Pioneer Bancorp, Inc./MD

Previous wording

Additional factors that may affect our results are discussed in the transition report on Form 10-KT for the six months ended December 31, 2024, under the heading “Risk Factors” and this Form 10-Q, under the heading “Risk Factors.” The Company disclaims any obligation to revise or update any forward-looking statements contained in this quarterly report on Form 10-Q to reflect future events or developments, except as required by applicable law.

Current wording

Additional factors that may affect our results are discussed in the annual report on Form 10-K for the year ended December 31, 2025, under the heading “Risk Factors” and this Form 10-Q, under the heading “Risk Factors.” The Company disclaims any obligation to revise or update any forward-looking statements contained in this quarterly report on Form 10-Q to reflect future events or developments, except as required by applicable law.

Previous wording

Provision for Credit Losses. We charge provisions for credit losses to operations in order to maintain our allowance for credit losses on loans, securities held to maturity and unfunded commitments at a level that is considered reasonable and necessary to absorb expected credit losses inherent in the loan portfolio and securities held to maturity portfolio, as well as expected losses on commitments to grant loans that are expected to be advanced at the statements of

Current wording

Provision for Credit Losses. We charge provisions for credit losses to operations in order to maintain our allowance for credit losses on loans, securities held to maturity and unfunded commitments at a level that is considered reasonable and necessary to absorb expected credit losses inherent in the loan portfolio and securities held to maturity portfolio, as well as expected losses on commitments to grant loans that are expected to be advanced at the statements of condition date. Loans are charged against the allowance when management believes that the collectability of the principal loan amount is not probable. Recoveries on loans previously charged-off, if any, are credited to the allowance for credit losses when realized.

Previous wording

Non-interest Income. Our primary sources of non-interest income are banking fees and service charges, insurance and wealth management services income, other gains and losses, and miscellaneous income.

Current wording

Non-interest Income. Our primary sources of non-interest income are banking fees and service charges, and insurance and wealth management services income. Our non-interest income also includes net gains or losses on trading securities, other gains and losses, and miscellaneous income.

Previous wording

Non-Interest Expense. Our non-interest expenses consist of salaries and employee benefits, net occupancy and equipment, data processing, advertising and marketing, insurance premiums, federal deposit insurance premiums, professional fees, and other general and administrative expenses.

Current wording

Non-Interest Expense. Our non-interest expense consist of salaries and employee benefits, net occupancy and equipment, data processing, advertising and marketing, insurance premiums, federal deposit insurance premiums, professional fees, and other general and administrative expenses.

Previous wording

Other general and administrative expenses include expenses for office supplies, postage, telephone, insurance, litigation-related expense, includes expenses related to legal proceedings, and other miscellaneous operating expenses.

Current wording

Other general and administrative expenses include expenses for office supplies, postage, telephone, insurance, litigation-related expense, which includes expenses related to legal proceedings, and other miscellaneous operating expenses.

Previous wording

Income Tax Expense. Our income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between the carrying amounts and the tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realized.

Current wording

Income Tax Expense. Our income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between the carrying amounts and the tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realize.

Previous wording

Allowance for Credit Losses. The allowance for credit losses consists of the allowance for credit losses on loans, securities held to maturity and unfunded commitments. The measurement of Current Expected Credit Losses (“CECL”) on financial instruments requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, macroeconomic variables (e.g., civilian unemployment and U.S. gross domestic product (“GDP”)), and reasonable and supportable forecasts from the Federal Open Market Committee (“FOMC”) that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the estimated fair value of the collateral, as applicable. The allowance for credit losses on loans and securities held to maturity, as reported in our consolidated statements of condition, are adjusted by a provision for credit losses, which is recognized in earnings, and reduced by the charge-offs, net of recoveries. The allowance for credit losses on unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The allowance for credit losses on unfunded

Current wording

Allowance for Credit Losses. The allowance for credit losses consists of the allowance for credit losses on loans, securities held to maturity and unfunded commitments. The measurement of Current Expected Credit Losses (“CECL”) on financial instruments requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, macroeconomic variables (e.g., civilian unemployment and U.S. gross domestic product (“GDP”)), and reasonable and supportable forecasts from the Federal Open Market Committee (“FOMC”) that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the estimated fair value of the collateral, as applicable. The allowance for credit losses on loans and securities held to maturity, as reported in our consolidated statements of condition, are adjusted by a provision for credit losses, which is recognized in earnings, and reduced by the charge-offs, net of recoveries. The allowance for credit losses on unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws and is included in other liabilities on the Company’s consolidated statements of condition.

