GREENE COUNTY BANCORP INC

Previous wording

Total assets of the Company were $3.1 billion at September 30, 2025 and $3.0 billion at June 30, 2025, an increase of $17.9 million, or 0.6%. Securities available-for-sale and held-to-maturity increased $5.0 million, or 0.4%, to $1.137 billion at September 30, 2025 as compared to $1.132 billion at June 30, 2025. Net loans receivable increased $42.3 million, or 2.6%, to $1.65 billion at September 30, 2025 as compared to $1.61 billion at June 30, 2025.

Current wording

Total assets of the Company were $3.1 billion at December 31, 2025 and $3.0 billion at June 30, 2025, an increase of $106.4 million, or 3.5%. Securities available-for-sale and held-to-maturity increased $89.7 million, or 7.9%, to $1.2 billion at December 31, 2025 as compared to $1.1 billion at June 30, 2025. Net loans receivable increased $58.6 million, or 3.6%, to $1.7 billion at December 31, 2025 as compared to $1.6 billion at June 30, 2025.

Previous wording

Total cash and cash equivalents for the Company were $154.6 million at September 30, 2025 and $183.1 million at June 30, 2025, a decrease of $28.5 million, or 15.6%. The level of cash and cash equivalents is a function of the daily account clearing needs and deposit levels as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on a daily basis. The Company has continued to maintain strong capital and liquidity positions as of September 30, 2025 and June 30, 2025.

Current wording

Total cash and cash equivalents for the Company were $124.1 million at December 31, 2025 and $183.1 million at June 30, 2025, a decrease of $59.0 million, or 32.2%. The level of cash and cash equivalents is a function of the daily account clearing needs and deposit levels as well as activities associated with securities transactions and loan funding. All of these items can cause cash levels to fluctuate significantly on a daily basis. The Company has continued to maintain strong capital and liquidity positions as of December 31, 2025 and June 30, 2025.

Previous wording

Securities available-for-sale and held-to-maturity increased $5.0 million, or 0.4%, to $1.1 billion at September 30, 2025 as compared to $1.1 billion at June 30, 2025. Securities purchases totaled $93.3 million during the three months ended September 30, 2025, consisting primarily of $82.2 million of state and political subdivision securities, $5.7 million of mortgage-backed securities, $3.5 million of corporate debt securities, and $1.9 million of collateralized mortgage obligations. Principal pay-downs and maturities during the three months ended September 30, 2025, amounted to $90.1 million, primarily consisting of $78.6 million of state and political subdivision securities, $8.9 million of mortgage-backed securities, $1.6 million of corporate debt securities, and $1.0 million of collateralized mortgage obligations. At September 30, 2025, 59.3% of our securities portfolio consisted of state and political subdivision securities to take advantage of tax savings and to promote the Company’s participation in the communities in which it operates. Mortgage-backed securities, which represent 32.8% of our securities portfolio at September 30, 2025, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Current wording

Securities available-for-sale and held-to-maturity increased $89.7 million, or 7.9%, to $1.2 billion at December 31, 2025 as compared to $1.1 billion at June 30, 2025. Securities purchases totaled $459.6 million during the six months ended December 31, 2025, and consisted primarily of $219.3 million of U.S. Treasuries, $189.5 million of state and political subdivision securities, $37.9 million of mortgage-backed securities, $9.0 million of corporate debt securities, and $3.9 million of collateralized mortgage obligations. Principal pay-downs and maturities during the six months ended December 31, 2025 amounted to $364.9 million, primarily consisting of $180.0 million of U.S. Treasuries, $153.4 million of state and political subdivision securities, $21.3 million of mortgage-backed securities, $8.3 million of corporate debt securities, and $1.9 million of collateralized mortgage obligations. Sales during the quarter ended December 31, 2025, amounted to $5.4 million of Federal Agency securities and $ 2.9 million of U.S. Treasury securities. At December 31, 2025, 57.8% of our securities portfolio consisted of state and political subdivision securities to take advantage of tax savings and to promote the Company’s participation in the communities in which it operates. Mortgage-backed securities, which represent 32.4% of our securities portfolio at December 31, 2025, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Previous wording

Securities held-to-maturity are evaluated for credit losses on a quarterly basis under the CECL methodology. The allowance for credit losses on securities held-to-maturity was $599,000 and $548,000 at September 30, 2025 and June 30, 2025, respectively.

Current wording

Securities held-to-maturity are evaluated for credit losses on a quarterly basis under the CECL methodology. The allowance for credit losses on securities held-to-maturity was $616,000 and $548,000 at December 31, 2025 and June 30, 2025, respectively.

