Pioneer Bancorp, Inc./MD
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
PBFS$18.35+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001104659-26-058663
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093436
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 132 current paragraphs.
61 unchanged; 43 reworded; 18 added; 5 removed; 2 previous and 10 current paragraphs rearranged.
Tables are not compared: 39 previous and 44 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Total consideration for the transaction was $144.1 million, comprised of $98.7 million to settle certain debt of Targeted Lending, cash of $43.8 million, and potential performance-based cash consideration (“Contingent Consideration”), which was determined to have a fair value of $1.6 million as of April 24, 2026. This Contingent Consideration can be earned over a three-year period commencing with the date of acquisition, and the potential payment of which ranges from zero to $3.0 million.
Current report
Acquisition of The College Advisor of New York
Current report
On July 16, 2026, Pioneer completed the acquisition of CAONY, Inc., operating under the name of The College Advisors of New York, a specialized firm that helps families navigate the college search and admissions process with personalized guidance, hands on support, and assistance identifying colleges that are the right academic, personal, and financial fit.
Current report
These acquisitions further advance Pioneer’s “More Than a Bank” strategy by expanding our capabilities, diversifying revenue streams, and strengthening the value we deliver to clients.
Current report
Business Combinations. The acquisition method of accounting generally requires that the identifiable assets acquired and liabilities assumed in business combinations are recorded at fair value as of the acquisition date. Goodwill represents the cost of the acquired business in excess of the fair value of the related net assets acquired. The determination of fair value often involves the use of internal or third-party valuation techniques, such as discounted cash flow analyses or appraisals. Particularly, the valuation techniques used to estimate the fair value of loans and the customer relationships intangible asset acquired in the Targeted Lending acquisition include assumptions that are inherently subjective. The valuation of acquired loans relied on a discounted cash flow approach applied on an individual loan basis, with certain pool level assumptions. This methodology segmented the acquired loan portfolio by loan type and incorporated specific key valuation assumptions, encompassing probability of default, loss given default, and the discount rate to ascertain the fair value of these assets. Given the inherent subjectivity and reliance on future cash flows and market conditions, this process involves considerable judgment and estimation uncertainty. In addition the fair value of the customer relationships intangible asset was estimated with an income approach using a multi-period excess earnings method which discounts expected future cash flows, taking into account historic customer attrition rates and contributory asset charges, among other factors. The fair value of the developed technologies intangible asset was estimated with an income approach using a relief from royalty method, taking into account attributable revenue and obsolescence patterns, among other factors.
Current report
to $839.9 million at June 30, 2026 from $793.7 million at December 31, 2025 and the commercial construction loan portfolio increased by $39.9 million, or 23.5%, to $209.6 million at June 30, 2026 from $169.7 million at December 31, 2025, offset in part by a decrease in commercial real estate loans by $5.0 million, or 1.1%, to $461.4 million at June 30, 2026 from $466.4 million at December 31, 2025.
Current report
Interest income on loans increased $5.5 million, or 24.6%, to $27.8 million for the three months ended June 30, 2026 from $22.3 million for the three months ended June 30, 2025. Interest income on loans increased due to a $303.2 million increase in the average balance of loans to $1.82 billion for the three months ended June 30, 2026 from
Current report
$1.52 billion for the three months ended June 30, 2025 and a 24 basis points increase in the average yield on loans to 6.28% for the three months ended June 30, 2026 from 6.04% for the three months ended June 30, 2025. The increase in the average balance of loans was primarily due to the acquisition of Targeted Lending during the three months ended June 30, 2026 and by 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 and the acquisition of Targeted Lending during the three months ended June 30, 2026.
Current report
General. Net income decreased by $3.4 million to $8.8 million for the six months ended June 30, 2026 as compared to $12.2 million for the six months ended June 30, 2025. The decrease was primarily due to an increase in non-interest expense of $11.0 million, partially offset by an increase in net interest income of $4.9 million, an increase of non-interest income of $793,000, and a decrease in income tax expense of $1.6 million.
Current report
Interest and Dividend Income. Interest and dividend income increased $7.3 million, or 14.0%, to $60.2 million for the six months ended June 30, 2026, from $52.9 million for the six months ended June 30, 2025. The increase was the result of a 23 basis points increase in the average yield on interest-earning assets to 5.86% for the six months ended June 30, 2026, from 5.63% for the six months ended June 30, 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 and loans acquired from the Targeted Lending acquisition. Average interest-earning assets increased by $182.6 million from $1.92 billion for the six months ended June 30, 2025 to $2.10 billion for the six months ended June 30, 2026 primarily due to the increase in the average balance of loans.
