Orange County Bancorp, Inc. /DE/

Previous wording

The following discussion and analysis of our financial condition and results of operations at June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 should be read in conjunction with our audited consolidated financial statements and the accompanying notes in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements.

Current wording

The following discussion and analysis of our financial condition and results of operations at September 30, 2026 and December 31, 2025 and for the three and nine months ended September 30, 2026 and 2025 should be read in conjunction with our audited consolidated financial statements and the accompanying notes in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that we believe are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. We assume no obligation to update any of these forward-looking statements.

Previous wording

** ** We are a bank holding company headquartered in Middletown, New York and registered under the Bank Holding Company Act. Through our wholly owned subsidiaries, Orange Bank & Trust Company and Orange Investment Advisors, formerly known as Hudson Valley Investment Advisors, Inc., we offer full-service commercial and consumer banking products and services and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments and affluent individuals in the Lower Hudson Valley region, the New York metropolitan area and nearby markets in Connecticut and New Jersey. By combining the high-touch service and relationship-based focus of a community bank with the extensive suite of financial products and services offered by our larger competitors, we believe we can continue to capitalize on the growth opportunities available in our market areas. We also offer a variety of deposit accounts to businesses and consumers, including checking accounts and a full line of municipal banking accounts through our business banking platform. These activities, together with our 16 offices and one loan production office, continue to produce a stable source of low-cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields. We also offer private banking services through Orange Bank & Trust Private Banking, a division of Orange Bank & Trust Company, and provide trust and wealth management services through Orange Bank & Trust Company’s trust services department and OIA, which combined had $1.7 billion in assets under management at June 30, 2026. As of June 30, 2026, our assets, loans, deposits and stockholders’ equity totaled $2.8 billion, $1.9 billion, $2.4 billion and $306.6 million, respectively.

Current wording

** ** We are a bank holding company headquartered in Middletown, New York and registered under the Bank Holding Company Act. Through our wholly owned subsidiaries, Orange Bank & Trust Company and Orange Investment Advisors, formerly known as Hudson Valley Investment Advisors, Inc., we offer full-service commercial and consumer banking products and services and trust and wealth management services to small businesses, middle-market enterprises, local municipal governments and affluent individuals in the Lower Hudson Valley region, the New York metropolitan area and nearby markets in Connecticut and New Jersey. By combining the high-touch service and relationship-based focus of a community bank with the extensive suite of financial products and services offered by our larger competitors, we believe we can continue to capitalize on the growth opportunities available in our market areas. We also offer a variety of deposit accounts to businesses and consumers, including checking accounts and a full line of municipal banking accounts through our business banking platform. These activities, together with our 16 offices and one loan production office, continue to produce a stable source of low-cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields. We also offer private banking services through Orange Bank & Trust Private Banking, a division of Orange Bank & Trust Company, and provide trust and wealth management services through Orange Bank & Trust Company’s trust services department and OIA, which combined had $1.6 billion in assets under management at September 30, 2026. As of September 30, 2026, our assets, loans, deposits and stockholders’ equity totaled $2.7 billion, $2.0 billion, $2.4 billion and $309.0 million, respectively.

Previous wording

At June 30, 2026, we operate from our main office and 15 branch offices. We own our main office in Middletown, New York, and three branch offices which are located in Chester, Newburgh and in Montgomery, New York. We lease twelve branch offices located in Middletown, Goshen, Cortlandt Manor, White Plains, Mamaroneck, New City, Mt. Pleasant, Mount Vernon, Nanuet, Yonkers, and two Bronx locations, all in New York. The branches are leased under agreements that may be renewed for various periods. In addition, OIA operates from leased offices located in Goshen, New York. At June 30, 2026 and December 31, 2025, the total net book value of our leasehold improvements, furniture, fixtures and equipment was approximately $15.5 million.

Current wording

At September 30, 2026, we operate from our main office and 15 branch offices. We own our main office in Middletown, New York, and three branch offices which are located in Chester, Newburgh and in Montgomery, New York. We lease twelve branch offices located in Middletown, Goshen, Cortlandt Manor, White Plains, Mamaroneck, New City, Mt. Pleasant, Mount Vernon, Nanuet, Yonkers, and two Bronx locations, all in New York. The branches are leased under agreements that may be renewed for various periods. In addition, OIA operates from leased offices located in Goshen, New York. At September 30, 2026 and December 31, 2025, the total net book value of our leasehold improvements, furniture, fixtures and equipment was approximately$15.2 million.

Previous wording

Considering the impact of the FRB’s rate policy during 2025 and current 2026 economic conditions, it is possible that interest rates may be revised during the current year. Although our asset sensitivity remains relatively neutral, this movement could have a significant impact on our net interest income.

Current wording

Considering the impact of the FRB’s rate policy and current 2026 economic conditions, it is possible that interest rates may increase during the current year or in early 2027. Although our asset sensitivity remains relatively neutral, this movement could have a significant impact on our net interest income.

Previous wording

Allowance for Credit Losses. Management believes that the determination of the allowance for credit losses involves a high degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact the results of operations for Orange County Bancorp. The methodology, assumptions, and governance of this CECL model have been codified in a policy document that was most recently reviewed and approved by the Company’s Audit & Risk Committee during the fourth quarter of 2025. While there were no fundamental changes to the CECL model during the quarter, management evaluated certain probability of default assumptions as well as the loss driver analysis. This evaluation resulted in adjustment of certain assumptions but were not considered significant changes to the model. Accordingly, management believes there were no significant changes to the critical accounting estimates during the three and six months ended June 30, 2026, and as disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2026. A summary of our accounting policies, including the Allowance for Credit Losses, is included in the Company’s Annual Report on Form 10-K.

Current wording

Allowance for Credit Losses. Management believes that the determination of the allowance for credit losses involves a high degree of complexity and requires management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could materially impact the results of operations for Orange County Bancorp. The methodology, assumptions, and governance of this CECL model have been codified in a policy document that was most recently reviewed and approved by the Company’s Audit & Risk Committee during the fourth quarter of 2025. While there were no fundamental changes to the CECL model during the quarter, management evaluated certain probability of default assumptions as well as the loss driver analysis. This evaluation resulted in adjustment of certain assumptions but were not considered significant changes to the model. Accordingly, management believes there were no significant changes to the critical accounting estimates during the three and nine months ended September 30, 2026, and as disclosed in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2026. A summary of our accounting policies, including the Allowance for Credit Losses, is included in the Company’s Annual Report on Form 10-K.

