What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-05 compared with 2026-05-06 · 153 added, 90 removed, 754 unchanged (24% of the section changed)

11 unchanged sentences

Investment securities available for sale, at fair value

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)

Investment securities held to maturity, net of allowance for credit losses of $ 0 at June 30, 2026 and December 31, 2025 (fair value of $ 8,897 at June 30, 2026 and $ 7,487 at December 31, 2025)

Total investment securities

32 unchanged sentences

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 shares outstanding at June 30, 2026 and December 31, 2025

Common stock, $ 0.10 par value;

authorized 15,000,000 shares;

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

12,545,792 shares and 12,425,768 shares at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

4 unchanged sentences

( 203 ) ( 200 )

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

Treasury stock, 784,522 shares at June 30, 2026 and December 31, 2025, at cost

( 13,789 ) ( 13,789 )

9 unchanged sentences

For the Three Months Ended

For the Six Months Ended

Interest income:

36 unchanged sentences

For the Three Months Ended

For the Six Months Ended

Net income attributable to the Company

Unrealized (loss) gain on investment securities

Tax impact on unrealized loss (gain)

Total unrealized (loss) gain on investment securities

$ 12,241 $ 8,283 $ 24,085 $ 16,061

Unrealized gain (loss) on investment securities

— 46 ( 4 ) 116

Tax impact on unrealized gain (loss)

— ( 12 ) 1 ( 30 )

Total unrealized gain (loss) on investment securities

— 34 ( 3 ) 86

Comprehensive income attributable to the Company

$ 12,241 $ 8,317 $ 24,082 $ 16,147

See accompanying notes to the unaudited consolidated financial statements

3 unchanged sentences

(Dollars in thousands except share data)

Three months ended March 31, 2026

Three and Six months ended June 30, 2026

Preferred Stock

3 unchanged sentences

Three Months Ended

Balance, March 31, 2026

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

Net income attributable to the company

— — — — — 12,241 — — 12,241

Common stock options exercised

— — 30,320 3 524 — — — 527

Other comprehensive loss

— — — — — — — — —

Stock compensation expense

— — — — 95 — — — 95

Dividend on preferred stock ($ 15.00 per share)

— — — — — ( 5 ) — — ( 5 )

Dividend on common stock ($ 0.20 per share)

— — — — — ( 2,352 ) — — ( 2,352 )

Balance, June 30, 2026

325 $ 325 12,545,792 $ 1,255 $ 141,206 $ 217,275 $ ( 203 ) $ ( 13,789 ) $ 346,069

Six Months Ended

Balance, December 31, 2025

12 unchanged sentences

— — — — — ( 4,471 ) — — ( 4,471 )

Balance, March 31, 2026

Balance, June 30, 2026

325 $ 325 12,545,792 $ 1,255 $ 141,206 $ 217,275 $ ( 203 ) $ ( 13,789 ) $ 346,069

4 unchanged sentences

(Dollars in thousands except share data)

Three months ended March 31, 2025

Three and Six months ended June 30, 2025

Preferred Stock

3 unchanged sentences

Three Months Ended

Balance, March 31, 2025

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

Net income attributable to the company

— — — — — 8,283 — — 8,283

Other comprehensive income

— — — — — — 34 — 34

Stock compensation expense

— — — — 63 — — — 63

Excise tax payment on stock repurchase

— — — — — — — ( 29 ) ( 29 )

Dividend on preferred stock ($ 15.00 per share)

— — — — — ( 5 ) — — ( 5 )

Dividend on common stock ($ 0.18 per share)

— — — — — ( 2,132 ) — — ( 2,132 )

Balance, June 30, 2025

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

Six Months Ended

Balance, December 31, 2024

4 unchanged sentences

— — 14,361 2 97 — — — 99

Excise tax payment on stock repurchase

— — — — — — — ( 29 ) ( 29 )

Other comprehensive income

6 unchanged sentences

— — — — — ( 4,257 ) — — ( 4,257 )

Balance, March 31, 2025

Balance, June 30, 2025

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

4 unchanged sentences

(Dollars in thousands)

For the Three Months Ended

For the Six Months Ended

Cash Flows from Operating Activities:

$ 11,844 $ 7,778

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

2 unchanged sentences

Increase in value of bank owned life insurance

( 221 ) ( 165 )

Net accretion of purchase premiums and discounts on securities

( 14 ) ( 10 )

Stock based compensation

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 )

Increase in accrued interest receivable and other assets

Decrease in accrued interest payable and other accrued liabilities

Net cash provided by operating activities

2 unchanged sentences

Repayments and maturities of investment securities held to maturity

Purchase of investment securities

Net increase in loans

( 8,066 ) ( 15,021 )

Purchases of bank premises and equipment

( 69 ) ( 381 )

Redemptions of restricted stock

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

Excise tax payment on purchase of treasury stock

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 increase in interest-bearing deposits

Net cash used in financing activities

( 50,799 ) ( 6,400 )

Net decrease in cash and cash equivalents

( 45,989 ) ( 12,491 )

Net increase (decrease) in cash and cash equivalents

Cash and Cash Equivalents, January 1,

156,863 221,527

Cash and Cash Equivalents, March 31,

$ 110,874 $ 209,036

Cash and Cash Equivalents, June 30,

Supplemental Disclosure of Cash Flow Information:

Interest paid

$ 14,733 $ 18,237

Income taxes paid

Non-cash Investing and Financing Items

Loans transferred to OREO

Accrued dividends payable

$ 2,116 $ 2,137

See accompanying notes to the unaudited consolidated financial statements

17 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 months ended March 31, 2026 and 2025 are unaudited.