Current report
Interest expense on borrowings and other liabilities decreased $213,000 to $688,000 for the six months ended June 30, 2026 from $901,000 for the six months ended June 30, 2025 due primarily to a decrease in average cost of borrowings and other liabilities of 70 basis points to 3.40% for the six months ended June 30, 2026 from 4.10% for the six months ended June 30, 2025 and by a decrease in the average borrowings and other liabilities of $3.6 million to $41.2 million for the six months ended June 30, 2026 from $44.8 million for the six months ended June 30, 2025.
Current report
Net Interest Income. Net interest income of $43.6 million for the six months ended June 30, 2026 increased $4.9 million, or 12.7%, compared to $38.7 million for the six months ended June 30, 2025 as net interest margin increased 11 basis points to 4.23% for the six months ended June 30, 2026 from 4.12% for the six months ended June 30, 2025, partially offset by a decrease in net interest-earning assets of $11.7 million to $686.7 million for the six months ended June 30, 2026 from $698.4 million for the six months ended June 30, 2025. Net interest rate spread increased 20 basis points to 3.48% for the six months ended June 30, 2026 from 3.28% for the six months ended June 30, 2025.
Current report
Provision for Credit Losses. The provision for credit losses was $2.1 million for the six months ended June 30, 2026, as compared to a provision for credit losses of $2.4 million for the six months ended June 30, 2025. The decrease in
Current report
Non-Interest Income. Non-interest income increased $793,000, or 9.3%, to $9.3 million for the six months ended June 30, 2026 as compared to $8.5 million for the six months ended June 30, 2025. The increase in noninterest income for the six months ended June 30, 2026 was primarily due to an increase in insurance and wealth management services income, an increase in bank fees and service charges, and an increase in net gain on sale of loans, offset in part by a decrease in other noninterest income. The increase in insurance and wealth management services income was as a result of organic growth related to our wealth management services and the acquisition of Brown Financial Management Group during the three months ended December 31, 2025. The increase in bank fees and service charges and net gain on sale of loans was a result of the acquisition of Targeted Lending during the six months ended June 30, 2026. The decrease in other noninterest income was primarily due to $550,000 of bank-owned life insurance income as a result of a death benefit recognized during the six months ended June 30, 2025.
Current report
Non-Interest Expense. Non-interest expense increased $11.0 million, or 37.5%, to $40.3 million for the six months ended June 30, 2026 as compared to $29.3 million for the six months ended June 30, 2025. The increase in noninterest expense for the six months ended June 30, 2026 was primarily due to an increase in professional fees, an increase in salaries and employee benefits, and an increase in other noninterest expense. The increase in professional fees for the six months ended June 30, 2026 was primarily due to higher legal fees and expenses and partially related to the expenses in connection with the completion of our recent acquisitions described above during the three months ended June 30, 2026. Salaries and employee benefits increased for the six months ended June 30, 2026 primarily due to compensation expense from annual merit increases and an increase in the number of employees from acquisitions completed during the six months ended June 30, 2026. The increase other non-interest expense for the six months ended June 30, 2026 was primarily due to a net increase of $3.3 million 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).
Current report
Non-accrual loans decreased $2.1 million to $9.1 million at June 30, 2026 from $11.2 million at December 31, 2025 primarily due topaydowns of $2.7 million on a commercial real estate loan relationship secured by multiple office, warehouse and industrial properties during the six months ended June 30, 2026, thepayoff of a $820,000 commercial real estate loan and the paydown and partial charge-off of a $844,000 commercial real estate loan that was secured by manufactured housing parks. The decrease in non-accrual loans was partially offset by an increase in commercial and industrial non-accrual equipment loans as a result of the Targeted Lending acquisition and an increase in non-accrual residential mortgages.
Current report
Total doubtful loans decreased by $857,000 to $62,000 at June 30, 2026 from $919,000 at December 31, 2025 primarily due to thepaydown and partial charge-off of a $844,000 commercial real estate loan that was secured by manufactured housing parks.