Previous wording

Assets. Our total assets were $2.8 billion at June 30, 2026, an increase of $141.0 million, or 5.3%, from December 31, 2025. The increase was primarily driven by increases of $130.7 million in cash and due from banks and $63.6 million in loans held-for-sale, while loans decreased by $38.0 million and investment securities, available for sale, decreased by $23.5 million during the six months ended June 30, 2026.

Current wording

*Assets.*Our total assets were $2.7 billion at September 30, 2026, an increase of $78.4 million, or 2.9%, from December 31, 2025. The increase was primarily driven by increases of $42.6 million in loans held-for-sale, $40.4 million in cash and due from banks, and $17.7 million in loans, net, while investment securities, available for sale, decreased by $33.3 million during the nine months ended September 30, 2026.

Previous wording

Cash and due from banks. Cash and due from banks increased $130.7 million, or 64.0%, to $334.9 million at June 30, 2026, from $204.2 million at December 31, 2025. The increase was mainly the result of management’s focus on deposit growth during the six months ended June 30, 2026 combined with repayments of loans and paydowns and maturities of securities during the second quarter which led to higher levels of liquidity.

Current wording

*Cash and due from banks.*Cash and due from banks increased $40.4 million, or 19.8%, to $244.6 million at September 30, 2026, from $204.2 million at December 31, 2025. The increase was mainly the result of management’s continued focus on deposit and loan growth during the nine months ended September 30, 2026 combined with repayments of loans and paydowns and maturities of securities during the third quarter which led to higher levels of liquidity.

Previous wording

Net loans decreased $38.0 million, or 2.0% to $1.9 billion at June 30, 2026 from December 31, 2025. The decrease in loans was primarily due to$68.4 million of loans transferred to loans held-for-sale and a decrease of $10.2 million in commercial and industrial loans. Commercial and industrial loans decreased $10.2 million, or 4.1%, to $239.5 million at June 30, 2026 from $249.6 million at December 31, 2025. The rest of the portfolio experienced growth within the commercial real estate loans, residential real estate loans, equity lines and in the consumer loans sector. Commercial real estate loans increased $26.5 million, or 1.8% and remained relatively level near $1.5 billion at June 30, 2026 and December 31, 2025. Excluding the effect of the $63.6 million transfer to loans held-for-sale, residential real estate and home equity loans grew organically by a combined $8.9 million. The Company transferred loans with an aggregate principal balance of $68.4 million from the loan portfolio to loans held-for-sale. At the date of transfer, the loans were recorded as held-for-sale at $63.6 million, net of a valuation allowance of $4.8 million. As of June 30, 2026, the loans held-for-sale portfolio consisted of $44.0 million of residential real estate loans and $19.6 million of home equity loans. Consumer loans increased $2.8 million, or 8.4%, to $36.2 million at June 30, 2026 from $33.4 million at December 31, 2025. The overall diversification within the commercial real estate portfolio continues to provide stability while we remained focused on loan originations to new and existing customers during the six months ended June 30, 2026 as well as our continued commitment to geographic expansion in our market area.

Current wording

Net loans increased$17.7 million, or 0.9% to$1.9 billion at September 30, 2026 from December 31, 2025. The increase in loans was primarily due to a $49.6 million increase in commercial real estate loans, a $14.9 million increase in commercial real estate construction loansand a $13.6 million increase in consumer loans. Commercial real estate loans increased $49.6 million, or 3.3%, to $1.5 billion at September 30, 2026 from December 31, 2025. Commercial real estate construction loans increased $14.9 million, or 15.0%, to $114.2 million at September 30, 2026 from $99.3 million at December 31, 2025. Consumer loans increased $13.7 million, or 40.8%, to $47.1 million at September 30, 2026 from $33.4 million at December 31, 2025. Residential real estate loans decreased$42.5 million, or 65.1%, to $22.8 million at September 30, 2026 from $65.3 million at December 31, 2025, primarily due to $42.6 million of loans transferred to loans held-for-sale. Home equity loans decreased $13.0 million, or 57.7%, to $9.6 million at September 30, 2026 from $22.6 million at December 31, 2025. Commercial and industrial loans decreased $5.9 million, or 2.4%, to $243.7 million at September 30, 2026 from $249.6 million at December 31, 2025. As of September 30, 2026, the loans held-for-sale portfolio consisted of $42.6 million of residential real estate loans with recorded $4.5 million valuation allowance. As of September 30, 2026, the Company sold $18.4 million of home equity loans. The overall diversification within the commercial real estate portfolio continues to provide stability while we remain focusedon loan originations to new and existing customers during the nine months ended September 30, 2026 as well as our continued commitment to expansion in our geographic market area.

Previous wording

When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at the lower of carrying amount or fair value, less estimated costs to sell. Soon after acquisition, we order a new appraisal to determine the current market value of the property. Any excess of the recorded value of the loan satisfied over the market value of the property is charged against the allowance for credit losses, or, if the existing allowance is inadequate, charged to expense of the current period. After acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. Management will consider a modification of loan terms, such as a reduction of the interest rate to below market terms, capitalizing past due interest or extending the maturity date and possibly a partial forgiveness of the principal amount due, when it is deemed appropriate based on individual borrower conditions. Interest income on restructured loans is accrued after the borrower demonstrates the ability to pay under the restructured

Current wording

When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at fair value, less estimated costs to sell. Soon after acquisition, we order a new appraisal to determine the current market value of the property. Any excess of the recorded value of the loan satisfied over the market value of the property is charged against the allowance for credit losses, or, if the existing allowance is inadequate, charged to expense of the current period. After acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. Management will consider a modification of loan terms, such as a reduction of the interest rate to below market terms, capitalizing past due interest or extending the maturity date and possibly a partial forgiveness of the principal amount due, when it is deemed appropriate based on individual borrower conditions. Interest income on restructured loans is accrued after the borrower demonstrates the ability to pay under the restructured terms through a sustained period of repayment performance, which is generally six consecutive months.