Previous wording

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain, including making significant estimates of current credit risks and trends using existing quantitative and qualitative information, and reasonable and supportable forecasts of future economic conditions, which may undergo frequent and material changes. Subsequent evaluations of the then-existing loan portfolios, in light of changes in economic conditions, new information regarding existing loans and other factors, may result in significant changes in the allowance for credit losses in those future periods. For example, changes to the FOMC’s forecasted civilian unemployment rate and year-over-year U.S. GDP growth could have a material impact on the model’s estimation of the allowance for credit losses on loans. An immediate increase of 100 basis points in the FOMC’s projected rate of civilian unemployment and a decrease of 100 basis points in the FOMC’s projected rate of U.S. GDP growth would increase the model’s total calculated allowance for credit losses on loans by $1.4 million, or 5.7%, as of September 30, 2025 assuming qualitative adjustments are kept at current levels. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Additionally, changes in those factors and inputs may not occur at the same rate and inputs may be directionally inconsistent, such that improvements in one factor may offset deterioration in others. Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings.

Current wording

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain, including making significant estimates of current credit risks and trends using existing quantitative and qualitative information, and reasonable and supportable forecasts of future economic conditions, which may undergo frequent and material changes. Subsequent evaluations of the then-existing loan portfolios, in light of changes in economic conditions, new information regarding existing loans and other factors, may result in significant changes in the allowance for credit losses in those future periods. For example, changes to the FOMC’s forecasted civilian unemployment rate and year-over-year U.S. GDP growth could have a material impact on the model’s estimation of the allowance for credit losses on loans. An immediate increase of 100 basis points in the FOMC’s projected rate of civilian unemployment and a decrease of 100 basis points in the FOMC’s projected rate of U.S. GDP growth would increase the model’s total calculated

Previous wording

Legal Proceedings and Other Contingent Liabilities. In the ordinary course of business, we are involved in a number of legal, regulatory, governmental and other proceedings, claims or investigations that could result in losses, including damages, fines and/or civil penalties, which could be significant concerning matters arising from the conduct of our business. In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek large or indeterminate damages, we generally cannot predict the eventual outcome of the pending matters, timing of the ultimate resolution of these matters, or eventual loss, fines or penalties related to each pending matter. In accordance with applicable accounting guidance, we establish an accrued liability when those matters present loss contingencies that are both probable and estimable. Our estimate of potential losses will change over time and the actual losses may exceed these estimates, and there may be an exposure to loss in excess of any amounts accrued. As a matter develops, management, in conjunction with any outside counsel handling the matter, evaluate on an ongoing basis whether such matter presents a loss contingency that is probable and estimable; or where a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, whether it is possible to estimate a range of possible loss. Once the loss contingency is deemed to be both probable and estimable, we establish an accrued liability and record a corresponding amount of litigation-related expense. We continue to monitor the matters for further developments, including our interactions with various regulatory agencies with supervisory authority over us, that could affect the amount of the accrued liability that has been previously established. These estimates are based upon currently available information and are subject to significant judgment, a variety of assumptions and known and unknown uncertainties. The matters underlying the accrued liability and estimated range of possible losses are unpredictable and may change from time to time, and actual losses may vary significantly from the current estimate and accrual which could have a material negative effect on our financial results. The estimated range of possible loss does not represent our maximum loss exposure.

Current wording

Legal Proceedings and Other Contingent Liabilities. In the ordinary course of business, we are involved in a number of legal, regulatory, governmental and other proceedings, claims or investigations that could result in losses, including damages, fines and/or civil penalties, which could be significant concerning matters arising from the conduct of our business. In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek large or indeterminate damages, we generally cannot predict the eventual outcome of the pending matters, timing of the ultimate resolution of these matters, or eventual loss, fines or penalties related to each pending matter. In accordance with applicable accounting guidance, we establish an accrued liability when those matters present loss contingencies that are both probable and estimable. Our estimate of potential losses will change over time and the actual losses may exceed these estimates, and there may be an exposure to loss in excess of any amounts accrued. As a matter develops, management, in conjunction with any outside counsel handling the matter, evaluate on an ongoing basis whether such matter presents a loss contingency that is probable and estimable; or where a loss is reasonably possible, whether in excess of a related accrued liability or where there is no accrued liability, whether it is possible to estimate a range of possible loss. Once the loss contingency is deemed to be both probable and estimable, we establish an accrued liability and record a corresponding amount of litigation-related expense. We continue to monitor the matters for further developments, including our interactions with various regulatory agencies with supervisory authority over us, that could affect the amount of the accrued liability that has been previously established and make adjustments upward or downward, as appropriate. These estimates are based upon currently available information and are subject to significant judgment, a variety of assumptions and known and unknown uncertainties. The matters underlying the accrued liability and estimated range of possible losses are unpredictable and may change from time to time, and actual losses may vary significantly from the current estimate and accrual which could have a material negative effect on our financial results. The estimated range of possible loss does not represent our maximum loss exposure.

