GREENE COUNTY BANCORP INC

Previous wording

This annual report contains forward-looking statements. Greene County Bancorp, Inc. desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protections of the safe harbor with respect to all such forward-looking statements. These forward-looking statements, which are included in this annual report, describe future plans or strategies and include Greene County Bancorp, Inc.’s expectations of future financial results. The words “believe,” “may,” “will,” “intend,” “expect,” “anticipate,” “project,” and similar expressions identify forward-looking statements. Greene County Bancorp, Inc.’s ability to predict results or the effect of future plans or strategies or qualitative or quantitative changes based on market risk exposure is inherently uncertain. Factors that could affect actual results include but are not limited to:

Current wording

This annual report contains forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995, which describes the future plans, strategies and expectations of the Company. Greene County Bancorp, Inc. desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protections of the safe harbor with respect to all such forward-looking statements. These forward-looking statements, which are included in this annual report, describe future plans or strategies and include Greene County Bancorp, Inc.’s expectations of future financial results and can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of the report. Greene County Bancorp, Inc.’s ability to predict results or the effect of future plans or strategies or qualitative or quantitative changes based on market risk exposure is inherently uncertain. Factors that could affect actual results include but are not limited to:

Previous wording

changes in general market interest rates,

Current wording

changes in general market interest rates and inflation,

Previous wording

Greene County Bancorp, Inc. (the “Company”) is the holding company for the Bank of Greene County (the “Bank”), a community-based bank offering a variety of financial services to meet the needs of the communities it serves. Greene County Bancorp, Inc.’s stock is traded on the NASDAQ Capital Market under the symbol “GCBC.” Greene County Bancorp, MHC is a mutual holding company that owns 54.1% of the Company’s outstanding common stock. The Bank of Greene County is a federally chartered savings bank. The Bank of Greene County’s principal business is attracting deposits from customers within its market area and investing those funds primarily in loans, with excess funds used to invest in securities. At June 30, 2025, the Bank of Greene County operated 18 full-service branches, an administration office, lending centers, an operations center, customer call center, and a wealth management center in New York’s Hudson Valley and Capital District Regions of New York State. In June 2004, Greene County Commercial Bank (“Commercial Bank”) was opened for the limited purpose of providing financial services to local municipalities. The Commercial Bank is a subsidiary of the Bank of Greene County, and is a New York State-chartered commercial bank. In June 2011, Greene Property Holdings, Ltd. was formed as a New York corporation that has elected under the Internal Revenue Code to be a real estate investment trust. Greene Properties Holding, Ltd. is a subsidiary of the Bank of Greene County. Certain mortgages and notes held by the Bank of Greene County were transferred to and are beneficially owned by Greene Property Holdings, Ltd. The Bank of Greene County continues to service these loans.

Current wording

Greene County Bancorp, Inc. (the “Company”) is the holding company for the Bank of Greene County (the “Bank”), a community-based bank offering a variety of financial services to meet the needs of the communities it serves. Greene County Bancorp, Inc.’s stock is traded on the NASDAQ Capital Market under the symbol “GCBC.” Greene County Bancorp, MHC is a mutual holding company that owns 54.1% of the Company’s outstanding common stock. The Bank of Greene County is a federally chartered savings bank. The Bank of Greene County’s principal business is attracting deposits from customers within its market area and investing those funds primarily in loans, with excess funds used to invest in securities. At June 30, 2026, the Bank of Greene County operated 19 full-service banking offices, lending centers, an operations center, customer call center, administration center, and wealth management center in New York’s Hudson Valley and Capital District Regions of New York State. In June 2004, Greene County Commercial Bank (“Commercial Bank”) was opened for the limited purpose of providing financial services to local municipalities. The Commercial Bank is a subsidiary of the Bank of Greene County and is a New York State-chartered commercial bank. In June 2011, Greene Property Holdings, Ltd. was formed as a New York corporation that has elected under the Internal Revenue Code to be a real estate investment trust. Greene Properties Holding, Ltd. is a subsidiary of the Bank of Greene County. Certain mortgages and notes held by the Bank of Greene County were transferred to and are beneficially owned by Greene Property Holdings, Ltd. The Bank of Greene County continues to service these loans.

Previous wording

Market risk is the risk of loss from adverse changes in market prices and/or interest rates. Since net interest income (the difference between interest earned on loans and investments and interest paid on deposits and borrowings) is the Company’s primary source of revenue. Net interest income is affected by changes in interest rates as well as fluctuations in the level and duration of the Company’s assets and liabilities.