Previous wording

The following table sets forth information regarding our non-performing assets. Non-performing loans aggregated approximately $22.2 million at June 30, 2026 as compared to $11.1 million at December 31, 2025.

Current wording

The following table sets forth information regarding our non-performing assets. Non-performing loans aggregated approximately $19.4** million at September 30, 2026 as compared to $11.1 **million at December 31, 2025.

Previous wording

Non-performing loans at June 30, 2026 totaled $22.2 million and consisted of $15.6 million related to commercial real estate loans, $2.4 million associated with commercial and industrial loans, and $833 thousand related to home equity loans. Although there was an increase in the commercial and industrial segment of the portfolio, the level of non-performing loans was still mainly related to the commercial real estate portfolio. The commercial real estate non-performing loans were mainly the result of a $14.2 million commercial real estate participation loan that experienced payment disruption during the six months ended June 30, 2026 due to bankruptcy at the parent company, offset partially by settlement of a previously reported participation loan for an office complex. The settlement reduced non-performing loans by approximately $6.0 million during the second quarter of 2026. Total accruing loans 90 days or more past due represented $3.3 million of loans as of June 30, 2026, compared to $18 thousand at December 31, 2025. The increase in accruing loans 90 days or more past due was related primarily to a commercial real estate participation loan that experienced an administrative delay in the processing of an extension/modification during the six months ended June 30, 2026 due to divorce proceedings, and remains a performing loan and in accrual status at June 30, 2026.

Current wording

Non-performing loans at September 30, 2026 totaled $19.4** million and consisted of $15.8 million related to commercial real estate loans, $2.4 million related to commercial and industrial loans, and $827 thousand related to home equity loans. Although there was an increase in the commercial and industrial segment of the portfolio, the level of non-performing loans was still mainly related to the commercial real estate portfolio. The commercial real estate non-performing loans were mainly the result of a $14.2 million commercial real estate participation loan that experienced payment disruption during the nine months ended September 30, 2026 due to bankruptcy at the parent company, offset partially by settlement of a previously reported participation loan for an office complex. Total accruing loans 90 days or more past due represented $282 **thousand of loans as of September 30, 2026, compared to $18 thousand at December 31, 2025. The increase in accruing loans 90 days or more past due was related primarily to a commercial real estate participation loan that experienced an administrative delay in the processing of an extension/modification during the nine months ended September 30, 2026, and remains a performing loan and in accrual status at September 30, 2026.

Previous wording

Led by the increase in non-accrual loans and loans 90 days past due, non-performing assets increased $11.0 million, or 99.1%, to $22.2 million, or 0.79% of total assets, at June 30, 2026 from $11.1 million, or 0.42% of total assets, at December 31, 2025. Management continues to focus on credit quality and attention to assets with potential concerns.

Current wording

As a result of the increase in non-accrual loans and loans 90 days past due and accruing, non-performing assets increased $8.3** million, or 74.0%, to $19.4 **million, or 0.71% of total assets, at September 30, 2026 from $11.1 million, or 0.42% of total assets, at December 31, 2025. The Company had no other real estate owned at September 30, 2026 or at December 31, 2025. Management continues to focus on credit quality and attention to assets with potential concerns.

Previous wording

From time to time, as part of our loss mitigation strategy, we may renegotiate loan terms based on the economic and legal reasons related to the borrower’s financial difficulties. There were no loans modified due to financial difficulties during the six months ended June 30, 2026.

Current wording

From time to time, as part of our loss mitigation strategy, we may renegotiate loan terms based on the economic and legal reasons related to the borrower’s financial difficulties. There were no loans modified due to financial difficulties during the nine months ended September 30, 2026.

Previous wording

On the basis of management’s review of our assets, we have classified $66.4 million of our assets at June 30, 2026 as substandard compared to $73.7 million at December 31, 2025, with the decrease due to a combination of risk ratings resulting from certain trends, including delinquencies within the loan portfolio, and the sale or chargeoff of certain loans. There were no doubtful assets as of June 30, 2026 or December 31, 2025. We designated $43.1 million of our assets at June 30, 2026 as special mention compared to $58.4 million designated as special mention at December 31, 2025.

Current wording

On the basis of management’s review of our assets, we have classified $54.1 million of our assets at September 30, 2026 as substandard compared to $73.7 million at December 31, 2025, with the decrease due to a combination of risk ratings improvement resulting from certain trends, including delinquencies within the loan portfolio, and the sale or chargeoff of certain loans. There were no doubtful assets as of September 30, 2026 or December 31, 2025. We designated $44.5 million of our assets at September 30, 2026 as special mention compared to $58.4 million designated as special mention at December 31, 2025.

Previous wording

As presented below, the allowance for credit losses decreased by $2.1 million, or 7.3%, to $26.3 million, or 1.38% of total loans at June 30, 2026, from $28.4 million, or 1.48% of total loans at June 30, 2025. The decrease in the allowance was due primarily to slower loan growth during 2026 combined with lower reserves associated with the composition of loans closed in 2026 and a $633 thousand reduction related to loans transferred to loans held-for-sale during the first six months of 2026. The six months ended June 30, 2026 also included net chargeoffs of approximately $524 thousand.

Current wording

As presented below, the allowance for credit losses decreased by $2.1** **million, or 7.2%, to $27.2 million, or 1.38% of total loans at September 30, 2026, from $29.3 million, or 1.51% of total loans at September 30, 2025. The decrease in the allowance was due primarily to slower loan growth during 2026 combined with lower reserves associated with the composition of loans closed in 2026 and a $587 thousand reduction related to loans transferred to loans held-for-sale during the first nine months of 2026. The nine months ended September 30, 2026 also included net chargeoffs of approximately $340 thousand as compared to net chargeoffs of $3.0 million for the nine months ended September 30, 2025.