Previous wording

The following tables set forth average balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.

Current wording

The following table sets forth average balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable.

Previous wording

Total Assets. Total assets of $2.24 billion at September 30, 2025 increased $263.6 million, or 13.3%, from $1.98 billion at December 31, 2024. The increase was due primarily to an increase of $179.4 million, or 12.5%, in net loans receivable and an increase of $132.1 million, or 136.8%, in cash and cash equivalents, offset in part by a decrease of $67.0 million, or 20.8%, in securities available for sale.

Current wording

Total Assets. Total assets of $2.22 billion at March 31, 2026 increased $70.3 million, or 3.3%, from $2.15 billion at December 31, 2025. The increase was due primarily to an increase of $54.7 million, or 3.3%, in net loans receivable and an increase of $23.2 million, or 17.4%, in cash and cash equivalents, offset in part by a decrease of $19.5 million, or 8.9%, in securities available for sale.

Previous wording

Cash and Cash Equivalents. Total cash and cash equivalents of $228.6 million at September 30, 2025, increased $132.1 million, or 136.8%, from $96.5 million at December 31, 2024.

Current wording

Cash and Cash Equivalents. Total cash and cash equivalents of $156.9 million at March 31, 2026, increased $23.2 million, or 17.4%, from $133.7 million at December 31, 2025.

Previous wording

Securities Available for Sale. Total securities available for sale of $254.5 million at September 30, 2025 decreased $67.0 million, or 20.8%, from $321.5 million at December 31, 2024. The decrease was primarily due to maturities, paydowns and calls of $176.7 million, offset in part by purchases of $102.0 million of securities during the nine months ended September 30, 2025.

Current wording

Securities Available for Sale. Total securities available for sale of $200.9 million at March 31, 2026 decreased $19.5 million, or 8.9%, from $220.4 million at December 31, 2025. The decrease was primarily due to maturities, paydowns and calls of $26.1 million, offset in part by purchases of $7.0 million of securities during the three months ended March 31, 2026.

Previous wording

Securities Held to Maturity. Total securities held to maturity of $43.9 million at September 30, 2025 increased $18.5 million, or 72.8%, from $25.4 million at December 31, 2024. The increase was primarily due to purchases of $24.4 million, offset in part by maturities, paydowns and calls of $5.7 million during the nine months ended September 30, 2025.

Current wording

Securities Held to Maturity. Total securities held to maturity of $44.4 million at March 31, 2026 increased $2.9 million, or 6.9%, from $41.5 million at December 31, 2025. The increase was primarily due to purchases of $3.0 million during the three months ended March 31, 2026.

Previous wording

Net Loans Receivable. Net loans receivable of $1.61 billion at September 30, 2025 increased $179.4 million, or 12.5%, from $1.43 billion at December 31, 2024. The increase in net loans receivable was primarily a result of growth in the residential mortgage loan portfolio which increased by $74.1 million, or 10.7%, to $763.7 million at September 30, 2025 from $689.6 million at December 31, 2024. Commercial real estate loans increased by $55.0 million, or 13.2%, to $469.8 million at September 30, 2025 from $414.8 million at December 31, 2024, commercial construction loans increased by $32.5 million, or 24.8%, to $163.5 million at September 30, 2025 from $131.0 million at December 31, 2024, commercial and industrial loans increased by $16.8 million, or 15.5%, to $125.3 million at September 30, 2025 from $108.5 million at December 31, 2024, home equity loans and lines of credit increased by $2.7 million, or 2.8%, to $97.6

Current wording

Net Loans Receivable. Net loans receivable of $1.70 billion at March 31, 2026 increased $54.7 million, or 3.3%, from $1.65 billion at December 31, 2025. The increase in net loans receivable was primarily a result of growth in the commercial construction loan portfolio which increased by $31.7 million, 18.6%, to $201.4 million at March 31, 2026 from $169.7 million at December 31, 2025. The residential mortgage loan portfolio increased by $27.1 million, or 3.4%, to $820.8 million at March 31, 2026 from $793.7 million at December 31, 2025 and commercial and industrial loans

Previous wording

The increase in residential mortgage loans was primarily related to the Bank’s relationship with a third-party mortgage banking company which facilitated an increase in residential mortgage loan volume, despite the higher interest rate environment. The increase in commercial real estate loans and commercial and industrial loans was due to loan funding outpacing loan payoffs. The increase in commercial construction loans was due to funding of increased construction commitments. The increase in consumer loans was due to the purchase of $5.0 million in unsecured consumer loans during the nine months ended September 30, 2025.

