NorthEast Community Bancorp, Inc./MD/

Previous wording

Total assets increased $51.7 million, or 2.5%, to $2.1 billion at June 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net loans of $59.4 million, partially offset by a decrease in cash and cash equivalents of $7.8 million.

Current wording

Total assets increased $152.5 million, or 7.4%, to $2.2 billion at September 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net loans of $160.0 million, partially offset by a decrease in cash and cash equivalents of $8.5 million.

Previous wording

Cash and cash equivalents decreased $7.8 million, or 9.6%, to $73.4 million at June 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded the increase of $59.4 million in net loans.

Current wording

Cash and cash equivalents decreased $8.5 million, or 10.5%, to $72.6 million at September 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded the increase of $160.0 million in net loans.

Previous wording

Equity securities increased $757,000, or 2.8%, to $27.3 million at June 30, 2026 from $26.6 million at December 31, 2025. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the six months ended June 30, 2026, partially offset by market depreciation of $243,000 due to market interest rate volatility during the six months ended June 30, 2026.

Current wording

Equity securities decreased $341,000, or 1.3%, to $26.2 million at September 30, 2026 from $26.6 million at December 31, 2025. The decrease in equity securities was attributable to market depreciation of $1.3 million due to market interest rate volatility during the nine months ended September 30, 2026, partially offset by the purchase of $1.0 million in equity securities during the nine months ended September 30, 2026.

Previous wording

Securities held-to-maturity decreased $564,000, or 3.1%, to $17.8 million at June 30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities.

Current wording

Securities held-to-maturity increased $359,000, or 2.0%, to $18.7 million at September 30, 2026 from $18.3 million at December 31, 2025 due to the purchase of $2.0 million in municipal securities, partially offset by pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities.

Previous wording

Loans, net of the allowance for credit losses, increased $59.4 million, or 3.2%, to $1.9 billion at June 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in non-residential loans, $200,000 in mixed-use loans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $3,000 in commercial and industrial loans.

Current wording

Loans, net of the allowance for credit losses, increased $160.0 million, or 8.6%, to $2.0 billion at September 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an increase of $207.3 million in construction loans, partially offset by decreases of $37.0 million in commercial and industrial loans, $5.0 million in multi-family loans, $3.3 million in mixed-use loans, $1.6 million in non-residential loans, $104,000 in one-to-four family loans, and $15,000 in consumer loans.

Previous wording

During the six months ended June 30, 2026, we originated loans totaling $653.2 million, which includes commitments and funded loans, consisting primarily of $606.7 million in construction loans, $25.1 million in commercial and industrial loans, $20.8 million in multi-family loans, and $675,000 in mixed-use loans. The $606.7 million in construction loans had $262.7 million, or 43.3%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The commercial and industrial loans had $19.0 million, or 75.7%, disbursed at loan closing as of June 30, 2026.

Current wording

During the nine months ended September 30, 2026, we originated loans totaling $966.4 million, which include commitments and funded loans, consisting primarily of $914.8 million in construction loans, $26.3 million in commercial and industrial loans, $24.0 million in multi-family loans, $675,000 in mixed-use loans, and $500,000 in non-residential loans. The $914.8 million in construction loans had $393.5 million, or 43.0%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The commercial and industrial loans had $19.1 million, or 72.7%, disbursed at loan closing as of September 30, 2026.

Previous wording

The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $204.2 million, or 30.0%, in off-balance sheet commitments from December 31, 2025 to June 30, 2026.

Current wording

The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at September 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $83.1 million, or 12.2%, in off-balance sheet commitments from December 31, 2025 to September 30, 2026.

Previous wording

Premises and equipment decreased $356,000, or 1.4%, to $25.0 million at June 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets. Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000 at June 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets. Bank owned life insurance (“BOLI”) increased $364,000, or 1.4%, to $26.8 million at June 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value. Accrued interest receivable decreased $39,000, or 0.3%, to $12.2 million at June 30, 2026 from $12.2 million at December 31, 2025 due to a decrease in the yield in the loan portfolio. Property held for investment was $1.3 million at both June 30, 2026 and December 31, 2025.

Current wording

Premises and equipment decreased $339,000, or 1.3%, to $25.0 million at September 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets. Property held for investment was $1.3 million at both September 30, 2026 and December 31, 2025.

Previous wording

Right of use assets — operating decreased $360,000, or 7.7%, to $4.3 million at June 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.

Current wording

Right of use assets — operating decreased $542,000, or 11.6%, to $4.1 million at September 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.

Previous wording

Other assets increased $117,000, or 1.1%, to $11.1 million at June 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $725,000 in suspense accounts, partially offset by decreases of $528,000 in tax assets and $90,000 in prepaid expenses.