Previous wording

For the six months ended June 30, 2026, the Company recognized net charge-offs of $524 thousand, or 0.03%. Commercial real estate loans reflected a net charge-offs of $535 thousand associated with the settlement and payoff of certain loans. For the period, the commercial and industrial segment of the loan portfolio recognized a net charge-off amount of $13 thousand, or a net charge-off ratio of 0.03%. The consumer loan portfolio experienced net recoveries during the six month period of approximately $24 thousand related to collection of certain loans. For the six months ended June 30, 2026 and 2025, respectively, no other category of loans had a net charge-off ratio which exceeded 0.01% either individually, or in the aggregate.

Current wording

For the nine months ended September 30, 2026, the Company recognized net charge-offs of $340 thousand, or 0.02% of total loans. Commercial real estate loans reflected net charge-offs of $535 thousand, or a net charge-off ratio of 0.3%, associated with the settlement and payoff of certain loans during the nine months ended September 30, 2026. For the same period, the commercial and industrial segment of the loan portfolio recognized net recoveries of $165 thousand, or a net charge-off ratio of (0.1%). For the nine months ended September 30, 2025, the commercial and industrial segment category of loans had a net charge-off of $3.1 million, or a net charge-offs ratio of 0.16%. Theconsumer loan portfolio experienced net recoveries during the 2026 nine month period of approximately $30 thousand related to collection of certain loans. For the nine months ended September 30, 2026 and 2025, respectively, no other category of loans had a net charge-off ratio which exceeded 0.01% either individually, or in the aggregate.

Previous wording

Available for sale securities decreased $23.5 million, or 5.6%, to $395.9 million at June 30, 2026 primarily due to investments repayments and maturities combined with continued decline for all investment categories due to normal amortization and cash flow during the six month period ended June 30, 2026. We did not have held-to-maturity securities at June 30, 2026 or December 31, 2025.

Current wording

Available for sale securities decreased $33.3 million, or 7.9%, to $386.1 million at September 30, 2026 primarily due to investments repayments and maturities combined with continued decline for all investment categories due to normal amortization and cash flow during the nine month period ended September 30, 2026, offset by investment purchases. We did not have held-to-maturity securities at September 30, 2026 or December 31, 2025.

Previous wording

Total deposits increased $120.8 million, or 5.2%, to $2.4 billion at June 30, 2026 from $2.3 billion at December 31, 2025 driven by continued deposit growth focused on commercial transaction accounts during the first six months of 2026. This growth allows for continued stability and strength of liquidity levels for the Bank. Non-interest-bearing demand deposits increased $68.3 million due to normal business activity and continued focus on transactional accounts during the first six months of 2026. Interest bearing demand deposits experienced a $71.1 million, or 17.0%, increase while money market deposits decreased $391.6 million, and savings deposits increased by $496.0 million during the first six months of 2026 primarily related to our continued strategic focus on business account activity and a shift in certain customer accounts from money market accounts to savings accounts during the first six month period in 2026. At June 30, 2026, our core deposits (which includes all deposits except for certificates of deposit) totaled $2.4 billion, or 98.5% of our total deposits. Certificates of deposit decreased by $123.0 million, or 77.3%, mainly from non-renewals of brokered deposits during the six months ended June 30, 2026. We did not have any brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at June 30, 2026. We had approximately $125.0 million of brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at December 31, 2025. This decrease represents a continued strategic initiative to reduce short term brokered deposits as a result of increased core deposits and allow for replacement of maturing brokered deposits with transactional customer deposits with lower interest expense. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $144.5 million at June 30, 2026 and the CDARS and ICS deposits totaled $101.8 million at December 31, 2025. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represent approximately 52% of total deposits as of June 30, 2026 and 46% of total deposits as of December 31, 2025.

Current wording

Total deposits increased $56.0 million, or 2.4%, to $2.4 billionat September 30, 2026 from $2.3 billion at December 31, 2025 driven by continued deposit growth focused on commercial transaction accounts during the first nine months of 2026. This growth allows for continued stability and strength of liquidity levels for the Bank. At September 30, 2026, money market depositsand savings deposits increased by $165.1 million, or 16.4%, to $1.2 billion from December 31, 2025 primarily related to our continued strategic focus on business account activity and a strategic shift in certain customer accounts away from money market accounts to savings accounts during the first nine month period in 2026. Non-interest-bearing demand deposits increased $51.1 million due to normal business activity and continued focus on transactional accounts during the first nine months of 2026. At September 30, 2026, our core deposits (which includes all deposits except for certificates of deposit) totaled $2.3 billion, or 98.6% of our total deposits. Certificates of deposit decreased by $126.3 million, or 79.4%, mainly from non-renewals of brokered deposits during the nine months ended September 30, 2026. Interest bearing demand deposits experienced a $34.0 million, or 8.1%, decrease to $385.6 million at September 30, 2026, from $419.6 million at December 31, 2025. We did not have any brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at September 30, 2026. We had approximately $125.0 million of brokered deposits (excluding reciprocal deposits obtained through the Certificate Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) networks) at December 31, 2025. This decrease represents a continued strategic initiative to reduce short term brokered deposits as a result of increased core deposits and allow for replacement of maturing brokered deposits with transactional customer deposits resulting in lower interest expense. Our reciprocal deposits obtained through the CDARS and ICS networks totaled $140.3 million and $101.8 millionat September 30, 2026 and at December 31, 2025, respectively. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represented approximately 50% of total depositsas of September 30, 2026 and 46% of total deposits as of December 31, 2025.

Previous wording

Total borrowings from the Federal Home Loan Bank of New York were $10.0 million at June 30, 2026 and December 31, 2025 as deposit growth exceeded loan growth during the period. This level balance represents the continued focus by management to reduce borrowings and the related interest expense by using lower-cost deposits for funding. We have the unused capacity to borrow an additional $597.0 million from the Federal Home Loan Bank of New York as of June 30, 2026.

Current wording

Total borrowings from the Federal Home Loan Bank of New York were $10.0 million at September 30, 2026 and December 31, 2025 as deposit growth exceeded loan growth during the period. This level balance represents the continued focus by management to reduce borrowings and the related interest expense by using lower-cost deposits for funding. We have the unused capacity to borrow anadditional $586.5 million from the Federal Home Loan Bank of New York as of September 30, 2026.