Current wording

Market risk is the risk of loss from adverse changes in market prices and/or interest rates. Net interest income (the difference between interest earned on loans and investments and interest paid on deposits and borrowings) is the Company’s primary source of revenue. Net interest income is affected by changes in interest rates as well as fluctuations in the level and duration of the Company’s assets and liabilities.

Previous wording

Credit risk is the risk to the Company’s earnings and shareholders’ equity that results from customers, to whom loans have been made and to the issuers of debt securities in which the Company has invested, failing to repay their obligations. The magnitude of risk depends on the capacity and willingness of borrowers and debt issuers to repay and the sufficiency of the value of collateral obtained to secure the loans made or investments purchased.

Current wording

Credit risk is the risk to the Company’s earnings and shareholders’ equity that results from customers to whom loans have been made and to the issuers of debt securities in which the Company has invested, failing to repay their obligations. The magnitude of risk depends on the capacity and willingness of borrowers, debt issuers to repay and the sufficiency of the value of collateral obtained to secure the loans made or investments purchased.

Previous wording

The accounting and reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. In the course of normal business activity, management must select and apply many accounting policies and methodologies and make estimates and assumptions that lead to the financial results presented in the Company’s consolidated financial statements and accompanying notes. There are uncertainties inherent in making these estimates and assumptions, which could materially affect the Company’s financial condition or results of operations.

Current wording

The accounting and reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. In the course of normal business activity, management must select and apply many accounting policies, methodologies, and make estimates and assumptions that lead to the financial results presented in the Company’s consolidated financial statements and accompanying notes. There are uncertainties inherent in making these estimates and assumptions, which could materially affect the Company’s financial condition or results of operations.

Previous wording

Critical accounting estimates as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations. The more significant of these policies are summarized in Note 1 to the consolidated financial statements of this Annual Report Form 10-K. Not all significant accounting policies require management to make difficult, subjective or complex judgments. The allowance for credit losses on loans and unfunded commitments policies noted below are deemed the Company’s critical accounting estimate.

Current wording

Critical accounting estimates, as those estimates made in accordance with GAAP, involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on the financial condition or results of operations. The more significant of these policies are summarized in Note 1, Summary of significant accounting policies to the consolidated financial statements of this Annual Report Form 10-K. Not all significant accounting policies require management to make difficult, subjective or complex judgments. The allowance for credit losses on loans and unfunded commitments policies noted below are deemed the Company’s critical accounting estimate.

Previous wording

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolios, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Changes in the national unemployment rate and national GDP could have a material impact on the model’s estimation of the allowance. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings. This critical accounting policy and its application are periodically reviewed with the Audit Committee and the Board of Directors.

Current wording

Management of the Company considers the accounting policy relating to the allowance for credit losses on loans to be a critical accounting estimate given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of our loan portfolios. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolios, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management’s current evaluation of the allowance for credit losses on loans indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. The impact of utilizing the CECL models to calculate the allowance for credit losses are significantly influenced by the composition, characteristics and quality of our loan portfolios, as well as the prevailing economic conditions and forecasts utilized. Changes in the national unemployment rate and national gross domestic product could have a material impact on the model’s estimation of the allowance. Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to our reported earnings. This critical accounting policy and its application are periodically reviewed with the Audit Committee and the Board of Directors.

Previous wording

Management’s methodology in determining the allowance for credit losses on loans and unfunded commitments can be found in Note 1 to the consolidated financial statements of this Annual Report Form 10-K. The activity in the allowance for credit losses on loans and unfunded commitments is depicted in supporting tables in Note 4 to the consolidated financial statements of this Annual Report Form 10-K.

Current wording

The Company’s policies on the CECL method for allowance for credit losses are disclosed in Note 1, Summary of significant accounting policies with the audited consolidated financial statements and notes presented in this Annual Report Form 10-K. The activity in the allowance for credit losses on loans and unfunded commitments is depicted in supporting tables in Note 4, Loans and Allowance for Credit Losses on Loans to the consolidated financial statements of this Annual Report Form 10-K.

