PARKE BANCORP, INC. 10-Q

Item 1. Financial Statements Parke Bancorp, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars in thousands except per share data) March 31, December 31, 2026 2025 Assets Cash and due from banks $ 6,879 $ 7,738 Interest bearing deposits with banks 103,995 149,125 Cash and cash equivalents 110,874 156,863 Investment securities available for sale, at fair value 4,366 4,746 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) 8,760 8,777 Total investment securities 13,126 13,523 Loans, net of unearned income 2,043,296 2,035,227 Less: Allowance for credit losses ( 34,921 ) ( 34,649 ) Net loans 2,008,375 2,000,578 Accrued interest receivable 11,504 11,257 Premises and equipment, net 5,462 5,506 Restricted stock 8,566 8,085 Bank owned life insurance (BOLI) 35,541 35,320 Deferred tax asset 10,720 10,719 Other real estate owned (OREO) 2,862 2,862 Other 5,905 4,723 Total assets $ 2,212,935 $ 2,249,436 Liabilities and Shareholders' Equity Liabilities Deposits Noninterest-bearing deposits $ 164,105 $ 196,506 Interest-bearing deposits 1,534,639 1,562,163 Total deposits 1,698,744 1,758,669 FHLBNY borrowings 140,000 130,000 Subordinated debentures 13,403 13,403 Accrued interest payable 4,650 4,575 Other 20,575 18,271 Total liabilities 1,877,372 1,924,918 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, $ 1,000 liquidation value Series B non-cumulative convertible; 325 shares outstanding at March 31, 2026 and December 31, 2025 325 325 Common stock, $ 0.10 par value; authorized 15,000,000 shares; Issued: 12,515,472 shares and 12,425,768 shares at March 31, 2026 and December 31, 2025, respectively 1,252 1,243 Additional paid-in capital 140,587 139,268 Retained earnings 207,391 197,671 Accumulated other comprehensive loss ( 203 ) ( 200 ) Treasury stock, 784,522 shares at March 31, 2026 and December 31, 2025, at cost ( 13,789 ) ( 13,789 ) Total shareholders’ equity 335,563 324,518 Total liabilities and shareholders' equity $ 2,212,935 $ 2,249,436 See accompanying notes to the unaudited consolidated financial statements 1 Table of Contents Parke Bancorp Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars in thousands except per share data) For the Three Months Ended March 31, 2026 2025 Interest income: Interest and fees on loans $ 35,891 $ 31,476 Interest and dividends on investments 222 288 Interest on deposits with banks 827 2,082 Total interest income 36,940 33,846 Interest expense: Interest on deposits 13,428 15,169 Interest on borrowings 1,380 2,070 Total interest expense 14,808 17,239 Net interest income 22,132 16,607 Provision for credit losses 202 590 Net interest income after provision for credit losses 21,930 16,017 Non-interest income Service fees on deposit accounts 289 308 Other loan fees 161 178 Bank owned life insurance income 220 165 Other 183 170 Total non-interest income 853 821 Non-interest expense Compensation and benefits 3,704 3,291 Professional services 598 714 Occupancy and equipment 761 687 Data processing 317 421 FDIC insurance and other assessments 373 350 OREO expense 80 127 Other operating expense 1,381 948 Total non-interest expense 7,214 6,538 Income before income tax expense 15,569 10,300 Income tax expense 3,725 2,522 Net income attributable to Company 11,844 7,778 Less: Preferred stock dividend ( 5 ) ( 5 ) Net income available to common shareholders $ 11,839 $ 7,773 Earnings per common share Basic $ 1.01 $ 0.66 Diluted $ 0.99 $ 0.65 Weighted average common shares outstanding Basic 11,706,574 11,836,384 Diluted 11,903,776 12,006,965 See accompanying notes to the unaudited consolidated financial statements 2 Table of Contents Parke Bancorp Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Dollars in thousands) For the Three Months Ended March 31, 2026 2025 Net income attributable to the Company $ 11,844 $ 7,778 Unrealized (loss) gain on investment securities ( 4 ) 70 Tax impact on unrealized loss (gain) 1 ( 18 ) Total unrealized (loss) gain on investment securities ( 3 ) 52 Comprehensive income attributable to the Company $ 11,841 $ 7,830 See accompanying notes to the unaudited consolidated financial statements 3 Table of Contents Parke Bancorp, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF EQUITY (unaudited) (Dollars in thousands except share data) Three months ended March 31, 2026 Accumulated Shares of Shares of Additional Other Total Preferred Stock Preferred Common Stock Common Paid-In Retained Comprehensive Treasury