Previous wording

Stockholders’ equity increased $22.3 million, or 7.8%, to $306.6 million at June 30, 2026 from $284.4 million at December 31, 2025. The increase was due to the combination of $24.9 million in net income, a $3.6 million increase in surplus and a decrease in unrealized gains of approximately $1.4 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes during the first six months of 2026, offset by dividends paid of $4.8 million during the six months ended June 30, 2026. The increase of $3.6 million in surplus was primarily due to a liability-to-equity reclassification of equity awards in the amount of $2.3 million during the six months ended June 30, 2026.

Current wording

Stockholders’ equity increased $24.6 million, or 8.7%, to $309.0 million at September 30, 2026 from $284.4 million at December 31, 2025. The increase was due to the combination of $37.4 million in net income and a $4.2 million increase in surplus, offset by an increase in unrealized losses of approximately $9.8 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive loss, net of taxes and dividends paid of $7.2 million during the nine months ended September 30, 2026. The increase of $4.2 million in surplus was primarily due to a liability-to-equity reclassification of equity awards in the amount of $2.3 million during the nine months ended September 30, 2026.

Previous wording

The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the three and six month periods ended June 30, 2026 and 2025. No tax equivalent yield adjustments have been made, as the effects would be immaterial. The average balances are daily averages for loans, as presented. Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. Average deferred loan fees totaled $4.7 million and $4.9 million for the three months ended June 30, 2026 and June 30, 2025, respectively. Average deferred loan fees totaled $4.7 million and $4.9 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the three and nine month periods ended September 30, 2026 and 2025. No tax equivalent yield adjustments have been made, as the effects would be immaterial. The average balances are daily averages for loans, as presented. Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. Average deferred loan fees totaled $4.9 million for the three months ended September 30, 2026 and September 30, 2025. Average deferred loan fees totaled $4.7 million and $4.9 million for the nine months ended September 30, 2026 and September 30, 2025, respectively.

Previous wording

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

Current wording

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

Previous wording

General. Net income increased $3.2 million, or 30.6%, to $13.7 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase was driven primarily by an increase of $3.3 million related to net interest income growth, a decrease of $5.2 million in provision for income taxes and a decrease of $3.1 million in provision for credit losses on loans, partially offset by a decrease of $7.9 million in noninterest income and an increase of $515 thousand in noninterest expense in the current period. Net income for the six months ended June 30, 2026 was $24.9 million, as compared to $19.2 million for the same period in 2025. The overall increase was driven by $7.6 million of net interest income growth combined with decreased provision for

Current wording

General. Net income increased $2.5 million, or 24.6%, to $ 12.5 million for the three months ended September 30, 2026 from $10.0 million for the three months ended September 30, 2025. The increase was driven primarily by an increase of $3.0 million related to net interest income growth and a decrease of $3.1 million in provision for credit losses on loans, partially offset by an increase of $1.8 million in provision for income taxes, a decrease of $1.4 million in noninterest income and an increase of $391 thousand in noninterest expense in the current period as compared to the same prior year period. Net income for the nine months ended September 30, 2026 was $37.4 million, as compared to $29.2 million for the same period in 2025. The overall increase was driven by $10.5 million of net interest

Previous wording

income taxes of $4.5 million and a decreased provision for credit losses on loans of $3.8 million, partially offset by a decrease in noninterest income of $8.1 million and an increase of $1.9 million in noninterest expense during the first six months of 2026 as compared to the same prior year period.

Current wording

income growth combined with decreased provision for credit losses on loans of $6.8 million, and a decrease in provision for income taxes of $2.7 million, partially offset by a decrease in noninterest income of $9.5 million and an increase of $2.3 million in noninterest expense during the first nine months of 2026 as compared to the same prior year period.

Previous wording

Interest Income. Interest income increased $1.3 million, or 4.0%, to $34.5 million for the three months ended June 30, 2026 from $33.2 million for the three months ended June 30, 2025. This increase was driven by a $84.0 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of loans grew $89.7 million, or 4.8%, between the three months ended June 30, 2026 and June 30, 2025. During the current period, the average yield of interest-earning assets increased by three basis points from 5.36% for the three months ended June 30, 2025 to 5.39% for the three months ended June 30, 2026 as a result primarily of increased yields and fees associated with loans originated in 2025 and the early part of 2026.

Current wording

Interest Income. Interest income increased $1.7 million, or 4.9 %, to $36.2 million for the three months ended September 30, 2026 from $34.5 million for the three months ended September 30, 2025. This increase was driven by a $158.9 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of cash and due from banks grew $117.4 million, or 76.5% and the average balance of loans grew $64.4 million, or 3.3 %, between the three months ended September 30, 2026 and September 30, 2025. During the current period, the average yield of interest-earning assets decreased by seven basis points from 5.46% for the three months ended September 30, 2025 to 5.39% for the three months ended September 30, 2026 as a result of higher levels of cash balances during the 2026 period, which included the effect of a reclassification during the three months ended September 30,2026.

Previous wording

Interest income increased $3.8 million, or 5.9%, for the six months ended June 30, 2026 reaching $68.9 million from $65.1 million for the six months ended June 30, 2025. This increase was driven by a $113.1 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of loans receivable grew $107.4 million, or 5.8%, between the six months ended June 30, 2026 and June 30, 2025. During the period, the average yield of interest-earning assets increased by six basis points from 5.35% for the six months ended June 30, 2025 to 5.41% for the six months ended June 30, 2026 as a result primarily of increased yields and fees associated with loans originated in 2025 and the early part of 2026.

Current wording

Interest income increased $5.5 million, or 5.5%, for the nine months ended September 30, 2026 reaching $105.2 million from $99.7 million for the nine months ended September 30, 2025. This increase was driven by a $146.5 million increase in the balance of average interest-earning assets between the two periods. Within the average balance of interest-earning assets, the average balance of loans grew $92.9 million, or 4.9%, and the average balance of cash and due from banks grew $79.7 million between the nine months ended September 30, 2026 and September 30, 2025. During the period, the average yield of interest-earning assets decreased by two basis points from 5.39% for the nine months ended September 30, 2025 to 5.37% for the nine months ended September 30, 2026 as a result of higher levels of cash balances during the 2026 period, which included the effect of a reclassification during the nine months ended September 30,2026.