Previous wording

Net loans receivable increased $42.3 million, or 2.6%, to $1.65 billion at September 30, 2025 as compared to $1.61 billion at June 30, 2025. Loan growth experienced during the three months ended September 30, 2025, consisted primarily of $32.3 million in commercial real estate loans, $9.2 million in commercial loans, and $3.1 million in home equity loans. The allowance for credit losses on loans increased $1.1 million, or 5.7%, to $21.3 million at September 30, 2025 as compared to $20.1 million at June 30, 2025. The increase in the allowance for credit losses was primarily attributable to an increase in loan volume and an increase in the quantitative modeling reserve for the commercial real estate segment due to the conversion of construction loans to permanent financing. The Company continues to experience loan growth as a result of the continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use a conservative underwriting policy in regards to all loan originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals are obtained on loans when there is a reason to believe that there has been a change in the borrower’s ability to repay the loan principal and interest, generally, when a loan is in a delinquent status. Additionally, if an existing loan is to be modified or refinanced, generally, an appraisal is ordered to ensure continued collateral adequacy.

Current wording

Net loans receivable increased $58.6 million, or 3.6%, to $1.7 billion at December 31, 2025 as compared to $1.6 billion at June 30, 2025. Loan growth experienced during the six months ended December 31, 2025, consisted primarily of $43.5 million in commercial real estate loans, $12.9 million in commercial loans, and $6.5 million in home equity loans. The allowance for credit losses on loans increased $1.2 million, or 5.9%, to $21.3 million at December 31, 2025 as compared to $20.1 million at June 30, 2025. The increase in the allowance for credit losses was primarily attributable to an increase in loan volume. The Company continues to experience loan growth as a result of the continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use a conservative underwriting policy in its loan originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals are obtained on loans when there is a reason to believe that there has been a change in the borrower’s ability to repay the loan principal and interest, generally, when a loan is in a delinquent status. Additionally, if an existing loan is to be modified or refinanced, generally, an appraisal is ordered to ensure continued collateral adequacy.

Previous wording

Loan balances include net deferred fees/(costs) of ($583,000) and ($567,000) at September 30, 2025 and at June 30, 2025, respectively.

Current wording

Loan balances include net deferred fees/(costs) of ($483,000) and ($567,000) at December 31, 2025 and at June 30, 2025, respectively.

Previous wording

Loan balances exclude accrued interest receivable of $7.2 million and $7.0 million at September 30, 2025 and at June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Current wording

Loan balances exclude accrued interest receivable of $7.7 million and $7.0 million at December 31, 2025 and at June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Previous wording

Commercial and commercial real estate loans classified as substandard and special mention totaled $37.5 million at September 30, 2025, and $39.4 million at June 30, 2025, a decrease of $1.9 million. Of the loans classified as substandard or special mention, $36.7 million were performing at September 30, 2025. There were no loans classified as doubtful or loss at September 30, 2025 or June 30, 2025.

Current wording

Commercial and commercial real estate loans classified as substandard and special mention totaled $36.8 million at December 31, 2025, and $39.4 million at June 30, 2025, a decrease of $2.6 million. The decrease in the loans classified during the period ended December 31, 2025, was primarily due to upgrades of commercial real estate loans that were considered to be performing and paying in accordance with the terms of their loan agreements and commercial real estate loans that were paid off during the period. Of the loans classified as substandard or special mention, $36.1 million were performing at December 31, 2025. There were no loans classified as doubtful or loss at December 31, 2025 or June 30, 2025.

Previous wording

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 84.7% in non-owner occupied loans and 15.3% in owner occupied loans. These loans are generally secured by commercial, residential investment or industrial property types. The Company’s commercial real estate loan portfolio generally consists of standalone loans supported by both sufficient cash flows and collateral. On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average LTV of approximately 57.0%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.4%, as of September 30, 2025. The Company’s commercial real estate loans are primarily made within our market area in Greene, Columbia, Albany, Ulster and Rensselaer Counties of New York State. The Company actively monitors the economic and credit trends for borrower industries and manages our commercial real estate portfolio concentrations to mitigate its credit risk exposure.

Current wording

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 85.0% in non-owner occupied loans and 15.0% in owner occupied loans. These loans are generally secured by commercial, residential investment or industrial property types. The Company’s commercial real estate loan portfolio generally consists of standalone loans supported by both sufficient cash flows and collateral. On a portfolio basis, the Company’s non-owner occupied commercial real estate loans have a weighted average LTV of approximately 57.7%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 50.1%, as of December 31, 2025. The Company’s commercial real estate loans are primarily made within our market area in Greene, Columbia, Albany, Ulster, Rensselaer, and Saratoga Counties of New York State. The Company actively monitors the economic and credit trends for borrower industries and manages our commercial real estate portfolio concentrations to mitigate its credit risk exposure.