Current wording

The increase in commercial construction loans was due to funding of increased construction commitments. The increase in residential mortgage loans was primarily related to the Bank’s relationship with a third-party mortgage banking company which facilitated an increase in residential mortgage loan volume, despite the higher interest rate environment. The increase in commercial and industrial loans was due to loan funding outpacing loan payoffs. The decrease in commercial real estate loans was due to loan payoffs outpacing loan funding.

Previous wording

Deposits. Deposits of $1.90 billion at September 30, 2025 increased $308.8 million, or 19.5%, from $1.59 billion at December 31, 2024. By deposit category, non-interest-bearing demand accounts increased by $115.7 million, or 25.5%, to $570.0 million at September 30, 2025 from $454.3 million at December 31, 2024, certificates of deposit increased by $108.0 million, or 61.8%, to $282.8 million at September 30, 2025 from $174.8 million at December 31, 2024 (included in certificates of deposit were brokered deposits which increased by $89.8 million to $129.8 million at September 30, 2025 from $40.0 million at December 31, 2024), money market accounts increased by $90.9 million, or 16.3%, to $649.4 million at September 30, 2025 from $558.5 million at December 31, 2024, demand accounts increased by $2.7 million, or 1.9%, to $141.1 million at September 30, 2025 from $138.4 million at December 31, 2024, offset in part by a decrease in savings accounts of $8.5 million, or 3.2%, to $251.7 million at September 30, 2025 from $260.2 million at December 31, 2024.

Current wording

Deposits. Deposits of $1.85 billion at March 31, 2026 increased $113.1 million, or 6.5%, from $1.74 billion at December 31, 2025. By deposit category, money market accounts increased by $86.7 million, or 13.7%, to $720.2 million at March 31, 2026 from $633.5 million at December 31, 2025, interest-bearing demand accounts increased by $34.1 million, or 26.2%, to $164.5 million at March 31, 2026 from $130.4 million at December 31, 2025, and non-interest-bearing demand accounts increased by $21.9 million, or 4.8%, to $478.0 million at March 31, 2026 from $456.1 million at December 31, 2025, offset in part by a decrease in certificates of deposit by $29.5 million, or 10.9%, to $240.0 million at March 31, 2026 from $269.5 million at December 31, 2025 (included in certificates of deposit were brokered deposits which decreased by $43.3 million to $66.9 million at March 31, 2026 from $110.2 million at December 31, 2025).

Previous wording

The increase in non-interest-bearing demand accounts was primarily related to growth in municipal deposits due to seasonality andgrowth in commercial deposits. The increase in certificates of deposit was primarily due to an increase in brokered deposits, and by a migration of funds from non-interest bearing demand, savings and other lower rate interest-bearing accounts. The increase in money market accounts was primarily due to a migration of funds from non-interest

Current wording

The increase in money market accounts was primarily due to growth in municipal deposits due to seasonality and due to a migration of funds from savings and other lower rate interest-bearing accounts. The increase in non-interest bearing demand accounts and demand accounts was primarily due to growth in municipal deposits due to seasonality. The decrease in certificates of deposit was primarily due to a decrease in brokered deposits.

Previous wording

Uninsured deposits after exclusions represented 14.5% and 12.9% of total deposits as of September 30, 2025 and December 31, 2024, respectively. The Company believes that this presentation of uninsured deposits provides a more accurate view of deposits at risk as affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.

Current wording

Uninsured deposits after exclusions represented 14.4% and 16.6% of total deposits as of March 31, 2026 and December 31, 2025, respectively. The Company believes that this presentation of uninsured deposits provides a more accurate view of deposits at risk as affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit.

Previous wording

Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were no borrowings from FHLBNY at September 30, 2025, compared to $40.0 million at December 31, 2024. The decrease in borrowings from FHLBNY was due to the payoff of the borrowings during the nine months ended September 30, 2025.

Current wording

Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were no borrowings from FHLBNY at March 31, 2026, compared to $50.0 million at December 31, 2025. The decrease in borrowings from FHLBNY was due to the payoff of the borrowings during the three months ended March 31, 2026.

Previous wording

Total Shareholders’ Equity. Total shareholders’ equity of $314.2 million at September 30, 2025 increased $9.6 million, or 3.2%, from $304.6 million at December 31, 2024 primarily as a result of net income of $16.5 million and an increase in accumulated other comprehensive income of $2.7 million, partially offset by the repurchase of common stock of $10.9 million during the nine months ended September 30, 2025.