Previous wording

Interest income on loans increased by $1.5 million, or 5.4%, to $29.6 million during the three months ended June 30, 2026 from $28.1 million during the three months ended June 30, 2025. The increase in interest income on loans was primarily due to the increase in the average balance of loans combined with higher yields during the current period. The average balance of these loans increased by $89.7 million, or 4.8%, to $2.0 billion for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in the average balance of loans was due to growth in multi-family, commercial real estate, home equity lines of credit as well as growth in our consumer installment loan portfolio. The average yield on loans increased by three basis points to 6.03% for the three months ended June 30, 2026 from 6.00% for the three months ended June 30, 2025 as a result of disciplined loan pricing during 2025 and the first quarter of 2026.

Current wording

Interest income on loans increased by $1.3 million, or 4.3%, to $31.1 million during the three months ended September 30, 2026 from $29.8 million during the three months ended September 30, 2025. The increase in interest income on loans was primarily due to the increase in the average balance of loans combined with higher yields during the current period. The average balance of loans increased by $64.4 million, or 3.3%, to $2.0 billion for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase in the average balance of loans was due to growth in multi-family, commercial real estate, residential real estate as well as growth in our consumer installment loan portfolio, partially offset by a decrease in home equity lines of credit. Home equity lines of credit experienced a decrease primarily due to the $18.4 million sale of the portfolio during the three months ended September 30, 2026. The average yield on loans increased by six basis points to 6.19% for the three months ended September 30, 2026 from 6.13% for the three months ended September 30, 2025 as a result of disciplined loan pricing during 2025 and 2026.

Previous wording

For the six months ended June 30, 2026, interest income on loans, increased by $4.0 million, or 7.2%, reaching $59.4 million as compared to $55.4 million for the six months ended June 30, 2025. The increase in interest income on loans represents the impact of growth in average loan balances of $107.4 million between the six months ended June 30, 2026 and June 30, 2025. The increase in average loans outstanding was due to growth in multi-family, commercial real estate and home equity lines. The average yield on loans increased by nine basis points to 6.11% for the six months ended June 30, 2026 from 6.02% for the six months ended June 30, 2025 as a result of disciplined loan pricing during 2026.

Current wording

For the nine months ended September 30, 2026, interest income on loans, increased by $5.2 million, or 6.2%, reaching $90.5 million as compared to $85.3 million for the nine months ended September 30, 2025. The increase in interest income on loans represents the impact of growth in average loan balances of $92.9 million between the nine months ended September 30, 2026 and September 30, 2025. The increase in average loans outstanding was due to growth in commercial real estate, multi-family, residential real estate, consumer portfolio and home equity lines, partially offset by a decrease in commercial and industrial loans. The average yield on loans increased by seven basis points to 6.13% for the nine months ended September 30, 2026 from 6.06% for the nine months ended September 30, 2025 as a result of disciplined loan pricing during 2026.

Previous wording

Interest income on securities including restricted stock decreased by $346 thousand to $2.9 million during the three months ended June 30, 2026 from $3.3 million during the three months ended June 30, 2025. The decrease in interest income on securities was driven primarily by a decrease in the average balances of securities outstanding during the current period due to investment repayments and certain maturities. The average balance of securities decreased by $28.7 million, or 6.5%, to $409.7 million for the three months ended June 30, 2026 compared to $438.4 million for the three months ended June 30, 2025. The average yield on investment securities decreased by 13 basis points to 2.88% for the three months ended June 30, 2026 from 3.01% for the three months ended June 30, 2025. The decrease in the average yield on investment securities reflected the continued repayments and maturities of higher yielding securities during the three months ended June 30, 2026.

Current wording

Interest income on securities including restricted stock decreased by $262 thousand to $2.9 million during the three months ended September 30, 2026 from $3.1 million during the three months ended September 30, 2025. The decrease in interest income on securities was driven primarily by a decrease in the average balances of securities outstanding during the current period due to investment repayments and certain maturities. The average balance of securities decreased by $22.8 million, or 5.4%, to $400.5 million for the three months ended September 30, 2026 compared to $423.3 million for the three months ended September 30, 2025. The average yield on investment securities decreased by 9 basis points to 2.86% for the three months ended September 30, 2026 from 2.95% for the three months ended September 30, 2025. The decrease in the average yield on investment securities reflected the continued repayments and maturities of higher yielding securities during the three months ended September 30, 2026.

Previous wording

For the six months ended June 30, 2026, interest income on securities including restricted stock decreased by $601 thousand to $5.9 million during the period from $6.5 million during the six months ended June 30, 2025. The decrease in interest income on securities was due to a decrease in the average balances of securities during the current period and a decrease in the average rate paid on such investments. The average balance of securities decreased by $27.7 million, or 6.2%, to $416.4 million for the six months ended June 30, 2026 compared to $444.1 million for the six months ended June 30, 2025, due to investment prepayments and certain securities maturities during the six months ended June 30, 2026. The average yield on investment securities decreased by 10 basis points from 2.97% for the six months ended June 30, 2025 to 2.87% for the six months ended June 30, 2026. The decrease in the average yield on securities was related to the repayments and maturities of higher yielding securities during the first half of 2026.

Current wording

For the nine months ended September 30, 2026, interest income on securities including restricted stock decreased by $863 thousand to $8.8 million during the current period from $9.7 million during the nine months ended September 30, 2025. The decrease in interest income on securities was due to a decrease in the average balances of securities during the current period and a decrease in the average rate paid on such investments. The average balance of securities decreased by $26.1 million, or 5.96%, to $411.0 million for the nine months ended September 30, 2026 compared to $437.1 million for the nine months ended September 30, 2025, due to investment prepayments and certain securities maturities during the nine months ended September 30, 2026. The average yield on investment securities decreased by 9 basis points from 2.96% for the nine months ended September 30, 2025 to 2.87% for the nine months ended September 30, 2026. The decrease in the average yield on securities was related to the repayments and maturities of higher yielding securities during the first nine months of 2026.