Previous wording

As of September 30, 2025, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans at $282.3 million, or 26.0% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area and have historically performed well with strong credit metrics. As of September 30, 2025, the weighted average LTV was approximately 58.6% for the non-owner occupied multi-family loan segment.

Current wording

As of December 31, 2025, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans at $288.3 million, or 26.3% of total commercial real estate loans. Non-owner occupied multi-family loans provide much needed housing for the residents located in our market area and have historically performed well with strong credit metrics. As of December 31, 2025, the weighted average LTV was approximately 57.3% for the non-owner occupied multi-family loan segment.

Previous wording

As of September 30, 2025, non-owner occupied construction loans were $68.6 million, or 6.3% of total commercial real estate loans. Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $6.5 million of the Company’s construction exposure. Construction loans are primarily comprised of approximately 35.6% mixed use real estate, 35.3% multi-family buildings, and 14.2% self-storage.

Current wording

As of December 31, 2025, non-owner occupied construction loans were $77.6 million, or 7.1% of total commercial real estate loans. Construction loans are typically 12 to 24 months in duration with active monitoring, which may include pre-engineering review and third party site inspections for more complex projects. High volatility commercial real estate loan exposure totaled $7.2 million of the Company’s construction exposure. Construction loans are primarily comprised of approximately 41.2% multi-family buildings, 23.6% mixed use real estate, 12.4% self-storage and 12.0% condominiums.

Previous wording

The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $87.3 million, or 8.0% of total commercial real estate loans as of September 30, 2025. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of September 30, 2025, the weighted average LTV was approximately 59.4% for the non-owner occupied office loan segment.

Current wording

The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $86.7 million, or 7.9% of total commercial real estate loans as of December 31, 2025. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of December 31, 2025, the weighted average LTV was approximately 59.0% for the non-owner occupied office loan segment.

Previous wording

The ACL on loans totaled $21.3 million at September 30, 2025, compared to $20.1 million at June 30, 2025. The ACL on loans to total loans receivable was 1.27% at September 30, 2025 compared to 1.24% at June 30, 2025. The increase in the ACL on loans from September 30, 2025 to June 30, 2025 was primarily attributable to an increase in loan volume, an increase in the quantitative modeling reserve for the commercial real estate segment due to the conversion of construction loans to permanent financing.

Current wording

The ACL on loans totaled $21.3 million at December 31, 2025, compared to $20.1 million at June 30, 2025. The ACL on loans to total loans receivable was 1.26% at December 31, 2025 compared to 1.24% at June 30, 2025. The increase in the ACL on loans from December 31, 2025 to June 30, 2025, was primarily attributable to an increase in loan volume and growth in securities held-to-maturity that require an allowance.

Previous wording

Net charge-offs on loans amounted to $60,000 and $114,000 for the three months ended September 30, 2025 and 2024, respectively, a decrease of $54,000. There were no material charge-offs in any loan segment during the three months ended September 30, 2025.

Current wording

Net charge-offs on loans amounted to $140,000 and $95,000 for the three months ended December 31, 2025 and 2024, respectively, an increase of $45,000. Net charge-offs totaled $200,000 and $209,000 for the six months ended December 31, 2025 and 2024, respectively. There were no material charge-offs in any loan segment during the three and six months ended December 31, 2025.

Previous wording

At September 30, 2025, the allowance for credit losses on unfunded commitments totaled $1.5 million as compared to $1.8 million at June 30, 2025, a decrease of $237,000, or 13.4%. The decrease in the provision for the three months ended September 30, 2025, was primarily due to a decrease in the Company’s contractual obligation to extend credit.

Current wording

At December 31, 2025, the allowance for credit losses on unfunded commitments totaled $1.5 million as compared to $1.8 million at June 30, 2025, a decrease of $319,000, or 18.0%. The decrease in the provision for the six months ended December 31, 2025, was primarily due to a decrease in the Company’s contractual obligation to extend credit.

Previous wording

Non-performing assets consist of non-accrual loans, loans over 90 days past due and still accruing, other real estate owned that has been acquired in partial or full satisfaction of the loan obligation or upon foreclosure, and non-performing securities.

Current wording

Non-performing assets consist of non-accrual loans, loans over 90 days past due, and other real estate owned that has been acquired in partial or full satisfaction of the loan obligation or upon foreclosure, and non-performing securities.