Current wording

Total Shareholders’ Equity. Total shareholders’ equity of $328.6 million at March 31, 2026 increased $4.7 million, or 1.5%, from $323.9 million at December 31, 2025 primarily as a result of net income of $5.3 million offset in part by a decrease in accumulated other comprehensive income of $1.2 million.

Previous wording

General. Net income decreased by $2.0 million to $4.3 million for the three months ended September 30, 2025 as compared to $6.3 million for the three months ended September 30, 2024. The decrease was primarily due to an increase in non-interest expense of $2.9 million, an increase in the provision for credit losses of $1.7 million, and a decrease in non-interest income of $303,000, offset in part by an increase in net interest income of $2.3 million and by a decrease in income tax expense of $609,000.

Current wording

General. Net income decreased by $473,000 to $5.3 million for the three months ended March 31, 2026 as compared to $5.8 million for the three months ended March 31, 2025. The decrease was primarily due to an increase in non-interest expense of $3.5 million, partially offset by an increase in net interest income of $1.7 million and a decrease in income tax expense of $1.2 million.

Previous wording

Interest and Dividend Income. Interest and dividend income increased $3.9 million, or 16.0%, to $28.3 million for the three months ended September 30, 2025, from $24.4 million for the three months ended September 30, 2024 due to increases in interest income on loans and interest income on securities, offset in part by a decrease in interest income on interest-earning deposits with banks and other. The increase was the result of a 22 basis points increase in the average yield on interest-earning assets to 5.86% for the three months ended September 30, 2025, from 5.64% for the three months ended September 30, 2024. The increase in the average yield on interest-earning assets was driven by market related increases in interest rates on new loans and on investment securities purchased. Average interest-earning assets increased

Current wording

Interest and Dividend Income. Interest and dividend income increased $2.6 million, or 9.8%, to $28.4 million for the three months ended March 31, 2026, from $25.8 million for the three months ended March 31, 2025. The increase was the result of a 16 basis points increase in the average yield on interest-earning assets to 5.78% for the three months ended March 31, 2026, from 5.62% for the three months ended March 31, 2025. The increase in the average yield on interest-earning assets was driven by market related increases in interest rates on new loans and on investment securities purchased. Average interest-earning assets increased by $127.2 million from $1.91 billion for the three months ended March 31, 2025 to $2.03 billion for the three months ended March 31, 2026 primarily due to the increase in the average balance of loans.

Previous wording

Interest income on loans increased $3.0 million, or 14.0%, to $23.9 million for the three months ended September 30, 2025 from $20.9 million for the three months ended September 30, 2024. Interest income on loans increased due to a $207.7 million increase in the average balance of loans to $1.59 billion for the three months ended September 30, 2025 from $1.38 billion for the three months ended September 30, 2024, offset in part by a six basis points decrease in the average yield on loans to 6.10% for the three months ended September 30, 2025 from 6.16% for the three months ended September 30, 2024. The increase in the average balance of loans was principally due to purchases of residential mortgage loans and increased originations of commercial real estate loans, commercial construction loans, and commercial and industrial loans. The decrease in average yield on loans was primarily dueto loans tied to variable short-term rates which decreased as compared to the same period in the prior year and market related decreases in interest rates on new loans as compared to the same period in the prior year.

Current wording

6.05% for the three months ended March 31, 2026 from 5.98% for the three months ended March 31, 2025. The increase in the average balance of loans was principally due to purchases of residential mortgage loans and increased originations of commercial construction loans. The increase in average yield on loans was primarily dueto market related increases in interest rates on new loans.

Previous wording

Interest income on securities increased $1.6 million, or 75.1%, to $3.8 million for the three months ended September 30, 2025 from $2.2 million for the three months ended September 30, 2024. Interest income on securities increased due to a $34.8 million increase in the average balance of securities to $315.6 million for the three months ended September 30, 2025 from $280.8 million for the three months ended September 30, 2024, and a 176 basis points increase in the average yield on securities to 4.85% for the three months ended September 30, 2025 from 3.09% for the three months ended September 30, 2024. The increase in the average balance and average yield of securities was primarily due to the purchases of new securities during the nine months ended September 30, 2025 and the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.