Previous wording

Net income for the year ended June 30, 2025 amounted to $31.1 million, or $1.83 per basic and diluted share, as compared to $24.8 million, or $1.45 per basic and diluted share, for the year ended June 30, 2024, an increase of $6.3 million, or 25.7%. The increase in net income was primarily due to an increase of $14.0 million in interest income partially offset by an increase of $4.9 million in interest expense. The provision for credit losses amounted to a charge of $1.3 million and $766,000 for the years ended June 30, 2025 and 2024, respectively. Net interest income increased $9.1 million when comparing the years ended June 30, 2025 and 2024. The increase in net interest income resulted from an increase in interest rates earned on interest-earnings assets outpacing the increase in interest rates paid on interest-bearing liabilities, and by interest-earnings assets growing faster than interest-bearing liabilities when comparing the years ended June 30, 2025 and 2024. Growth in interest-earning assets was due to loans and securities. Growth in loans was primarily in commercial real estate.

Current wording

Net income for the year ended June 30, 2026, amounted to $41.0 million, or $2.41 per basic and diluted share, as compared to $31.1 million, or $1.83 per basic and diluted share, for the year ended June 30, 2025, an increase of $9.9 million, or 31.7%. The increase in net income was primarily due to an increase of $13.4 million in interest income and a decrease of $4.4 million in interest expense. The provision for credit losses amounted to $2.0 million and $1.3 million for the years ended June 30, 2026 and 2025, respectively. Net interest income increased $17.8 million when comparing the years ended June 30, 2026 and 2025. The increase in net interest income resulted from an increase in interest rates earned on interest-earnings assets, a decrease in interest rates paid on interest-bearing liabilities, and interest-earnings assets growing faster than interest-bearing liabilities when comparing the years ended June 30, 2026 and 2025. Growth in interest-earning assets was due to loans and securities. Growth in loans was primarily in commercial real estate.

Previous wording

Net interest rate spread and margin both increased when comparing the years ended June 30, 2025 and 2024. Net interest rate spread increased 22 basis points to 1.97% for the year ended June 30, 2025, compared to 1.75% for the year ended June 30, 2024. Net interest margin increased 21 basis points to 2.19% for the year ended June 30, 2025, compared to 1.98% for the year ended June 30, 2024. The increase during the year ended June 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.

Current wording

Net interest rate spread and margin both increased when comparing the years ended June 30, 2026 and 2025. Net interest rate spread increased 46 basis points to 2.43% for the year ended June 30, 2026, as compared to 1.97% for the year ended June 30, 2025. Net interest margin increased 46 basis points to 2.65% for the year ended June 30, 2026, as compared to 2.19% for the year ended June 30, 2025. The increase during the year ended June 30, 2026 was driven by higher interest income on loans and securities, as earning assets repriced and new originations reflected yields above prior-period levels, combined with disciplined deposit pricing that reduced funding costs.

Previous wording

Total assets grew $214.8 million, or 7.6%, to $3.0 billion at June 30, 2025 as compared to $2.8 billion at June 30, 2024. Net loans increased $127.0 million, or 8.6%, to $1.6 billion at June 30, 2025 as compared to $1.5 billion at June 30, 2024. Securities classified as available-for-sale and held-to-maturity increased $91.9 million, or 8.8%, to $1.1 billion at June 30, 2025 as compared to $1.0 billion at June 30, 2024. Deposits increased $250.6 million, or 10.5%, to $2.6 billion at June 30, 2025 as compared to $2.4 billion at June 30, 2024. Total shareholders’ equity increased to $238.8 million at June 30, 2025 from $206.0 million at June 30, 2024, resulting primarily from net income of $31.1 million and a decrease in accumulated other comprehensive loss of $6.2 million, partially offset by dividends declared and paid of $4.5 million.

Current wording

Total assets grew $142.8 million, or 4.7%, to $3.2 billion at June 30, 2026 as compared to $3.0 billion at June 30, 2025. Net loans increased $124.2 million, or 7.7%, to $1.7 billion at June 30, 2026 as compared to $1.6 billion at June 30, 2025. Securities classified as available-for-sale and held-to-maturity increased $45.1 million, or 4.0%, to $1.2 billion at June 30, 2026 as compared to $1.1 billion at June 30, 2025. Deposits increased $73.6 million, or 2.8%, to $2.7 billion at June 30, 2026 as compared to $2.6 billion at June 30, 2025. Total shareholders’ equity increased to $277.8 million at June 30, 2026, from $238.8 million at June 30, 2025, resulting primarily from net income of $41.0 million and a decrease in accumulated other comprehensive loss of $2.0 million, partially offset by dividends declared and paid of $4.0 million.