The accompanying interim financial statements for the three and six months ended June 30, 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.

Results of operations for the three and six months ended June 30, 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 March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Total interest income

3 unchanged sentences

Provision for credit losses

676 984 878 1,574

Net interest income after provision for credit losses

1 unchanged sentence

Total non-interest income

877 816 1,731 1,637

Total non-interest expense

6,921 6,680 14,136 13,218

Income before income tax expense

1 unchanged sentence

Income tax expense

4,048 2,740 7,773 5,262

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 March 31, 2026 and December 31, 2025 .

The following is a summary of the Company's investments in available for sale and held to maturity securities as of June 30, 2026 and December 31, 2025 .

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

As of March 31, 2026

As of June 30, 2026

(Dollars in thousands)

27 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 March 31, 2026 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 June 30, 2026 are as follows:

(Dollars in thousands)

15 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 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

The Company did not sell any securities during the three and six months ended June 30, 2026 and 2025 .

As of June 30, 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 12 securities in the 12 months or greater loss position at March 31, 2026 .

The Company’s unrealized loss for the debt securities classified as available for sale is comprised of 5 securities in the less than 12 months loss position and 12 securities in the 12 months or greater loss position at June 30, 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 March 31, 2026 .

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

At June 30, 2026 and December 31, 2025 , the Company had $ 2.03 billion and $ 2.04 billion, respectively, in loans receivable outstanding.

Outstanding balances include $ 0.20 million and $ 0.03 million at June 30, 2026 and December 31, 2025 , respectively, for net deferred loan costs, and unamortized discounts.

The portfolio segments of loans receivable at June 30, 2026 and December 31, 2025 , consist of the following:

June 30, 2026

December 31, 2025

20 unchanged sentences

$ 1,996,737 $ 2,000,578

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

March 31, 2026

An age analysis of past due loans by class at June 30, 2026 and December 31, 2025 is as follows:

June 30, 2026

(Dollars in Thousands)

34 unchanged sentences

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

March 31, 2026

June 30, 2026

Loans Past Due

39 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 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.

At June 30, 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 $ 262.0 million and $ 189.8 million, respectively.

During the three and six months ended June 30, 2026 and 2025 , we recorded a recovery for credit losses of zero and $ 66.8 thousand, and a provision for credit losses on off balance sheet exposures of $ 306.0 thousand and $ 439.0 thousand, respectively.

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 :

The following tables present the information regarding the allowance for credit losses for the three and six months ended June 30, 2026 and 2025 :

Real Estate Mortgage

3 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2026

Three months ended June 30, 2026

March 31, 2026

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

— — — ( 979 ) — — — — ( 979 )

6 — — — — — — — 6

Provisions (benefits)

( 48 ) 290 417 ( 18 ) ( 255 ) ( 200 ) 490 — 676

Ending Balance at June 30, 2026

$ 990 $ 4,185 $ 2,631 $ 8,228 $ 7,676 $ 7,927 $ 2,931 $ 56 $ 34,624

Six months ended June 30, 2026

December 31, 2025

4 unchanged sentences

( 26 ) 153 392 ( 454 ) ( 529 ) 326 1,086 ( 2 ) 946

Ending Balance at March 31, 2026

Ending Balance at June 30, 2026

$ 990 $ 4,185 $ 2,631 $ 8,228 $ 7,676 $ 7,927 $ 2,931 $ 56 $ 34,624

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.

For the three months ended June 30, 2026, the increase to the Commercial Owner Occupied segment was due to an increase in the qualitative factors due to an increase in the concentration level of the segment.

The increase in the Residential Multi-family segment was due to an increase in the portfolio balance that increased the loan exposure and also caused changes to the qualitative factors within the portfolio segment.

The provision benefit to the Residential 1 to 4 Family, and the Residential 1 to 4 Family Investment portfolios, was due to a decrease in the portfolios' balance.

The increase in charge-offs for the Commercial Non-owner Occupied segment was primarily attributed to one, distressed office building, which was repossessed and transferred to Other Real Estate Owned.

For the six months ended June 30, 2026 , the increase to the Commercial Owner-Occupied segment was due to an increase in the qualitative factors due to an increase in the concentration level of the segment, as well as an increase in the qualitative factors related to increased risk in the economy due to an increase in interest rates, and a decrease in GDP experienced during 2026.

The increase in the Residential 1 to 4 Family Investment segment was due to the aforementioned increase in the economic qualitative factor, partially offset by a decrease in the portfolio balance.

The increase in the Residential Multifamily segment is due to the increase in the portfolio balance, and the aforementioned increase in the economic qualitative factor.