Current wording

Interest income on securities decreased $773,000, or 20.5%, to $3.0 million for the three months ended March 31, 2026 from $3.8 million for the three months ended March 31, 2025. Interest income on securities decreased due to a $102.4 million decrease in the average balance of securities to $254.8 million for the three months ended March 31, 2026 from $357.2 million for the three months ended March 31, 2025, partially offset by a 51 basis points increase in the average yield on securities to 4.87% for the three months ended March 31, 2026 from 4.36% for the three months ended March 31, 2025. The decrease in the average balance of securities was due to the maturities of U.S. government and agency and municipal obligation securities, outpacing purchases during the three months ended March 31, 2026. The increase in the average yield of securities was primarily due to the higher market interest rates for new securities that were purchased replacing maturities of lower yielding securities.

Previous wording

Interest Expense. Interest expense increased $1.6 million, or 24.7%, to $8.1 million for the three months ended September 30, 2025 from $6.5 million for the three months ended September 30, 2024 primarily as a result of an increase in interest expense on deposits and borrowings and other liablities. The increase was primarily due to a 16 basis points increase in the average cost of interest-bearing liabilities to 2.51% for the three months ended September 30, 2025 from 2.35% for the three months ended September 30, 2024, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.

Current wording

Interest Expense. Interest expense increased $860,000, or 12.7%, to $7.6 million for the three months ended March 31, 2026 from $6.8 million for the three months ended March 31, 2025, primarily as a result of an increase in interest expense on deposits. The increase was primarily due to a four basis points increase in the average cost of interest-bearing liabilities to 2.34% for the three months ended March 31, 2026 from 2.30% for the three months ended March 31, 2025, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.

Previous wording

Interest expense on interest-bearing deposits increased $752,000, or 12.0%, to $7.0 million for the three months ended September 30, 2025 from $6.3 million for the three months ended September 30, 2024. Interest expense on interest-bearing deposits increased primarily due to a five basis points increase in the average cost of interest-bearing deposits to 2.37% for the three months ended September 30, 2025 from 2.32% for the three months ended September 30, 2024, as well as a shift in the mix of interest-bearing deposits to higher interest rate deposit accounts and an increase in average interest-bearing deposits of $106.4 million to $1.19 billion for the three months ended September 30, 2025 from $1.08 billion for the three months ended September 30, 2024. The increase in the average cost of interest-bearing deposits wasdue primarily to a shift in the mix of deposits towards higher cost interest-bearing accounts. The increase in the average balance of interest-bearing deposits was due to higher average money market and certificates of deposit balances.

Current wording

Interest expense on interest-bearing deposits increased $935,000, or 14.6%, to $7.4 million for the three months ended March 31, 2026 from $6.4 million for the three months ended March 31, 2025. Interest expense on interest-bearing deposits increased primarily due to a four basis points increase in the average cost of interest-bearing deposits to 2.29% for the three months ended March 31, 2026 from 2.25% for the three months ended March 31, 2025, as well as a shift in the mix of interest-bearing deposits to higher interest rate deposit accounts and an increase in average interest-bearing deposits of $143.7 million to $1.31 billion for the three months ended March 31, 2026 from $1.17 billion for the three months ended March 31, 2025. The increase in the average cost of interest-bearing deposits was primarily due to the upward repricing of certain interest-bearing deposit accounts in response to changes in market interest rates and competition, as well as a shift in the mix of deposits towards higher cost interest-bearing deposit accounts. The increase in the average balance of interest-bearing deposits was primarily due to higher average money market and certificates of deposit balances.

Previous wording

Interest expense on borrowings and other liabilities increased $850,000 to $1.1 million for the three months ended September 30, 2025 from $212,000 for the three months ended September 30, 2024 due primarily to an increase in average borrowings and other liabilities of $76.3 million to $99.7 million for the three months ended September 30, 2025 from $23.4 million for the three months ended September 30, 2024 and an increase in the average cost of borrowings and other liabilities of 65 basis points to 4.29% for the three months ended September 30, 2025 from 3.64% for the three months ended September 30, 2024.

Current wording

Interest expense on borrowings and other liabilities decreased $74,000 to $273,000 for the three months ended March 31, 2026 from $347,000 for the three months ended March 31, 2025 due primarily to a decrease in average borrowings and other liabilities of $13.2 million to $21.4 million for the three months ended March 31, 2026 from $34.6 million for the three months ended March 31, 2025, partially offset by an increase in the average cost of borrowings and other liabilities of 115 basis points to 5.28% for the three months ended March 31, 2026 from 4.13% for the three months ended March 31, 2025.

Previous wording

Net Interest Income. Net interest income of $20.2 million for the three months ended September 30, 2025 increased $2.3 million, or 12.9%, compared to $17.9 million for the three months ended September 30, 2024 as net interest margin increased four basis points to 4.16% for the three months ended September 30, 2025 from 4.12% for the three months ended September 30, 2024, and due to an increase in net interest-earning assets of $22.9 million to $668.2 million for the three months ended September 30, 2025 from $645.3 million for the three months ended September 30, 2024. Net interest rate spread increased six basis points to 3.35% for the three months ended September 30, 2025 from 3.29% for the three months ended September 30, 2024.