Current report
The increase in net charge-offs for the six months ended June 30, 2026 was primarily due to an increase in commercial and industrial loan net charge-offs due to an $854,000 charge-off related to one commercial borrower, as well as net charge-offs on the acquired Targeted Lending loans during the three months ended June 30, 2026. The increase in commercial real estate net charge-offs was due to an $232,000 charge-off on a previously non-accrual loan that was secured by manufactured housing parks.
Removed paragraphs (5)
Previous report
Targeted Lending Co., LLC
Previous report
The all-cash transaction was valued at approximately $140 million in enterprise value, subject to potential adjustments for performance-based earn-out over a three-year period. The aggregate consideration for Targeted Lending consisted of a base purchase price of approximately $54 million, subject to a customary post-closing purchase price adjustment mechanism based on the final determination of closing indebtedness of Targeted Lending and transaction expenses. In connection with the transaction, we also repaid approximately $88 million in then-outstanding credit facility indebtedness of Targeted Lending.
Previous report
These acquisitions are intended to build on the momentum of our growing, diversified suite of products and services, including the recent launches of our Human Resources Consulting division; and our broker-dealer subsidiary, Pioneer Capital Markets, Inc.
Previous report
increased by $5.4 million, or 4.3%, to $130.3 million at March 31, 2026 from $124.9 million at December 31, 2025, offset in part by a decrease in commercial real estate loans by $8.6 million, or 1.8%, to $457.9 million at March 31, 2026 from $466.5 million at December 31, 2025.
Previous report
At March 31, 2026, real estate owned consisted of residential properties with a total value of $80,000.
Reworded paragraphs (43)
Previous wording
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. No assurance can be given that the future results covered by forward-looking statements will be achieved. Certain forward-looking statements are included in this Form 10-Q, principally in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In addition to the factors described in Item 1A – Risk Factors, factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to:
Current wording
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,”, “expand”, “extend”, “should,” “could,” or “may.” The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. No assurance can be given that the future results covered by forward-looking statements will be achieved. Certain forward-looking statements are included in this Form 10-Q, principally in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In addition to the factors described in Item 1A – Risk Factors, factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to:
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 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.
Current wording
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, 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.
Current wording
Non-interest Income. Our primary sources of non-interest income are banking fees and service charges, insurance and wealth management services income and net gains on sale of loans. Our non-interest income also includes net gains or losses on trading securities, other gains and losses, and miscellaneous income.
Previous wording
As we continue to execute on our business strategy, on April 24, 2026 we completed the acquisition of 100% of the membership interests of Targeted Lending Co., LLC, (“Targeted Lending”), an independent equipment financing company with approximately $120 million of loans on its balance sheet.
Current wording
As we continue to execute on our business strategy, on April 24, 2026 we completed the acquisition of 100% of the membership interests of Targeted Lending, an independent equipment financing company with approximately $120 million of loans on its balance sheet.
Previous wording
Targeted Lending, as a wholly owned subsidiary of Pioneer Bank, National Bank, will operate as the newly formed Specialty Financing division, expanding our commercial lending capabilities and extending our reach into nationwide equipment finance markets. Targeted Lending through its originator-centric equipment finance platform provides financing solutions for essential, income-producing equipment, offering loans up to $400,000 to small and mid-sized businesses across diverse industries.
Current wording
Targeted Lending, as a subsidiary of Pioneer Bank, National Association, will operate as the newly formed Specialty Financing division, expanding our commercial lending capabilities and extending our reach into nationwide equipment finance markets. Targeted Lending through its originator-centric equipment finance platform provides financing solutions for essential, income-producing equipment, offering loans to small and mid-sized businesses across diverse industries.
Previous wording
On April 20, 2026, we completed the acquisitions of Reiser Consulting Group, Inc. of Albany, NY and Wyndham Benefits, LLC of Ballston Spa, NY. The acquisitions are expected tosignificantly increase the size of our Employee Benefits division and are expected to strengthen our ability to deliver expanded services and product offerings for both current and prospective clients throughout the Capital region.
Current wording
On April 20, 2026, we completed the acquisitions of Reiser Consulting Group, Inc. and Wyndham Benefits, LLC. The acquisitions significantly increased the size of our Employee Benefits division and strengthens our ability to deliver expanded services and product offerings for both current and prospective clients.
Previous wording
As we look forward, our strategic focus remains clear: to deliver long-term value to our stockholders while serving the needs of our clients, employees, and communities. Our strategy of being “More Than a Bank” will continue to prioritize growth in key markets, disciplined lending, and expanding our product and service offerings to meet evolving client needs.