Previous wording

Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000. Foreclosed real estate represents property acquired through foreclosure and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty. As of September 30, 2025, three loans have been modified in the last 12 months with a total amortized basis of $2.9 million. As of September 30, 2024, there were three loans modified with a total amortized basis of $4.1 million.

Current wording

Generally, management places loans on non-accrual status once the loans have become 90 days or more delinquent. A non-accrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis. A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan. A loan does not have to be 90 days delinquent in order to be classified as non-performing and may be placed on non-accrual when circumstances indicate that the borrower may be unable to meet the contractual principal or interest payments. The threshold for evaluating classified and non-performing loans specifically evaluated for individual credit loss is $250,000. Foreclosed real estate represents property acquired through foreclosure and is valued at the lower of the carrying amount or fair value, less any estimated disposal costs. The Company monitors loan modifications made to borrowers experiencing financial difficulty. As of December 31, 2025, three loans have been modified in the last 12 months with a total amortized basis of $2.8 million. As of December 31, 2024, there were four loans modified with a total amortized basis of $6.7 million.

Previous wording

Non-performing assets amounted to $3.6 million and $3.1 million at September 30, 2025 and June 30, 2025, respectively. Loans on non-accrual status totaled $3.6 million at September 30, 2025, of which there were six residential real estate loans totaling $1.1 million and one commercial real estate loans totaling $142,000 in the process of foreclosure. Included in non-accrual loans were $1.8 million of loans which were less than 90 days past due at September 30, 2025, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.1 million at June 30, 2025, of which there were one commercial real estate loan totaling $142,000 and three residential real estate loans totaling $841,000 in the process of foreclosure. Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, but have a recent history of delinquency greater than 90 days past due.

Current wording

Non-performing assets amounted to $3.3 million and $3.1 million at December 31, 2025 and June 30, 2025, respectively. Loans on non-accrual status totaled $3.3 million at December 31, 2025, of which there were four residential real estate loans totaling $668,000 and one commercial real estate loans totaling $142,000 in the process of foreclosure. Included in non-accrual loans were $2.0 million of loans which were less than 90 days past due at December 31, 2025, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.1 million at June 30, 2025, of which there were one commercial real estate loan totaling $142,000 and three residential real estate loans totaling $841,000 in the process of foreclosure. Included in non-accrual loans were $1.2 million of loans which were less than 90 days past due at June 30, 2025, but have a recent history of delinquency greater than 90 days past due.

Previous wording

Deposits totaled $2.7 billion at September 30, 2025 and $2.6 billion at June 30, 2025, an increase of $83.4 million, or 3.2%. The Company had $31.6 million and $51.6 million of brokered deposits at September 30, 2025 and June 30, 2025, respectively. NOW deposits increased $96.1 million, or 4.9%, and noninterest bearing deposits increased $12.7 million, or 11.5%, when comparing September 30, 2025 and June 30, 2025. Savings deposits decreased $11.3 million, or 4.6%, money market deposits decreased $10.2 million, or 10.0%, and certificates of deposits decreased $3.9 million, or 1.7%, when comparing September 30, 2025 and June 30, 2025.

Current wording

Deposits totaled $2.6 billion at December 31, 2025 and June 30, 2025, respectively. The Company had $31.6 million and $51.6 million brokered deposits at December 31, 2025 and June 30, 2025, respectively. NOW deposits increased $48.1 million, or 2.5%, when comparing December 31, 2025 and June 30, 2025. Certificates of deposits decreased $22.2 million, or 9.7%, money market deposits decreased $16.1 million, or 15.7%, noninterest bearing deposits decreased $5.0 million, or 4.5%, and savings deposits decreased $3.6 million, or 1.4%, when comparing December 31, 2025 and June 30, 2025.

Previous wording

Reflects $154.6 million and $183.1 million of cash and cash equivalents, $180.2 million and $221.1 million of remaining borrowing capacity from the Federal Home Loan Bank, and $18.4 million and $18.2 million of remaining borrowing capacity from the Federal Reserve Bank, as of September 30, 2025 and June 30, 2025, respectively.

Current wording

Reflects $124.1 million and $183.1 million of cash and cash equivalents, $194.9 million and $221.1 million of remaining borrowing capacity from the Federal Home Loan Bank, and $18.4 million and $18.2 million of remaining borrowing capacity from the Federal Reserve Bank, as of December 31, 2025 and June 30, 2025, respectively.

Previous wording

Uninsured deposits after exclusions represent 11.8% and 12.5% of total deposits as of September 30, 2025 and June 30, 2025, respectively. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit. The Company continually monitors the level and composition of uninsured deposits.