Shareholders' Outstanding Stock issued Stock Capital Earnings Income (Loss) Stock Equity Three Months Ended Balance, December 31, 2025 325 $ 325 12,425,768 $ 1,243 $ 139,268 $ 197,671 $ ( 200 ) $ ( 13,789 ) $ 324,518 Net income attributable to the company — — — — — 11,844 — — 11,844 Common stock options exercised — — 89,704 9 1,241 — — — 1,250 Other comprehensive loss — — — — — — ( 3 ) — ( 3 ) Stock compensation expense — — — — 78 — — — 78 Dividend on preferred stock ($ 15.00 per share) — — — — — ( 5 ) — — ( 5 ) Dividend on common stock ($ 0.18 per share) — — — — — ( 2,119 ) — — ( 2,119 ) Balance, March 31, 2026 325 $ 325 12,515,472 $ 1,252 $ 140,587 $ 207,391 $ ( 203 ) $ ( 13,789 ) $ 335,563 See accompanying notes to the unaudited consolidated financial statements 4 Table of Contents Parke Bancorp, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF EQUITY (unaudited) (Dollars in thousands except share data) Three months ended March 31, 2025 Accumulated Shares of Shares of Additional Other Total Preferred Stock Preferred Common Stock Common Paid-In Retained Comprehensive Treasury Shareholders' Outstanding Stock issued Stock Capital Earnings Income (Loss) Stock Equity Three Months Ended Balance, December 31, 2024 325 $ 325 12,313,489 $ 1,231 $ 137,784 $ 168,347 $ ( 337 ) $ ( 7,277 ) $ 300,073 Net income attributable to the company — — — — — 7,778 — — 7,778 Common stock options exercised — — 14,361 2 97 — — — 99 Other comprehensive income — — — — — — 52 — 52 Stock compensation expense — — — — 70 — — — 70 Dividend on preferred stock ($ 15.00 per share) — — — — — ( 5 ) — — ( 5 ) Dividend on common stock ($ 0.18 per share) — — — — — ( 2,125 ) — — ( 2,125 ) Balance, March 31, 2025 325 $ 325 12,327,850 $ 1,233 $ 137,951 $ 173,995 $ ( 285 ) $ ( 7,277 ) $ 305,942 See accompanying notes to the unaudited consolidated financial statements 5 Table of Contents Parke Bancorp Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Dollars in thousands) For the Three Months Ended March 31, 2026 2025 Cash Flows from Operating Activities: Net income $ 11,844 $ 7,778 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 113 148 Provision for credit losses 202 590 Increase in value of bank owned life insurance ( 221 ) ( 165 ) Net accretion of purchase premiums and discounts on securities ( 14 ) ( 10 ) Stock based compensation 78 70 Net changes in: (Increase) decrease in accrued interest receivable and other assets ( 1,429 ) 590 Increase (decrease) in accrued interest payable and other accrued liabilities 2,446 ( 2,002 ) Net cash provided by operating activities 13,019 6,999 Cash Flows from Investing Activities: Repayments and maturities of investment securities available for sale 372 380 Repayments and maturities of investment securities held to maturity 35 120 Net increase in loans ( 8,066 ) ( 15,021 ) Purchases of bank premises and equipment ( 69 ) ( 381 ) Redemptions of restricted stock 1,575 3,387 Purchases of restricted stock ( 2,056 ) ( 1,575 ) Net cash used in investing activities ( 8,209 ) ( 13,090 ) Cash Flows from Financing Activities: Cash dividends ( 2,124 ) ( 2,130 ) Proceeds from exercise of stock options 1,250 99 Net increase (decrease) in FHLBNY term borrowings 10,000 ( 40,000 ) Net (decrease) increase in noninterest-bearing deposits ( 32,401 ) 1,311 Net (decrease) increase in interest-bearing deposits ( 27,524 ) 34,320 Net cash used in financing activities ( 50,799 ) ( 6,400 ) Net decrease in cash and cash equivalents ( 45,989 ) ( 12,491 ) Cash and Cash Equivalents, January 1, 156,863 221,527 Cash and Cash Equivalents, March 31, $ 110,874 $ 209,036 Supplemental Disclosure of Cash Flow Information: Interest paid $ 14,733 $ 18,237 Income taxes paid $ 732 $ 210 Non-cash Investing and Financing Items Accrued dividends payable $ 2,116 $ 2,137 See accompanying notes to the unaudited consolidated financial statements 6 Table of Contents Notes to Consolidated Financial Statements (Unaudited) NOTE 1. ORGANIZATION Parke Bancorp, Inc. (the “Company, we, us, our”) is a bank holding company headquartered in Sewell, New Jersey. Through subsidiaries, the Company provides individuals, corporations and other businesses and institutions with commercial and retail banking services, principally loans and deposits. The Company was incorporated in January 2005 under the laws of the State of New Jersey for the sole purpose of becoming the holding company of Parke Bank (the "Bank"). The Bank is a commercial bank, which was incorporated