Previous wording

Interest Expense. Interest expense decreased $2.0 million, or 24.2%, to $6.1 million for the three months ended June 30, 2026 from $8.1 million for the three months ended June 30, 2025. The decreased interest expense was primarily due to the continued reduction of interest costs associated with lower average balances in deposits and FHLB advances, offset by increased interest cost and higher average balances of subordinated notes. The average rate paid on interest-bearing liabilities decreased 41 basis points to 1.52% during the three months ended June 30, 2026 as compared to 1.93% for the three month period ended June 30, 2025. The average balance of interest-bearing liabilities decreased by $54.9 million, or 3.3%, to $1.6 billion for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.

Current wording

Interest Expense. Interest expense decreased $1.3 million, or 17.1%, to $6.3 million for the three months ended September 30, 2026 from $7.6 million for the three months ended September 30, 2025. The decrease in interest expense was primarily due to the continued reduction of interest costs associated with deposits, and subordinated debt and lower average balance in FHLB advances, partially offset by higher average balances of deposits and subordinated notes. The average rate paid on interest-bearing liabilities decreased 34 basis points to 1.52% during the three months ended September 30, 2026 as compared to 1.86% for the three month period ended September 30, 2025. The average balance of interest-bearing liabilities increased by $18.9 million, or 1.2%, to $1.6 billion for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025.

Previous wording

Interest expense on interest-bearing deposits decreased by $1.9 million to $5.6 million for the three months ended June 30, 2026 from $7.5 million for the three months ended June 30, 2025. The decrease in interest expense on interest-bearing deposits was due mainly to a decrease in the average rate on interest-bearing deposits during the current period. The average rate of interest-bearing deposits decreased 44 basis points to 1.41% during the three months ended June 30, 2026 as compared to 1.85% for the three months ended June 30, 2025 as a result of the lower interest rate environment. The average balance of interest-bearing deposits decreased by $39.2 million, or 2.4%, to $1.6 billion for the three months ended June 30, 2026 and remained leveled as compared to the three months ended June 30, 2025 as a result of the decreases in the average balances of certificates of deposit, which included lower levels of brokered deposits at higher rates.

Current wording

Interest expense on interest-bearing deposits decreased by $592 thousand to $5.8 million for the three months ended September 30, 2026 from $6.3 million for the three months ended September 30, 2025. The decrease in interest expense on interest-bearing deposits was due mainly to a decrease in the average rate on interest-bearing deposits during the current period. The average rate of interest-bearing deposits decreased 21 basis points to 1.42% during the three months ended September 30, 2026 as compared to 1.63% for the three months ended September 30, 2025, due to management's continued focus on low-cost deposits and disciplined pricing. The average balance of interest-bearing deposits increased by $59.9 million, or 3.9%, to $1.6 billion for the three months ended September 30, 2026 as compared to $1.5 million for the three months ended September 30, 2025, as a result of increased average levels of savings deposits offset by decreases in average money market and interest bearing demand deposit accounts.

Previous wording

Interest expense on interest-bearing deposits decreased by $3.0 million to $11.6 million for the six months ended June 30, 2026 from $14.6 million for the six months ended June 30, 2025. The decrease in interest expense on interest-bearing deposits was due mainly to a decrease in the average rate on interest-bearing deposits during the current period. The average rate of interest-bearing deposits decreased 39 basis points to 1.47% for the six months ended June 30, 2026 as compared to 1.86% for the six months ended June 30, 2025 as a result of the lower interest rate environment. The average balance of interest-bearing deposits increased by $10.1 million, or 0.6%, to $1.6 billion for the six months ended June 30, 2026 and remained leveled as compared to the six months ended June 30, 2025, primarily as a result of the increases in the average balances of interest bearing demand deposits and savings deposit accounts.

Current wording

Interest expense on interest-bearing deposits decreased by $3.6 million to $17.3 million for the nine months ended September 30, 2026 from $20.9 million for the nine months ended September 30, 2025. The decrease in interest expense on interest-bearing deposits was due mainly to a decrease in the average rate on interest-bearing deposits during the current period. The average rate of interest-bearing deposits decreased 34 basis points to 1.45% for the nine months ended September 30, 2026 as compared to 1.79% for the nine months ended September 30, 2025 due to management's continued focus on low-cost deposits and disciplined pricing. The average balance of

Previous wording

We also recorded interest expense of $430 thousand during the three months ended June 30, 2026 related to subordinated debt as compared to $231 thousand in interest expense for the three months ended June 30, 2025. The increase was related to the issuance in September 2025 of $25.0 million in outstanding subordinated notes. In addition, we expensed $860 thousand and $461 thousand in interest expense for the six months ended June 30, 2026 and June 30, 2025, respectively. The increased interest costs represent the debt service required as part of the 2025 subordinated notes.

Current wording

We also recorded interest expense of $429 thousand during the three months ended September 30, 2026 related to subordinated debt as compared to $617 thousand in interest expense for the three months ended September 30, 2025. The decrease was related to the issuance in September 2025 of $25.0 million in outstanding subordinated notes. In addition, we expensed $1.3 million and $1.1 million in interest expense for the nine months ended September 30, 2026 and September 30, 2025, respectively. The increased interest costs represent the debt service required as part of the 2025 subordinated notes.

Previous wording

The interest expense related to FHLB advances in the second quarter of 2026 decreased $241 thousand to $134 thousand at an average cost of 3.95% as compared to interest expense of $375 thousand at an average cost of 4.38% for the same period in 2025. The decrease in FHLB expense in the second quarter of 2026 was primarily due to a decrease of $20.7 million in the average balance of such advances and a decrease in the average cost paid on FHLB advances. The decrease in average FHLB balance was the direct result of Management being able to replace higher cost FHLB borrowings with lower cost deposits and reduce interest expense during the current period. Although borrowings remain a potential source of strategic funding for the Company, the reduction in borrowings during the quarter reflects the ability of the Company to increase deposits and strategically reduce related interest costs.