Current wording

Other assets increased $603,000, or 5.5%, to $11.6 million at September 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $1.3 million in suspense accounts, partially offset by decreases of $592,000 in tax assets and $146,000 in prepaid expenses.

Previous wording

Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion at June 30, 2026 from $1.6 billion at December 31, 2025. The decrease in deposits was primarily due to decreases in certificates of deposit of $190.8 million, or 21.2%, and savings account balances of $10.6 million, or 7.5%, partially offset by increases in NOW/money market accounts of $67.5 million, or 22.3% and non-interest bearing deposits of $53.5 million, or 19.7%.

Current wording

Total deposits increased $202.7 million, or 12.5%, to $1.8 billion at September 30, 2026 from $1.6 billion at December 31, 2025. The increase in deposits was primarily due to increases in certificates of deposit of $87.8 million, or 9.8%, NOW/money market accounts of $72.8 million, or 24.1%, and non-interest-bearing deposits of $53.7 million, or 19.8%, partially offset by a decrease in savings account balances of $11.6 million, or 8.2%.

Previous wording

The decrease of $190.8 million in certificates of deposit consisted of decreases of $129.0 million, or 34.9%, in brokered certificates of deposit, $38.3 million, or 56.6%, in non-brokered listing services certificates of deposit, and $23.4 million, or 5.3% in retail certificates of deposit.

Current wording

The increase of $87.8 million in certificates of deposit consisted of increases of $201.8 million, or 54.5%, in brokered certificates of deposit, partially offset by decreases of $63.5 million, or 94.0%, in non-brokered listing services certificates of deposit and $50.5 million, or 11.3%, in retail certificates of deposit.

Previous wording

The decrease in brokered certificates of deposit and non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates and to rely less on brokered deposits and non-brokered listing service deposits. The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.

Current wording

The increase in brokered certificates of deposit was due to management’s strategy to reduce short term borrowings due to the potential for further increases in interest rates. The decrease in non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds. The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.

Previous wording

Advance payments by borrowers for taxes and insurance increased $210,000, or 8.9%, to $2.6 million at June 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.

Current wording

Advance payments by borrowers for taxes and insurance increased $523,000, or 22.2%, to $2.9 million at September 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.

Previous wording

Lease liability – operating decreased $329,000, or 6.9%, to $4.5 million at June 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

Current wording

Lease liability – operating decreased $499,000, or 10.4%, to $4.3 million at September 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

Previous wording

Accounts payable and accrued expenses increased $980,000, or 6.0%, to $18.6 million at June 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $1.3 million, suspense account – loan closings of $322,000, deferred compensation of $291,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and accrued interest expense of $107,000, partially offset by a decrease in accrued expenses of $1.0 million.

Current wording

Accounts payable and accrued expenses increased $858,000, or 5.0%, to $18.2 million at September 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $674,000, deferred compensation of $424,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and suspense account – loan closings of $44,000, partially offset by decreases in accrued interest expense of $504,000 and accrued expenses of $64,000.

Previous wording

under the Company’s 2022 Equity Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $25,000 in other comprehensive income. These increases were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $4.7 million.

Current wording

Stockholders’ equity increased $19.0 million, or 5.4%, to $370.7 million at September 30, 2026, from $351.7 million at December 31, 2025. The increase in stockholders’ equity was due to net income of $30.4 million for the nine months ended September 30, 2026, the amortization expense of $1.6 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $589,000 in earned employee stock ownership plan shares coupled with a reduction of $391,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $42,000 in other comprehensive income. These increases were offset by dividends declared of $9.3 million and stock repurchases and excise taxes of $4.8 million.

Previous wording

Net income for the three months ended June 30, 2026 was $9.8 million compared to net income of $11.2 million for thethree months ended June 30, 2025. The decrease in net income of $1.4 million, or 12.3%, between periods was primarily due to a credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025, a decrease of $424,000 in net interest income, a decrease of $216,000 in non-interest income, and an increase of $110,000 in non-interest expense, partially offset by a decrease of $235,000 in income tax expense.

Current wording

Net income for the three months ended September 30, 2026 was $10.7 million compared to net income of $11.9 million for thethree months ended September 30, 2025. The decrease in net income of $1.2 million, or 10.1%, between periods was primarily due to a decrease of $1.2 million in non-interest income and an increase of $402,000 in non-interest expense, partially offset by an increase of $154,000 in net interest income and a decrease of $254,000 in income tax expense.