Previous wording

Total cash and cash equivalents decreased $7.3 million to $183.1 million at June 30, 2025 from $190.4 million at June 30, 2024. 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. As of June 30, 2025, the Company believes it has maintained a strong liquidity position.

Current wording

Total cash and cash equivalents decreased $38.2 million to $144.9 million at June 30, 2026 from $183.1 million at June 30, 2025. 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. As of June 30, 2026 and 2025, the Company believes it has maintained a strong liquidity position.

Previous wording

Securities available-for-sale and held-to-maturity increased $91.9 million, or 8.8%, to $1.1 billion at June 30, 2025 as compared to $1.0 billion at June 30, 2024. Securities purchases totaled $444.2 million during the year ended June 30, 2025, primarily consisting of $308.5 million of state and political subdivision securities, $88.4 million of mortgage-backed securities, $24.7 million of U.S. Treasury securities, $16.7 million of collateralized mortgage obligations, and $5.9 million of corporate debt securities. Principal pay-downs and maturities during the year ended June 30, 2025 amounted to $353.5 million, primarily consisting of $258.7 million of state and political subdivision securities, $58.0 million of U.S. Treasury securities, $32.7 million of mortgage-backed securities, $2.8 million of collateralized mortgage obligations and $1.3 million of corporate debt securities. Sales during the year ended June 30, 2025 amounted to $6.7 million of U.S. Treasury securities.

Current wording

Securities available-for-sale and held-to-maturity increased $45.1 million, or 4.0%, to $1.2 billion at June 30, 2026 as compared to $1.1 billion at June 30, 2025. Securities purchased totaled $694.2 million during the year ended June 30, 2026, primarily consisting of $340.5 million of state and political subdivision securities, $254.2 million of U.S. Treasuries, $78.0 million of mortgage-backed securities, $12.5 million of collateralized mortgage obligations, and $9.0 million of corporate debt securities. Principal pay-downs and maturities during the year ended June 30, 2026, amounted to $644.8 million, primarily consisting of $320.1 million of state and political subdivision securities, $261.0 million of U.S. Treasuries, $44.5 million of mortgage-backed securities, $15.3 million of corporate debt securities, and $3.9 million of collateralized mortgage obligations.

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-maturitywas $548,000 and $483,000 at June 30, 2025 and 2024, 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-maturitywas $530,000 and $548,000 at June 30, 2026 and 2025, respectively.

Previous wording

The Company holds 59.2% of its securities portfolio at June 30, 2025 in 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 and asset-backed securities held within the portfolio do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Current wording

The Company holds 58.7% of its securities portfolio at June 30, 2026 in 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 35.7% of our securities portfolio at June 30, 2026, do not contain sub-prime loans and are not exposed to the credit risk associated with such lending.

Previous wording

Net loans receivable increased $127.0 million, or 8.6%, to $1.6 billion at June 30, 2025 from $1.5 billion at June 30, 2024. The loan growth experienced during the year ended June 30, 2025 consisted primarily of $117.9 million in commercial real estate loans, $5.5 million in commercial loans, and $4.9 million in home equity loans. The Company continues to experience loan growth as a result of 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 regard 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 $124.2 million, or 7.7%, to $1.7 billion at June 30, 2026 as compared to $1.6 billion at June 30, 2025. Loan growth experienced during the year ended June 30, 2026, consisted primarily of $92.3 million in commercial real estate loans, $24.7 million in commercial loans, and $11.3 million in home equity loans. The Company continues to experience loan growth as a result of continued growth in its customer base and its relationships with other financial institutions in originating loan participations. The Company continues to use conservative underwriting in its loan originations and does not engage in sub-prime lending or other exotic loan products. Updated appraisals may be 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, or an event that would indicate a significant decline in the collateral value. 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/cost of ($567,000) and ($42,000) at June 30, 2025 and 2024, respectively.

Current wording

Loan balances include net deferred (fees)/costs of ($397,000) and ($567,000) at June 30, 2026 and 2025, respectively.