on August 25, 1998, and commenced operations on January 28, 1999. The Bank is chartered by the New Jersey Department of Banking and Insurance and its deposits are insured by the Federal Deposit Insurance Corporation. The Bank maintains its principal office at 601 Delsea Drive, Sewell, New Jersey, and has six additional branch office locations; 501 Tilton Road, Northfield, New Jersey, 567 Egg Harbor Road, Washington Township, New Jersey, 67 East Jimmie Leeds Road, Galloway Township, New Jersey, 1150 Haddon Avenue, Collingswood, New Jersey, 1610 Spruce Street, Philadelphia, Pennsylvania, and 1032 Arch Street, Philadelphia, Pennsylvania. The Bank also has a loan office located at 1817 East Venango Street, Philadelphia, Pennsylvania. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Financial Statement Presentation: We prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Parke Bank (including certain partnership interests). Parke Capital Trust I, Parke Capital Trust II and Parke Capital Trust III are wholly-owned subsidiaries but are not consolidated as they do not meet the requirements for consolidation under applicable accounting guidance. We have eliminated inter-company balances and transactions. We have also reclassified certain prior year amounts to conform to the current year presentation, which did not have a material impact on our consolidated financial condition or results of operations. 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 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 months ended March 31, 2026 are not necessarily indicative of the results for the full year or any other period. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the allowance for credit losses, the valuation of deferred income taxes, and the carrying value of other real estate owned ("OREO"). 7 Table of Contents Segment Reporting: The Company operates one reportable segment of business, "community banking". Through its community banking segment, the Company provides a broad range of retail and community banking services. The accounting policies of the community banking segment are the same as those described in the summary of significant accounting policies. The Company's chief operating decision maker ("CODM") is the President, Chief Executive Officer and Director, who decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets. The following table presents segment profit and significant expenses. Community Banking Segment (Dollars in thousands) For the Three Months Ended March 31, 2026 2025 Total interest income $ 36,940 $ 33,846 Total interest expense 14,808 17,239 Provision for credit losses 202 590 Net interest income after provision for credit losses 21,930 16,017 Total non-interest income 853 821 Total non-interest expense 7,214 6,538 Income before income tax expense 15,569 10,300 Income tax expense 3,725 2,522 Net income attributable to the Company $ 11,844 $ 7,778 Reconciliation of profit or loss Adjustments and reconciling items — — Consolidated net income $ 11,844 $ 7,778 8 Table of Contents NOTE 3. INVESTMENT SECURITIES 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. Gross Gross Amortized unrealized unrealized As of March 31, 2026 cost gains losses Fair value (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 4,139 $ 8 $ 286 $ 3,861 Corporate debt obligations 500 5 — 505 Total available for sale $ 4,639 $ 13 $ 286 $ 4,366 Held to maturity: Residential mortgage-backed securities $ 4,719 $ — $ 974 $ 3,745 States and political subdivisions 4,041 — 424 3,617 Total held to maturity $ 8,760 $ — $ 1,398 $ 7,362 Gross Gross Amortized unrealized unrealized As of December 31, 2025 cost gains losses Fair value (Dollars in thousands) Available for sale: 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: Residential mortgage-backed securities $ 4,753 $ — $ 945 $ 3,808 States and political subdivisions 4,024 — 345 3,679 Total held to maturity $ 8,777 $ — $ 1,290 $ 7,487 9 Table of Contents 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: Amortized Fair Cost Value (Dollars in thousands) Available for sale: Due within one year $ 21 $ 18 Due after one year through five years 1,445 1,353 Due after five years through ten years 1,307 1,250 Due after ten years 1,866 1,745 Total available for sale $ 4,639 $ 4,366 Held to maturity: Due within one year $ 1,571 $ 1,556 Due after one year through five years — — Due after five years through ten years 2,470 2,061 Due after ten years 4,719 3,745 Total held to maturity $ 8,760 $ 7,362 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 months ended March 31, 2026 and 2025 . 