Previous wording

Net interest income was $24.7 million for the three months ended June 30, 2026, as compared to $25.1 million for the three months ended June 30, 2025. The decrease in net interest income of $424,000, or 1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities.

Current wording

Net interest income was $26.1 million for the three months ended September 30, 2026, as compared to $25.9 million for the three months ended September 30, 2025. The increase in net interest income of $154,000, or 0.6%, was primarily due to a decrease in interest expense that exceeded a decrease in interest income caused by a decrease in the cost of funds for interest-bearing liabilities that exceeded a decrease in the yield on interest-earning assets.

Previous wording

Total interest and dividend income decreased $2.0 million, or 5.2%, to $36.1 million for the three months ended June 30, 2026 from $38.1 million for the three months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 60 basis points from 8.11% for the three months ended June 30, 2025 to 7.51% for the three months ended June 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $43.8 million, or 2.3%, to $1.9 billion for the three months ended June 30, 2026 from $1.9 billion for the three months ended June 30, 2025.

Current wording

Total interest and dividend income decreased $608,000, or 1.5%, to $38.7 million for the three months ended September 30, 2026 from $39.3 million for the three months ended September 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 61 basis points from 8.15% for the three months ended September 30, 2025 to 7.54% for the three months ended September 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $123.7 million, or 6.4%, to $2.1 billion for the three months ended September 30, 2026 from $1.9 billion for the three months ended September 30, 2025.

Previous wording

Our net interest margin decreased 21 basis points, or 3.9%, to 5.14% for the three months ended June 30, 2026 compared to 5.35% for the three months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.

Current wording

Our net interest margin decreased 29 basis points, or 5.5%, to 5.09% for the three months ended September 30, 2026 compared to 5.38% for the three months ended September 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on interest-earning assets and a smaller decrease in the cost of funds on interest-bearing liabilities.

Previous wording

The Company recorded credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025.

Current wording

The Company recorded no credit loss expense for the three months ended September 30, 2026 and September 30, 2025.

Previous wording

With respect to the allowance for credit losses for loans, we charged-off $520,000 during the quarter ended June 30, 2026, as compared to charge-offs of $485,000 during the quarter ended June 30, 2025. The charge-offs during the quarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the quarter ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

Current wording

With respect to the allowance for credit losses for loans, we charged off $37,000 during the quarter ended September 30, 2026, as compared to charge-offs of $75,000 during the quarter ended September 30, 2025. The charge-offs during the quarters ended September 30, 2026 and September 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

Previous wording

We recorded no recoveries during the quarter ended June 30, 2026 compared to recoveries of $82,000 during the quarter ended June 30, 2025. The recoveries of $82,000 during the quarter ended June 30, 2025 comprised of recoveries from a previously charged-off unpaid overdraft on a demand deposit account.

Current wording

We recorded recoveries of $8,000 during the quarter ended September 30, 2026 compared to recoveries of $99,000 during the quarter ended September 30, 2025. The recoveries during the quarters ended September 30, 2026 and September 30, 2025 comprised of recoveries from previously charged-off unpaid overdraft on demand deposit accounts.

Previous wording

Non-interest income for the three months ended June 30, 2026 was $642,000 compared to non-interest income of $858,000 for the three months ended June 30, 2025. The decrease of $216,000, or 25.2%, in total non-interest income was primarily due to decreases of $173,000 in unrealized gain/(loss) on equity securities and $62,000 in other loan fees and service charges, partially offset by increases of $15,000 in BOLI income and $4,000 in miscellaneous other non-interest income.

Current wording

The Company recorded non-interest loss of $185,000 for the three months ended September 30, 2026 compared to non-interest income of $1.0 million for the three months ended September 30, 2025. The decrease of $1.2 million, or 118.2%, in total non-interest income was primarily due to a decrease of $1.3 million in unrealized gain/(loss) on equity securities and a loss of $10,000 on the disposition of fixed assets. These were partially offset by increases of $51,000 in other loan fees and service charges, $16,000 in BOLI income, and $13,000 in miscellaneous other non-interest income.

Previous wording

The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $122,000 on equity securities during the quarter ended June 30, 2026 compared to an unrealized gain of $51,000 on equity securities during the quarter ended June 30, 2025. The unrealized loss of $122,000 and unrealized gain of $51,000 on equity securities during the quarters ended June 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.

Current wording

The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $1.1 million on equity securities during the quarter ended September 30, 2026 compared to an unrealized gain of $170,000 on equity securities during the quarter ended September 30, 2025. The unrealized loss of $1.1 million and unrealized gain of $170,000 on equity securities during the quarters ended September 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.