Previous wording

Loan balances exclude accrued interest receivable of $7.0 million and $6.2 million at June 30, 2025 and 2024, 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 June 30, 2026 and 2025, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Previous wording

Commercial real estate loans are the largest segment of the Company’s loan portfolio and are comprised of 84.4% in non-owner occupied loans and 15.6% 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 57.2%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.4%, as of June 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 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 85.5% in non-owner occupied loans and 14.5% 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 57.5%, and the Company’s owner occupied commercial real estate loans have a weighted average LTV of approximately 49.4%, as of June 30, 2026. 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 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 June 30, 2025, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans, at $282.3 million or 26.8% 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 June 30, 2025, the weighted average LTV was approximately 58.8% for the non-owner occupied multi-family loan segment.

Current wording

As of June 30, 2026, the Company’s largest commercial real estate concentration was non-owner occupied multi-family loans, at $296.7 million or 25.9% 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 June 30, 2026, the weighted average LTV was approximately 57.9% for the non-owner occupied multi-family loan segment.

Previous wording

As of June 30, 2025, non-owner occupied construction loans were $72.0 million or 6.8% 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 $5.5 million or 1.0% of the Company’s construction exposure. Construction loans are primarily comprised of approximately 33.5% mixed use real estate, 27.3% multi-family buildings, 18.1% pre-construction and land loans, and 12.1% residential real estate.

Current wording

As of June 30, 2026, non-owner occupied construction loans were $90.5 million or 7.9% 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. Construction loans are primarily comprised of approximately 39.1% multi-family buildings, 28.5% mixed use real estate, 16.1% condominiums and 10.4% self-storage. As of June 30, 2026, there were no high volatility commercial real estate loans.

Previous wording

The Company’s outstanding balance of non-owner occupied commercial real estate office loans were $67.9 million or 6.4% of total commercial real estate loans as of June 30, 2025. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of June 30, 2025, the weighted average LTV was approximately 59.3% 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 $83.5 million or 7.3% of total commercial real estate loans as of June 30, 2026. The office loans are primarily low-rise, non-metropolitan buildings, located within our geographic footprint. As of June 30, 2026, the weighted average LTV was approximately 58.3% for the non-owner occupied office loan segment.

Previous wording

Management continually identifies, analyzes and monitors the quality of the loan portfolio and has established a loan review process designed to help grading credit risk inherent in the commercial loan portfolio. The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk. Consistent with regulatory guidelines, the Company provides for the classification of loans and other assets considered being of lesser quality. Such ratings coincide with the “Substandard”, “Doubtful” and “Loss” classifications used by federal regulators in their examination of financial institutions. Assets that do not currently expose the insured financial institutions to sufficient risk to warrant classification in one of the aforementioned categories but otherwise possess weaknesses are designated “Special Mention.” The components of the Company’s underwriting and monitoring functions are critical to the timely identification, classification and resolution of problem credits. For further discussion regarding how management determines when a loan should be classified, see Part II, Item 8 Financial Statements and Supplemental Data, Note 4, Loans and Allowance for Credit Losses on Loansof this Annual Report.

Current wording

Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help monitor any change in borrower risk during the life cycle of their loan. The Company utilizes a credit quality grading system that is used at loan inception and updated as appropriate based on an annual review process. The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk and identify any portfolio trends that could impact profitability. Consistent with regulatory guidelines, the Company provides for the classification of loans, such as “Pass,” “Special Mention,” “Substandard”, “Doubtful” and “Loss” classifications. The components of the Company’s underwriting and monitoring functions are critical to the timely identification, classification and resolution of problem credits. For further discussion regarding how management determines when a loan should be classified, see Part II, Item 8 Financial Statements and Supplemental Data, Note 4, Loans and Allowance for Credit Losses on Loansof this Annual Report.

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 proceedings 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 June 30, 2025, two loans have been modified in the last 12 months with a total amortized basis of $2.8 million. As of June 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 June 30, 2026, four loans have been modified in the last 12 months with a total amortized basis of $4.2 million. As of June 30, 2025, there were two loans modified in the last 12 months with a total amortized basis of $2.8 million.

Previous wording

The Company analyses loans on an individual basis when management determines that the individual loan no longer exhibits risk characteristics consistent with its designated pool of loans, under the Company’s CECL methodology. Loans individually evaluated had an amortized cost basis of $751,000 and $1.4 million, with an allowance for credit losses on loans of $549,000 and $662,000, at June 30, 2025 and 2024, respectively.