Current wording
As we look forward, our strategic focus remains clear: to deliver long-term value to our stockholders while serving the needs of our clients, employees, and communities. Our strategy of being “More Than a Bank” will continue to prioritize growth in key markets, disciplined lending, diversifying revenue streams and expanding our product and service offerings to meet evolving client needs.
Previous wording
allowance for credit losses on loans by $1.4 million, or 5.4%, as of March 31, 2026 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
allowance for credit losses on loans by $1.7 million, or 6.1%, as of June 30, 2026 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.
Previous 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.
Current 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.
Previous 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.
Current wording
Total Assets. Total assets of $2.36 billion at June 30, 2026 increased $213.0 million, or 9.9%, from $2.15 billion at December 31, 2025. The increase was due primarily to an increase of $224.6 million, or 13.6%, in net loans receivable and an increase of $22.0 million, or 100.0%, in trading securities, offset in part by a decrease of $39.1 million, or 29.3% in cash and cash equivalents and 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 $156.9 million at March 31, 2026, increased $23.2 million, or 17.4%, from $133.7 million at December 31, 2025.
Current wording
Cash and Cash Equivalents. Total cash and cash equivalents of $94.6 million at June 30, 2026, decreased $39.1 million, or 29.3%, from $133.7 million at December 31, 2025.
Previous 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.
Current wording
Securities Available for Sale. Total securities available for sale of $200.9 million at June 30, 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 $45.8 million, offset in part by purchases of $28.0 million of securities during the six months ended June 30, 2026.
Previous 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.
Current wording
Securities Held to Maturity. Total securities held to maturity of $44.8 million at June 30, 2026 increased $3.3 million, or 7.8%, from $41.5 million at December 31, 2025. The increase was primarily due to purchases of $3.7 million during the six months ended June 30, 2026.
Previous wording
Trading Securities. Total trading securities was $8.1 million at March 31, 2026 compared to none at December 31, 2025. The increase in trading securities was a result of the commencement of operations of our broker-dealer subsidiary, Pioneer Capital Markets, Inc. in January 2026.
Current wording
Trading Securities. Total trading securities was $22.0 million at June 30, 2026 compared to none at December 31, 2025. The increase in trading securities was a result of the commencement of operations of our broker-dealer subsidiary, Pioneer Capital Markets, Inc. in January 2026.
Previous 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
Current wording
Net Loans Receivable. Net loans receivable of $1.87 billion at June 30, 2026 increased $224.6 million, or 13.6%, from $1.65 billion at December 31, 2025. The increase in net loans receivable was primarily a result of growth in the commercial and industrial loan portfolio which increased by $147.4 million, or 118.0%, to $272.3 million at June 30, 2026 from $124.9 million at December 31, 2025. The residential mortgage loan portfolio increased by $46.2 million, or 5.8%,
Previous 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.
Current wording
The increase in commercial and industrial loanswas primarily due to the acquisition of Targeted Lending during the three months ended June 30, 2026. 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 incommercial construction loans was due to funding of increased construction commitments. The decrease in commercial real estate loans was due to loan payoffs outpacing loan funding.
Previous 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).
Current wording
Deposits. Deposits of $1.97 billion at June 30, 2026 increased $229.8 million, or 13.2%, from $1.74 billion at December 31, 2025. By deposit category, certificates of deposits increased by $201.7 million, or 74.9%, to $471.2 million at June 30, 2026 from $269.5 million at December 31, 2025 (included in certificates of deposit were brokered deposits which increased by $174.5 million to $284.7 million at June 30, 2026 from $110.2 million at December 31, 2025), and money market accounts increased by $24.7 million, or 3.9%, to $658.2 million at June 30, 2026 from $633.5 million at December 31, 2025.
Previous 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.
Current wording
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 bearing demand, savings and other lower rate interest-bearing accounts. The increase in brokered deposits was primarily to fund loan growth and the acquisition of Targeted Lending.
Previous 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.
Current wording
Uninsured deposits after exclusions represented 13.4% and 16.6% of total deposits as of June 30, 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 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.
Current wording
Borrowings from Federal Home Loan Bank of New York (“FHLBNY”). There were no borrowings from FHLBNY at June 30, 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 six months ended June 30, 2026.