Current wording

Uninsured deposits after exclusions represent 12.1% and 12.5% of total deposits as of December 31, 2025 and June 30, 2025, respectively. The Company believes that this presentation provides a more accurate view of deposits at risk, given that affiliate deposits are not customer facing and therefore are eliminated upon consolidation, and collateralized deposits are fully secured by investments and municipal letters of credit. The Company continually monitors the level and composition of uninsured deposits.

Previous wording

At September 30, 2025, the Bank had pledged approximately $623.1 million of its residential and commercial mortgage portfolio as collateral for borrowing and irrevocable municipal letters of credit at the Federal Home Loan Bank of New York (“FHLB”). The maximum amount of funding available from the FHLB was $384.4 million at September 30, 2025, of which there were $4.2 million long-term fixed rate borrowings, $200.0 million irrevocable municipal letters of credit and zero of overnight borrowings outstanding at September 30, 2025. At June 30, 2025, the Bank had $74.0 million in overnight borrowings, $4.2 million of long-term fixed rate borrowings and $90.0 million in irrevocable municipal letters of credit at the FHLB. Interest rates on overnight borrowings are determined at the time of borrowing. The irrevocable municipal letters of credit with the FHLB have been issued to secure municipal transactional deposit accounts, on behalf of Greene County Commercial Bank.

Current wording

At December 31, 2025, the Bank had pledged approximately $681.5 million of its residential and commercial mortgage portfolio as collateral for borrowing and irrevocable municipal letters of credit at the Federal Home Loan Bank of New York (“FHLB”). The maximum amount of funding available from the FHLB was $429.0 million at December 31, 2025, of which there were $180.0 million of overnight borrowings, $4.2 million long-term fixed rate borrowings and $50.0 million irrevocable municipal letters of credit outstanding at December 31, 2025. At June 30, 2025, the Bank had $74.0 million in overnight borrowings, $4.2 million of long-term fixed rate borrowings and $90.0 million in irrevocable municipal letters of credit at the FHLB. Interest rates on overnight borrowings are determined at the time of borrowing. The irrevocable municipal letters of credit with the FHLB have been issued to secure municipal transactional deposit accounts, on behalf of Greene County Commercial Bank.

Previous wording

The Bank has established unsecured lines of credit with Atlantic Community Bankers Bank for $15.0 million and three other financial institutions for $75.0 million. The lines of credit provide for overnight borrowing and the interest rate is determined at the time of the borrowing. There were zero borrowings outstanding with these lines of credit for the Bank at September 30, 2025 and June 30, 2025.

Current wording

The Bank has established unsecured lines of credit with Atlantic Community Bankers Bank for $15.0 million and three other financial institutions for $90.0 million. The lines of credit provide for overnight borrowing and the interest rate is determined at the time of the borrowing. There were zero borrowings outstanding with these lines of credit for the Bank at December 31, 2025 and June 30, 2025.

Previous wording

On September 17, 2020, the Company entered into Subordinated Note Purchase Agreements (“SNPAs”) with 14 qualified institutional investors, issued at 4.75% Fixed-to-Floating Rate due September 17, 2030, in the aggregate principal amount of $20.0 million, carried net of issuance costs of $424,000 amortized over a period of 60 months. These notes totaled $20.0 million and had a floating interest rate of 8.99% at September 30, 2025. These notes were callable on September 15, 2025. The Company redeemed its 4.75%, Fixed-to-Floating Rate Subordinated Notes due 2030, in full on October 1, 2025.

Current wording

On September 17, 2020, the Company entered into Subordinated Note Purchase Agreements (“SNPAs”) with 14 qualified institutional investors, issued at 4.75% Fixed-to-Floating Rate due September 17, 2030, in the aggregate principal amount of $20.0 million, carried net of issuance costs of $424,000 amortized over a period of 60 months. These notes were callable on September 17, 2025 and had a floating interest rate of 8.99%. On October 1, 2025, the Company redeemed the entire outstanding principal amount of $20.0 million. The redemption was funded by cash on hand.

Previous wording

The sales of the SNPAs were made in a private placement to accredited investors under the exemption from registration provided under Securities and Exchange Commission Rule 506. The Notes are not registered under the Securities Act of 1933, as amended ("Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Current wording

The sales of the SNPAs were made in a private placement to accredited investors under the exemption from registration provided under Securities and Exchange Commission Rule 506. The Notes are not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Previous wording

Shareholders’ equity increased to $248.2 million at September 30, 2025 compared to $238.8 million at June 30, 2025, resulting primarily from net income of $8.9 million and a decrease in accumulated other comprehensive loss of $1.3 million, partially offset by dividends declared and paid of $781,000.