Previous wording

The decrease of $62,000 in other loan fees and service charges was due to decreases of $82,000 in loan service charges and fees, partially offset by an increase of $20,000 in ATM/debit card/ACH fees. The increase of $15,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.

Current wording

The increase of $51,000 in other loan fees and service charges was due to increases of $62,000 in ATM/debit card/ACH fees and $3,000 in deposit account fees, partially offset by a decrease of $14,000 in loan service charges and fees. The increase of $16,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $13,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.

Previous wording

Non-interest expense increased $110,000, or 1.0%, to $10.6 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase resulted primarily from increases of $291,000 in other operating expense, $166,000 in salaries and employee benefits, and $44,000 in occupancy expense, partially offset by decreases of $247,000 in real estate owned expense, $79,000 in advertising expense, $33,000 in outside data processing expense, and $32,000 in equipment expense.

Current wording

Non-interest expense increased $402,000, or 3.9%, to $10.7 million for the three months ended September 30, 2026 from $10.4 million for the three months ended September 30, 2025. The increase resulted primarily from increases of $757,000 in other operating expenses, $43,000 in salaries and employee benefits, $26,000 in occupancy expense, and $10,000 in equipment expense, partially offset by decreases of $238,000 in real estate owned expense, $103,000 in outside data processing expense, and $93,000 in advertising expense.

Previous wording

Other non-interest operating expense increased $291,000, or 10.6%, to $3.0 million for the three months ended June 30, 2026 from $2.7 million for the three months ended June 30, 2025 due mainly to increases of $331,000 in miscellaneous other non-interest expense, $35,000 in consulting fees, $29,000 in service contracts expense, $28,000 in insurance expense, $16,000 in legal fees, $12,000 in directors, officers and employees expense, and $1,000 in directors compensation. These were partially offset by decreases of $77,000 in regulatory fees, $32,000 in audit and accounting expense, $22,000 in telephone expense, $17,000 in recruitment expense, $7,000 in office supplies expense, and $6,000 in dues and subscription expense.

Current wording

Other non-interest operating expense increased $757,000, or 27.0%, to $3.6 million for the three months ended September 30, 2026 from $2.8 million for the three months ended September 30, 2025 due mainly to increases of $844,000 in miscellaneous other non-interest expense, $64,000 in consulting fees, $60,000 in service contracts expense, $52,000 in personnel recruitment expense, $8,000 in directors compensation, $4,000 in directors, officers and employees expense, $4,000 in office supplies, and $3,000 in insurance expense. These increases were partially offset by decreases of $179,000 in regulatory fees, $46,000 in legal fees, $21,000 in telephone expense, $20,000 in audit and accounting expense, and $16,000 in dues and subscription expense.

Previous wording

The increase of $331,000 in miscellaneous other non-interest expense was mainly due to increases of $314,000 in miscellaneous charge-offs, $49,000 in public company expense, and $12,000 in check and correspondence bank charges, partially offset by a decrease of $44,000 in miscellaneous other non-interest expense. The increase of $314,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.

Current wording

The increase of $844,000 in miscellaneous other non-interest expense was mainly due to increases of $729,000 in miscellaneous charge-offs, $66,000 in public company expense, $48,000 in miscellaneous other non-interest expense, and $2,000 in check and correspondent bank charges, partially offset by a decrease of $1,000 in postage expense. The increase of $729,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.

Previous wording

Salaries and employee benefits increased $166,000, or 2.9%, to $5.8 million for the three months ended June 30, 2026 from $5.7 million for the three months ended June 30, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses.

Current wording

Salaries and employee benefits increased $43,000, or 0.8%, to $5.5 million for the three months ended September 30, 2026 from $5.4 million for the three months ended September 30, 2025 primarily due to the hiring of additional personnel to support the growth of the Company and an increase in employee compensation and benefits expense in order to retain key personnel, partially offset by an increase in loan origination offset expenses.

Previous wording

Occupancy expense increased $44,000, or 5.9%, to $787,000 for the three months ended June 30, 2026 from $743,000 for the three months ended June 30, 2025 primarily due to repairs and maintenance at various offices and increased utilities cost.

Current wording

Occupancy expense increased $26,000, or 3.5%, to $764,000 for the three months ended September 30, 2026 from $738,000 for the three months ended September 30, 2025 primarily due to repairs and maintenance at various offices and increased utilities cost.

Previous wording

Outside data processing expense decreased $33,000, or 4.4%, to $725,000 for the three months ended June 30, 2026 from $758,000 for the three months ended June 30, 2025 due to a reduction in one-time initial fees for new services. Equipment expense decreased $32,000, or 12.6%, to $221,000 for the three months ended June 30, 2026 from $253,000 for the three months ended June 30, 2025 due to a reduction in the upgrades of equipment.