Previous 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.
Current wording
Total Shareholders’ Equity. Shareholders’ equity of $328.3 million at June 30, 2026 increased $4.4 million, or 1.4%, from $323.9 million at December 31, 2025 primarily as a result of net income of $8.8 million, offset in part by a decrease in accumulated other comprehensive income of $1.9 million and by the repurchase of common stock of $3.6 million.
Previous 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.
Current wording
General. Net income decreased by $3.0 million to $3.5 million for the three months ended June 30, 2026 as compared to $6.5 million for the three months ended June 30, 2025. The decrease was primarily due to an increase in non-interest expense of $7.5 million, partially offset by an increase in net interest income of $3.3 million, an increase of non-interest income of $658,000, and a decrease in income tax expense of $385,000.
Previous 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.
Current wording
Interest and Dividend Income. Interest and dividend income increased $4.9 million, or 18.0%, to $31.9 million for the three months ended June 30, 2026, from $27.0 million for the three months ended June 30, 2025. The increase was the result of a 32 basis points increase in the average yield on interest-earning assets to 6.04% for the three months ended June 30, 2026, from 5.72% for the three months ended June 30, 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 and loans acquired from the Targeted Lending acquisition. Average interest-earning assets increased by $232.2 million from $1.93 billion for the three months ended June 30, 2025 to $2.16 billion for the three months ended June 30, 2026 primarily due to the increase in the average balance of loans.
Previous 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.
Current wording
Interest income on securities decreased $966,000, or 24.5%, to $3.0 million for the three months ended June 30, 2026 from $3.9 million for the three months ended June 30, 2025. Interest income on securities decreased due to a $109.1 million decrease in the average balance of securities to $243.8 million for the three months ended June 30, 2026 from $352.9 million for the three months ended June 30, 2025, partially offset by a 43 basis points increase in the average yield on securities to 4.99% for the three months ended June 30, 2026 from 4.56% for the three months ended June 30, 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 June 30, 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 income on interest-earning deposits with banks, trading securities, and other increased $56,000 to $953,000 for the three months ended March 31, 2026 from $897,000 for the three months ended March 31, 2025. Interest income on interest-earning deposits with banks, trading securities, and other increased due to a $23.9 million increase in the average balances to $103.9 million for the three months ended March 31, 2026 from $80.0 million for the three months ended March 31, 2025, primarily due to an increase in the average balance of trading securities, partially offset by an 86 basis points decrease in the average yield to 3.77% for the three months ended March 31, 2026 from 4.63% for the three months ended March 31, 2025 primarilydue to changes in market interest rates.
Current wording
Interest income on interest-earning deposits with banks, trading securities, and other increased $344,000 to $1.1 million for the three months ended June 30, 2026 from $732,000 for the three months ended June 30, 2025. Interest income on interest-earning deposits with banks, trading securities, and other increased due to a $38.2 million increase in the average balances to $102.7 million for the three months ended June 30, 2026 from $64.5 million for the three months ended June 30, 2025, primarily due to an increase in the average balance of trading securities and interest-earning deposits with banks, partially offset by an 36 basis points decrease in the average yield to 4.27% for the three months ended June 30, 2026 from 4.63% for the three months ended June 30, 2025 primarilydue to changes in market interest rates.
Previous 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.
Current wording
Interest Expense. Interest expense increased $1.6 million, or 21.9%, to $9.0 million for the three months ended June 30, 2026 from $7.4 million for the three months ended June 30, 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 2.45% for the three months ended June 30, 2026 from 2.41% for the three months ended June 30, 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 $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.
Current wording
Interest expense on interest-bearing deposits increased $1.8 million, or 25.7%, to $8.6 million for the three months ended June 30, 2026 from $6.8 million for the three months ended June 30, 2025. Interest expense on interest-bearing deposits increased primarily due to an eight basis points increase in the average cost of interest-bearing deposits to 2.42% for the three months ended June 30, 2026 from 2.34% for the three months ended June 30, 2025 and an increase in average interest-bearing deposits of $251.5 million to $1.44 billion for the three months ended June 30, 2026 from $1.19 billion for the three months ended June 30, 2025. The increase in the average cost of interest-bearing deposits was primarily due to 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. The increase in certificates of deposit balances was the result of an increase in brokered deposits.
Previous 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.
