 260 ) 16 132

Ending Balance at September 30, 2025

$ 989 $ 4,281 $ 1,921 $ 8,941 $ 8,293 $ 7,528 $ 1,881 $ 70 $ 33,904

Nine months ended September 30, 2025

Three months ended March 31, 2026

December 31, 2025

4 unchanged sentences

21 ( 137 ) ( 25 ) ( 436 ) ( 274 ) 526 596 ( 2 ) 269

Ending Balance at September 30, 2025

Ending Balance at March 31, 2026

$ 1,032 $ 3,895 $ 2,214 $ 9,225 $ 7,931 $ 8,127 $ 2,441 $ 56 $ 34,921

During the quarter, the increase to the Construction, and the Commercial Non-Owner Occupied portfolio's was due to an increase in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

The provision benefit during the quarter to the Residential 1 to 4 Family Investment portfolio was due to a decrease in the problem loan balance which caused a decrease in the qualitative factor.

The decrease in the Residential Multifamily portfolio segments is due to a decrease in the portfolio balance that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

For the nine months ended September 30, 2025 , the increase to the Construction, and the Commercial Non-Owner Occupied portfolio's was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segment.

The provision benefit during the nine months ended September 30, 2025 to the Residential 1 to 4 Family segment, the Residential 1 to 4 Family Investment segment, and the Residential Multi-family segment is due to a decrease in the portfolio balance that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

For the three months ended March 31, 2026 , the increase to the Residential 1 to 4 Family Investment segment was due to an increase in the qualitative factors related to an increase in problem loans that are 30 - 89 days delinquent.

The increase in the Residential Multifamily segment was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segment.

The provision benefit during the three months ended March 31, 2026 to the Commercial Non-owner Occupied segment is due to a decrease in the problem loans balance that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

Real Estate Mortgage

3 unchanged sentences

(Dollars in thousands)

Three months ended September 30, 2024

June 30, 2024

$ 1,068 $ 3,992 $ 1,536 $ 5,414 $ 9,070 $ 9,683 $ 1,603 $ 59 $ 32,425

— — — — — — — — —

1 — — — — — — — 1

Provisions (benefits)

15 114 668 ( 395 ) 124 ( 760 ) 121 5 ( 108 )

Ending Balance at September 30, 2024

$ 1,084 $ 4,106 $ 2,204 $ 5,019 $ 9,194 $ 8,923 $ 1,724 $ 64 $ 32,318

Nine months ended September 30, 2024

Three months ended March 31, 2025

December 31, 2024

4 unchanged sentences

( 50 ) ( 762 ) 599 1,061 ( 352 ) 23 ( 1 ) ( 1 ) 517

Ending Balance at September 30, 2024

Ending Balance at March 31, 2025

$ 1,048 $ 2,275 $ 2,470 $ 7,361 $ 8,814 $ 8,855 $ 2,202 $ 66 $ 33,091

During the quarter, the increase to the Commercial Owner Occupied portfolio was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

The decrease to the Commercial Non-Owner Occupied is due to a decrease in problem loan qualitative factor, partially offset by an increase in the economic condition factor.

The decrease in the Residential 1 to 4 Family Investment portfolio is due to a downward adjustment of the derived historical loss rate which better reflects the problem loan risk of loss of the portfolio.

For the nine months ended September 30, 2024 , the increase in the Construction, Commercial Owner Occupied, and Residential Multifamily portfolios was due to increases in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

The decrease to the Commercial Non-Owner Occupied portfolios was due to a decrease in the portfolios internally classified problem loan balance that decreased the problem loan qualitative factor.

For the three months ended March 31, 2025, the increase to the Commercial Owner Occupied, and the Commercial Non-owner Occupied portfolio's was due to an increase in the portfolio balances that increased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

The provision benefit during the quarter to the Construction segment is due to a decrease in the portfolio balance that decreased the loan exposure and also caused changes to the qualitative factors related to concentration levels within the portfolio segments.

Collateral-Dependent Loans

The following table presents the collateral-dependent loans by portfolio segment and collateral type at September 30, 2025 :

The following table presents the collateral-dependent loans by portfolio segment and collateral type at March 31, 2026 :

(amounts in thousands)

44 unchanged sentences

Borrowers in this category require constant monitoring, are considered work-out loans and present the potential for future loss to the Bank.

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 September 30, 2025 .

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 March 31, 2026 .

(Dollars in thousands)

Term Loans Amortized Cost Basis by Origination Year

As of September 30, 2025

As of March 31, 2026

Commercial and Industrial

59 unchanged sentences

$ 43,221 $ 270,220 $ 182,239 $ 165,511 $ 413,670 $ 717,589 $ 250,846 $ 2,043,296

As of September 30, 2025 , the Company was in the process of foreclosing on 22 residential 1 to 4 family loans with a principal balance of $ 4.6 million.

As of March 31, 2026 , the Company was in the process of foreclosing on 21 residential 1 to 4 family loans with a principal balance of $ 5.2 million.

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 .

64 unchanged sentences

Modifications to Borrowers Experiencing Financial Difficulty

During the periods ended September 30, 2025 and 2024 , the Company did not make any modifications to borrowers experiencing financial difficulty.

During the periods ended March 31, 2026 and 2025 , the Company did not make any modifications to borrowers experiencing financial difficulty.