Current wording

Shareholders’ equity increased to $258.3 million at December 31, 2025 as compared to $238.8 million at June 30, 2025, resulting primarily from net income of $19.2 million and a decrease in accumulated other comprehensive loss of $1.8 million, partially offset by dividends declared and paid of $1.6 million.

Previous wording

As of the quarter ended September 30, 2025, market rates generally decreased as compared to June 30, 2025. The Federal Reserve cut its target benchmark by 25 basis points at their September 2025 meeting. This resulted in the fair value of the fixed income bond portfolio to increase and therefore, decreased the unrealized loss position as of September 30, 2025. Additionally, the Company continued to purchase investment securities in the higher interest rate environment, decreasing the unrealized loss position.

Current wording

The Federal Reserve has reduced the federal funds interest rate by 100 basis points in the third and fourth quarters of 2024, and 75 basis points in the third and fourth quarters of 2025, from the recent high of 5.25 percent. With the recent Federal Reserve rate cuts, the long-term interest rates began to decrease. This resulted in the fair values of the fixed income bond portfolio to increase and therefore decreased the unrealized loss position as of December 31, 2025. Additionally, the Company continued to purchase investment securities in the higher interest rate environment, decreasing the unrealized loss position.

Previous wording

On September 17, 2019, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 400,000 shares of its common stock. Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. For the three months ended September 30, 2025, the Company did not repurchase any shares.

Current wording

On September 17, 2019, the Board of Directors of the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 400,000 shares of its common stock. Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. For the three and six months ended December 31, 2025, the Company did not repurchase any shares.

Previous wording

Comparison of Operating Results for the Three Months Ended September 30, 2025 and 2024

Current wording

Comparison of Operating Results for the Three and Six Months Ended December 31, 2025 and 2024

Previous wording

The following table sets forth certain information relating to the Company for the three months ended September 30, 2025 and 2024. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, are expressed in both dollars and rates. No tax equivalent adjustments made. Average balances were based on daily averages. Average loan balances include non-performing loans. The loan yields include net amortization of certain deferred fees and costs that are considered adjustments to yields.

Current wording

The following table sets forth certain information relating to the Company for the three and six months ended December 31, 2025 and 2024. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, are expressed in both dollars and rates. No tax equivalent adjustments made. Average balances were based on daily averages. Average loan balances include non-performing loans. The loan yields include net amortization of certain deferred fees and costs that are considered adjustments to yields.

Previous wording

Return on average assets and return on average equity are common methods of measuring operating results. Annualized return on average assets increased to 1.21% for the three months ended September 30, 2025 as compared to 0.93% for the three months ended September 30, 2024. Annualized return on average equity increased to 14.59% for the three months ended September 30, 2025 as compared to 11.86% for the three months ended September 30, 2024. The increase in return on average assets and average equity for the three months ended September 30, 2025 was primarily the result of net income outpacing growth in the balance sheet.

Current wording

Return on average assets and return on average equity are common methods of measuring operating results. Annualized return on average assets increased to 1.33% for the three months ended December 31, 2025 as compared to 1.05% for the three months ended December 31, 2024. Annualized return on average equity increased to 16.27% for the three months ended December 31, 2025 as compared to 13.84% for the three months ended December 31, 2024. Annualized return on average assets increased to 1.27% for the six months ended December 31, 2025 as compared to 0.99% for the six months ended December 31, 2024. Annualized return on average equity increased to 15.45% for the six months ended December 31, 2025 as compared to 12.89% for the six months ended December 31, 2024. The increase in return on average assets and average equity for the three and six months ended December 31, 2025 was primarily the result of net income outpacing growth in the balance sheet.

Previous wording

Interest income amounted to $31.6 million for the three months ended September 30, 2025 as compared to $27.8 million for the three months ended September 30, 2024, an increase of $3.9 million, or 13.9%. The increase in the average balances on loans and securities had the greatest impact on interest income when comparing the 2025 and 2024 periods. The increase in yields of loans and securities also increased during the comparative periods contributing to higher interest income.

Current wording

Interest income amounted to $33.5 million for the three months ended December 31, 2025 as compared to $29.4 million for the three months ended December 31, 2024, an increase of $4.1 million, or 13.9%. Interest income amounted to $65.1 million for the six months ended December 31, 2025 as compared to $57.2 million for the six months ended December 31, 2024, an increase of $7.9 million, or 13.9%. The increase in the average balances on loans and securities had the greatest impact on interest income when comparing the 2025 and 2024 periods. The increase in yields of loans and securities also increased during the comparative periods contributing to higher interest income.