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 March 31, 2026 and December 31, 2025 : As of March 31, 2026 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (Dollars in thousand) Available for sale: Residential mortgage-backed securities $ 5 $ — $ 3,519 $ 286 $ 3,524 $ 286 Total available for sale $ 5 $ — $ 3,519 $ 286 $ 3,524 $ 286 As of December 31, 2025 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (Dollars in thousands) Available for sale: Residential mortgage-backed securities $ 46 $ — $ 3,816 $ 279 $ 3,862 $ 279 Total available for sale $ 46 $ — $ 3,816 $ 279 $ 3,862 $ 279 10 Table of Contents On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for a credit loss. An investment security is deemed impaired if the fair value of the investment is less than its amortized cost. Amortized cost includes adjustments (if any) made to the cost basis of an investment for accretion, amortization, and previous other-than-temporary impairments. For individual debt securities classified as available for sale, we determine whether a decline in fair value below the amortized cost has resulted from a credit loss or other factors. If the decline in fair value is due to credit, we will record the portion of the impairment loss relating to credit through an allowance for credit losses. 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 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. The unrealized losses associated with those mortgage-backed securities are generally driven by changes in interest rates and are not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. The Company classifies the held-to-maturity debt securities into the following major security types: residential mortgage backed, and state and political subdivisions. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. 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 March 31, 2026 . NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS 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 (Dollars in thousands) Commercial and Industrial $ 39,817 $ 38,672 Construction 217,805 212,307 Real Estate Mortgage: Commercial – Owner Occupied 184,691 182,529 Commercial – Non-owner Occupied 476,983 478,295 Residential – 1 to 4 Family 430,464 451,463 Residential – 1 to 4 Family Investment 479,098 494,228 Residential – Multifamily 210,577 173,611 Consumer 3,861 4,122 Total Loan receivable 2,043,296 2,035,227 Allowance for credit losses on loans ( 34,921 ) ( 34,649 ) Total loan receivable, net of allowance for credit losses on loans $ 2,008,375 $ 2,000,578 11 Table of Contents An age analysis of past due loans by class at March 31, 2026 and December 31, 2025 is as follows: 30 - 59 60 - 89 Greater Days Past Days Past than 90 Total Total March 31, 2026 Due Due Days Past Due Current Loans (Dollars in Thousands) Commercial and Industrial $ — $ — $ 680 $ 680 $ 39,137 $ 39,817 Construction — — 1,091 1,091 216,714 217,805 Real Estate Mortgage: Commercial – Owner Occupied — — 400 400 184,291 184,691 Commercial – Non-owner Occupied — — 3,163 3,163 473,820 476,983 Residential – 1 to 4 Family 1,989 242 2,494 4,725 425,739 430,464 Residential – 1 to 4 Family Investment 1,507 118 1,437 3,062 476,036 479,098 Residential – Multifamily — — — — 210,577 210,577 Consumer 24 — 141 165 3,696 3,861 Total Loans $ 3,520 $ 360 $ 9,406 $ 13,286 $ 2,030,010 $ 2,043,296 30 - 59 60 - 89 Greater Days Past Days Past than 90 Total Total December 31, 2025 Due Due Days Past Due Current Loans (Dollars in thousands) Commercial and Industrial $ — $ — $ 688 $ 688 $ 37,984 $ 38,672 Construction — — 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 — — — — 173,611 173,611 Consumer — 32 141 173 3,949 4,122 Total Loans $ — $ 3,484 $ 10,793 $ 14,277 $ 2,020,950 $ 2,035,227 12 Table of Contents The following table provides the amortized cost of loans on nonaccrual status: March 31, 2026 Loans Past Due Nonaccrual Nonaccrual Total Over 90 Days Total (amounts in thousands) with no ACL with ACL Nonaccrual Still Accruing Nonperforming Commercial and Industrial $ — $ 680 $ 680 $ — $ 680 Construction 1,091 — 1,091 — 1,091 Commercial - Owner Occupied 400 — 400 — 400 Commercial - Non-owner Occupied 243 2,920 3,163 — 3,163 Residential - 1 to 4 Family 2,296 198 2,494 — 2,494 Residential - 1 to 4 Family Investment 1,437 — 1,437 — 1,437 Residential - Multifamily — — — — — Consumer 141 — 141 — 141 Total $ 5,608 $ 3,798 $ 9,406 $ — $ 9,406 December 31, 2025 Loans Past Due Nonaccrual Nonaccrual Total Over 90 Days Total (amounts in thousands) with no ACL with ACL Nonaccrual Still Accruing Nonperforming Commercial and Industrial $ — $ 688 $ 688 $ — $ 688 Construction 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 141 — 141 — 141 Total $ 7,546 $ 3,247 $ 10,793 $ — $ 10,793 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is recorded in other liabilities and is adjusted through the provision for credit loss expense. 