Current wording

Net Interest Income. Net interest income of $20.8 million for the three months ended March 31, 2026 increased $1.7 million, or 8.7%, compared to $19.1 million for the three months ended March 31, 2025 as net interest margin increased nine basis points to 4.21% for the three months ended March 31, 2026 from 4.12% for the three months ended March 31, 2025, partially offset by a decrease in net interest-earning assets of $3.3 million to $699.8 million for the three months ended March 31, 2026 from $703.1 million for the three months ended March 31, 2025. Net interest rate spread increased 12 basis points to 3.44% for the three months ended March 31, 2026 from 3.32% for the three months ended March 31, 2025.

Previous wording

Non-Interest Expense. Non-interest expense increased $2.9 million, or 20.0%, to $17.6 million for the three months ended September 30, 2025 as compared to $14.7 million for the three months ended September 30, 2024. The increase in noninterest expense for the three months ended September 30, 2025 was primarily due to an increase in salaries and employee benefits of $890,000 and an increase in other expenses of $2.0 million. Salaries and employee benefits increased due to compensation expense from annual merit increases. Other expenses increased primarilydue to litigation-related expense (see Part II, Item 1 – “Legal Proceedings,” for details), offset in part by a benefit for the other cost components of the net periodic pension and post-retirement benefits cost during the three months ended September 30, 2025.

Current wording

Non-Interest Expense. Non-interest expense increased $3.5 million, or 24.2%, to $18.1 million for the three months ended March 31, 2026 as compared to $14.6 million for the three months ended March 31, 2025. The increase in noninterest expense for the three months ended March 31, 2026 was primarily due to an increase in professional fees of $2.7 million and an increase in salaries and employee benefits of $450,000. Professional fees increased primarilydue to higher legal fees and expenses during the three months ended March 31, 2026. Salaries and employee benefits increased due to compensation expense from annual merit increases. Included in other non-interest expense for the three months ended March 31, 2026 was a net increase of $350,000 in litigation-related expense(see Part I, Item 1 – Consolidated Financial Statements – Note 9 – Commitments and Contingent Liabilities – Legal Proceedings and Other Contingent Liabilities” for details).

Previous wording

Income Tax Expense. Income tax expense decreased $609,000 to $1.3 million for the three months ended September 30, 2025 as compared to $1.9 million for the three months ended September 30, 2024 primarily due to a decrease in income before income taxes. Our effective tax rate was 22.8% for the three months ended September 30, 2025 compared to 23.0% for the three months ended September 30, 2024.

Current wording

Income Tax Expense. Income tax expense decreased $1.2 million to $416,000 for the three months ended March 31, 2026 as compared to $1.7 million for the three months ended March 31, 2025. Our effective tax rate was 7.3% for the three months ended March 31, 2026 compared to 22.3% for the three months ended March 31, 2025. The decrease in income tax expense and the effective tax rate for the three months ended March 31, 2026 was primarily due to a discrete tax item related to a reversal of an accrued liability for a previously non-deductible expense.

Previous wording

Non-accrual loans increased $6.2 million to $11.4 million at September 30, 2025 from $5.2 million at December 31, 2024 primarily due to a $4.7 million commercial real estate loan relationship consisting of four loans secured by multiple office, warehouse and industrial properties, a $847,000 commercial real estate loan secured by manufactured housing parks, and a $837,000 commercial real estate loan secured by a mixed used commercial property being placed on non-accrual status during the nine months ended September 30, 2025.

Current wording

Non-accrual loans decreased $2.4 million to $8.9 million at March 31, 2026 from $11.3 million at December 31, 2025 primarily due topaydowns of $2.6 million on a commercial real estate loan relationship secured by multiple office, warehouse and industrial properties during the three months ended March 31, 2026.

Previous wording

At September 30, 2025, real estate owned consisted of residential properties with a total value of $337,000 and commercial properties with a total value of $258,000.

Current wording

At March 31, 2026, real estate owned consisted of residential properties with a total value of $80,000.

Previous wording

Liquidity. Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from calls, maturities and sales of securities. We also have the ability to borrow from the FHLBNY. At September 30, 2025, we had the ability to borrow up to $598.9 million from the FHLBNY, of which none was utilized for borrowings and $320.0 million was utilized as collateral for letters of credit issued to secure municipal deposits. At September 30, 2025, we also had a $20.0 million unsecured line of credit with a correspondent bank with no outstanding balance, as well as the ability to borrow from the Federal Reserve Bank of New York through the discount window lending program, and access to the reciprocal and brokered deposit markets. We cannot predict the impact of the events described in “Part II, Item 1 – Legal Proceedings” may have on our Liquidity and Capital Resources beyond the quarter ended September 30, 2025.