Previous wording

Average loan balances increased $157.8 million and the yield on loans increased 16 basis points when comparing the three months ended September 30, 2025 and 2024. The average balance of securities increased $87.9 million and the yield on such securities increased 24 basis points when comparing the three months ended September 30, 2025 and 2024. Average interest-bearing bank balances and federal funds decreased $6.8 million and the yield on interest-bearing bank balances and federal funds decreased 116 basis points when comparing the three months ended September 30, 2025 and 2024.

Current wording

Average loan balances increased $162.6 million and $160.2 million and the yield on loans increased 21 and 19 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively. The average balance of securities increased $107.4 million and $97.6 million and the yield on such securities increased 27 and 26 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively. Average interest-bearing bank balances and federal funds decreased $29.9 million and $18.4 million and the yield on interest-bearing bank balances and federal funds decreased 56 and 72 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively.

Previous wording

Interest expense amounted to $14.1 million for the three months ended September 30, 2025 as compared to $14.6 million for the three months ended September 30, 2024, a decrease of $530,000, or 3.6%. The decrease in the average cost of funds on NOW deposits had the greatest impact on interest expense when comparing the 2025 and 2024 periods.

Current wording

Interest expense amounted to $14.4 million for the three months ended December 31, 2025 as compared to $15.4 million for the three months ended December 31, 2024, a decrease of $912,000, or 5.9%. Interest expense amounted to $28.5 million for the six months ended December 31, 2025 as compared to $30.0 million for the six months ended December 31, 2024, a decrease of $1.4 million, or 4.8%. The decrease during the three and six months ended December 31, 2025, was primarily due to the decrease in the average cost of funds, partially offset by the increase in the average balance of interest-bearing liabilities. The decrease in the cost of NOW deposits had the greatest impact on interest expense when comparing the three and six months ended December 31, 2025 and 2024.

Previous wording

The growth in interest-bearing liabilities was primarily due to an increase in average NOW deposits of $189.7 million and an increase in average certificates of deposits of $61.7 million when comparing the three months ended September 30, 2025 and 2024. This was partially offset by a decrease in average savings and money market deposits of $15.8 million and a decrease in borrowings of $12.4 million when comparing the three months ended September 30, 2025 and 2024. Yields on interest-earning assets increased when comparing the three months ended September 30, 2025 and 2024, as the Company continued to reprice assets into the higher interest rate environment. During the prior fiscal year and continued through the three months ended September 30, 2025, the Company implemented a strategic reduction in deposit rates that aligns with the Federal Reserve’s rate cuts, while providing competitive financial solutions to the Company’s customers that reflect the prevailing economic conditions, and continued to grow new relationships.

Current wording

The cost of NOW deposits decreased 41 basis points for the three and six months ended December 31, 2025 and 2024, respectively, and the cost of certificates of deposit decreased 63 and 74 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively. The growth in interest-bearing liabilities was primarily due to an increase in average NOW deposits of $202.3 million and $196.0 million and an increase in average certificates of deposits of $39.3 million and $50.5 million when comparing the three and six months ended December 31, 2025 and 2024, respectively. This was partially offset by a decrease in average savings and money market deposits of $16.4 million and $16.1 million, and a decrease in borrowings of $5.2 million and $8.8 million when comparing the three and six months ended December 31, 2025 and 2024. Yields on interest-bearing deposits decreased when comparing the three and six months ended December 31, 2025 and 2024, as the Company continued a strategic reduction in deposit rates that aligns with the Federal Reserve’s rate cuts.

Previous wording

Net interest income increased $4.4 million to $17.5 million for the three months ended September 30, 2025, from $13.1 million for the three months ended September 30, 2024. The increase in net interest income was due to an increase in the average balance of interest-earning assets, which increased $239.8 million when comparing the three months ended September 30, 2025 and 2024, an increase in interest rates on interest-earning assets, which increased 18 basis points when comparing the three months ended September 30, 2025 and 2024, and a decrease of 31 basis points in rates paid on interest-bearing liabilities when comparing the three months ended September 30, 2025 and 2024. The increase in net interest income was offset by increases in the average balance of interest-bearing liabilities, which increased $223.1 million when comparing the three months ended September 30, 2025 and 2024.