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 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. 13 Table of Contents Allowance for Credit Losses (ACL) 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 Commercial Commercial Residential Commercial Owner Non-owner Residential 1 to 4 Family Residential and Industrial Construction Occupied Occupied 1 to 4 Family Investment Multifamily Consumer Total (Dollars in thousands) Three months ended March 31, 2026 December 31, 2025 $ 1,008 $ 4,032 $ 2,239 $ 9,661 $ 8,205 $ 7,601 $ 1,845 $ 58 $ 34,649 Charge-offs — — — — — — — — — Recoveries 2 — — — — — — — 2 Provisions (benefits) 21 ( 137 ) ( 25 ) ( 436 ) ( 274 ) 526 596 ( 2 ) 269 Ending Balance at March 31, 2026 $ 1,032 $ 3,895 $ 2,214 $ 9,225 $ 7,931 $ 8,127 $ 2,441 $ 56 $ 34,921 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 Commercial Commercial Residential Commercial Owner Non-owner Residential 1 to 4 Family Residential and Industrial Construction Occupied Occupied 1 to 4 Family Investment Multifamily Consumer Total (Dollars in thousands) Three months ended March 31, 2025 December 31, 2024 $ 1,097 $ 3,037 $ 1,871 $ 6,300 $ 9,166 $ 8,832 $ 2,203 $ 67 $ 32,573 Charge-offs — — — — — — — — — Recoveries 1 — — — — — — — 1 Provisions (benefits) ( 50 ) ( 762 ) 599 1,061 ( 352 ) 23 ( 1 ) ( 1 ) 517 Ending Balance at March 31, 2025 $ 1,048 $ 2,275 $ 2,470 $ 7,361 $ 8,814 $ 8,855 $ 2,202 $ 66 $ 33,091 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. 14 Table of Contents Collateral-Dependent Loans The following table presents the collateral-dependent loans by portfolio segment and collateral type at March 31, 2026 : Business (amounts in thousands) Real Estate Assets Other Commercial and Industrial $ 680 $ — $ — Construction 1,091 — — Commercial - Owner Occupied 400 — — Commercial - Non-owner Occupied 3,163 — — Residential - 1 to 4 Family 2,494 — — Residential - 1 to 4 Family Investment 1,437 — — Residential - Multifamily — — — Consumer 141 — — Total $ 9,406 $ — $ — The following table presents the collateral-dependent loans by portfolio segment and collateral type at December 31, 2025 : Business (amounts in thousands) Real Estate Assets Other Commercial and Industrial $ 688 $ — $ — Construction 1,091 — — Commercial - Owner Occupied 400 — — Commercial - Non-owner Occupied 3,668 — — Residential - 1 to 4 Family 2,965 — — Residential - 1 to 4 Family Investment 1,840 — — Residential - Multifamily — — — Consumer 141 — — Total $ 10,793 $ — $ — 15 Table of Contents Credit Quality Indicators : As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to the risk grades of loans, the level of classified loans, net charge-offs, nonperforming loans (see details above) and the general economic conditions in the region. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 7. Grades 1 through 4 are considered “Pass”. A description of the general characteristics of the seven risk grades is as follows: 1. Good : Borrower exhibits the strongest overall financial condition and represents the most creditworthy profile. 2. Satisfactory (A) : Borrower reflects a well-balanced financial condition, demonstrates a high level of creditworthiness and typically will have a strong banking relationship with the Bank. 3. Satisfactory (B) : Borrower exhibits a balanced financial condition and does not expose the Bank to more than a normal or average overall amount of risk. Loans are considered fully collectable. 4. Watch List : Borrower reflects a fair financial condition, but there exists an overall greater than average risk. Risk is deemed acceptable by virtue of increased monitoring and control over borrowings. Probability of timely repayment is present. 