Current wording

The interest expense related to FHLB advances in the third quarter of 2026 decreased $516 thousand to $100 thousand at an average cost of 3.97% as compared to interest expense of $616 thousand at an average cost of 4.44% for the same period in 2025. The decrease in FHLB expense in the third quarter of 2026 was primarily due to a decrease of $45.1 million in the average balance of such advances and a decrease in the average cost paid on FHLB advances. The decrease in average FHLB balance was the direct result of Management being able to replace higher cost FHLB borrowings with lower cost deposits and reduce interest expense during the current period. Although borrowings remain a potential source of strategic funding for the Company, the reduction in borrowings during the quarter reflects the ability of the Company to increase deposits and strategically reduce related interest costs.

Previous wording

The interest expense related to FHLB advances for the first six months of 2026 decreased $1.1 million to $232 thousand at an average cost of 3.96% as compared to interest expense of $1.3 million at an average cost of 4.42% for the same period in 2025. The decrease in FHLB expense for the first six months of 2026 was primarily due to a decrease of $47.7 million in the average balance of such advances and a decrease in the average cost paid on FHLB advances. The decrease in average FHLB balance was the direct result of Management being able to replace higher cost FHLB borrowings with lower cost deposits and reduce interest expense during the current period.

Current wording

The interest expense related to FHLB advances for the first nine months of 2026 decreased $1.6 million to $332 thousand at an average cost of 3.96% as compared to interest expense of $1.9 million at an average cost of 4.43% for the same period in 2025. The decrease in FHLB expense for the first nine months of 2026 was primarily due to a decrease of $46.8 million in the average balance of such advances and a decrease in the average cost paid on FHLB advances. The decrease in average FHLB balance was the direct result of Management being able to replace higher cost FHLB borrowings with lower cost deposits and reduce interest expense during the current period.

Previous wording

Net Interest Income. Net interest income increased $3.3 million, or 13.1%, to $28.4 million for the three months ended June 30, 2026 from $25.1 million for the three months ended June 30, 2025 due to the increase in income from average interest earning assets and the reduction of interest costs associated with interest bearing liabilities. Net interest rate spread increased by 44 basis points to 3.87% for the three months ended June 30, 2026 from 3.43% for the three months ended June 30, 2025, reflecting a three basis points increase in the average yield on interest-earning assets combined with a 41 basis points decrease in the average rate paid on interest-bearing liabilities. The net interest margin rose by 38 basis points to 4.44% for the three months ended June 30, 2026 from 4.06% for the three months ended June 30, 2025 due to the lower interest rate environment for short term funding, the impact of managed funding and deposit cost, and increased yields on the lending portfolio during the current period.

Current wording

Net Interest Income. Net interest income increased $3.0 million, or 11.0%, to $29.9 million for the three months ended September 30, 2026 from $26.9 million for the three months ended September 30, 2025 due to the increase in income from average interest earning assets and the reduction of interest costs associated with interest bearing liabilities. Net interest rate spread increased by 26 basis points to 3.87% for the three months ended September 30, 2026 from 3.61% for the three months ended September 30, 2025, reflecting a 34 basis points decrease in the average rate paid on interest-bearing liabilities, partially offset by a 7 basis points decrease in the average yield on interest-earning assets. The net interest margin rose by 19 basis points to 4.45% for the three months ended September 30, 2026 from 4.26% for the three months ended September 30, 2025 due to the impact of managed funding and deposit cost, and decreased yields on the lending portfolio during the current period.

Previous wording

For the six months ended June 30, 2026, net interest income increased $7.6 million, or 15.5%, to $56.3 million from $48.7 million for the six months ended June 30, 2025 due to an increase in net interest margin combined with increased average interest earning assets for the current period. The net interest margin increased 42 basis points to 4.42% for the six months ended June 30, 2026 from 4.00% for the six months ended June 30, 2025. Net interest rate spread grew by 48 basis points to 3.84% for the six months ended June 30, 2026 from 3.36% for the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, net interest income increased $10.5 million, or 13.9%, to $86.2 million from $75.7 million for the nine months ended September 30, 2025 due to an increase in net interest margin combined with increased average interest earning assets for the current period and the reduction of interest costs associated with interest-bearing liabilities. Net interest rate spread grew by 38 basis points to 3.82% for the nine months ended September 30, 2026 from 3.44% for the nine months ended September 30, 2025. The net interest margin increased 31 basis points to 4.40% for the nine months ended September 30, 2026 from 4.09% for the nine months ended September 30, 2025.

Previous wording

Provision for Credit Losses. The Company recognized a net recovery of $1.0 million in the provision for credit losses during the three months ended June 30, 2026, compared to a provision of $2.1 million for the three months ended June 30, 2025. The decreased provision for the three months ended June 30, 2026 was primarily a result of slower loan growth combined with lower reserves associated with the composition of loans closed during the second quarter of 2026. The allowance for credit losses to total loans was 1.38% as of June 30, 2026, a decrease of seven basis points, or 4.83%, versus 1.45% as of December 31, 2025.

Current wording

Provision for Credit Losses. The Company recognized a provision of $809 thousand in the provision for credit losses during the three months ended September 30, 2026, compared to a provision of $3.9 million for the three months ended September 30, 2025. The decrease in provision for the three months ended September 30, 2026 was primarily a result of less loan growth combined with lower reserves associated with the composition of loans closed during the third quarter of 2026. The allowance for credit losses to total loans was 1.38% as of September 30, 2026, a decrease of seven basis points, or 4.83%, versus 1.45% as of December 31, 2025.

Previous wording

For the six months ended June 30, 2026, the Company recognized a net recovery of $1.5 million in the provision for credit losses as compared to a $2.3 million provision for the six months ended June 30, 2025. The decreased provision for the six months ended June 30, 2026 represented the effect of lower levels of specific reserves associated with certain composition of loans closed during the first half of 2026 as compared to the six months ended June 30, 2025 offset by loan portfolio growth during the current period.

Current wording

For the nine months ended September 30, 2026, the Company recognized a net recovery of $641 thousand in the provision for credit losses as compared to a $6.2 million provision for the nine months ended September 30, 2025. The decreased provision for the nine months ended September 30, 2026 represented settlement of a previously reported participation loan for an office complex. The settlement reduced non-performing loans by approximately $6.0** **million during the nine months ended September 30, 2026.