Current wording

Outside data processing expense decreased $103,000, or 12.7%, to $711,000 for the three months ended September 30, 2026 from $814,000 for the three months ended September 30, 2025 due to a reduction in one-time initial fees for new services.

Previous wording

Advertising expense decreased $79,000, or 64.2%, to $44,000 for the three months ended June 30, 2026 from $123,000 for the three months ended June 30, 2025 due to a decrease in various marketing campaigns.

Current wording

Advertising expense decreased $93,000, or 80.9%, to $22,000 for the three months ended September 30, 2026 from $115,000 for the three months ended September 30, 2025 due to a decrease in various marketing campaigns.

Previous wording

We recorded income tax expense of $4.0 million and $4.3 million for thethree months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, we had approximately $252,000 in tax exempt income, compared to approximately $210,000 in tax exempt income for the three months ended June 30, 2025. Our effective income tax rate was 29.1% for the three months ended June 30, 2026 compared to 27.6% for the three months ended June 30, 2025.

Current wording

We recorded income tax expense of $4.5 million and $4.7 million for thethree months ended September 30, 2026 and 2025, respectively. For the three months ended September 30, 2026, we had approximately $259,000 in tax exempt income, compared to approximately $216,000 in tax exempt income for the three months ended September 30, 2025. Our effective income tax rate was 29.6% for the three months ended September 30, 2026 compared to 28.5% for the three months ended September 30, 2025.

Previous wording

Results of Operations for the Six Months Ended June 30, 2026 and 2025

Current wording

Results of Operations for the Nine Months Ended September 30, 2026 and 2025

Previous wording

Net income for the six months ended June 30, 2026 was $19.7 million compared to net income of $21.7 million for thesix months ended June 30, 2025. The decrease in net income of $2.0 million, or 9.2%, between periods was primarily due to a decrease of $554,000 in net interest income, an increase of $623,000 in credit loss expense, a decrease of $655,000 in non-interest income, and an increase of $371,000 in non-interest expense, partially offset by a decrease of $213,000 in income tax expense.

Current wording

Net income for the nine months ended September 30, 2026 was $30.4 million compared to net income of $33.6 million for thenine months ended September 30, 2025. The decrease in net income of $3.2 million, or 9.5%, between periods was primarily due to a decrease of $1.9 million in non-interest income, an increase of $773,000 in non-interest expense, an increase of $623,000 in credit loss expense, and a decrease of $401,000 in net interest income, partially offset by a decrease of $468,000 in income tax expense.

Previous wording

Net interest income was $48.8 million for the six months ended June 30, 2026 as compared to $49.3 million for the six months ended June 30, 2025. The decrease in net interest income of $555,000, or 1.1%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.

Current wording

Net interest income was $74.9 million for the nine months ended September 30, 2026 as compared to $75.3 million for the nine months ended September 30, 2025. The decrease in net interest income of $401,000, or 0.5%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.

Previous wording

Total interest and dividend income decreased $4.2 million, or 5.5%, to $72.0 million for the six months ended June 30, 2026 from $76.2 million for the six months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 60 basis points from 8.08% for the six months ended June 30, 2025 to 7.48% for the six months ended June 30, 2026, partially offset by an increase in the average balance of interest earning assets of $39.5 million, or 2.1%, to $1.9 billion for the six months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025.

Current wording

Total interest and dividend income decreased $4.8 million, or 4.2%, to $110.7 million for the nine months ended September 30, 2026 from $115.5 million for the nine months ended September 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 61 basis points from 8.10% for the nine months ended September 30, 2025 to 7.50% for the nine months ended September 30, 2026, partially offset by an

Previous wording

Interest expense decreased $3.7 million, or 13.6%, to $23.2 million for the six months ended June 30, 2026 from $26.9 million for the six months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 51 basis points from 3.97% for the six months ended June 30, 2025 to 3.46% for the six months ended June 30, 2026 and a decrease in average interest bearing liabilities of $13.0 million, or 1.0%, to $1.3 billion for the six months ended June 30, 2026 from $1.4 billion for the six months ended June 30, 2025.

Current wording

Interest expense decreased $4.4 million, or 11.0%, to $35.8 million for the nine months ended September 30, 2026 from $40.2 million for the nine months ended September 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 47 basis points from 3.95% for the nine months ended September 30, 2025 to 3.48% for the nine months ended September 30, 2026, partially offset by an increase in average interest bearing liabilities of $12.5 million, or 0.9%, to $1.4 billion for the nine months ended September 30, 2026 from $1.4 billion for the nine months ended September 30, 2025.