5. Other Assets Especially Mentioned (OAEM) : Financial condition is such that assets in this category have a potential weakness or pose unwarranted financial risk to the Bank even though the asset value is not currently individually evaluated. The asset does not currently warrant adverse classification but if not corrected could weaken and could create future increased risk exposure. Includes loans that require an increased degree of monitoring or servicing as a result of internal or external changes. 6. Substandard : This classification represents more severe cases of #5 (OAEM) characteristics that require increased monitoring. Assets are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Assets are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral. Asset has a well-defined weakness or weaknesses that impairs the ability to repay debt and jeopardizes the timely liquidation or realization of the collateral at the asset’s net book value. 7. Doubtful : Assets which have all the weaknesses inherent in those assets classified #6 (Substandard) but the risks are more severe relative to financial deterioration in capital and/or asset value; accounting/evaluation techniques may be questionable and the overall possibility for collection in full is highly improbable. Borrowers in this category require constant monitoring, are considered work-out loans and present the potential for future loss to the Bank. 16 Table of Contents 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 . Revolving Loans at (Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized As of March 31, 2026 2026 2025 2024 2023 2022 Prior Cost Basis Total Commercial and Industrial Pass $ 226 $ 4,929 $ 751 $ 3,109 $ 299 $ 5,242 $ 24,581 $ 39,137 OAEM — — — — — — — — Substandard — — — — 403 — 277 680 Doubtful — — — — — — — — $ 226 $ 4,929 $ 751 $ 3,109 $ 702 $ 5,242 $ 24,858 $ 39,817 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass $ — $ 1,002 $ 324 $ 305 $ 988 $ 194 $ 213,901 $ 216,714 OAEM — — — — — — — — Substandard — — — — — 1,091 — 1,091 Doubtful — — — — — — — — $ — $ 1,002 $ 324 $ 305 $ 988 $ 1,285 $ 213,901 $ 217,805 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial – Owner Occupied Pass $ 6,655 $ 33,535 $ 23,157 $ 29,220 $ 33,828 $ 55,657 $ 2,239 $ 184,291 OAEM — — — — — — — — Substandard — — — — — 400 — 400 Doubtful — — — — — — — — $ 6,655 $ 33,535 $ 23,157 $ 29,220 $ 33,828 $ 56,057 $ 2,239 $ 184,691 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial – Non-owner Occupied Pass $ 6,889 $ 108,733 $ 50,344 $ 13,113 $ 102,107 $ 174,973 $ 4,302 $ 460,461 OAEM — — — — — 2,159 — 2,159 Substandard — — — — 361 14,002 — 14,363 Doubtful — — — — — — — — $ 6,889 $ 108,733 $ 50,344 $ 13,113 $ 102,468 $ 191,134 $ 4,302 $ 476,983 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential – 1 to 4 Family Performing $ 10,225 $ 41,700 $ 42,313 $ 45,814 $ 93,114 $ 189,267 $ 5,537 $ 427,970 Nonperforming — — — 786 731 977 — 2,494 $ 10,225 $ 41,700 $ 42,313 $ 46,600 $ 93,845 $ 190,244 $ 5,537 $ 430,464 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential – 1 to 4 Family Investment Performing $ 4,422 $ 37,623 $ 51,216 $ 67,270 $ 110,450 $ 206,680 $ — $ 477,661 Nonperforming — — — 1,108 — 329 — 1,437 $ 4,422 $ 37,623 $ 51,216 $ 68,378 $ 110,450 $ 207,009 $ — $ 479,098 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential – Multifamily Pass $ 14,804 $ 42,698 $ 13,913 $ 4,786 $ 71,389 $ 62,987 $ — $ 210,577 OAEM — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — $ 14,804 $ 42,698 $ 13,913 $ 4,786 $ 71,389 $ 62,987 $ — $ 210,577 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ — $ 221 $ — $ — $ 3,490 $ 9 $ 3,720 Nonperforming — — — — — 141 — 141 $ — $ — $ 221 $ — $ — $ 3,631 $ 9 $ 3,861 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Loan Receivable $ 43,221 $ 270,220 $ 182,239 $ 165,511 $ 413,670 $ 717,589 $ 250,846 $ 2,043,296 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. 17 Table of Contents 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 . Revolving Loans at (Dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized As of December 31, 2025 2025 2024 2023 2022 2021 Prior Cost Basis Total Commercial and Industrial Pass $ 4,990 $ 879 $ 3,313 $ 305 $ 2 $ 5,778 $ 22,717 $ 37,984 OAEM — — — — — — — — Substandard — — — 411 — — 277 688 Doubtful — — — — — — — — $ 4,990 $ 879 $ 3,313 $ 716 $ 2 $ 5,778 $ 22,994 $ 38,672 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass $ 1,001 $ 325 $ 307 $ 1,396 $ — $ 193 $ 207,994 $ 211,216 OAEM — — — — — — — — Substandard — — — — — 1,091 — 1,091 Doubtful — — — — — — — — $ 1,001 $ 325 $ 307 $ 1,396 $ — $ 1,284 $ 207,994 $ 