Current wording

The Company analyzes loans on an individual basis when management determines that the individual loan no longer exhibits risk characteristics consistent with its designated pool of loans, under the Company’s CECL methodology. Loans individually evaluated had an amortized cost basis of $1.6 million and $751,000, with an allowance for credit losses on loans of $466,000 and $549,000, at June 30, 2026 and 2025, respectively. At June 30, 2026, the amortized cost basis of the collateral dependent loans was $1.4 million for residential real estate loans and $170,000 for home equity loans. At June 30, 2025, the amortized cost basis of collateral dependent loans was $751,000 for residential real estate loans. The allowance for credit loss for collateral dependent loans is individually assessed based on the fair value of the collateral less costs to sell at the reporting date.

Previous wording

Non-performing assets amounted to $3.1 million and $3.7 million at June 30, 2025 and 2024, respectively. 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. These loans will be returned to accrual status once they have demonstrated a history of timely payments. Loans on non-accrual status totaled $3.7 million at June 30, 2024, of which there were four residential real estate loans totaling $686,000 and three commercial real estate loan totaling $1.6 million in the process of foreclosure. Included in non-accrual loans were $1.5 million of loans which were less than 90 days past due at June 30, 2024, 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.

Current wording

Non-performing assets amounted to $3.9 million and $3.1 million at June 30, 2026 and 2025, respectively. Loans on non-accrual status totaled $3.9 million at June 30, 2026, of which there were four residential real estate loans totaling $745,000 in the process of foreclosure. Included in non-accrual loans were $1.7 million of loans which were less than 90 days past due at June 30, 2026, 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. These loans will be returned to accrual status once they have demonstrated a history of timely payments.

Previous wording

In addition to non-performing assets discussed above, the Company has identified potential problem loans classified as substandard or special mention, totaling $45.4 million at June 30, 2025 compared to $48.6 million at June 30, 2024, a decrease of $3.2 million. During the year ended June 30, 2025, the Company upgraded 10 commercial real estate relationships and 15 commercial relationships to pass, and 10 commercial real estate relationships and 5 commercial relationships were paid-off. This was offset by 14 commercial real estate relationships and 11 commercial relationships that were downgraded to classified from pass, due to the deterioration in the borrower cash flows and financial performance during the year end June 30, 2025. During the year ended June 30, 2024, the Company downgraded to classified from pass 17 commercial real estate relationships and 9 commercial loan relationships, due to the deterioration in the borrower cash flows and financial performance. This was offset by 4 commercial real estate relationships and 1 commercial relationship that were upgraded to pass, and 7 commercial real estate relationships and 2 commercial relationships that were paid-off during the year ended June 30, 2024. Management continues to monitor classified loan relationships closely. The Company had no loans classified doubtful or loss at June 30, 2025 or June 30, 2024.

Current wording

In addition to non-performing assets discussed above, the Company has identified potential commercial and commercial real estate problem loans classified as substandard or special mention, totaling $40.0 million at June 30, 2026 as compared to $39.4 million at June 30, 2025, an increase of $524,000. During the year ended June 30, 2026, the Company upgraded 3 commercial real estate relationships and 2 commercial relationships to pass and 5 commercial real estate relationships and 4 commercial relationships were paid-off. This was offset by 7 commercial real estate relationships and 4 commercial relationships that were downgraded to classified from pass, due to the deterioration in the borrower cash flows and financial performance during the year end June 30, 2026. During the year ended June 30, 2025, the Company upgraded 10 commercial real estate relationships and 15 commercial relationships to pass, and 10 commercial real estate relationships and 5 commercial relationships were paid-off. This was offset by 14 commercial real estate relationships and 11 commercial relationships that were downgraded to classified from pass, due to the deterioration in the borrower cash flows and financial performance during the year end June 30, 2025. Of the loans classified as substandard or special mention, $38.8 million were performing at June 30, 2026. Management continues to monitor classified loan relationships closely. The Company had no loans classified doubtful or loss at June 30, 2026 or June 30, 2025.

Previous wording

The ACL on loans totaled $20.1 million at June 30, 2025, compared to $19.2 million at June 30, 2024. The ACL on loans to total loans receivable was 1.24% at June 30, 2025, compared to 1.28% at June 30, 2024. The ACL on loans as of June 30, 2025 increased as compared to June 30, 2024, primarily attributable to growth in gross loans, an increase in the reserve for individually evaluated loans, and a modest deterioration in the economic forecasts used in the CECL models on loans as of June 30, 2025. This was partially offset by an improvement in the qualitative factor assessments on loans as of June 30, 2025.