Current wording
Interest expense on borrowings and other liabilities decreased $139,000 to $415,000 for the three months ended June 30, 2026 from $554,000 for the three months ended June 30, 2025 due primarily to a decrease in average cost of borrowings and other liabilities of 80 basis points to 3.31% for the three months ended June 30, 2026 from 4.11% for the three months ended June 30, 2025 and by a decrease in the average borrowings and other liabilities of $3.8 million to $51.0 million for the three months ended June 30, 2026 from $54.8 million for the three months ended June 30, 2025.
Previous 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.
Current wording
Net Interest Income. Net interest income of $22.9 million for the three months ended June 30, 2026 increased $3.3 million, or 16.5%, compared to $19.6 million for the three months ended June 30, 2025 as net interest margin increased 17 basis points to 4.30% for the three months ended June 30, 2026 from 4.13% for the three months ended June 30, 2025, partially offset by a decrease in net interest-earning assets of $15.4 million to $677.5 million for the three months ended June 30, 2026 from $692.9 million for the three months ended June 30, 2025. Net interest rate spread increased 27 basis points to 3.58% for the three months ended June 30, 2026 from 3.31% for the three months ended June 30, 2025.
Previous wording
Provision for Credit Losses. The provision for credit losses was $780,000 for the three months ended March 31, 2026, as compared to a provision for credit losses of $800,000 for the three months ended March 31, 2025. The decrease in the provision for credit losses for the three months ended March 31, 2026 was primarily due to improvement in the loan portfolio credit quality, offset by growth in the loan portfolio.
Current wording
Provision for Credit Losses. The provision for credit losses was $1.4 million for the three months ended June 30, 2026, as compared to a provision for credit losses of $1.6 million for the three months ended June 30, 2025. The decrease in the provision for credit losses for the three months ended June 30, 2026 was primarily due to improvement in the loan portfolio credit quality, offset by growth in the loan portfolio and an increase in net charge-offs for the three months ended June 30, 2026.
Previous wording
Non-Interest Income. Non-interest income increased $135,000, or 3.6%, to $3.9 million for the three months ended March 31, 2026 as compared to $3.7 million for the three months ended March 31, 2025. The increase in non-interest income for the three months ended March 31, 2026 was primarily due to an increase in insurance and wealth management services income as a result of organic growth related to our wealth management services and the acquisition of Brown Financial Management Group during the three months ended December 31, 2025.
Current wording
Non-Interest Income. Non-interest income increased $658,000, or 13.7%, to $5.5 million for the three months ended June 30, 2026 as compared to $4.8 million for the three months ended June 30, 2025. The increase in noninterest income for the three months ended June 30, 2026 was primarily due to an increase in insurance and wealth management services income, an increase in bank fees and service charges, and an increase in net gain on sale of loans, offset in part by a decrease in other noninterest income. The increase in insurance and wealth management services income was as a result of organic growth related to our wealth management services and the acquisition of Brown Financial Management Group during the three months ended December 31, 2025. The increase in bank fees and service charges and net gain on sale of loans was a result of the acquisition of Targeted Lending during the three months ended June 30, 2026. The decrease in other noninterest income was primarily due to $550,000 of bank-owned life insurance income as a result of a death benefit recognized during the three months ended June 30, 2025.
Previous 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).
Current wording
Non-Interest Expense. Non-interest expense increased $7.5 million, or 50.6%, to $22.2 million for the three months ended June 30, 2026 as compared to $14.7 million for the three months ended June 30, 2025. The increase in noninterest expense for the three months ended June 30, 2026 was primarily due to an increase in professional fees, an increase in salaries and employee benefits, and an increase in other noninterest expense. The increase in professional fees for the three months ended June 30, 2026 was primarily due to higher legal fees and expenses and partially related to expenses in connection with the completion of our recent acquisitions described above during the three months ended June 30, 2026. Salaries and employee benefits increased for the three months ended June 30, 2026 primarily due to compensation expense from annual merit increases and an increase in the number of employees from acquisitions completed during the three months ended June 30, 2026. The increase in other non-interest expense for the three months ended June 30, 2026 was primarily due to an increase of $2.9 million 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
Interest income on loans increased $3.2 million, or 15.3%, to $24.4 million for the three months ended March 31, 2026 from $21.2 million for the three months ended March 31, 2025. Interest income on loans increased due to a $205.7 million increase in the average balance of loans to $1.67 billion for the three months ended March 31, 2026 from $1.47 billion for the three months ended March 31, 2025 and a seven basis points increase in the average yield on loans to
Current wording
Interest income on loans increased $8.7 million, or 20.1%, to $52.2 million for the six months ended June 30, 2026 from $43.5 million for the six months ended June 30, 2025. Interest income on loans increased due to a $257.3 million increase in the average balance of loans to $1.75 billion for the six months ended June 30, 2026 from $1.49 billion for the six months ended June 30, 2025 and a 14 basis points increase in the average yield on loans to 6.11% for the six months
Previous 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.