212,307 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial – Owner Occupied Pass $ 32,560 $ 23,259 $ 32,471 $ 34,016 $ 11,545 $ 46,025 $ 2,253 $ 182,129 OAEM — — — — — — — — Substandard — — — — — 400 — 400 Doubtful — — — — — — — — $ 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 $ 109,092 $ 50,669 $ 14,659 $ 102,688 $ 29,279 $ 150,007 $ 4,794 $ 461,188 OAEM — — — — — 2,176 — 2,176 Substandard — — — 370 — 14,561 — 14,931 Doubtful — — — — — — — — $ 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 $ 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 $ 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 $ 27,456 $ 13,952 $ 4,812 $ 63,789 $ 31,067 $ 32,535 $ — $ 173,611 OAEM — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — $ 27,456 $ 13,952 $ 4,812 $ 63,789 $ 31,067 $ 32,535 $ — $ 173,611 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ 226 $ — $ — $ — $ 3,746 $ 9 $ 3,981 Nonperforming — — — — — 141 — 141 $ — $ 226 $ — $ — $ — $ 3,887 $ 9 $ 4,122 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Loan Receivable $ 273,528 $ 185,172 $ 174,664 $ 414,015 $ 212,130 $ 532,055 $ 243,663 $ 2,035,227 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. 18 Table of Contents NOTE 5. EARNINGS PER SHARE ( “ EPS ” ) 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, 2026 2025 (Dollars in thousands except share and per share data) Basic earnings per common share Net income available to the Company $ 11,844 $ 7,778 Less: Dividend on series B preferred stock ( 5 ) ( 5 ) Net income available to common shareholders 11,839 7,773 Basic weighted-average common shares outstanding 11,706,574 11,836,384 Basic earnings per common share $ 1.01 $ 0.66 Diluted earnings per common share Net income available to common shares $ 11,839 $ 7,773 Add: Dividend on series B preferred stock 5 5 Net income available to diluted common shares 11,844 7,778 Basic weighted-average common shares outstanding 11,706,574 11,836,384 Dilutive potential common shares 197,202 170,581 Diluted weighted-average common shares outstanding 11,903,776 12,006,965 Diluted earnings per common share $ 0.99 $ 0.65 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. NOTE 6. FAIR VALUE Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried at fair value in three levels as follows: Level 1 Input: 1 ) Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs: 1 ) Quoted prices for similar assets or liabilities in active markets. 2 ) Quoted prices for identical or similar assets or liabilities in markets that are not active. 3 ) Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” Level 3 Inputs: 1 ) Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. 2 ) These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. 19 Table of Contents Fair Value on a Recurring Basis: The following is a description of the Company’s valuation methodologies for assets carried at fair value on a recurring basis. These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes that its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting measurement date. Investments in Available for Sale Securities: Where quoted prices are available in an active market, securities or other assets are classified in Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security or available for sale loans, then fair values are provided by independent third -party valuation services. These valuation services estimate fair values using pricing models and other accepted valuation methodologies, such as quotes for similar securities and observable yield curves and spreads. As part of the Company’s overall valuation process, management evaluates these third -party methodologies to ensure that they are representative of exit prices in the Company’s principal markets. Securities in Level 2 are mortgage-backed securities. The table below presents the balances of assets and liabilities measured at fair value on a recurring basis. Financial Assets Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for Sale Securities As of March 31, 2026 Corporate debt obligations $ — $ 505 $ — $ 505 Residential mortgage-backed securities — 3,861 — 3,861 Total $ — $ 4,366 $ — $ 4,366 As of December 31, 2025 Corporate debt obligations $ — $ 500 $ — $ 500 Residential mortgage-backed securities — 4,246 — 4,246 Total $ — $ 4,746 $ — $ 4,746 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: 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 (Dollars in thousands) As of March 31, 2026 