Current wording

The ACL on loans totaled $21.9 million at June 30, 2026, as compared to $20.1 million at June 30, 2025, an increase of $1.7 million, or 8.5%. The ACL on loans to total loans receivable was 1.25% at June 30, 2026, as compared to 1.24% at June 30, 2025. The increase in the ACL on loans as of June 30, 2026, was primarily attributable to an increase in loan volume.

Previous wording

Net charge-offs totaled $349,000 and $1.4 million for years ended June 30, 2025 and 2024, respectively. There were no material charge-offs in any loan segment during the year ended June 30, 2025 and one commercial loan charged-off for the year ended June 30, 2024, which was fully reserved for as an individually evaluated loan through the allowance for credit losses.

Current wording

Net charge-offs totaled $338,000 and $349,000 for the years ended June 30, 2026 and 2025, respectively, a decrease of $11,000. There were no material charge-offs in any loan segment during the years ended June 30, 2026 and 2025.

Previous wording

The allowance for credit losses on unfunded commitments represents the amount held against credit exposures that are not represented on the consolidate balance sheets. The allowance is recognized as a liability, a component of other liabilities, with adjustments as an expense in other noninterest expense. The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the estimated contractual life. The Company considers the following segments of unfunded commitments exposure; home equity line of credits, commercial line of credits, consumer loans, the residential and commercial real estate loans committed but not closed and the unfunded portion of the construction loans. The probable funding amount by segment is multiplied by the respective reserve percentage calculated in the allowance for credit losses on loans to calculate a reserve on unfunded commitments.

Current wording

The allowance for credit losses on unfunded commitments represents the amount held against credit exposures that are not represented on the consolidate statements of financial conditions. The allowance is recognized as a liability, a component of accrued expenses and other liabilities, with adjustments as an expense in other noninterest expense. The Company estimates expected credit losses over the contractual period in which the Company has exposure to a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the estimated contractual life. The Company considers the following segments of unfunded commitments exposure: home equity line of credits, commercial line of credits, consumer loans, the residential and commercial real estate loans committed but not closed and the unfunded portion of the construction loans. The probable funding amount by segment is multiplied by the respective reserve percentage calculated in the allowance for credit losses on loans to calculate a reserve on unfunded commitments.

Previous wording

At June 30, 2025, the allowance for credit losses on unfunded commitments was $1.8 million, as compared to $1.3 million at June 30, 2024.

Current wording

At June 30, 2026, the allowance for credit losses on unfunded commitments was $1.4 million, as compared to $1.8 million at June 30, 2025.

Previous wording

The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and are presented within other assets and other liabilities on the consolidated statements of financial condition. Changes in the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statement of income.

Current wording

The Company enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as hedges for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Company’s consolidated statements of income. The Company records its interest rate swap agreements at fair value and are presented within other assets and other liabilities on the consolidated statements of financial condition. Changes in the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statements of income.

Previous wording

RPAs in which the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. The RPAs participations-out are spread out over three financial institution counterparties and terms range between three to ten years. The Company’s credit exposure transferred out was $506,000 and $105,000 as of June 30, 2025 and 2024, respectively. The Company transferred out RPAs with a notional amount of $18.9 million and $8.0 million as of June 30, 2025 and 2024, respectively.

Current wording

RPAs in which the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. The RPAs participations-out are spread out over three financial institution counterparties and terms range between three to nine years. The Company’s credit exposure transferred out was $39,000 and $506,000 as of June 30, 2026 and 2025, respectively. The Company transferred out RPAs with a notional amount of $22.3 million and $18.9 million as of June 30, 2026 and 2025, respectively.

Previous wording

RPAs in which the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The RPAs participations-ins are spread out over five financial institution counterparties and terms range between two to twelve years. The credit exposure associated with risk participations-ins was $1.0 million and $276,000 as of June 30, 2025 and 2024, respectively. The Company held RPAs with a notional amount of $130.9 million and $112.3 million as of June 30, 2025 and 2024, respectively.

Current wording

RPAs in which the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The RPAs participations-ins are spread out over five financial institution counterparties and terms range between one to eleven years. The credit exposure associated with risk participations-ins was $231,000 and $1.0 million as of June 30, 2026 and 2025, respectively. The Company held RPAs with a notional amount of $152.4 million and $130.9 million as of June 30, 2026 and 2025, respectively.