Current wording

Net interest income increased $5.0 million to $19.1 million for the three months ended December 31, 2025, from $14.1 million for the three months ended December 31, 2024. Net interest income increased $9.4 million to $36.6 million for the six months ended December 31, 2025, from $27.2 million for the six months ended December 31, 2024. The increase in net interest income for the three and six months ended December 31, 2025, was due to an increase in the average balance of interest-earning assets, which increased $241.1 million and $240.4 million when comparing the three and six months ended December 31, 2025 and 2024, respectively, an increase in interest rates earned on interest-earning assets, which increased 20 and 19 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively, and a decrease in interest rates earned on interest-bearing liabilities, which decreased 34 and 32 basis points when comparing the three and six months ended December 31, 2025 and 2024, respectively. The increase in net interest income was offset by an increase in the average balance of interest-bearing liabilities, which increased $220.1 million and $221.6 million when comparing the three and six months ended December 31, 2025 and 2024, respectively.

Previous wording

Net interest margin increased 45 basis points to 2.48% for the three months ended September 30, 2025, compared to 2.03% for the three months ended September 30, 2024. The increase in net interest rate spread and margin during the three months ended September 30, 2025, was due to increases in interest income on loans and securities, as they continue to reprice at higher yields and the interest rates earned on new balances were higher than the historic low levels from the prior periods, and the reduction in rates paid on deposits.

Current wording

Net interest margin increased 50 basis points to 2.54% for the three months ended December 31, 2025 as compared to 2.04% for the three months ended December 31, 2024. Net interest margin increased 47 basis points to 2.51% for the six months ended December 31, 2025 as compared to 2.04% for the six months ended December 31, 2024. The increase in net interest rate spread and margin during the three and six months ended December 31, 2025, was due to increases in interest income on loans and securities, as they continue to reprice at higher yields and the interest rates earned on new balances were higher than the historic low levels from the prior periods, and the reduction in deposit rates.

Previous wording

Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.79% and 2.29% for the three months ended September 30, 2025 and 2024.

Current wording

Net interest income on a taxable-equivalent basis includes the additional amount of interest income that would have been earned if the Company’s investment in tax-exempt securities and loans had been subject to federal and New York State income taxes yielding the same after-tax income. Tax equivalent net interest margin was 2.83% and 2.31% for the three months ended December 31, 2025 and 2024, respectively, and was 2.81% and 2.30% for the six months ended December 31, 2025 and 2024, respectively.

Previous wording

Management continues to closely monitor asset quality and adjust the level of the allowance for credit losses. The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses on loans amounted to $1.3 million for the three months ended September 30, 2025 compared to $634,000 for the three months ended September 30, 2024. The provision for the three months ended September 30, 2025 was primarily attributable to an increase in loan volume and an increase in the quantitative modeling reserve for the commercial real estate segment due to the conversion of construction loans to permanent financing. The allowance for credit losses on loans to total loans receivable was 1.27% at September 30, 2025 compared to 1.24% at June 30, 2025.

Current wording

Management continues to closely monitor asset quality and adjust the level of the allowance for credit losses. The amount recognized for the provision for credit losses is determined by management based on its ongoing analysis of the adequacy of the allowance for credit losses. Provision for credit losses amounted to $199,000 and $478,000 for the three months ended December 31, 2025 and 2024, respectively, and $1.5 million and $1.1 million for the six months ended December 31, 2025 and 2024, respectively. The provision for the six months ended December 31, 2025, was primarily attributable to an increase in loan volume and growth in securities held-to-maturity that require an allowance. The allowance for credit losses on loans to total loans receivable was 1.26% at December 31, 2025 as compared to 1.24% at June 30, 2025.

Previous wording

Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given period and certain regulatory requirements. The effective tax rate was 12.9% for the three months ended September 30, 2025 and 6.4% for the three months ended September 30, 2024. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, income received on the bank owned life insurance and tax credits, to arrive at the effective tax rate. The increase during the three months ended September 30, 2025, is primarily due to higher pre-tax income and reflects a lower mix of tax-exempt income from municipal bonds, tax advantage loans, and bank owned life insurance in proportion to pre-tax income.

Current wording

Provision for income taxes reflects the expected tax associated with the pre-tax income generated for the given period and certain regulatory requirements. The effective tax rate was 10.9% and 11.9% for the three and six months ended December 31, 2025, and 7.3% and 6.9% for the three and six months ended December 31, 2024, respectively. The statutory tax rate is impacted by the benefits derived from tax-exempt bond and loan income, the Company’s real estate investment trust subsidiary income, income received on the bank owned life insurance and tax credits, to arrive at the effective tax rate. The increase during the three and six months ended December 31, 2025, is primarily due to higher pre-tax income and reflects a lower mix of tax-exempt income from municipal bonds, tax advantage loans, and bank owned life insurance in proportion to pre-tax income.