Current wording
ended June 30, 2026 from 5.97% for the six months ended June 30, 2025. The increase in the average balance of loans was primarily due to the acquisition of Targeted Lending during the six months ended June 30, 2026 and by 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 and the acquisition of Targeted Lending during the six months ended June 30, 2026.
Previous 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.
Current wording
Income Tax Expense. Income tax expense decreased $1.6 million to $1.7 million for the six months ended June 30, 2026 as compared to $3.3 million for the six months ended June 30, 2025. Our effective tax rate was 16.4% for the six months ended June 30, 2026 compared to 21.5% for the six months ended June 30, 2025. The decrease in the effective tax rate for the six months ended June 30, 2026 was primarily due to a discrete tax item related to a reversal of an accrued liability for a previously non-deductible expense, offset in part by an increase in non-deductible expenses.
Previous wording
Total substandard loans decreased $9.1 million to $17.0 million at March 31, 2026 from $26.1 million at December 31, 2025 primarily due to the migration from the substandard category to the pass category of a $6.4 million commercial real estate loan as a result of being refinanced to a new ownership group, and 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.
Current wording
Total substandard loans decreased $10.6 million to $15.5 million at June 30, 2026 from $26.1 million at December 31, 2025 primarily due to the migration from the substandard category to the pass category of a $6.4 million commercial real estate loan as a result of being refinanced to a new ownership group, and due topaydowns of $2.6 million on a commercial real estate loan relationship secured by multiple office, warehouse and industrial properties during the six months ended June 30, 2026.
Previous wording
Total special mention loans decreased by $6.2 million to $1.2 million at March 31, 2026 from $7.4 million at December 31, 2025 primarily due to the migration from the special mention category to the pass category of a $4.9 million commercial real estate loan secured bysenior housing property.
Current wording
Total special mention loans decreased by $5.4 million to $2.0 million at June 30, 2026 from $7.4 million at December 31, 2025 primarily due to the migration from the special mention category to the pass category of a $4.9 million commercial real estate loan secured bysenior housing property.
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 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.
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 June 30, 2026, we had the ability to borrow up to $653.4 million from the FHLBNY, of which none was utilized for borrowings and $297.0 million was utilized as collateral for letters of credit issued to secure municipal deposits. At June 30, 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
We cannot accurately predict what the impact of the events described in the “Legal Proceedings” section may have on our liquidity and capital resources. For example, costs associated with prosecuting, litigating or settling any litigation, satisfying any adverse judgments, if any, could be significant. We continue to monitor these matters for further developments that could affect the amount of the accrued liability that has been established. See “Part II, Item 1 – Legal Proceedings” and “Part I, Item 1 – Consolidated Financial Statements – Note 9 – Commitments and Contingent Liabilities – Legal Proceedings and Other Contingent Liabilities” elsewhere in this report for more information. For those matters for which a loss is reasonably possible and estimable, whether in excess of an accrued liability or where there is no accrued liability, the Company’s estimated range of possible loss is $0 to $23.5 million in excess of the accrued liability, if any, as of March 31, 2026. 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. The estimated range of possible loss does not represent the Company’s maximum loss exposure. These legal, regulatory, governmental and other proceedings, claims or investigations, costs, settlements, judgments, sanctions or other expenses could have a material adverse effect on our business, prospects, financial condition, results of operations or cash flows or cause significant reputational harm and subject us to civil litigation, significant fines, damage awards or other material regulatory consequences.