The provision benefit during the six months ended June 30, 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, partially offset by the aforementioned increase in the economic qualitative factor.

The provision benefit to the Residential 1 to 4 Family segment is due to a decrease in the portfolio's balance, partially offset by the aforementioned increase in the economic qualitative factor.

Real Estate Mortgage

3 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2025

Three months ended June 30, 2025

March 31, 2025

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

— — — — — — — — —

1 — — — — — — — 1

Provisions (benefits)

( 58 ) 847 ( 432 ) 1,199 ( 443 ) ( 362 ) ( 61 ) ( 12 ) 678

Ending Balance at June 30, 2025

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

Six months ended June 30, 2025

December 31, 2024

4 unchanged sentences

( 108 ) 85 167 2,260 ( 795 ) ( 339 ) ( 62 ) ( 13 ) 1,195

Ending Balance at March 31, 2025

Ending Balance at June 30, 2025

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

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.

During the three months ended June 30, 2025, the increase to the Commercial Non-Owner Occupied, and the Construction portfolios' was due to an increase in the portfolios' 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 Commercial Owner Occupied, Residential 1 to 4 Family, and Residential 1 to 4 Family Investment 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 six months ended June 30, 2025, the increase to the Commercial Non-Owner Occupied portfolio 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 segment.

The provision benefit during the six months ended June 30, 2025 to the Residential 1 to 4 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.

Collateral-Dependent Loans

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

The following table presents the collateral-dependent loans by portfolio segment and collateral type at June 30, 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 March 31, 2026 .

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 June 30, 2026 .

(Dollars in thousands)

Term Loans Amortized Cost Basis by Origination Year

As of March 31, 2026

As of June 30, 2026

Commercial and Industrial

59 unchanged sentences

$ 89,961 $ 289,582 $ 178,087 $ 158,974 $ 384,430 $ 677,472 $ 252,855 $ 2,031,361

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.

As of June 30, 2026 , the Company was in the process of foreclosing on 13 residential 1 to 4 family loans with a principal balance of $ 3.3 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 March 31, 2026 and 2025 , the Company did not make any modifications to borrowers experiencing financial difficulty.

During the periods ended June 30, 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 months ended March 31, 2026 and 2025 .

Three months ended March 31,

The following tables set forth the calculation of basic and diluted EPS for the three and six months ended June 30, 2026 and 2025 .

Three months ended June 30,

Six months ended June 30,

(Dollars in thousands except share and per share data)

Basic earnings per common share

2 unchanged sentences

Dividend on series B preferred stock

( 5 ) ( 5 ) ( 10 ) ( 10 )

Net income available to common shareholders

12,236 8,278 24,075 16,051

Basic weighted-average common shares outstanding

7 unchanged sentences

Net income available to diluted common shares

12,241 8,283 24,085 16,061

Basic weighted-average common shares outstanding

6 unchanged sentences

$ 1.03 $ 0.69 $ 2.02 $ 1.34

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.

During the six months ended June 30, 2026 and 2025, there were 0 and 322,755 weighted average options outstanding, respectively, that were not included in the computation of diluted EPS because these options were anti-dilutive.

Fair Value Measurements

26 unchanged sentences

Available for Sale Securities

As of March 31, 2026

As of June 30, 2026

Corporate debt obligations

9 unchanged sentences

$ — $ 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 .

For the six months ended June 30, 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 and six months ended June 30, 2026 and 2025 .

Fair Value on a Non-recurring Basis:

2 unchanged sentences

(Dollars in thousands)

As of March 31, 2026

As of June 30, 2026

Collateral-dependent loans

6 unchanged sentences

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.

Fair value is generally determined based upon independent third -party appraisals of the properties that collateralize the loans to determine the net realizable value, less costs to sell (a range of 5% to 10% ) and other costs, such as unpaid real estate taxes, that have been identified.

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.

6 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 March 31, 2026 and December 31, 2025 :

March 31, 2026

The following table summarizes the carrying amounts and fair values for financial instruments that are not carried at fair value at June 30, 2026 and December 31, 2025 :

June 30, 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 March 31, 2026 .

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

As of June 30, 2026 and December 31, 2025 , unused commitments to extend credit amounted to approximately $ 262.0 million and $ 189.8 million, respectively.

At June 30, 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.

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 .

As of June 30, 2026 and December 31, 2025 , standby letters of credit with customers were $ 0.6 million, and $ 0.6 million, respectively.

On June 29, 2026, the Bank entered into an agreement with the FHLBNY for a Municipal Letter of Credit ("MLOC") of $ 110.0 million.

The MLOC is used to pledge against public deposits and the MLOC expires on July 23, 2026.

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

At June 30, 2026 and December 31, 2025 , deposit balances from cannabis customers were approximately $ 61.1 million and $ 61.9 million, or 3.5 % and 3.5 % of total deposits, respectively, with two customers accounting for 27.1 % and 30.7 % of the total at June 30, 2026 and December 31, 2025 .

At June 30, 2026 and December 31, 2025 , there were cannabis-related loans in the amounts of $ 50.9 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