Collateral-dependent loans $ — $ — $ 3,087 $ 3,087 OREO — — 2,862 2,862 As of December 31, 2025 Collateral-dependent loans $ — $ — $ 2,672 $ 2,672 OREO — — 2,862 2,862 Collateral-dependent loans are those loans that are accounted for under ASC 326, Financial Instruments - Credit Losses ("ASC 326" ), in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third -party appraisals of the properties that collateralize the loans. If the loan balance exceeds the fair value of the collateral, a specific reserve is applied and these assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. OREO consists of real estate properties that are recorded at fair value based upon current appraised value, or agreements of sale, less estimated disposition costs using level 3 inputs. Properties are reappraised annually. 20 Table of Contents Fair Value of Financial Instruments The Company discloses estimated fair values for its significant financial instruments in accordance with FASB ASC (Topic 825 ), “ Disclosures about Fair Value of Financial Instruments ”. The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. 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 March 31, 2026 and December 31, 2025 : Carrying Fair Value March 31, 2026 Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Investment securities HTM $ 8,760 $ 7,362 $ — $ 7,362 $ — Loans, net 2,008,375 2,020,336 — 2,010,930 9,406 Financial Liabilities: Time deposits $ 623,844 $ 623,928 $ — $ 623,928 $ — Borrowings 153,403 152,276 — 152,276 — Carrying Fair Value December 31, 2025 Amount Total Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Investment securities HTM $ 8,777 $ 7,487 $ — $ 7,487 $ — Loans, net 2,000,578 2,020,810 — 2,010,017 10,793 Financial Liabilities: Time deposits $ 661,833 $ 662,947 $ — $ 662,947 $ — Borrowings 143,403 145,748 — 145,748 — 21 Table of Contents NOTE 7. COMMITMENTS AND CONTINGENCIES The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet. The contract or notional amounts of these instruments reflect the extent of the Company’s involvement in these particular classes of financial instruments. The Company’s exposure to the maximum possible credit risk in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable; inventory; property, plant and equipment and income-producing commercial properties. 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 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 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 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. The Company has also entered in Change-in-Control Severance Agreements with certain officers which provide for the payment of severance in certain circumstances following a change in control. We provide banking services to customers that are licensed by various States to do business in the cannabis industry as growers, processors and dispensaries. Cannabis businesses are legal in these States, although they are not legal at the federal level. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published guidelines in 2014 for financial institutions servicing state legal cannabis businesses. A financial institution that provides services to cannabis-related businesses can comply with Bank Secrecy Act (“BSA”) disclosure standards by following the FinCEN guidelines. We maintain stringent written policies and procedures related to the acceptance of such businesses and to the monitoring and maintenance of such business accounts. We conduct a significant due diligence review of the cannabis business before the business is accepted, including confirmation that the business is properly licensed by the applicable state. Throughout the relationship, we continue monitoring the business, including site visits, to ensure that the business continues to meet our stringent requirements, including maintenance of required licenses and periodic financial reviews of the business. While we believe we are operating in compliance with the FinCEN guidelines, there can be no assurance that federal enforcement guidelines will not change. Federal prosecutors have significant discretion and there can be no assurance that the federal prosecutors will not choose to strictly enforce the federal laws governing cannabis. Any change in the Federal government’s enforcement position, could cause us to immediately cease providing banking services to the cannabis industry. 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. 22 Table of Contents