Current wording
We cannot accurately predict what the impact of the events described in the “Legal Proceedings” section may have on our liquidity and capital resources. For example, costs associated with prosecuting, litigating or settling any litigation, satisfying any adverse judgments, if any, could be significant. We continue to monitor these matters for further developments that could affect the amount of the accrued liability that has been established. See “Part II, Item 1 – Legal Proceedings” and “Part I, Item 1 – Consolidated Financial Statements – Note 9 – Commitments and Contingent Liabilities – Legal Proceedings and Other Contingent Liabilities” elsewhere in this report for more information. For those matters for which a loss is reasonably possible and estimable, whether in excess of an accrued liability or where there is no accrued liability, the Company’s estimated range of possible loss is $0 to $18.1 million in excess of the accrued liability, if any, as of June 30, 2026. 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. The estimated range of possible loss does not represent the Company’s maximum loss exposure. These legal, regulatory, governmental and other proceedings, claims or investigations, costs, settlements, judgments, sanctions or other expenses could have a material adverse effect on our business, prospects, financial condition, results of operations or cash flows or cause significant reputational harm and subject us to civil litigation, significant fines, damage awards or other material regulatory consequences.
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 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.
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 June 30, 2026, cash and cash equivalents totaled $94.6 million. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $200.9 million at June 30, 2026.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
Targeted Lending Co., LLC (“Targeted Lending”)
Current report — wording carried from elsewhere
Income Tax Expense. Income tax expense decreased $385,000 to $1.3 million for the three months ended June 30, 2026 as compared to $1.7 million for the three months ended June 30, 2025. Our effective tax rate was 27.2% for the three months ended June 30, 2026 compared to 20.7% for the three months ended June 30, 2025. The increase in the effective tax rate for the three months ended June 30, 2026 was due to an increase in non-deductible expenses.
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended June 30, 2026 and June 30, 2025
Current report — wording carried from elsewhere
Interest income on securities decreased $1.7 million, or 22.5%, to $6.0 million for the six months ended June 30, 2026 from $7.7 million for the six months ended June 30, 2025. Interest income on securities decreased due to a $105.7 million decrease in the average balance of securities to $249.3 million for the six months ended June 30, 2026 from $355.0 million for the six months ended June 30, 2025, partially offset by a 46 basis points increase in the average yield on securities to 4.90% for the six months ended June 30, 2026 from 4.44% for the six months ended June 30, 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 six months ended June 30, 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.
Current report — wording carried from elsewhere
Interest income on interest-earning deposits with banks, trading securities, and other increased $399,000 to $2.0 million for the six months ended June 30, 2026 from $1.6 million for the six months ended June 30, 2025. Interest income on interest-earning deposits with banks, trading securities, and other increased due to a $31.1 million increase in the average balances to $103.3 million for the six months ended June 30, 2026 from $72.2 million for the six months ended June 30, 2025, primarily due to an increase in the average balance of trading securities and interest-earning deposits with banks, partially offset by a 60 basis points decrease in the average yield to 4.00% for the six months ended June 30, 2026 from 4.60% for the six months ended June 30, 2025 primarilydue to changes in market interest rates.
Current report — wording carried from elsewhere
Interest Expense. Interest expense increased $2.4 million, or 17.5%, to $16.6 million for the six months ended June 30, 2026 from $14.2 million for the six months ended June 30, 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 2.39% for the six months ended June 30, 2026 from 2.35% for the six months ended June 30, 2025, as well as a shift in the mix of interest-bearing liabilities to higher interest rate liability accounts.
Current report — wording carried from elsewhere
Interest expense on interest-bearing deposits increased $2.7 million, or 20.3%, to $16.0 million for the six months ended June 30, 2026 from $13.3 million for the six months ended June 30, 2025. Interest expense on interest-bearing deposits increased primarily due to a seven basis points increase in the average cost of interest-bearing deposits to 2.36% for the six months ended June 30, 2026 from 2.29% for the six months ended June 30, 2025, and an increase in average interest-bearing deposits of $197.9 million to $1.37 billion for the six months ended June 30, 2026 from $1.18 billion for the six months ended June 30, 2025. The increase in the average cost of interest-bearing deposits was primarily due to 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. The increase in certificates of deposit balances was the result of an increase in brokered deposits.
Current report — wording carried from elsewhere
the provision for credit losses for the six months ended June 30, 2026 was primarily due to improvement in the loan portfolio credit quality, offset by growth in the loan portfolio and an increase in net charge-offs for the six months ended June 30, 2026.
Current report — wording carried from elsewhere
At June 30, 2026, repossessed assets consisted of repossessed business equipment recorded at the lower of carrying amount or fair market value less estimated cost to sell.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.