Previous wording

Premises and equipment amounted to $15.2 million and $15.6 million at June 30, 2025 and 2024, respectively. Purchases totaled $691,000 during the year ended June 30, 2025, consisting primarily of data equipment for a new disaster recovery and new surveillance systems for the Company’s branch network. Purchases totaled $1.5 million during the year ended June 30, 2024, consisting primarily of building improvements and equipment for a new lending center located in Albany, New York and a new office building located in Catskill, New York, and IT equipment. Depreciation for the year ended June 30, 2025 totaled $1.1 million, compared to $928,000 for the year ended June 30, 2024. There were no disposals of premises and equipment during the fiscal years ended June 30, 2025 and 2024.

Current wording

Premises and equipment amounted to $14.8 million and $15.2 million at June 30, 2026 and 2025, respectively. Purchases totaled $741,000 during the year ended June 30, 2026, consisting primarily of IT infrastructure, computer equipment, surveillance systems and furniture to support the opening of a new branch. Purchases totaled $691,000 during the year ended June 30, 2025, consisting primarily of data equipment for a new disaster recovery site and new surveillance systems for the Company’s branch network. Depreciation for the years ended June 30, 2026 and 2025 totaled $1.1 million. There were no disposals of premises and equipment during the fiscal years ended June 30, 2026 and 2025.

Previous wording

Real estate acquired as a result of foreclosure, or in-substance foreclosure, deed in lieu of foreclosure or in full or partial satisfaction of loans, is classified as foreclosed real estate (“FRE”) until such time as it is sold. When real estate is classified as FRE, it is recorded at the estimated fair value of the property less estimated costs to dispose at the time of acquisition to establish a new carrying value. Write downs from the carrying value of the loan to estimated fair value, which are required at the time of foreclosure, are charged to the allowance for credit losses. Subsequent adjustments to the carrying value of such properties resulting from declines in fair value result in the establishment of a valuation allowance and are charged to operations in the period in which the declines occur. At June 30, 2025 and 2024, the Company had no foreclosed real estate.

Current wording

Real estate acquired as a result of foreclosure, or in-substance foreclosure, deed in lieu of foreclosure or in full or partial satisfaction of loans, is classified as foreclosed real estate (“FRE”) until such time as it is sold. When real estate is classified as FRE, it is recorded at the estimated fair value of the property, less estimated costs to dispose of at the time of acquisition to establish a new carrying value. Write downs from the carrying value of the loan to estimated fair value, which are required at the time of foreclosure, are charged to the allowance for credit losses. Subsequent adjustments to the carrying value of such properties resulting from declines in fair value, result in the establishment of a valuation allowance and are charged to operations in the period in which the declines occur. At June 30, 2026 and 2025, the Company had no foreclosed real estate.

Previous wording

Deposits totaled $2.6 billion at June 30, 2025 and $2.4 billion at June 30, 2024, an increase of $250.6 million, or 10.5%. The Company had $51.6 million and zero brokered deposits at June 30, 2025 and June 30, 2024, respectively. NOW deposits increased $192.6 million, or 10.9%, and certificates of deposits increased $89.7 million, or 64.8%, when comparing June 30, 2025 and June 30, 2024. Noninterest bearing deposits decreased $15.3 million, or 12.2%, money market deposits decreased $10.5 million, or 9.3%, and savings deposits decreased $5.9 million, or 2.3%, when comparing June 30, 2025 and June 30, 2024.

Current wording

Deposits totaled $2.7 billion at June 30, 2026 as compared to $2.6 billion at June 30, 2025, an increase of $73.6 million, or 2.8%. The Company had $52.4 million and $51.6 million of brokered deposits at June 30, 2026 and 2025, respectively. NOW deposits increased $30.2 million, or 1.5%, noninterest bearing deposits increased $30.1 million, or 27.3%, and certificates of deposits increased $20.6 million, or 9.0%, when comparing June 30, 2026 and 2025. Savings deposits decreased $3.7 million, or 1.5%, and money market deposits decreased $3.6 million, or 3.5%, when comparing June 30, 2026 and 2025.

Previous wording

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

Current wording

(1)Reflects $144.9 million, $183.1 million, and $190.4 million of cash and cash equivalents, $255.4 million, $221.1 million, and $157.6 million of remaining borrowing capacity from the Federal Home Loan Bank, and $15.9 million, $18.2 million, and $21.7 million of remaining borrowings capacity from the Federal Reserve Bank, as of June 30, 2026, 2025, and 2024, respectively.