EARNINGS PER SHARE ( “ EPS ” )

The following tables set forth the calculation of basic and diluted EPS for the three and nine months ended September 30, 2025 and 2024 .

Three months ended September 30,

Nine months ended September 30,

(Dollars in thousands except share and per share data)

The following tables set forth the calculation of basic and diluted EPS for the three months ended March 31, 2026 and 2025 .

Three months ended March 31,

(Dollars in thousands except share and per share data)

3 unchanged sentences

Dividend on series B preferred stock

( 5 ) ( 5 ) ( 15 ) ( 16 )

Net income available to common shareholders

10,625 7,503 26,676 20,098

Basic weighted-average common shares outstanding

7 unchanged sentences

Net income available to diluted common shares

10,630 7,508 26,691 20,114

Basic weighted-average common shares outstanding

6 unchanged sentences

$ 0.99 $ 0.65

As of September 30, 2025 and December 31, 2024 , there were 185,750 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.

During the three months ended March 31, 2026 and 2025, respectively, there were zero and 174,125 weighted average option shares outstanding, respectively, that were not included in the computation of diluted EPS because these shares were anti-dilutive.

Fair Value Measurements

26 unchanged sentences

Available for Sale Securities

As of September 30, 2025

As of March 31, 2026

Corporate debt obligations

4 unchanged sentences

As of December 31, 2025

Corporate debt obligations

$ — $ 500 $ — $ 500

Residential mortgage-backed securities

1 unchanged sentence

$ — $ 4,746 $ — $ 4,746

For the nine months ended September 30, 2025 , there were no transfers between the levels within the fair value hierarchy.

There were no level 3 assets or liabilities held during the three and nine months ended September 30, 2025 and 2024 .

For the three months ended March 31, 2026 , there were no transfers between the levels within the fair value hierarchy.

There were no level 3 assets or liabilities held during the three months ended March 31, 2026 and 2025 .

Fair Value on a Non-recurring Basis:

2 unchanged sentences

(Dollars in thousands)

As of September 30, 2025

As of March 31, 2026

Collateral-dependent loans

15 unchanged sentences

These instruments include cash and cash equivalents, accrued interest receivable, bank owned life insurance, Federal Home Loan Bank of New York ("FHLBNY") restricted stock, demand and other non-maturity deposits and accrued interest payable, and they are considered to be level 1 measurements.

The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at September 30, 2025 and December 31, 2024 :

September 30, 2025

The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at March 31, 2026 and December 31, 2025 :

March 31, 2026

(Dollars in thousands)

31 unchanged sentences

Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Commitments to fund fixed-rate loans were immaterial at September 30, 2025 .

Commitments to fund fixed-rate loans were immaterial at March 31, 2026 .

Variable-rate commitments are generally issued for less than one year and carry market rates of interest.

Such instruments are not likely to be affected by annual rate caps triggered by rising interest rates.

As of September 30, 2025 and December 31, 2024 , unused commitments to extend credit amounted to approximately $ 173.4 million and $ 122.5 million, respectively.

At September 30, 2025 and December 31, 2024 , the allowance for credit losses on off-balance sheet credit exposures was $ 1.5 million and $ 864.0 thousand, respectively, an increase of $ 615.8 thousand, mainly due to the increase in the unused commitment balance.

As of March 31, 2026 and December 31, 2025 , unused commitments to extend credit amounted to approximately $ 143.2 million and $ 158.3 million, respectively.

At March 31, 2026 and December 31, 2025 , the allowance for credit losses on off-balance sheet credit exposures was $ 762.3 thousand and $ 829.1 thousand, respectively, a decrease of $ 66.8 thousand, mainly due to the decrease in the unused commitment balance.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.

The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

As of September 30, 2025 and December 31, 2024 , standby letters of credit with customers were $ 0.6 million and $ 0.6 million, respectively.

On September 30, 2025, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 75.0 million.

The MLOC is used to pledge against public deposits and the MLOC expires on December 19, 2025.

There were no outstanding borrowings on the letters of credit as of September 30, 2025 .

As of March 31, 2026 and December 31, 2025 , standby letters of credit with customers were $ 0.6 million and $ 0.6 million, respectively.

On March 12, 2026, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 100.0 million.

The MLOC is used to pledge against public deposits and the MLOC expires on June 1, 2026.

There were no outstanding borrowings on the letters of credit as of March 31, 2026 .

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 September 30, 2025 and December 31, 2024 , deposit balances from cannabis customers were approximately $ 225.4 million and $ 151.9 million, or 12.9 % and 9.3 % of total deposits, respectively, with two customers accounting for 75.1 % and 59.3 % of the total at September 30, 2025 and December 31, 2024 .

At September 30, 2025 and December 31, 2024 , there were cannabis-related loans in the amounts of $ 46.1 million and $ 43.4 million, respectively.

At March 31, 2026 and December 31, 2025 , deposit balances from cannabis customers were approximately $ 56.2 million and $ 61.9 million, or 3.3 % and 3.5 % of total deposits, respectively, with two customers accounting for 27.8 % and 30.7 % of the total at March 31, 2026 and December 31, 2025 .

At March 31, 2026 and December 31, 2025 , there were cannabis-related loans in the amounts of $ 46.0 million and $ 47.0 million, respectively.

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-Q

Item 1. Financial Statements