Current wording

Liquidity. Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from calls, maturities and sales of securities. We also have the ability to borrow from the FHLBNY. At March 31, 2026, we had the ability to borrow up to $646.8 million from the FHLBNY, of which none was utilized for borrowings and $405.0 million was utilized as collateral for letters of credit issued to secure municipal deposits. At March 31, 2026, we also had a $20.0 million unsecured line of credit with a correspondent bank with no outstanding balance, as well as the ability to borrow from the Federal Reserve Bank of New York through the discount window lending program, and access to the reciprocal and brokered deposit markets.

Previous wording

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period. At September 30, 2025, cash and cash equivalents totaled $228.6 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $254.5 million at September 30, 2025.

Current wording

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period. At March 31, 2026, cash and cash equivalents totaled $156.9 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $200.9 million at March 31, 2026.

Previous wording

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of September 30, 2025 totaled $276.6 million, or 14.6%, of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and FHLBNY advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Current wording

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Certificates of deposit due within one year of March 31, 2026 totaled $232.7 million, or 12.6%, of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other deposits and FHLBNY advances. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay. We believe, however, based on past experience that a significant portion of such deposits will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Previous wording

The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, banks must meet specific capital guidelines that involve quantitative measures of the bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors.

Current wording

regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, banks must meet specific capital guidelines that involve quantitative measures of the bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors.

Previous wording

than $10 billion a “community bank leverage ratio” (the ratio of a bank’s tier 1 capital to average total consolidated assets) of 9% that qualifying institutions may elect to use in lieu of the generally applicable leverage and risk-based capital requirements under Basel III. If an election to use the community bank leverage ratio capital framework is made, a qualifying bank with less than $10 billion in assets with capital exceeding the specified community bank leverage ratio is considered compliant with all applicable regulatory capital and leverage requirements, including the requirement to be “well capitalized.” As of September 30, 2025, the Bank had not elected to be subject to the alternative community bank leverage ratio framework.

Current wording

The federal banking agencies, including the OCC, issued a rule pursuant to The Economic Growth Regulatory Relief and Consumer Protection Act of 2018 (the “Regulatory Relief Act”) to establish for institutions with assets of less than $10 billion a “community bank leverage ratio” (the ratio of a bank’s tier 1 capital to average total consolidated assets) of 9% that qualifying institutions may elect to use in lieu of the generally applicable leverage and risk-based capital requirements under Basel III. If an election to use the community bank leverage ratio capital framework is made, a qualifying bank with less than $10 billion in assets with capital exceeding the specified community bank leverage ratio is considered compliant with all applicable regulatory capital and leverage requirements, including the requirement to be “well capitalized.” Effective July 1, 2026, the OCC revised the minimum capital for the community bank leverage ratio to 8.00%. As of March 31, 2026, the Bank had not elected to be subject to the alternative community bank leverage ratio framework.

Previous wording

Off-Balance Sheet Arrangements. We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. The financial instruments include commitments to originate loans, unused lines of credit and standby letters of credit, which involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of condition. Our exposure to credit loss is represented by the contractual amount of the instruments. We use the same credit policies in making commitments as we do for on-balance sheet instruments.

Current wording

Off-Balance Sheet Arrangements. We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. The financial instruments include commitments to originate loans, unused lines of credit and standby letters of credit, which involve elements of credit and interest rate

Previous wording

At September 30, 2025, we had $357.6 million of commitments to originate or purchase loans, comprised of $213.2 million of commitments under commercial loans and lines of credit (including $79.6 million of unadvanced portions of commercial construction loans), $78.8 million of commitments under home equity loans and lines of credit, $58.7 million of commitments to purchase residential mortgage loans and $6.9 million of unfunded commitments under consumer lines of credit. In addition, at September 30, 2025, we had $27.1 million in standby letters of credit outstanding.

Current wording

At March 31, 2026, we had $337.4 million of commitments to originate or purchase loans, comprised of $216.5 million of commitments under commercial loans and lines of credit (including $76.5 million of unadvanced portions of commercial construction loans), $80.3 million of commitments under home equity loans and lines of credit, $33.7 million of commitments to purchase residential mortgage loans and $6.9 million of unfunded commitments under consumer lines of credit. In addition, at March 31, 2026, we had $23.8 million in standby letters of credit outstanding.